Labour Law Assignment1
Labour Law Assignment1
Labour Law Assignment1
The word „Industry‟ includes any business, trade, undertaking, manufacture or calling of employers
and includes any calling service, employment, handicraft or industrial occupation or avocation of
coorkmen. We have developed the understanding about what is industry and now it is to be
focused about what is industrial dispute. The term industrial dispute means any dispute or
difference between employers and employers or between employers and workmen, or between
workmen and workmen. Which is connected with the employment or non-employment or the terms
of employment or with the conditions of labour of any person. The Industrial Disputes Act, 1947
came into existence in April 1947. It was enacted to make provisions for investigation and
settlement of industrial disputes and for providing certain safeguards to the workers.
An Act to make provision for the investigation and settlement of industrial disputes, and for certain
other purposes. Whereas it is expedient to make provision for the investigation and settlement of
industrial disputes, and for certain other purposes here after appearing. The preamble to the act
reads thus, ‘ an act to make provision for the investigation and settlement of industrial disputes and
for certain other purposes.’ on the basis of various judgments given from time to time by the
supreme court, the principal objective of the act may be stated as below:
a) To ensure social justice to both employers and employees and advance the progress of
industry by bringing about harmony and cordial relationships between the parties.
b) To settle disputes arising between the capital and labour by peaceful methods and through the
machinery of conciliation, arbitration and if necessary, by approaching the tribunals constituted
under the act. If disputes are not settled, it would result in strikes or lock-outs and entail dislocation
of work, essential to the life of the community.
c) To promote measures for securing and preserving amity and good relations between the
employer and workmen.
f) To protect workmen against victimizations by the employer and to ensure termination of industrial
dispute in a peaceful manner.
The Act provides self- contained code to compel the parties to resort to industrial arbitration for the
resolution of disputes. It also provides statutory norms besides helping in the maintaining of cordial
relations among the employers and employees reflecting socio-economic justice.
1. Works Committee
2. Conciliation Officer
3. Boards of conciliation
4. Court of Inquiry
5. Labour Court
6. Labour Tribunals
7. National Tribunals
It shall be the duty of the working committee to promote measures for securing and preserving
amity and good relations between the employers and workmen and, to that end, to comment upon
matters of their common interest or concern and to endeavor to compose any material difference of
opinion in respect of such matters and decision of the works committees are not binding.
In Northbrook Jute Company V. Their Workmen (1960), the company proposed to introduce a
rationalisation scheme. The Union did not agree with the scheme, however, the works committee
met in an extraordinary session and accepted the proposed scheme. On the basis of the
acceptance of the Works Committee the company gave notice under section 9-A of the Act of
changes in service conditions. The union raised an industrial dispute.
Thereafter the company implemented the scheme. The workers refused to do the additional work it
required. The company declared a stock-out. After four days a settlement was reached between
the union and the company concerning the rationalisation scheme. However, the par-ties could not
agree upon the payment of wages for the lock-out period. This dispute was referred to adjudication.
The Industrial Tribunal held that the company implementing the rationalisation scheme in reliance
on the decision of the works committee, while a dispute was pending was in contravention of Sec.
33 of the Act. Hence the Lock-out declared by the company was illegal. The workers must be paid
wages for that period.
The Company applied for and obtained special leave from the Supreme Court. The Supreme Court
held that the works committee was not intended to supplant or supersede the union for the purpose
of collective bargaining. They are not authorized to consider real or substantial changes in the
conditions of service. Their task is only to smooth away friction that might arise between the
workmen and the management in day to day work. The duties and function of the works committee
do not include the decision on such an important matter as the alterations in the conditions of
service by rationalisation.
The fact that the representatives of the workmen in the works committee agreed to the introduction
of the rationalisation scheme was in no way binding on the workmen or their Union.
For promoting and settlement of industrial disputes the appropriate Government may by notification
in the Official Gazette, appoint such a number of conciliation officers as it thinks fit. The main
objective of appointing conciliation officers is to create a congenial atmosphere within the industry
and reconcile the disputes of the workers and the employers. He may be appointed for a specified
area or for specific industries in a specified area or for one or more specified industries and either
permanently or for a limited period.
The Powers and Procedure is laid down in Section 11 of the Industrial Dispute Act,1947. A
Conciliation Officer for the purpose of inquiring into an existing apprehended Industrial Dispute is
empowered, after giving the notice to enter the premises occupied by the Industrial establishment.
A Conciliation Officer is also empowered to call for and inspect any document which he may
consider relevant to the dispute. A Conciliation Officer enjoys the same powers as are available to
the civil Courts in respect of compelling the parties to appear and produce all the relevant
documents. All Conciliation Officers are Public Servants within the meaning of Section 21 of the
Indian Penal Code.
The duty of the conciliation officer is not judicial but administrative. He has to hold conciliation
proceedings, investigate the disputes and do all such things as he thinks fit for the purpose of
inducing the parties to arrive at a fair settlement of the disputes. The conciliation officer is entitled
to enter an establishment to which the dispute relates, after reasonable notice and also to call for
and inspect any document which he considers relevant. He has to send a report and memorandum
of settlement to the appropriate Government. The report by the conciliation officer has to be
submitted within 14 days of the commencement of the conciliation proceeding or shorter period as
may be prescribed by the appropriate Government. The conciliation officer has the power to enter
the premises as well as call for and inspect documents.
In B.N. Elias and Co, Ltd. V. G.P. Mukheriee ( 1959), it was held that if the appropriate government
refuses to make a reference it shall record and communicate to the parties reasons for such
refusal.
In Vishnu Sahay v. Manager (1972), the court held that while refusing to refer a dispute, the
Government must give reasons for such refusal. It should be communicated to the parties.
The appropriate Government may by notification in the Official Gazette, constitute a Board of
Conciliation for the settlement of industrial disputes. The Board shall consist of a chairman and 2 or
4 other members in equal numbers representing the parties to the disputes as the appropriate
Government thinks fit. The Chairman shall be an independent person. A person is “independent”
for the purpose of appointment to a Board, Court or Tribunal if he is uncommitted with the dispute
or with any industry directly affected by such dispute. He may be a shareholder of a company
connected with or likely to be affected by such disputes. But in such a case he must disclose to the
Government the nature and intent of his share [Section 2(i)]. Where the appropriate Government is
of the opinion that any industrial disputes exist in an industry, it may refer by order in writing to the
Board of Conciliation for settling industrial disputes.
In Horchner Tea Estate v. L.A.T ( 1959), it was held that the Board is bound by the fundamental
rules of natural justice as it exercise powers of Quasi-Judicial Nature.
The Board of Conciliation has to bring about a settlement of the dispute. He has to send a report
and memorandum of settlement to appropriate Government. He has to send a full report to the
Appropriate Government setting for the steps taken by the Board in case no settlement is arrived
at. The Board of Conciliation has to communicate the reasons to the parties if no further reference
is made. The Board has to submit its report within 2 months of the date on which the dispute was
referred to it within the period what the appropriate Government may think fit. The report of the
Board shall be in writing and shall be signed by all the members of the Board.
Proceedings in the Board of conciliation are instituted only on a reference by the appropriate
government whereas a conciliation officer is under a duty to intervene and mediate with the
contending parties. If it is a public utility service and notice under Section 22 of the Act has been
given. In the case of non-public utility services the conciliation officer may investigate or mediate
into the matter using his discretion. But such discretion cannot be exercised in an arbitrary
capricious manner: (East Asiatic and Allied Companies V. B.L. Sheik, (1961).
The report of the Court must be signed by all the members. A member can submit a note of
dissent. The Report together with the dissenting note must be published by the appropriate
Government within 30 days from its report. A court of enquiry has no power to improve any
settlement upon the parties.
LABOUR COURT (Section 7):
The appropriate Government may by notification in the Official Gazette, constitute one or more
labour court for adjudication of industrial disputes relating to any matters specified in the Second
Schedule. A labour court consists of one person only to be appointed by the appropriate
Government.
The main function of the labour court is to hold its proceedings expeditiously and submit its award
as the proceeding concludes.
The appropriate Government may by notification in the Official Gazette, constitute one or more
Industrial Tribunals for adjudication of industrial disputes. A Tribunal shall consist of one person to
be appointed by the appropriate Government. The Appropriate Government may appoint two
persons as assessors to advise the Tribunal. The person shall be not qualified unless—
The functions of the Tribunals are very much like those of a body discharging judicial functions,
although it is not a Court. Its power is different from that of a Civil Court. The proceedings before an
Industrial Tribunal are quasi-judicial in nature with all the attributes of a Court of Justice. The
Government is empowered under Section 7-A of the Act to constitute for a limited time which
comes to an end automatically on the expiry of the said period for any particular case. The duties of
Industrial Tribunal are identical with the duties of the Labour Court, i.e. on reference of any
industrial disputes; the Tribunal shall hold its proceedings expeditiously and submit its award to the
appropriate Government.
In Workmen of Williamson magor and Company Ltd v Williamson magor and Company Ltd (1982),
it has observed that “the Industrial Tribunals are intended to adjudicate industrial disputes between
the management and the workmen. The Tribunal has to settle the dispute and pass effective award
in such a way that industrial peace between the employers and the employees may be maintained
so that there can be more production to benefit all concerned.
NATIONAL TRIBUNALS (Section 7 B):
The Central Government may, by notification in the Official Gazette, constitute one or more
National Industrial Tribunals for the adjudication of industrial disputes. National Industrial Tribunals
are involve only in case of the questions of national importance or if they are of such a nature that
industrial establishments situated in more than one State are likely to be interested in, or affected
by, such industrial disputes. It consists of one person only to be appointed by the Central
Government. The person shall not be qualified for appointment as the presiding officer unless he is,
or has been, a Judge of a High Court. Beside these, the Central Government may, if it thinks fit,
appoint two persons as assessors to advise the National Tribunal in the proceedings before it.
● PROVIDED that no notice shall be required for effecting any such change-
2.where the workmen likely to be affected by the change are persons to whom the Fundamental
and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services
(Temporary Service) Rules, Revised Leave Rules, Civil Services Regulations, Civilians in Defense
Services (Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or
any other rules or regulations that may be notified in this behalf by the appropriate Government in
the Official Gazette, apply.
CONCLUSION
For industrial set up, the workmen and the employers are the two sides of the same coin. Without
the coordination of both of these class, no industry can achieve its goal. Hence there must be
harmonious and friendly environment at the industrial workplaces so that the objective of
establishing the industries can be gained. The employers should think of the interests of the
workmen working. The workmen should be given well treatment by the employers in terms of
monetary and other basic facilities that are essential for their survival. The good attitude towards
workmen make workmen work with more efficiency and interest and this conduct of workmen
provide progress to the industries. If there arose any situation of difference of opinion in respect of
any of work condition like duration of working hours, bonus, wages, place of work etc then the
differences may be sort out by talks and conversation leaving other coercive means like strikes,
lockouts.