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What is the object of the Industrial Disputes Act, 1947?

The object of the Industrial Disputes Act, 1947 is as follows:List of 8 items• The Industrial Disputes Act makes provision for the investigation and settlement of Industrial disputes;• The object of the Act is to achieve the promotion of harmony in labour- capital relationship;• It provides a machinery for the settlement of Industrial disputes by arbitration or adjudication;• It attempts to ensure social justice and economic progress, by fostering Industrial harmony;• It enables workmen to achieve their demands by means of the legitimate weapon of strikes, and thus facilitates collective bargaining;• It prohibits illegal strikes and lockouts;• It provides relief of workmen in the event of a lay-off or retrenchment;• It enables the State to play a constructive role in employer workmen relationship.What is the scope of the Industrial Disputes Act, 1947?

Industrial Disputes Act, 1947 is a progressive piece of legislation that is designed to settle the disputes on a pattern otherwise unknown to the judicialmachinery. It also applies to industries owned by Central and State Governments. What is an 'Industrial Dispute'?

An 'industrial dispute' is defined as any dispute or difference between employers and employees or between employers and workmen or between workmen andworkmen, which is connected with the employment or terms of employment or with conditions of labour of any person [S.2 (k)].

The Industrial Dispute presupposes the existence of an industry. There can be no Industrial Dispute in the absence of any Industry.

It shall be observed from the definition of industrial dispute that it refers to any dispute or difference between the employers on one side and the workmenon the other or, between two sets of employers or between one set of workmen and another set of workmen. Also, such a dispute or difference must necessarilybe connected with the employment (or non-employment) or terms of employment or the conditions of labour of any person. The word 'any person' in the lastpart of the definition, through judicial dicta, has been explained to be a person who need not necessarily be a workman or an employer. However, such aperson in whose employment or terms thereof and/or in whose conditions of labour the workman has direct and substantial interest.

Normally, for a dispute or a difference between an employer and workman to be an industrial dispute, it is essential that the dispute should concern the

workmen as a class and should not just be a dispute between an individual workman and the employer. The group of workmen need not necessarily be a majorityor even a very large group. Even a dispute between a sizeable group of workmen and their employer would be an industrial dispute. However, there is oneexception to this general rule, namely, even a dispute between the employer and an individual workman shall be deemed to be an industrial dispute if thatdispute relates to or is connected with or arising out of the discharge, dismissal, retrenchment or termination of services of an individual workman. Sucha dispute will be deemed to be an industrial dispute even if neither the other workman nor a union is a party to the dispute. This change has been broughtabout by insertion of S.2A in Industrial Disputes Act, 1947 with effect from 1/12/1965. What is an 'Industrial establishment or undertaking' under the Industrial Disputes Act, 1947?

An 'Industrial establishment or undertaking' under the Industrial Disputes Act, 1947 is defined as an establishment or undertaking in which any industryis carried on. What is an 'industry' under the Industrial Disputes Act, 1947?

An 'industry' is defined to cover business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraftor industrial occupation or allocation of workmen [S.2(j)].

The following have been held to be industries:List of 31 items1. State Hospital;2. Charitable Institutions -- (a) those that yields profit, the profits are siphoned off for altruistic purposes; (b) those that make no profit but hirethe services of employees as in any other business, but the goods and services which are the output, are available at a low cost or at no cost to the indigentpoor. However, charitable institutions that are oriented on a humane mission, fulfilled by men who work, not because they are paid wages, but because theyshare the passion for the cause and derive job satisfaction are not covered by the expression industry;3. Ayurvedic Pharmacy Hospital;4. Indian Red Cross Society;5. Indian Cancer Society;6. Activities of Panjapole;7. A real estate company, leasing out mansions and which employs workers like sweepers, durwan, plumbers, bill collectors, mistries, lift-men etc.;8. Running of tube-wells by Government or Government- owned corporations;9. Co-operative Societies;10. Federation of Indian Chamber of Commerce;11. Panchayat Samities;12. Irrigation Department of State Government;13. Public Health Department;

14. State Insurance and P.F. Department;15. Company carrying on agricultural operations;16. State Tourism Department;17. Central Ordinance Depot;18. Director of State lotteries;19. Water supply and drainage board;20. Science and Technological museum;21. Industrial Development Centre for tools and dies;22. Corporation set up for the upliftment of workmen or weaker sections of the society by giving financial help and training;23. Legal Aid and Legal Advice Board;24. Indian Institute of Petroleum;25. Co-operative Credit Institution;26. A Trust for promoting religious, social and educational life but also undertaking commercial activities;27. Khadi and Village Industries Board;28. Management of a private Educational Institution;29. Bank notes Press;30. Clubs;31. Offices of Professionals- Doctors, Lawyers, Solicitors etc.

An undertaking, carrying on sovereign functions, is excluded from the definition of the word 'industry'. Even in departments, which discharge sovereignfunctions if there are units, which are industries, and which are substantially severable, then they would be covered by the definition of the word industry. Who is a 'workmen' under the Industrial Disputes Act, 1947?

In the Industrial Disputes Act, 1947 a 'workman' is defined as any person, (including an apprentice) employed in any industry to do any manual, unskilled,skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposeof any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connectionwith, or as a consequence of that dispute, or whose dismissal, discharge or retrenchment has led to that dispute. However, it does not include any of thefollowing persons:List of 4 items1. who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950) or the Navy Act, 1957 (62 of 1957);2. who is employed in the Police service or as an officer or other employee of a prison;3. (iii) who is employed mainly in a managerial or administrative capacity;4. (iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the natureof the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature [Sec.2(s)].

The word workman has been the subject of significant judicial pronunciation. As per this dictum, the designation of a person is not relevant for the purposeof determining whether a person is a workman or not. The duties and functions performed by such a person are very relevant to the definition of ''workman''.However, to fall under the definition of "workman", a person must be employed in an industry to do work of a manual, unskilled, skilled, technical, operational,clerical or supervisory work for hire or reward. It is essential that there is an employer-employee relationship in existence. If the duties of a personare partly supervisory and partly clerical or partly technical and partly managerial or administrative, whether such a person is a workman or not, woulddepend upon what the main features of his employment are. For example, it is must be determined whether the substance of his employment is manual or clericalor otherwise. The principal factor that determines whether the person is a workman or not is the main work for which he has been employed and engaged.His designation or any incidental work that is done or required to be done by him is not relevant.

Applying this definition, the following are held to be workmen:List of 17 items1. A salesman, whose duties include manual as well as clerical work such as to attend to the customer, prepare cash memos, to assist the manager in dailyroutine etc;2. A sales representative doing clerical work and preparing of reports, tally of accounts, taking stock of goods, collection of goods, collection of amounts,etc;3. A Chemist-in-charge discharging the functions of a Chemist;4. A technician-cum-Designer in the knitting department;5. Airline Pilots;6. Aircraft maintenance engineers;7. An internal auditor of a company with duties mainly to report or check but without any authority to take decisions and bind the company;8. Even a part-time worker is a workman;9. A person employed to play a musical instrument;10. Dismissed or discharged workmen or retrenched workmen;11. Transport Engineers, Blending Supervisors, Foreman, Depot superintendents, District Engineers etc;12. Employees of the Municipality;13. Inspectors and salesmen in the employment of a company;14. Manager of a hotel who has to write ledgers, file correspondence, enter cashbooks, etc;15. A lower division clerk in a technical education institute, clerk of a university and State Insurance;16. Accountants who are merely senior clerks with supervisory duties;17. Salesman doing work on fixed scale and not on commission.

The following are not workmen under this definition:

List of 5 items1. A medical representative;2. Person authorized to assign duties and distribute work, blending supervisors and overhauling supervisors;3. Auditors;4. Apprentice governed by Apprentices Act, 1961;5. Maintenance Engineer performing supervisory work and authorized to make temporary appointments, grant leave, initiate disciplinary proceedings, etc.What is an Award?

An award means an interim or a final determination of any Industrial Dispute or of any related question, by any labour court, Industrial Tribunal or NationalIndustrial Tribunal. What are the various authorities provided under the Industrial Disputes Act, 1947?

The various authorities, provided under the Industrial Disputes Act, 1947, are as follows:List of 7 items1. The Works Committee;2. Conciliation Officers;3. Boards of Conciliation;4. Courts of Inquiry;5. Labour Courts;6. Industrial Tribunals; and7. National Tribunal.What is a Works Committee and what is its function?

In any Industrial Establishment in which 100 or more workmen are employed or have been employed in the preceding 12 months, the Government may, by generalor special order, require the employer to constitute a Works Committee, consisting of representatives of the employers and the workmen engaged in the establishment.

The number of representatives of workmen on such Committee shall not be less than the number of representatives of the employer. The representatives ofworkmen shall be chosen in the prescribed manner from amongst the workmen, engaged in the establishment and in consultation with the Trade Union.

It is the duty of the Works Committee to promote measures for securing and preserving amity and good relations between the employer and workmen and, tothat end, to comment upon matters of their common interest and endeavour to compose any material difference of opinion in respect of such matters.

The Works Committee is not intended to supplement the unions for the purpose of collective bargaining. They are not authorized to consider real or substantialchanges in the conditions of service. Their task is only to smooth away friction that may arise between the workmen and the management in day-to-day work.

They cannot decide any alteration in the conditions of service by rationalization. Even if the workman''s representatives on the Works Committee agreeto a scheme of rationalization, that is not binding either on the workers or on the mills. [S.3 of Industrial Disputes Act, 1947] Who are Conciliation Officers and what are their duties?

The appropriate Government may appoint Conciliation Officers who will settle an Industrial Dispute without delay. If an industrial dispute exists or isapprehended or where the industrial dispute relates to a public utility service and a notice of strike or a notice of lock out has been given, the Conciliationofficer shall hold conciliation proceedings in the prescribed manner. The Conciliation Officer shall investigate the dispute and all matters that affectthe merits and the settlement of rights and may do such things as he thinks fit for the purpose of inducing parties to come to a fair and amicable settlementof the dispute. [S.4 of Industrial Disputes Act, 1947]What are Concilation Proceedings?

Conciliation Proceedings refer to any proceedings, held by a conciliation officer or board. Concilliation proceedings are therefore the machinery or meansof promoting the settlement of disputes. What is the Board of Conciliation and what is its duty?

The appropriate Government may as occasion arises, by a notification in the Official Gazette, constitute a board of conciliation for promoting the settlementof an industrial dispute. The Board shall consist of a Chairman, who shall be an independent person and two or four other members as the appropriate Governmentmay think fit. The other members shall be persons, appointed in equal number by the parties to the dispute. The duties of the Board are almost similarto that of a Conciliation Officer. [S.5 of the Industrial Disputes Act, 1947]What is a Court of Inquiry and what is its function?

The appropriate Government may, as occasion arises, by notification in the Official Gazette, constitute a Court of Inquiry for inquiring into any matter,connected with or relevant to an industrial dispute.

The Court shall enquire into the matters that are referred to it and subsequently submit to a report to the appropriate Government within a period of sixmonths from the date of commencement of the enquiry. [S.6 of Industrial Disputes Act, 1947]What are Labour Courts? Which matters fall within the jurisdiction of Labour Courts?

The appropriate Government may, by notification in the Official Gazette, constitute one or moreLabour Court for adjudication of industrial disputes, relating to any matters that are specified in the Second Schedule and for performing such other functionsas may be assigned to them.

The Labour Court consists of one person only and no person is qualified for appointment as a presiding officer of a Labour Court unless he is, or has beena Judge of a High Court or has been a District Judge or an Additional District Judge for a period of not less than three years or, he has held a judicialoffice in India for not less than seven years or has been a presiding officer of a Labour Court, constituted under any Provincial Act or State Act fornot less than five years. [S.6 of the Industrial Disputes Act, 1947]

Matters, falling within the jurisdiction of Labour Courts, are as follows:List of 6 items1. The propriety or legality of an order, passed by an employer under the standing orders;2. The application and interpretation of standing orders;3. Discharge or dismissal of workmen, including the reinstatement of, or grant of relief to workmen wrongfully dismissed;4. Withdrawal of any customary concession or privilege;5. Illegality or otherwise of a strike or lock-out;6. All matters other than those specified in the Third Schedule.What are Industrial Tribunals? Which matters fall under their jurisdiction?

The appropriate Government, by a notification in the Official Gazette, may constitute one or more Industrial Tribunals for the adjudication of industrialdisputes, relating to any matter specified in the Second or Third Schedule and for performing such other functions as may be assigned to them under thisAct.

An Industrial Tribunal shall consist of one person to be appointed by the appropriate Government and the person shall not be qualified for appointment assuch unless:List of 2 items• (a) he is or has been a judge of a High Court;• (b) he has for a period of not less than three years been a District Judge or an Additional District Judge.

[S.7-A of the Industrial Disputes Act, 1947]

The matters, falling within the jurisdiction of the Industrial Tribunals, are as follows:List of 11 items1. Wages, including the period and mode of payment;2. Compensatory and other allowances;3. Hours of work and rest intervals;4. Leave with wages and holidays;5. Bonus, profit sharing, provident fund and gratuity;6. Shift working, otherwise than in accordance with the standing orders;7. Classification by grades;8. Rules of discipline;

9. Rationalization;10. Retrenchment of workmen and closure of establishment; and11. Any other matter that may be prescribed.What are National tribunals?

The Central Government may, by notification in the Official Gazette, constitute one or more National Tribunals for adjudication of industrial disputes which,in the opinion of the Central Government, involve questions of national importance or are of such a nature that industrial establishments in more thanone State are likely to be interested in, or affected by such disputes.

The National Tribunal shall consist of one person only, to be appointed by the Central Government and a person shall not be qualified for appointment assuch unless he is or has been a Judge of a High Court.

The Central Government may, if it thinks fit, appoint two persons as assessors to advice the National Tribunal in the proceeding before it.

[S.7-B of the Industrial Disputes Act, 1947] What are the disqualifications for the presiding officers of Labour Courts, Tribunals and National Tribunals?

No person shall be appointed to, or continue in the office of the presiding officer of aLabour Court, Tribunal or National Tribunal if:List of 2 items• he is not an independent person;• he has attained the age of sixty-five years.list end

[S.7-C of the Industrial Disputes Act, 1947] What are the provisions regarding a change in the condition of service of workmen?

No employer, who proposes to effect any change in the conditions of service that is applicable to any workman in respect of any matter specified in theFourth Schedule, shall effect such change as follows:List of 2 items• without giving to the workman, likely to be affected by such change, a notice in the prescribed manner of the nature of the changed that is proposed tobe effected;• within twenty-one days of giving such notice:list end

However, no notice shall be required for effecting any such change in the following cases:List of 2 items• where the change is effected in pursuance of any settlement or award;

• where the workmen are 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 Service Regulations, Civilians in Defence 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 appropriateGovernment in the Official Gazette, apply.list end

[S.9-A of the Industrial Disputes Act, 1947].

The matters specified in the Fourth Schedule for which a Notice of change has to be given are as follows:List of 11 items1. Wages, including the period and mode of payment;2. Contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefit of the workmen under any law for the time beingin force;3. Compensatory and other allowances;4. Hours of work and rest intervals;5. Leave with wages and holidays;6. Starting, alteration or discontinuance of shift working otherwise than in accordance with standing orders;7. Classification by grades;8. Withdrawal of any customary concession or privilege or change in usage;9. Introduction of new rules of discipline, or alteration of existing rules, except insofar as they are provided in the standing orders;10. Rationalization, standardization or improvement of plant or technique which is likely to lead to retrenchment of workmen;11. Any increase or reduction (other than casual), in the number of persons employed or to be employed in any occupation or process or department or shift(not occasioned by circumstances over which the employer has no control).Does the Government have the power to provide exemption from the requirement of giving a 'Notice of Change'?

Where the appropriate Government is of the opinion that the application of the provisions of Sec.9-A to any class of workmen, employed in any industrialestablishment, affect the employers so prejudicially that such application may cause serious repercussion on the concerned industry and that the publicinterest so requires, the appropriate Government may, by notification in the Official Gazette, direct that the provisions of the said section shall notapply, or shall apply, subject to such conditions as may be specified in the notification, to that class of industrial establishments or, to that classof workmen, who are employed in any industrial establishment. [S.9-B of the Industrial Disputes Act, 1947] Which provision deals with the referral of disputes to Boards, Courts or Tribunals?

The parties to an industrial dispute apply in the prescribed manner, whether jointly or separately, for a reference of their dispute to a Board,Labour Court, Tribunal or National Tribunal. Subsequently, the appropriate Government, if satisfied that the persons, who are applying, represent the majorityof each party, shall make the reference accordingly.

An order, referring an industrial dispute to aLabour Court, Tribunal or National Tribunal, shall specify the time in which the award must be submitted. However, no proceedings before a court, Tribunalor National Tribunal shall lapse merely on the ground that any specified period had expired without such proceeding being completed.

The Labour court, Tribunal or National Tribunal is required to confine its adjudication to those points, which are referred in the order of reference andother incidental matters.

Where a dispute, concerning an establishment, has been referred for adjudication and, in the opinion of the appropriate government, whether on applicationmade in that behalf or otherwise, the dispute is of such a nature that any other establishment, group or class of establishments of a similar nature islikely to be interested in or affected by such dispute, the appropriate Government may include (but before the submission of the award is made) such establishment,group or class of establishments to the order of reference.

No proceedings, pending before theLabour Court, Tribunal or National Tribunal in relation to any industrial dispute, shall lapse merely by reason of death of any of the parties to the dispute.Moreover, suchLabour Court, Tribunal or

National Tribunal shall complete such proceedings and submit its award to the appropriate Government. [S.10 of the Industrial Disputes Act, 1947]

Reference under S.10 should be construed liberally and not pedantically. Principles of res judicata apply to labour adjudication also, though in a restrictedmanner. In certain cases like revision of awards or service conditions, such principles may be inapplicable.

Adjudication by the Tribunal is by no means analogous to what an arbitrator has to do in determining ordinary civil disputes according to the legal rightsof the parties. Unlike ordinary courts, the Labour Courts and Tribunals have powers to create new rights and obligations between the parties.

In considering the question of making a reference, the Government cannot adjudicate the dispute itself on merits, nor can it refuse to refer the dispute

and decide the same itself. However, in exceptional cases, it may, on proper examination of the demand, come to the conclusion that as the demands wereperverse or frivolous, they did not merit reference. A writ petition against the Government''s Order, which refuses to make a reference of an industrialdispute, is maintainable.

A Labour Court cannot dismiss a reference for non-prosecution on the part of the workman. It must decide the reference on merits. The Labour Courts/ IndustrialTribunal, in industrial dispute, cannot go beyond the reference or incidental matters. What is the provision regarding voluntary reference of disputes to arbitration?

Where any industrial dispute exists or is apprehended and, the employer and the workmen agree to refer the dispute to arbitration, they may, at any timebefore the dispute has been referred under Section 10 to aLabour Court or Tribunal or National Tribunal, by a written agreement, refer the dispute to arbitration. The reference shall be to such person or personsas specified in the arbitration agreement.

Where the reference of the dispute is to an even number of arbitrators and the arbitrators are equally divided in their opinion, the agreement shall providefor the appointment of an umpire, who shall enter upon the reference. The award of the umpire shall prevail and shall be deemed to be the arbitration award.

Nothing in the Arbitration Act, 1940 shall apply to arbitration under this Act. [S.10-A of the Industrial Disputes Act, 1947]. Discuss the provision regarding the procedure and powers of conciliation officers, Boards, Courts and Tribunals.

While the arbitrators are free to follow such procedure as they may think fit, the Industrial Disputes (Central) Rules provide for the procedure to be followedby the Labour Courts and Industrial Tribunals while adjudicating an industrial dispute. A conciliation officer or a member of the Board or a Court or thepresiding officer of aLabour Court, Tribunal or National Tribunal, may, for the purpose of inquiry into any existing or apprehended industrial dispute, after giving reasonablenotice, enter the premises occupied by any establishment to which the dispute relates.

Every Board, Labour Court, Tribunal and National Tribunal shall have the same powers as are vested in a civil court, under the Code of Civil Procedure,1908, while trying a suit, in respect of the following matters:List of 3 items• enforcing the attendance of any person and examining him on oath;• compelling the production of documents and material objects;• issuing commissions for the examination of witnesses;list end

Every inquiry or investigation by a Board or Court (

Labour Court, Tribunal or National Tribunal) shall be deemed to be a judicial proceeding within the meaning of Sections 193 and 228 of the Indian PenalCode, 1860.

A conciliation officer may enforce the attendance of any person for the purpose of examination of such person. He may also call for and inspect any document,which he considers relevant to the industrial dispute or, to be necessary for the purpose of verifying the implementation of any award. A Conciliationofficer may carry out any other duty imposed on him under this Act. For this purpose, the conciliation officer shall have the same powers as are vestedin aCivil Court under the Code of Civil Procedure, 1908, in respect of enforcing the attendance of any person and examining him or of compelling the productionof documents. [S.11 of the Industrial Disputes Act, 1947] What are the powers of Labour Courts, Tribunals and National Tribunals with regard to the granting of relief in cases of discharge or dismissal of workmen?

By a newly inserted S. 11-A in the Industrial Disputes Act, 1947 (inserted with effect from 15/12/1971), the Labour Courts, Tribunals and National Tribunalshave been given the power to grant appropriate relief in case of the discharge or dismissal of workmen.

Where an industrial dispute, relating to the discharge or dismissal of workmen has been referred to a Labour Court, Tribunal or National Tribunal for adjudicationproceedings, and the Labour Court, Tribunal and National Tribunal is satisfied that the order of discharge or dismissal is not justified, it may, by itsaward, set aside the order of discharge or dismissal and direct reinstatement of the workman on such terms and conditions, if any, as it thinks fit orgive such other relief to the workman, including the award of any lesser punishment in lieu of discharge or dismissal as the circumstances of the casemay require.

While exercising the power under this section, theLabour Court, Tribunal or National Tribunal shall rely on the materials on record and shall not take any fresh evidence in relation to the matter. Priorto the insertion of this section, the Labour Courts, Tribunals and National Tribunals found it difficult to enforce the quantum of punishment unless itwas shockingly disproportionate to the alleged offence, from which itself an inference of malafides or victimization could be arrived at. However, afterthe insertion of this section, it is within the powers of the Labour Court, Tribunal and National Tribunal to interfere with the quantum of punishmentof dismissal or discharge- whether the same appears to be excessive and unduly harsh or not. As per the earlier dicta, the quantum of punishment was withinthe sole discretion of the employer. However, after the insertion of S. 11-A, the Labour Courts, Tribunals and National Tribunals have been empowered to

interfere with the quantum of punishment. However, it has to be kept in mind that the powers of the Tribunal are not arbitrary or unguided.

The expression 'materials on record' in the proviso by S.11-A refers to the materials on record before the Tribunal. It does not only refer to the materialsavailable on domestic enquiry. Further, it must be borne in mind that the Tribunal is to rely on 'materials on record.'What are the provisions regarding publication and commencement of reports and awards?

S.17 of the Industrial Disputes Act, 1947 deals with the publication of reports and awards. The appropriate Government is required to publish the awardwithin 30 days of receipt of the same.

S.17A of the Act provides that an award shall become enforceable on the expiry of 30 days from the date of its publication under S.17. The appropriate Governmenthas been given the powers under certain specified conditions. For instance, if it is expedient on public grounds, affecting national economy or socialjustice, not to give effect to the whole or part of the award, but whilst doing so, the appropriate Government may be required to lay the award beforethe Legislature of the State or before the Parliament, at the first available opportunity. The provision has however been the subject of some adverse criticismby some of the High Courts. Is the employer liable to pay wages to the workman, while proceedings are pending in higher Courts?

Yes. S.17B of the Industrial Disputes Act, 1947 provides that when a Labour Court, Tribunal or National Tribunal directs reinstatement of any workman byits award and, the employer prefers any proceedings against such award in a High Court or the Supreme Court, the employer shall be liable to pay such workman,during the pendency of the proceeding in the High Court or the Supreme Court, full wages last drawn by him. This is however subject to the proviso thatwhere it is proved to the satisfaction of the High Court or the Supreme Court that such workman had been employed and had been receiving adequate remunerationduring such period or part thereof, the Court may direct that no wages may be payable under this section for such period or part, as the case may be. The''last drawn wages'' has been clarified by the Supreme Court to mean wages, last drawn by the workman and not the wages he would have drawn if he had continuedin service.On whom are the settlements and awards binding?

S.18 of the Industrial Disputes Act, 1947 provides for the persons on whom settlements and awards are binding. A settlement, arrived at between the employerand workman, otherwise than in the course of conciliation proceeding shall be binding on the parties to the agreement.

An arbitration agreement shall also be binding on the parties to the agreement who refer the dispute for arbitration. However, an arbitration award alsobecomes enforceable on certain other parties, who are summoned before the arbitrator.

A settlement arrived at in the course of conciliation proceeding or, an award of aLabour Court, Tribunal or National Tribunal shall be binding on the following:List of 4 items• all parties to the industrial dispute;• all other parties, summoned to appear in the proceeding as parties to the dispute, unless the authority holds that they were so summoned without propercause;• where the party referred to in clause (a) or (b) above is an employer, his heirs, successors or assigns in respect to the establishment to which the disputerelates;• where the party referred to in clause (a) or (b) is composed of workmen, all persons, who were employed in the establishment to which the dispute relateson the date of the dispute and, all the persons, who subsequently become employed in that establishment or a part of it.What is the period of operation of settlements and awards?

List of 5 items1. The settlement shall come into operation on such date as is agreed upon by the parties and, in absence of any such specific date; it shall come intooperation on the date on which the memorandum of settlement is signed by the parties to the dispute.2. Such settlement shall be binding for such period as is agreed upon by the parties. If no such period is agreed upon for a period of six months from thedate of signing of the memorandum, The settlement shall continue to be binding on the parties after the expiry of the period aforesaid until the expiryof two months from the date on which a notice in writing of an intention to terminate the settlement is given by one of the parties to the other party.3. An award shall remain in operation for a period of one year from the date on which the award became enforceable. However, the appropriate Governmentmay reduce the said period and fix such period, as it thinks fit, provided that it may, before the expiry of the said period, extend the period of operationby any period not exceeding one year at a time, subject however that the total period of operation of any award does not exceed three years from the dateon which it came into operation.4. Notwithstanding the expiry of the period of operation of the award, the award shall continue to be binding on the parties until a period of two monthshas elapsed from the date on which notice is given by any party, bound by the award to the other party or parties intimating its intention to terminatethe award. The notice, under S.19 (2) or S.19 (6), shall not have effect unless it has been by a party, representing the majority of persons bound by thesettlement of the award as the case may be.

5. The aim of notice, under S.19(2) and 19(6), lies in the fact that no industrial dispute in respect of matters covered by an earlier settlement or awardcan be lawfully raised during the period when such a settlement or award is in operation. Without giving a notice on termination under S.19 (2) or 19(6)as the case may be, no industrial dispute ca be raised in respect of the matters, covered by such settlement or award. Any reference for adjudication ofsuch a dispute would be invalid if a notice of intention to terminate had not been given.

[S.19 of the Industrial Disputes Act, 1947]When shall conciliation proceedings commence?

A conciliation proceeding shall be deemed to have commenced on the date on which a notice of strike or lock-out under S.22 is received by the conciliationofficer or on the date of the order referring the dispute to a Board as the case may be.

[S.20 of the Industrial Disputes Act, 1947] What is the meaning of the term Strike under ID Act?

A Strike means:List of 2 items1. the cessation of work by a body of persons, who are employed in any industry acting in combination; or2. a concerted refusal, or a refusal, under a common understanding, of any number of persons who are, or have been, so employed to continue to work or acceptemployment.What are the different forms of Strikes?

Yes. There are different types of Strikes like "go slow", "pen down", "sit-in", "tool down", and "sit down" strikes.What is a Lock-out?

A Lock out means:List of 3 items1. the closing of a place of employment;2. the suspension of work;3. the refusal by an employer to continue to employ any number of persons employed by him.What is a Lay-off?

A Lay-off means the inability of an employer to give employment to a workman on account of the following:List of 3 items• shortage of coal, power or raw materials or the accumulation of stocks;• the breakdown of machinery;• for any other reason.

Such workman's name must be on the muster-roll of his Industrial establishment; and it is essential that the workman has not been retrenched. What is the difference between a Lay off and a Lock out?

List of 5 items• A lay-off generally occurs in a business which continues to operate; whereas a ''lock-out is a closure of business for the time-being.• In the case of a "Lay off", the employer is unable to give employment to one or more workman. However, in the case of a "lock-out," the employer deliberatelycloses the business and locks out the whole body of workman.• In the case of a "lay-off," the employer may be liable to pay compensation as provided by S. 25C, 25D and 25E of the Act, but liability for compensationcannot be invoked in case of a "Lock out," as the liability of the employer in cases of "lock-out" would depend on whether the "Lock out" was justifiedand legal or not.• But whatever the liability, the provisions applicable to the payment of "Lay-off" compensation cannot be applied to cases of "Lock-out".• "Lock-out" is resorted to by the employer as a weapon of collective bargaining and also, ordinarily involves an element of malice or ill will. On theother hand, a "Lay-off" is actuated by the exigencies of the business.What are the necessary ingredients of a Lay-off?

List of 2 items1. There must be failure, refusal or inability on the employer''s part to give work to the concerned workman.2. Such failure, refusal or inability should necessarily be on account of any of the following factors: Shortage of coal, power or raw materials, or accumulationof stocks or breakdown of machinery or any other reason.What are the differences between Lay- off and Retrenchment?

List of 2 items1. Lay-off doesnot involve the termination of services, while retrenchment necessarily involves such termination.2. Lay-off is the failure, refusal or inability of an employer to give employment to a workman on account of:List of 4 items (contains 1 nested list)List of 4 items nesting level 1• shortage of coal, power or raw materials;• the accumulation of stocks;• the breakdown of machinery;• any other reason.

Retrenchment is the termination of the workman's services 'for any reason whatsoever.' However, this does not include the following:

List of 4 items

• Punishment by way of disciplinary action;• Voluntary retirement;• Retirement at the age of superannuation, if the contract of employment contains a provision in that behalf;• Termination on ground of continued ill-health.

A retrenched workman cannot be laid off, as the definition of lay-off states that the workman who is to be laid off should be one" whose name is borne onthe muster-rolls of his industrial establishment, and who has not been retrenched". A workman, who has first been laid off may subsequently be retrenchedby virtue of the second proviso to S. 25 C.

While an employer may lay off a workman only on account of the factors in S. 2(kkk), an employer is entitled to retrench a workman on the ground that hisservices are not required for 'any reason whatsoever.' In the case of a lay-off, the words 'for any other reason' are to be construed.The right to receive lay-off compensation is subject to the restrictions, specified in the Act. On the other hand, the right to retrenchment compensationis absolute.

Discuss the provision regarding prohibition of strikes and lock-out in a public utility service.

List of 1 items• No person employed in a public utility service shall go on strike in breach of contract:List of 4 items (contains 1 nested list)List of 4 items nesting level 11. without giving to the employer notice of strike, within six weeks before striking;2. within fourteen days of giving such notice;3. before the expiry of the date of strike specified in any such notice as aforesaid;4. during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.List of 1 items• No employer carrying on any public utility service shall lock-out any of his workmen:list endList of 4 items (contains 1 nested list)List of 4 items nesting level 11. without giving them notice of lock-out as hereinafter provided, within six weeks before locking-out; or2. within fourteen days of giving such notice; or3. before the expiry of the date of lock-out specified in any such notice as aforesaid; or4. during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.list end nesting level 1list endBlock quote start

It will be observed from the comparison of sub-sections 1 and 2 that the restrictions, imposed on the workmen for going on a strike in a public utilityservice and, on an employer to declare lock-out in a public utility service are identical.Block quote endList of 1 items• The notice of lock-out or strike under this section shall not be necessary where there is already in existence a strike or, as the case may be, lockoutin the public utility service. However, the employer shall send intimation of such lock-out or strike on the day on which it is declared, to such authorityas may be specified by the appropriate Government, either generally or for a particular area or, for a particular class of public utility services.list endBlock quote start

[S.22 of the Industrial Disputes Act, 1947]Block quote endDiscuss the provision, which relates to general prohibition of strikes and lock-outs.

No workman, who is employed in any industrial establishment, shall go out on strike in breach of contract and, no employer of any such workman shall declarea lock-out in the following cases:List of 4 items1. during the pendency of conciliation proceedings before a Board and seven days after the conclusion of such proceedings;2. during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal and two months after the conclusion of such proceedings;3. during the pendency of arbitration proceedings before the arbitrator and two months after the conclusion of such proceedings, where a notification hasbeen issued under sub-section (3-A) of S. 10-A;4. during any period in which a settlement or award is in operation in respect of any of the maters covered by the settlement or award;list end

[S.23 of the Industrial Disputes Act, 1947] When shall a strike or lock-out be illegal?A strike or a lock-out in contravention of S. 22 or S. 23 shall be illegal. Where a strike or lock-out in pursuance of an industrial dispute has alreadycommenced and is in existence at the time of reference of the dispute to an arbitrator, Court, Labour Court, Tribunal or National Tribunal, such strikeor lock-out shall not be deemed to be illegal, provided it was not illegal at the time of commencement of such strike or lock-out. A lock-out, declaredin consequence of an illegal strike or, a strike in consequence of an illegal lock-out shall not be deemed to be illegal.[S.24 of the Industrial Disputes Act, 1947] What rights do workmen, who have been laidoff, have regarding compensation?

Whenever a workman (other than a badli workman or a casual workman), whose name is borne on the muster- rolls of an industrial establishment and, who hascompleted not less than one year of continuous service under an employer is laid off, whether continuously or intermittently, he shall be paid by the employerfor all days during which he is so laid off, except for such weekly holidays as may intervene, compensation which shall be equal to fifty per cent of thetotal of the basic wages and dearness allowance that would have been payable to him, had he not been laid off.

However, if during any period of twelve months, a workman is laid off for more than forty-five days, no such compensation shall be payable in respect ofany period of the lay-off after the expiry of the first forty-five days, if there is an agreement to that effect between the workman and the employer:

Provided further that it shall be lawful for the employer in any case falling within the foregoing proviso to retrench the workman in accordance with theprovisions contained in S.25-F at any time after the expiry of the first forty-five days of the lay-off and when he does so, any compensation paid to theworkman for having been laid off during the preceding twelve months may be set off against the compensation payable for retrenchment. [S.25-C of the IndustrialDisputes Act, 1947]What are the circumstances in which no compensation shall be paid to a workman who has been laid off?

No compensation shall be paid to a workman, who has been laid off in the following circumstances:List of 3 items1. if he refuses to accept any alternative employment in the same establishment from which he has been laid off, or in any other establishment belongingto the same employer, situated in the same town or village or, situated within a radius of five miles from the establishment to which he belongs, if inthe opinion of the employer, such alternative employment does not call for any special skill or previous experience and can be done by the workman, providedthat the wages, which would normally have been paid to the workman are offered for the alternative employment also;2. if he does not present himself for work at the establishment at the appointed time during normal working hours or at least once a day;3. if such laying-off is due to a strike or slowing-down of production on the part of the workmen in another part of the establishment.list end

[S.25-E of the Industrial Disputes Act, 1947] What are the conditions, precedent to retrenchment of workmen, in respect of establishments to which Chapter V-A of the Industrial Disputes Act, 1947 applies?

No workman, employed in any industry, who has been in continuous service for not less than one year unless an employer shall be retrenched by that employerunless the following circumstances exist,:List of 3 items• the workman has been given one month's notice in writing, indicating the reasons for retrenchment and the period of notice has expired, or the workmanhas been paid in lieu of such notice;• at the time of retrenchment, the workman has been paid compensation, which shall be equivalent to fifteen days' average pay for every completed year ofcontinuous service or, any part thereof in excess of six months;• notice in the prescribed manner is served on the appropriate Government or such authority, as may be specified by the appropriate Government by notificationin the Official Gazette.list end

[S.25-F of the Industrial Disputes Act, 1947]

Retrenchment, without complying with S.25-F, would be void ab initio. Such action would entitle the workman to a declaration for continuation of servicewith full back wages. The Court may, however, award monetary compensation in lieu of reinstatement. What are the conditions, precedent to retrenchment of workmen, in respect of establishments to which Chapter V-A of the Industrial Disputes Act, 1947 applies?



Retrenchment, without complying with S.25-F, would be void ab initio. Such action would entitle the workman to a declaration for continuation of servicewith full back wages. The Court may, however, award monetary compensation in lieu of reinstatement. What are the conditions, precedent to retrenchment of workmen, in respect of establishments to which Chapter V-A of the Industrial Disputes Act, 1947 applies?



Retrenchment, without complying with S.25-F, would be void ab initio. Such action would entitle the workman to a declaration for continuation of servicewith full back wages. The Court may, however, award monetary compensation in lieu of reinstatement. Are the workmen entitled to compensation in case of transfer of undertakings?

Where the ownership or management of an undertaking is transferred, whether by agreement or by operation of law, from the employer in relation to that undertakingto a new employer, every workman, who has been in continuous service for not less than one year in that undertaking immediately before such transfer, shallbe entitled to notice and compensation in accordance with the provisions of S.25-F, as if the workman had been retrenched:

However, nothing in this section shall apply to a workman in any case where there has been a change of employers by reason of the transfer, in the followingcircumstances:List of 3 items• the service of workman has not been interrupted by such transfer;• the terms and conditions of service, applicable to the workman after such transfer, are not in any way less favourable to the workman than those applicableto him immediately before the transfer;• the new employer is, under the terms of such transfer or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensationon the basis that his service has been continuous and has not been interrupted by the transfer.list end

[S.25-FF of the Industrial Disputes Act, 1047]

The important feature of this section is that under it the workmen can only claim compensation and not reinstatement. Is the employer required to give a notice of intention to close down any undertaking?

Yes. Sec.25-FFA of the Industrial Disputes Act, 1947 provides for the same.

Sec.25-FFA reads as follows:List of 1 items• An employer who intends to close down an undertaking shall serve, at least sixty days before the date on which the intended closure is to become effective,a notice, in the prescribed manner, on the appropriate Government stating clearly the reasons for the intended closure of the undertaking: However, nothingin this section shall apply to the following:list endBlock quote start

(a) an undertaking in which -Block quote endList of 2 items (contains 1 nested list)List of 2 items nesting level 1• less than fifty workmen are employed; or• less than fifty workmen were employed on an average per working day in the preceding twelve months;list end nesting level 1list endBlock quote start

(b) an undertaking set up for the construction of buildings, bridges, roads, canals, dams or for other construction work of project;Block quote endList of 1 items• Notwithstanding anything contained in sub-section (1), the appropriate Government may, if it is satisfied that owing to such exceptional circumstances,such as an accident in the undertaking or the death of the employer or the like, it is necessary to do so, by order, direct the provisions of sub-section(1) shall not apply in relation to such undertaking for such period as may be specified in the order.list endBlock quote start

However, notice under Sec25-FFA is not a condition, precedent for closure and non-compliance does not render the closure illegal and non-est from its verycommencement.Block quote endAre the workmen entitled to compensation in case of an undertaking closes down?

(1) Where an undertaking is closed down for any reason whatsoever, every workman, who has been in continuous service for not less than one year in thatundertaking immediately before such closure, shall, subject to the provisions of sub-section (2), be entitled to notice and compensation in accordancewith the provisions of Sec. 25-F, as if the workman had been retrenched:

However, where the undertaking is closed down on account of unavoidable circumstances beyond the control of the employer, the compensation to be paid tothe workman under clause (b) of Section 25-F shall not exceed his average pay for three months.

Explanation - An undertaking shall not be deemed to be closed down on account of unavoidable circumstances, beyond the control of the employer within themeaning of the proviso to this sub-section, in the following cases:List of 4 items• financial difficulties (including financial losses);• accumulation of undisposed of stocks; or• the expiry of the period of the lease or licence granted to it; or• in a case where the undertaking is engaged in mining operations, exhaustion of the minerals in the area in which such operations are carried on.list end

(1-A) However, no matter what is contained in sub-section (1), where an undertaking, engaged in mining operations, is closed down by reason merely of exhaustionof the minerals in the area in which such operations are carried on, no workman referred to in that sub-section shall be entitled to any notice or compensationin accordance with the provisions of Sec.25-F, in the following cases:Block quote start

(a) the employer provides the workman with alternative employment with effect from the date of closure at the same remuneration as he was entitled to receive,and on the same terms and conditions of service as were applicable to him, immediately before the closure;

(b) the service of the workman has not been interrupted by such alternative employment;

(c) the employer is, under the terms of such alternative employment or otherwise, legally liable to pay to the workman, in the event of his retrenchment,compensation on the basis that his service has been continuous and has not been interrupted by such alternative employment.Block quote end

(1-B) For the purposes of sub-sections (1) and (1-A), the expressions "minerals" and "mining operations" shall have the meanings, respectively assignedto them in clauses (a) and (d) of Sec.3 of the Mines and Minerals (Regulation and Development) Act, 1957.

(2) Where any undertaking set up for the construction of buildings, bridges, roads, canals, dams or other construction work is closed down on account ofthe completion of the work within two years from the date on which the undertaking has been set up, no workman, employed therein, shall be entitled toany compensation under clause (b) of Section 25-F. However, if the construction work is not completed within two years, he shall be entitled to noticeand compensation under that section for every completed year of continuous service or any part thereof in excess of six months.

[Sec.25-FFF of the Industrial Disputes Act, 1947] What is the procedure for retrenchment of a workman?

S.25-G which gives the procedure for retrenchment reads as follows;

Where any workman in an industrial establishment, who is a citizen of India, is to be retrenched and he belongs to a particular category of workmen in thatestablishment, in the absence of any agreement between the employer and the workman in this behalf, the employer shall ordinarily retrench the workman,who was the last person to be employed in that category, unless for reasons to be recorded, the employer retrenches any other workman. This is generallycalled the system of last come first go. What is the effect of laws that are inconsistent with Chapter V-A of the Industrial Disputes Act, 1947?

List of 1 items• The provisions of this Chapter shall have effect notwithstanding anything inconsistent therewith contained in any other law, including standing ordersmade under the Industrial Employment (Standing Orders) Act, 1946.list endBlock quote start

However, if under the provisions of any other Act or rules, orders or notifications, that are received or, under any standing orders or under any award,contract of service or otherwise, a workman is entitled to benefits in respect of any matters, which are more favourable to him than those to which hewould be entitled under this Act, the workman shall continue to be entitled to more favourable benefits in respect of that matter, even though he receivesbenefits in respect of other matters under this Act.Block quote endList of 1 items• For the removal of doubts, it is hereby declared that nothing contained in this Chapter shall be deemed to affect the provisions of any other law forthe time being in force in any State, as the law provides for the settlement of industrial disputes. However, the rights and liabilities of employers andworkmen in relation to lay-off and retrenchment shall be determined in accordance with the provisions of this Chapter.

list endBlock quote start

[S.25-J of the Industrial Disputes Act, 1947]Block quote endWhat is the application of Chapter V-B of the Industrial Disputes Act, 1947?

Chapter V-B deals with special provisions relating to lay-off, retrenchment and closure in respect of establishments in which 100 or more persons are employedon an average working day for the preceding twelve months.

The same does not apply to establishments of seasonal character or in which work is performed only intermittently. What is an 'industrial establishment' to which Chapter V-B of the Industrial Disputes Act, 1947 applies?

For the purpose of Chapter V-B:

(a) "industrial establishment" means -List of 3 items1. a factory, as defined in clause (m) of Section 2 of the Factories Act, 1948;2. a mine, as defined in clause (j) of sub-section (1) of Section 2 of the Mines Act, 1952;3. a plantation, as defined in clause (f) of Section 2 of the Plantations Labour Act, 1951;list end

(b) Notwithstanding anything contained in sub-clause (ii) of clause (a) of Section 2, the Central Government shall be the appropriate Government for thefollowing:-.List of 2 items1. in relation to any company, in which not less than fifty-one per cent of the paid-up share capital is held by the Central Government;2. in relation to any corporation, not being established by or under any law made by Parliament;list end

[S.25-L of the Industrial Disputes Act, 1947] What are the provisions that relate to the prohibition of lay-off?

S.25-M which contains the provisions for prohibition of lay-off reads as follows:List of 10 items1. No workman (other than a badli workman or casual workman), whose name is borne on the muster rolls of an industrial establishment to which this Chapterapplies, shall be laid off by his employer except with the prior permission of the appropriate Government or such authority as may be specified by thatGovernment by notification in the Official Gazette, obtained on an application, made in this behalf, unless this lay-off is due to shortage of power or

to natural calamity and in the case of a mine, if such a such lay-off is due to fire, flood, excess of inflammable gas or explosion.2. An application for permission under sub-section (1) shall be made by the employer in the prescribed manner, stating clearly the reasons for the intendedlay-off and, a copy of such also must be served simultaneously on the concerned workmen in the prescribed manner.3. Where the workmen (other than badli workmen or casual workmen) of an industrial establishment, being a mine, have been laid-off under sub-section (1)for reasons of fire, flood or excess of inflammable gas or explosion, the employer, in relation to such establishment, shall, within a period of thirtydays from the date of commencement of such lay-off, apply, in the prescribed manner, to the appropriate Government or the specified authority for permissionto continue the lay-off.4. Where an application for permission under sub-section (1) or sub-section (3) has been made, the appropriate Government or the specified authority, aftermaking such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer, the concerned workman and the persons, whoare interested in such lay-off, may, having regard to the genuineness and adequacy of reasons for such lay-off, the interest of the workmen and all otherrelevant factors, by order and, for reasons to be recorded in writing, grant or refuse to grant such permission. A copy of such order shall be communicatedto the employer and the workmen.5. Where an application for permission, under sub-section (1) or (3) has been made and the appropriate Government or, the specified authority does not communicatethe order, granting or refusing to grant permission to the employer within a period of sixty days from the date on which such application is made, thepermission, applied for, shall be deemed to have been granted on the expiration of the said period of sixty days.6. An order of the appropriate Government or the specified authority, granting or refusing to grant permission shall, subject to the provisions of sub-section(7), be final and binding on all the concerned parties and shall remain in force for one year from the date of such order.7. The appropriate Government or the specified authority may, either on its own motion or on the application, made by the employer or any workman, reviewits order granting or refusing to grant permission under sub-section (4) or refer the matter or, as the case may be, cause it to be referred to a Tribunalfor adjudication: However, where a reference has been made to a Tribunal, it shall pass an award within a period of thirty days from such reference.8. Where no application of permission under sub-section (1) is made, or no application for permission under sub-section (3) is made within the period specifiedtherein, or where permission for a lay-off has been refused, such lay-off shall be deemed to be illegal from the date on which the workmen had been laidoff. Also, the workmen shall be entitled to all the benefits under any law for the time being in force as if they had not been laid off.9. Notwithstanding anything contained in the foregoing provisions of this section, the appropriate Government may, if it is satisfied that, owing to such

exceptional circumstances as an accident in the establishment or the death of the employer or the like, it is necessary so to do, by order, direct thatthe provisions of sub-section (1), or, as the case may be, sub-section (3) shall not apply in relation to such establishment for such period as may bespecified in the order.10. The provisions of S. 25-C shall apply to cases of lay-off that are referred to in this section.list endWhat are the conditions that are precedent to retrenchment of workmen in respect of establishments to which Chapter V-B of the Industrial Disputes Act,1947 applies?

The conditions, precedent to retrenchment of workmen, are contained in Sec.25-N. This reads as follows:List of 1 items• No workman, employed in any industrial establishment to which Chapter V-B applies, who has been in continuous service for not less than one year underan employer, shall be retrenched by that employer until:list endList of 3 items (contains 1 nested list)List of 3 items nesting level 11. the workman has been given three months'' notice in writing, indicating the reasons for retrenchment and the period of notice has expired;2. the workman has been paid in lieu of such notice, wages for the period of the notice;3. the prior permission of the appropriate Government or such authority, as may be specified by that Government by notification in the Official Gazette,has been obtained on an application made in this behalf.list end nesting level 1list endList of 8 items• An application for permission under sub-section (1) shall be made by the employer in the prescribed manner, stating clearly the reasons for the intendedretrenchment and a copy of such application shall also be served simultaneously on the concerned workmen in the prescribed manner.• Where an application for permission has been made, the appropriate Government or the specified authority, after making such enquiry as it thinks fit andafter giving reasonable opportunity of being heard to the employer, the concerned workmen and the persons, interested in such retrenchment, may, havingregard to the genuineness and adequacy of reasons stated by the employer, the interests of the workmen and all other relevant factors, by order and forreasons to be recorded in writing, grant or refuse to grant such permission. Also, a copy of such order shall be communicated to the employer and the workmen.• Where an application for permission is made and the appropriate Government or the specified authority does not communicate the order, granting or refusingto grant permission to the employer within a period of sixty days from the date on which such application is made, the permission that is applied for shallbe deemed to have been granted on the expiration of the said period of sixty days.

• Subject to the provisions of sub-section (6), an order of the appropriate Government or specified authority, granting or refusing to grant permissionshall be final and binding on all the concerned parties and shall remain in force for one year from the date of such order.• The appropriate Government or the specified authority may, either on its own motion or, on the application made by the employer or any workman, reviewits order, granting or refusing to grant permission under sub-section (3). It may even refer the matter or, as the case may be, cause it to be referred,to a Tribunal for adjudication: However, where a reference has been made to a Tribunal under this sub-section, it shall pass an award within a period ofthirty days from the date of such reference.• Where no application for permission under sub-section (1) is made, or where the permission for any retrenchment has been refused, such retrenchment shallbe deemed to be illegal from the date on which the notice of retrenchment was given to the workman. The workman shall be entitled to all the benefits underany law for the time being in force as if no notice had been given to him.• Notwithstanding anything contained in the foregoing provisions of this section, the appropriate Government may, if it is satisfied that owing to suchexceptional circumstances as accident in the establishment or death of the employer or the like, it is necessary so to do, by order, direct that the provisionsof sub-section (1) shall not apply in relation to such establishment for such period as may be specified in the order.• Where permission for retrenchment has been granted under sub-section (3) or where permission for retrenchment is deemed to be granted under sub-section(4), every workman, who is employed in that establishment immediately before the date of application for permission under this section, shall be entitledto receive, at the time of retrenchment, compensation, which shall be equivalent to fifteen days'' average pay for every completed year of continuous serviceor any part thereof in excess of six months.list endWhat is the procedure for closing down an undertaking covered by Chapter V-B of the Industrial Disputes Act, 1947?

S. 25-O, which provides for the procedure of closing down an undertaking, covered by Chapter V-B reads as follows:List of 1 items• An employer, who intends to close down an undertaking of an establishment to which this Chapter applies, shall, in the prescribed manner, apply for priorpermission at least ninety days before the date on which the intended closure is to become effective. This application is to be made to the appropriateGovernment, stating clearly the reasons for the intended closure of the undertaking. A copy of such application shall also be served simultaneously onthe representatives of the workmen in the prescribed manner:list endBlock quote start

However, nothing in this sub-section shall apply to an undertaking that is set up for the construction of buildings, bridges, roads, canals, and dams orfor other construction work.Block quote endList of 4 items• Where an application for permission has been made under sub-section (1), the appropriate Government, after making such enquiry as it thinks fit and aftergiving a reasonable opportunity of being heard to the employer, the workmen and the persons, interested in such closure may, having regard to the genuinenessand adequacy of the reasons stated by the employer, the interests of the general public and all other relevant factors, by order and for reasons to berecorded in writing, grant or refuse to grant such permission. A copy of such order shall be communicated to the employer and the workmen.• Where an application has been made under sub-section () and the appropriate Government does not communicate the order, granting or refusing to grant permissionto the employer within a period of sixty days from the date on which such application is made, the permission that is applied for shall be deemed to havebeen granted on the expiration of the said period of sixty days.• An order of the appropriate Government, granting or refusing to grant permission shall, subject to the provisions of sub-section (5), be final and bindingon all the parties. It shall remain in force for one year from the date of such order.• The appropriate Government may, either on its own motion or on the application made by the employer or any workman, review its order, granting or refusingto grant permission under sub-section (2) or refer the matter to a Tribunal for adjudication:list endBlock quote start

However, if a reference has been made to a Tribunal under this sub-section, it shall pass an award within a period of thirty days from the date of suchreference.Block quote endList of 3 items• Where no application for permission, under sub-section (1) is made within a period specified therein, or where the permission for closure has been refused,the closure of the undertaking shall be deemed to be illegal from the date of closure. Then, the workmen shall be entitled to all the benefits under thelaw, for the time being in force, as if the undertaking had not been closed down.• Notwithstanding anything contained in the foregoing provisions of this section, the appropriate Government may, if it is satisfied that owing to suchexceptional circumstances as accident in the undertaking or death of the employer or the like, it is necessary so to do, by order, direct that the provisionsof sub-section (1) shall not apply in relation to such undertaking for such period as may be specified in the order.• Where an undertaking is permitted to be closed down under sub-section (2) or, where permission for closure is deemed to be granted under sub-section (3),

every workman, who is employed in that undertaking immediately before the date of application for permission under this section, shall be entitled to receivecompensation, which shall be equivalent to fifteen days' average pay for every completed year of continuous service or any part thereof in excess of sixmonths.list endWhat is the penalty for lay-off and retrenchment without previous permission?

Any employer, who contravenes the provisions of Sections 25-M or 25-N, shall be punishable with imprisonment for a term, which may extend to one month,or with fine, which may extend to one thousand rupees, or with both. [S.25-Q of the Industrial Disputes Act, 1947] What is the penalty for closure?

List of 2 items• Any employer, who closes down an undertaking without complying with the provisions of sub-section (1) of Section 25-O, shall be punishable with imprisonmentfor a term, which may extend to six months, or with fine, which may extend to five thousand rupees, or with both.• Any employer, who contravenes an order refusing to grant permission to close down an undertaking under sub-section (2) of Section 25-O or, a direction,given under Section 25-P, shall be punishable with imprisonment for a term which may extend to one year, or with a fine which may extend to five thousandrupees, or with both. Where the contravention is a continuing one, there will be a further fine, which may extend to two thousand rupees for every dayduring which the contravention continues after the conviction.list endBlock quote start

[S.25-R of the Industrial Disputes Act, 1947]Block quote endWhat is meant by unfair Labour Practise?

Unfair Labour Practises are specified in the 5th Schedule of the Industrial Dispute Act. If a person is found guilty of any unfair labour practice, he canbe punished with imprisonment upto six months or with fine upto Rs.1000/- or both. Discuss the provision regarding prohibition of unfair labour practice.

S. 25-T, which provides for the prohibition of unfair labour practice, reads as follows: No employer or workman or a trade union, whether registered underthe Trade Unions Act, 1926 (16 of 1926), or not, shall commit an unfair labour practice. What is the penalty for committing unfair labour practices?

Any person, who commits any unfair labour practice, shall be punishable with imprisonment for a term, which may extend to one month, or with fine, whichmay extend to one thousand rupees or with both.

[S.25-U of the Industrial Disputes Act, 1947] What is the penalty for illegal strikes and lock-outs?

List of 2 items1. Any workman, who commences, continues or otherwise acts in furtherance of a strike, which is illegal under this Act, shall be punishable with imprisonmentfor a term which may extend to one month, or with fine, which may extend to fifty rupees, or with both.2. Any employer, who commences, continues, or otherwise acts in furtherance of a lock-out, which is illegal under this Act, shall be punishable with imprisonmentfor a term, which may extend to one month, or with fine which may extend to one thousand rupees, or with both.list end

[S.26 of the Industrial Disputes Act, 1947] What is the penalty for illegal strikes and lock-outs?


[S.26 of the Industrial Disputes Act, 1947] What is the penalty for illegal strikes and lock-outs?


[S.26 of the Industrial Disputes Act, 1947] What is the penalty for instigation, etc.?

Any person, who instigates or incites others to take part in, or otherwise acts in furtherance of, a strike or lock-out, which is illegal under this Act,shall be punishable with imprisonment for a term which may extend to one thousand rupees, or with both.

[S.27 of the Industrial Disputes Act, 1947] What is the penalty for giving financial aid to illegal strikes and lock-outs?

Any person, who knowingly expends or applies any money in direct furtherance or support of any illegal strike or lock-out, shall be punishable with imprisonmentfor a term which may extend to six months, or with fine, which may extend to one thousand rupees, or with both.

[S.28 of the Industrial Disputes Act, 1947] What is the penalty for breach of settlement or award?

Any person, who commits a breach of any term of any settlement or award, which is binding on him under this Act, shall be punishable with imprisonment fora term, which may extend to six months, or with fine, or with both. If the breach is a continuing one, there will be a further fine which may extend totwo hundred rupees for every day during which the breach continues after the conviction for the first. Moreover, if the Court that is trying the offencefines the offender, it may direct that the whole or any part of the fine realized from him shall be paid, by way of compensation, to any person who, inits opinion, has been injured by such breach.

[S.29 of the Industrial Disputes Act, 1947] What is the penalty for disclosing confidential information?

Any person, who willfully discloses any such information as is referred to in Section 21 in contravention of the provisions of that section shall, on complaint,made by or on behalf of the trade union or individual business that is affected, be punishable with imprisonment for a term which may extend to six months,or with fine which may extend to one thousand rupees or with both.

[S.30 of the Industrial Disputes Act, 1947] What is the penalty for closure without notice?

Any employer, who closes down any undertaking without complying with the provisions of Section 25-FFA, shall be punishable with imprisonment for a termwhich may extend to six months, or with fine which may extend to five thousand rupees, or with both. [S. 30-A of the Industrial Disputes Act, 1947] What is the penalty for an employer who contravenes the provisions of S.33?

Any employer, who contravenes the provisions of S.33, shall be punishable with imprisonment for a term which may extend to six months, or with fine whichmay extend to one thousand rupees, or with both.

[S.31 (1) of the Industrial Disputes Act, 1947] What is the penalty for contravention of any provisions of the Act for which no other penalty is elsewhere provided?

Whoever contravenes any of the provisions of this Act or any rule made thereunder shall, if no other penalty is elsewhere provided by or under this Actfor such contravention, be punishable with fine which may extend to one hundred rupees.

[S.31 (1) of the Industrial Disputes Act, 1947] Discuss the provisions that relate to offences by companies.

Where a person, committing an offence under this Act, is a company, or other body corporate, or an association of persons (whether incorporated or not),every director, manager, secretary, agent or other officer or person, concerned with the management thereof shall, unless he proves that the offence wascommitted without his knowledge or consent, be deemed to be guilty of such offence.

[S.32 of the Industrial Disputes Act, 1947] Can the conditions of service, etc., be changed during pendency of proceedings?

Only by following the procedure outlined Sec.33 provides that the conditions of service etc. should remain unchanged under certain circumstances duringthe pendency of proceedings. Sec.33 reads as follows:List of 1 items• During the pendency of any conciliation proceeding before a conciliation officer or a Board or of any proceeding before an arbitrator or aLabour Court or Tribunal or National Tribunal in respect of an industrial dispute, no employer shall:list endList of 2 items (contains 1 nested list)List of 2 items nesting level 11. in regard to any matter connected with the dispute, alter, to the prejudice of the concerned workmen in such dispute, the conditions of service applicableto them immediately before the commencement of such proceeding; or2. for any misconduct, connected with the dispute, discharge or punish, whether by dismissal or otherwise, any workman concerned in such dispute.list end nesting level 1list endBlock quote start

However, the above stipulations do not apply if he has the permission, in writing, of the authority before which the proceeding is pending.Block quote endList of 1 items• During the pendency of any such proceeding in respect of an industrial dispute, the employer may, in accordance with the standing orders, applicable toa workman concerned in such dispute or, where there are no such standing orders, in accordance with the terms of the contract, whether express or implied,between him and the workman:

list endList of 2 items (contains 1 nested list)List of 2 items nesting level 11. alter, in regard to any matter not connected with the dispute, the conditions of service applicable to that workman, immediately before the commencementof such proceeding; or2. for any misconduct not connected with the dispute, discharge or punish, whether by dismissal or otherwise, that workman:list end nesting level 1list endBlock quote start

However, no such workman shall be discharged or dismissed, unless he has been paid wages for a month. Also, an application must be made by the employerto the authority, before which the proceeding is pending, for approval of the action that is taken by the employer.Block quote endList of 1 items• Notwithstanding anything contained in sub-section (2), no employer shall, during the pendency of any such proceeding in respect of an industrial dispute,take any action against any protected workman concerned in such dispute in the following manner:list endList of 2 items (contains 1 nested list)List of 2 items nesting level 11. by altering, to the prejudice of such protected workman, the conditions of service applicable to him immediately before the commencement of such proceeding;or2. by discharging or punishing, whether by dismissal or otherwise, such protected workman, save with the express permission in writing of the authoritybefore which the proceeding is pending.list end nesting level 1list endList of 3 items• In every establishment, the number of workmen to be recognized as protected workmen for the purposes of sub-section (3) shall be one per cent of the totalnumber of employed workmen, subject to a minimum number of five protected workmen and a maximum number of one hundred protected workmen among various tradeunions, if any.• Where an employer makes an application to a conciliation officer, Board, an arbitrator, a Labour Court, Tribunal or National Tribunal under the provisoto sub-section (2) for approval of the action taken by him, the concerned authority shall, without delay, hear such application and pass, within a periodof three months from the date of receipt of such application, such order as it deems fit:• If such authority considers it necessary or expedients so to do, it may, for reasons to be recorded in writing, extend such period by such further period

as it may deem fit:list end

No proceedings before any such authority should have lapsed merely on the ground that any period, specified in this sub-section, had expired without suchproceedings being completed. Discuss the special provision for adjudication related to the conditions of service, etc., changed during pendency of proceedings.

Where an employer contravenes the provisions of S. 33 during the pendency of proceedings before a conciliation officer, Board, an arbitrator, aLabour Court, Tribunal or National Tribunal, any employee, aggrieved by such contravention, may make a complaint in writing, in the prescribed manner:List of 2 items• to such conciliation officer or Board, and the conciliation officer or Board, and the conciliation officer or Board shall take such complaint into accountin mediating in, and promoting the settlement of, such industrial dispute; and• to such arbitrator, Labour Court, Tribunal or National Tribunal and on receipt of such complaint, the arbitrator, Labour Court, Tribunal or national Tribunal,as the case may be, shall adjudicate upon the complaint as if it were a dispute referred to or pending before it, in accordance with the provisions ofthis Act and shall submit his or its award to the appropriate Government and the provisions of this Act shall apply accordingly.list endBlock quote start

[S.33-A of the Industrial Disputes Act, 1947]Block quote endDiscuss the provisions regarding the recovery of money due from an employer.

S.33-C, which deals with the recovery of money due from the employer, reads as follows:List of 1 items• Where any money is due to a workman from a employer under a settlement or an award or under the provisions of Chapter V-A or V-B, the workman himselfor any other person, authorized by him in writing in this behalf, or, in the case of the death of the workman, his assignee or heirs may, without prejudiceto any other mode of recovery, make an application to the appropriate Government for the recovery of the money due to him. If the appropriate Governmentis satisfied that any money is so due, it shall issue a certificate for that amount to the Collector who shall proceed to recover the same in the samemanner as an arrear of land revenue:list endBlock quote start

The following points must be remembered:Block quote endList of 3 items (contains 1 nested list)

List of 3 items nesting level 1• Every such application shall be made within one year from the date on which the money became due to the workman from the employer;• Any such application may be entertained after the expiry of the said period of one year, if the appropriate Government is satisfied that the applicanthad sufficient cause for not making the application within the said period.• Where any workman is entitled to receive from the employer any money or any benefit, which is capable of being computed in terms of money and, if anyquestion arises as to the amount of money due or, as to the amount at which such benefit should be computed, then the question may, subject to any rulesthat may be made under this Act, be decided by such Labour Court as may be specified in this behalf by the appropriate Government within a period, notexceeding three months:list end nesting level 1list endBlock quote start

Provided that where the presiding officer of aLabour Court considers it necessary or expedient so to do, he may, for reasons to be recorded in writing, extend such period by such further period as hemay think fit.Block quote endList of 3 items• For the purposes of computing the money value of a benefit, the Labour Court may, if it so thinks fit, appoint a Commissioner who shall, after takingsuch evidence as may be necessary, submit a report to the Labour Court and the Labour Court shall determine the amount after considering the report ofthe Commissioner and other circumstances of the case.• The decision of theLabour Court shall be forwarded by it to the appropriate Government and any amount, found due by theLabour Court, may be recovered by the manner provided for in sub-section (1).• Where workmen are employed under the same employer, they are entitled to receive from him any money or any benefit capable of being computed in termsof money, subject to such rules as may be made in this behalf. A single application for the recovery of the amount due may be made on behalf of or, inrespect of any number of such workmen.list end

Explanation - In this section, "Labour Court" includes any court, constituted under any law, relating to the investigation and settlement of industrial disputes in force in any State. What is the provision regarding cognizance of offences?

List of 2 items

1. No Court shall take cognizance of any offence, punishable under this Act or, of the abetment of any such offence, save on complaint made by or underthe authority of the appropriate Government.2. No Court, inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class, shall try any offence punishable under this Act.list end

[S.34 of the Industrial Disputes Act, 1947] Discuss the provisions that relate to the representation of parties before any authority under the Industrial Disputes Act, 1947.

S.36, which deals with the representation of parties, reads as follows:List of 1 items• A workman, who is a party to a dispute, shall be entitled to be represented in any proceeding under this Act by the following:list endList of 3 items (contains 1 nested list)List of 3 items nesting level 11. any member of the executive or other office bearer of a registered trade union of which he is a member;2. any member of the executive or other office bearer of a federation of trade unions to which the trade union referred to in clause (a) is affiliated;3. where the worker is not a member of any trade union, by any member of the executive or other office bearer of any trade union, connected with, or byany other workman, employed in the industry in which the worker is employed and authorized in such manner as may be prescribed.list end nesting level 1list endList of 1 items• An employer, who is a party to a dispute, shall be entitled to be represented in an proceeding under this Act by the following:list endList of 3 items (contains 1 nested list)List of 3 items nesting level 11. an officer of an association of employers of which he is a member;2. an officer of a federation of associations of employers to which the association, referred to in clause (a), is affiliated;3. where the employer is not a member of any association of employers, by an officer of any association of employers, connected with, or by any other employer,engaged in the industry in which the employer is engaged and authorized in such manner as may be prescribed.list end nesting level 1list endList of 2 items• No party to a dispute shall be entitled to be represented by a legal practitioner in any conciliation proceedings under this Act or in any proceedingsbefore a Court.

• In any proceeding before aLabour Court, Tribunal or National Tribunal, a party to a dispute may be represented by a legal practitioner with the consent of the other parties to theproceeding and with the leave of theLabour Court, Tribunal or National Tribunal, as the case may be.list endWhat precautions must an employer take before retrenching a workman?

Before retrenching a workman, the employer in a factory, plantation or mine, where more than a hundred workmen are employed, must take permission from theappropriate government for retrenchment. In all other industrial establishments, the employer must display, at least eight days prior to retrenching aworkman, a seniority list of the workman and the categories from which retrenchment is to be effected. Retrenchment must be based on the principle of "lastcome, first go", i.e., the junior most workman in the category must be retrenched first. The employer has the liberty to depart from this rule only inexceptional cases for reasons to be recorded by him. The workman to be retrenched must be given one month's notice or be paid wages of one month in lieuof notice, together with retrenchment compensation at the time his services are terminated. The tender of the amounts must be genuine. The employer cannotdirect the workman to come and collect the said amounts after the letter terminating his services has taken effect. The amount of retrenchment compensationand wages in lieu of notice must be correctly calculated. If there is any shortfall in the amounts, the termination of service will be treated as an illegalretrenchment. What is the provision regarding re-employment of retrenched workmen?

Where any workmen are retrenched and the employer proposes to take into his employ any persons, he shall, in such manner as may be prescribed, give an opportunityto the retrenched workmen, who are citizens of India, to offer themselves for re-employment. These retrenched workmen, who offer themselves for re-employment,shall have preference over other persons. [S.25-H of the Industrial Disputes Act, 1947]

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