• BUSINESS LAW

TOPIC : THE INDUSTRIAL DISPUTES ACT , 1947

Introduction :
The object of the Industrial disputes act is to make provision for the investigation and
settlement of industrial disputes and for certain other purposes. The act is primarily meant
for regulating the relations of employers and workmen , past , present and future. The
principal aim of this act is to encourage collective bargaining and to maintain industrial
peace by preventing illegal strikes and lockouts and to provide lay off and retrenchment
compensation.
The Industrial disputes act, 1947 has been amended several times . It is progressive piece
of legislation to suit the modern industrial set up and settle the disputes .
 Highlights of the Act ,2010
The Industrial
1. It provides for settlement of disputes between
Disputes Amendment) workers and management
Act , 2010 2. The act , 2010 allows workers to approach the courts
directly
3. The act,,2010 requires all establishments with more
than 20 workmen to establish a grievance redressal
committee to hear individual grievances
4. The act, 2010 raises the ceiling from rs. 1600 per
month to rs. 10000 per month.
5. The act ,2010 broadens the eligibility criteria of
presiding officers of courts established under the act.
Modes of settlement of Industrial Disputes
The main object of Industrial Disputes act is investigation and settlement of
industrial disputes. With that object in view various authority have been created
under the act. The act provides for the following modes of settlement of
industrial disputes.
1. Voluntary settlement and conciliation
2. Adjudication ( with the help of courts)
3. Arbitration ( with the help of third parties )
 A.Voluntary Settlement in Conciliation
1. Works committee
The work committee as an instrument for peaceful settlement of industrial disputes has been introduced
in India for the first time under the industrial disputes act ,1947.
They are required to promote measures for securing and preserving good relations between the employer
and his workmen . It shall meet and discuss matters of common interest and make efforts to settle
differences in respect of such matters . They are normally concerned with the problems arising in day to
day working of the establishment, for instance, matters concerning their welfare , training, wages , hours
of work , bonus ,etc . The decision of the work committees , though carry great weight are not binding
either on the employer or workmen .
They are viewed as a prevention which is better than cure.
 2. Conciliation officers
• Duties of Conciliation officers :
1.The Conciliation officers may hold Conciliation proceedings in the prescribed manner where
an industrial disputes exist or is apprehended .
2.To investigate disputes without delay and empowers him to do all such things as he thinks fit
for the purpose of inducing the parties to arrive at a fair and amicable settlement of the
disputes.
3.. He is required to make a reports to the appropriate government or its authorized officer
together with a memorandum of settlement signed by the parties to the disputes ..
 3. BOARD OF CONCILIATION
• Duties of the board of Conciliation
• The board is required to send a report to the appropriate government together with a memorendum of
settlement duly signed by the parties to the dispute.
• The Board is required to send a report to the appropriate government together with a memorandum of
settlement duly signed by the parties to the dispute.
• The Board is required to send a failure report to the appropriate government setting out therein the
proceedings and steps taken by the Board for ascertaining the facts and circumstances relating to the
dispute and efforts made by it to achieve settlement.
 4. Courts of inquiry
Duties :Section 14 deals with the duties of the court of inquiry. The first
duty of the court is to enquire into the matter referred to it. The second
duty of the court is to make a report to the appropriate government on
the inquiry held by it on the matters referred to it This report is ordinarily
required to be submitted within a period of six months from the
commencement of the inquiry. The word "ordinarily" appears to
indicate that the period can be extended. The report of the court of
inquiry is required to be published by the appropriate government under
section 17.
 B. Adjudication
5. Labour courts Functions: The functions of labour courts are-
1. to adjudicate the industrial disputes relating to matters specified in the second schedule of the Act:
2. to perform such other functions as may be assigned to them under this Act.
Adjudication means a mendatory or compulsory settlement of industrial disputes by Labour Courts or
Industrial Tribunals or National Tribunals under the Industrial Disputes Act
Jurisdiction
The second schedule provides for the matters relating to industrial disputes which shall be adjudicated
by the labour courts. But the first provision to section 10(1) lays down that where the dispute relates to a
matter specified in the third schedule, if it is not likely to affect more than hundred workmen, it can be
referred to a labour court. Any reference by the government to the labour court of any matter covered by
third schedule and affecting more than hundred workmen would be bad in law and the award of the
labour court void
 6. Tribunals
• Constitutions: Section 7-A empowers the appropriate government to constitute one more Industrial
Tribunals. Its appointment has to be notified in the official gazette. The appropriate government has
wide powers under this section to appoint tribunals for any limited time or for a particular case or a
number of cases or for a particular area.
Functions: Industrial tribunals are constituted for the adjudication of industrial disputes relating to
any matter specified in the second schedule or the third schedule. These tribunals shall perform such
other functions as may be assigned to them under this Act.
Whereas a labour court can adjudicate an industrial dispute relating to matters in schedule IH, the
industrial tribunal can adjudicate disputes relating to matter contained in both schedules II and III.
Thus there is a concurrent jurisdiction of the labour court and the industrial tribunal in respect of any
matter included in the second schedule. However, the first provision to section 10(1) lays down that
where the dispute relates to a matter specified in the third schedule, and is not likely to affect more
than one hundred workmen the appropriate government may make reference to a labour court.
 7. National Tribunals
• Constitution: Section 7-B provides for the constitution of national industrial tribunals. The
central government is empowered to constitute one or more national tribunals by
notification in the official gazette. A national tribunal can be constituted only for the
adjudication of industrial disputes involving questions of national importance or industrial
disputes affecting industrial establishments situated in more one State. The jurisdiction of
a national tribunal is very wide and exclusive. Where a reference has been made to a
national tribunal, then no labour court or tribunal shall have jurisdiction to adjudicate upon
that matter.
• Presiding Officers and his qualifications:: The national tribunal shall consist of one person
only to be appointed as its presiding officer of the national tribunal unless he is or has been
a judge of the high court. The central government may, if it so thinks fit, appoint two
persons as assessors to advise the national tribunal in the proceeding before it.
 8.Reference of certain individual Disputes
to grievance settlement Authorities
• The Industrial Disputes (Amendment) Act 1982 has inserted new chapter in the Act for he setting up
of grievance settlement authorities and reference of individual disputes to such authorities
The employer in relation to every industrial establishment in which fifty or more workmen are
employed or have been employed on any day in the preceding twelve months, hall set up, in
accordance with the rules made in this behalf in this Act, a grievance settlement authority for the
settlement of industrial disputes connected with an individual workman employed in the
establishment.
Where industrial dispute connected with an individual workman arises in an establishment a
workman or any trade union of workmen of which such workman is a member, refer such dispute to
the grievance settlement authority set up by the employer for settlement
The grievance settlement authority shall follow such procedure and complete its proceedings within
such period as may be prescribed.
9. VNTARY REFERENCE OF DISPUTES
TO ARBITRATION
• Section 10-A authorizes the employer and his workmen to refer the dispute to arbitrations Po at any
time before the dispute has been referred under section 10. The object of this section is to enable
the employersand employees to refer their dispute voluntarily to arbitration.
The essential requirements, before a dispute can be referred to arbitration, are as under.
• 1. There should be an existing or apprehend industrial dispute.
2. the reference to arbitration should be by a written agreement
3. the reference should be made before the dispute had been referred under section 10 the to a
labour court, or tribunal or national tribunal:
4. the names of the person or persons to act as arbitrator or arbitrators must be specified in the
agreement. Such persons may be presiding officers of labour court. Tribunal or national tribunal.
 PROCEDURE AND POWERS OF
AUTHORITIES
• Procedure:
Section 11(1) provides that the arbitrator, board court, labour court, tribunal tribunal shall follow the
procedure prescribed in the rules made under the Act. The authorities are further empowered to follow such
procedure as they think it when they find no me to follow on a given matter.
Powers of Conciliation Officer, Boards, Courts and Tribunals
1. Section 11(2)authorizes a conciliation officer or a member of a board, court, or the presiding officer of a
labour court, tribunal or national tribunal to enter the premises occupied by any establishment to which the
dispute relates after giving reasonable notice. They can only enter for the purpose of making an enquiry into
any existing of apprehended industrial dispute. It is to be noticed that this power of entry is not available to
an arbitrator
2. Section 11(3) grants to every board, court, labour court, tribunal and national tribunal be same powers as
are vested in a civil court under the Code of Civil Procedure Act, 1908,
 When trying a suit, in respect of the following matters, namely: be
(a) enforcing the attendance of any person and examining him on oath;
(b) compelling the production of documents and material objects:
(c) Issuing commission for the examination of witnesses
(d) in respect of such other matters as may be specified.
3. Section 11(4) empowers the conciliation officer to call for and inspect any document which he considers to be
relevant to an industrial dispute under conciliation, or for other The purposes specified in this sub-section. He
may also enforce the attendance of any person fire purpose of examination of each person. For this sub-section
conciliation officer enjoys the same powers as are vested in a civil court under the Civil Procedure Code in
respect of enforcing the attendance of any person and examining him or of compelling the production of
documents
4. Section 11(5) gives power to a court, labour court, tribunal or national tribunal to his was one or more
persons as assessor or assessors to advise in the proceedings before it. The appointment can only be of a person
having special knowledge of the matter under moderation
5. Section 11(7) vests tribunal etc. with the discretion to award costs.
 AWARD AND SETTLEMENT
• There are two broad modes by which it is possible to see an end to an industrial dispute
One mode relates to quasi-judicial act and the other to collective act. The former is called
"award and the latter 'settlement'. An award is an interim or a final determination of
any industrial dispute. It is made by an adjudication machinery. On the other hand a
settlement is arrived at by collective bargaining, of the workmen with the employer. When
a collective effort of the labour and the management to bring an end to an industrial
dispute become successful it is called settlement
Form of report or award [Section 16]
This section has been divided into two parts. The first part deals with the report of boar
or court. It provides that the report shall be in writing and signed by all members of a
boar or court. It authorizes any member to write a note of dissent if he so desires.
 PUBLICATION OF REPORTS AND
AWARD
• Every report of a board of conciliation or court of inquiry together with any minute of
dissent recorded therewith, every arbitration, award, and every award of a labour o
industrial tribunal or national tribunal shall be published. Such publication shall take place
within a period of thirty days from the date of its receipt by the appropriate govern. The
manner of publication depends upon the will of the appropriate government. The section
further provides that subject to the provisions of section 17-A as award published shall be
final and shall not be called in question by any court.
The provision that the award shall be published within a period of 30 days from the date of
its receipt is not mandatory but only directory. This section makes it obligatory on the
appropriate government to publish the award. If the publication of the award is delayed for
one reason or the other the delay would not render the award invalid.
Submitted by: SHREYA PURI (2138/23)
. ASHISH SACHDEVA (2022/23)
CLASS : BCOM 1