1

INTRODUCTION

The Industrial Disputes Act, 1947 extends to whole of India. It came into
operation on the first day of April, 1947. This Act replaced the Trade Disputes Act
of 1929. The Trade Disputes Act imposed certain restraints on the right of strike
and lockout in Public Utility Services. But no provision was existing for the
settlement of Industrial Disputes, either by reference to a Board of Conciliation or
to a Court of Inquiry. In order to remove this deficiency, the Industrial Disputes
Act, 1947 was passed.





The main purpose of the Industrial Disputes Act, 1947 is to ensure fair terms
between employers and employees, workmen and workmen as well as workmen
and employers. It helps not only in preventing disputes between employers and
employees but also help in finding the measures to settle such disputes so that the
production of the organization is not hampered. In this unit, we are going to
discuss the Industrial Disputes Act, 1947 and its importance. This unit
encompasses the different authorities and their duties in the settlement of disputes.
It also discuss about the reference of disputes. Through this unit, you will be able
to know about the different award given by the different authorities under the Act.
Thus, you will able to understand through this unit, the procedures of settlement of
the disputes as well as the duties of different authorities as well as the way of
reference of disputes.

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OBJECTIVE

The objective of the Industrial Disputes Act is to secure industrial peace and
harmony by providing machinery and procedure for the investigation and
settlement of industrial disputes by negotiations.
Various studies indicate that Indian labour laws are highly protective of labour, and
labour markets are relatively inflexible. These laws apply only to the organised
sector. Consequently, these laws have restricted labour mobility, have led to
capital-intensive methods in the organised sector and adversely affected the
sectors long-run demand for labour. Labour being a subject in the concurrent list,
State-level labour regulations are also an important determinant of industrial
performance. Evidence suggests that States, which have enacted more pro-worker
regulations, have lost out on industrial production in general. -- (Ministry of
Finance, 2006, p. 209
the Industrial Disputes Act (IDA) of 1947. Particular attention has been paid to its
Chapter V-B, introduced by an amendment in 1976, which required firms
employing 300 or more workers to obtain government permission for layoffs,
retrenchments and closures. A further amendment in 1982 (which took effect in
1984) expanded its ambit by reducing the threshold to 100 workers. It is argued
that since permission is difficult to obtain, employers are reluctant to hire workers
whom they cannot easily get rid of. Job security laws thus protect a tiny minority
of workers in the organised sector and prevent the expansion of industrial
employment that could benefit the mass of workers
outside. It is also argued that the restriction on retrenchment has adversely affected
workplace discipline, while the threshold set at 100 has discouraged factories from
expanding to economic scales of production, thereby harming productivity. Several
other sections of the IDA allegedly have similar effects, because they increase
workers bargaining strength and thereby raise labour costs either directly through
wages or indirectly by inhibiting work reorganization in response to changes in
demand and technology. The Act also lays down
1. The provision for payment of compensation to the workman on account of
closure or lay off or retrenchment.
2. The procedure for prior permission of appropriate Government for laying off or
retrenching the workers or closing down industrial establishments .

3


HISTORY OF THE ACT


The World War I (1914-1919) brought a new awakening among the working class
people who were dominated by the employers regarding the terms and conditions
of service and wages. The workers resorted to strikes to fulfill their demands and
the employers retaliated by declaring lockouts. During the period 1928-29 the
numerous strikes and lock-outs forced the Government to enact the Trade Disputes
Act, 1929.

The Trade Dispute Act, 1929 was introduced for the settlement of industrial
disputes. This Trade Union Act gave the trade unions a legal status. The main
object of the Act was to make provision for the establishment of Courts of Enquiry
and Boards of Conciliation with a view to investigating and settling trade disputes.
But, this Act failed to create favorable atmosphere in the industry and settle the
disputes. The main defect of the Act was that no provision was has been made to
render the proceedings institutable under the Act while restraint had been imposed
on the right of strike and lock-out in the public utility services. But, later this defect
was overcome by empowering under Rule 81-A, of the Defense of Indian Rules to
refer industrial disputes to adjudicator for settlement during the Second World War
(1938-1945). The rule provide speedy remedies for industrial disputes by
compulsory reference of disputes to conciliation or adjudication, by making the
awards of adjudicators legally binding on the parties, by prohibiting strikes and
lock-outs during the pendency of conciliation or arbitration proceeding.

With the termination of the Second World War, Rule 81-A was about to lapse on
1st October, 1946, but it was kept alive by recourse to Governments Emergency
Powers. The main provision was retained in the Industrial Disputes Act, 1947.


4

IMPORTANT DEFINITIONS
1. Award:
means an interim or a final determination of any industrial dispute or of any
question relating thereto by any Labour Court, Industrial Tribunal or National
Industrial Tribunal and includes an arbitration award made under section 10A;
2. Banking company:
means a banking company as defined in section 5 of the Banking Companies Act,
1949 (10 of 1949), having branches or other establishments in more than one State,
and includes the Export - Import Bank of India the Industrial Reconstruction Bank
of India, the Industrial Development Bank of India, the Small Industries
Development Bank of India established under section 3 of the Small Industries
Development Bank of India Act, 1989, the Reserve Bank of India, the State Bank
of India, a corresponding new bank constituted under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) a
corresponding new bank constituted under section 3 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), and any
subsidiary bank, as defined in the State Bank of India (Subsidiary Banks) Act,
1959 (38 of 1959);
3. Board:
means a Board of Conciliation constituted under this Act.
4. Closure:
means the permanent closing down of a place of employment or part thereof.
5. conciliation officer:

means a conciliation officer appointed under this Act.

6. conciliation proceeding:

means any proceeding held by a conciliation officer or Board under this Act

7. controlled industry:

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means any industry the control of which by the Union has been declared by any
Central Act to be expedient in the public interest.


8. Court:

means a Court of Inquiry constituted under this Act.


9. Employer:

(i) in relation to any industry carried on by or under the authority of any
department of the Central Government or a State Government, the authority
prescribed in this behalf, or where no authority is prescribed, the head of the
department;
(ii) in relation to an industry carried on by or on behalf of a local authority, the
chief executive officer of that authority.

10. Executive:

in relation to a trade union, means the body, by whatever name called, to which
the management of the affairs of the trade union is entrusted;
(i) a person shall be deemed to be "independent" for the purpose of his
appointment as the Chairman or other member of a Board, Court or
Tribunal, if he is unconnected with the industrial dispute referred to such
Board, Court or Tribunal or with any industry directly affected by such
dispute.

11. Industry:

means any business, trade, undertaking, manufacture or calling of
employers and includes any calling, service, employment, handicraft, or
industrial occupation or avocation of workmen.

12. Industrial dispute:

means any dispute or difference between employers and employers, or
between employers non-employment or the terms of employment or
with the conditions of labour, of any persons

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"Industrial establishment or undertaking" means an establishment or undertaking
in which any industry is carried on :

Provided that where several activities are carried on in an establishment or
undertaking and only one or some of such activities is or are an industry or
industries.

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MAIN FEATURES OF THE ACT
Some of the important features of the Act may be summearised as below:
1. Any industrial dispute may be referred to an industrial tribinal by mutual
consent of paries to dispute or by the State Government, if it deems expedient to
do so.
2. An award shall be binding on both the parties to the dispute for the
operated period, not exceeding one year;
3. Strike and lockouts are prohibited during:
(a) The pendency of conciliation and adjudication proceedings;
(b) the pendency of settlements reached in the course of conciliation
proceedings, and .
(c) the pendency of awards of Industrial Tribunal declared binding by
the appropriate Government.
4. In public interest or emergency, the appropriate Government has power
to declare the transport (other than railways), coal, cotton textiles,
food stuffs and iron and steel industries to be public utility services
for the purpose of the Act, for a maximum period of six months.
5. In case of lay-oft or retrenchment of workmen, the employer is
requested to pay compensation to them. This provision stands in the
case of transfer or closure of an undertaking.
6. A number of authorities (Works Committees, Conciliation Officers,
Board of conciliation, Courts of Inquiry, Labour Courts, Tribunal and
National Tribunal) are provided for settlement of Industrial disputes.
Although the nature of powers, functions and duties of these
authorities differ from each other, everyone plays important role in
ensuring industrial peace.



8

AUTHORITIES UNDER THE ACT


The Industrial Dispute Act, 1947 makes provision for the investigation and
settlement of disputes that may hamper the peace of the industry. It ensures
harmony and cordial relationship between the employers and employees. 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 relation among the employers and employees
,reflecting socio-economic justice.
The act provides for the following authorities for Investigation and Settlement of
industrial disputes:
(i) Works Committee
(ii) Conciliation Officer
(iii) Boards of Conciliation
(iv) Court of Inquiry
(v) Labour Court
(vi) Labour Tribunals
(vii) National Tribunals
Let us discuss these authorities in detail:
WORKS COMMITTEE (Section 3):

The works committee is a committee consisting of representatives of employers
and workmen (section3). The works committee is a forum for explaining the
difficulties of all the parties.The main objective of the works committee is to solve
the problems arising in the day-to-day working of a concern and to secure
industrial harmony. The function of the working committee is to ascertain the
grievances of the employees and to arrive at some agreement. The committee is
formed by general or special order by the appropriate Government in an industrial
establishment in which 100 or more workmen are employed or have been
employed on any day in the preceding 12 months. It consists of the representatives
of employers and workmen engaged in the establishment.

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 endeavour to compose any material difference of opinion in respect of such
matters and decision of the works committees are not binding.

CONCILIATION OFFICER (Section 4):

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For promoting and settlement of industrial disputes the appropriate Government
may by notification in the Official Gazette, appoint such number of conciliation
officer as it thinks fit. The main objective of appointing conciliation officer is to
create 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
specified industries in a specified area or for one or more specified industries and
either permanently or for limited period.

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 consider relevant. He has to send a report and memorandum
of settlement to 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 can call for
and inspect documents.

BOARDS OF CONCILIATION (Section 5):

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.

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

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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.

COURT OF INQUIRY (Section 6):

The appropriate Government may by notification in the Official Gazette,
constitute a court of inquiry into any matter appearing to be connected with or
relevant to settlement of industrial disputes having an independent person or of
such independent persons as the appropriate Government may think fit. The court
consists of two or more members one of whom shall be appointed by the
Chairman. Within a period of 6 months, the court has to send a report thereon to
the appropriate Government from the commencement of its any inquiry. This
period is not mandatory and it may be extend.
It has the same powers as are vested in a Civil Court under the Code of Civil
Procedure 1908, in the following matters
a. enforcing the attendance of any person and examining him on oath,
b. compelling the production of documents and material objects,
c. issuing commissions for the examination of witnesses,

d. in respect of such other matters as may be prescribed.

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.
A person shall be presiding officer of a labour court unless
a. he is or has been, a Judge of the High court,
b. he has for a period of not less than three years, been a District Judge or an

11

Additional District Judge or
c. he has held any judicial office in India for not less than seven years; or
d. he has been the presiding officer of a Labour Court constituted under any
provincial Act or State Act for not less than five years.
e. He must be an independent person and must not have attained the age of 65
years.

LABOUR TRIBUNALS (Section 7- A):
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 Tribunel. The person shall be not qualified unless
a. he is, a Judge of the High court,
b.. he has for a period of not less than three years, been a District Judge or an
Additional District Judge.
c. The appropriate Government may, if it so thinks fit, may appoint two persons as
assessors to advise the Tribunal in the proceeding before it.
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 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.

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 incase 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.

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POWER OF NATIONAL TRIBUNAL
Subject to any rules that may be made in this behalf, National Tribunal
shall
follow such procedure as the arbitrator or other authority concerned may
think fit.

The presiding officer of National Tribunal may for the purpose of inquiry
into any existing or apprehended industrial dispute, after giving reasonable
notice.

National Tribunal may, if it so thinks fit, appoint one or more persons having
special knowledge of the matter under consideration as assessor or assessors
to advise it in the proceeding before it.


All the Presiding Officers of a National Tribunal shall be deemed to be
public
servants within the meaning of Sec. 21 of the Indian Penal Code.



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Prevention of Industrial Disputes

The consequences of an Industrial dispute will be harmful to the owners of
industries, workers, economy and the nation as a whole, which results in loss of
productivity, profits, market share and even closure of the plant. Hence, Industrial
disputes need to be averted by all means.
Prevention of Industrial disputes is a pro-active approach in which an organisation
undertakes various actions through which the occurrence of Industrial disputes is
prevented. Like the old saying goes, prevention is better then cure.

1. Model Standing Orders: Standing orders define and regulate terms and
conditions of employment and bring about uniformity in them. They also specify
the duties and responsibilities of both employers and employees thereby regulating
standards of their behaviour. Therefore, standing orders can be a good basis for
maintaining harmonious relations between employees and employers.
Under Industrial Dispute Act, 1947, every factory employing 100 workers or more
is required to frame standing orders in consultation with the workers. These orders
must be certified and displayed properly by the employer for the information of the
workers.
2. Code of Industrial discipline: The code of Industrial discipline defines duties
and responsibilities of employers and workers. The objectives of the code are:
To secure settlement of disputes by negotiation, conciliation and voluntary
arbitration.
To eliminate all forms of coercion, intimidation and violence.

14

To maintain discipline in the industry.
To avoid work stoppage.
To promote constructive co-operation between the parties concerned at all
levels.
3. Works Committee: Every industrial undertaking employing 100 or more
workers is under an obligation to set up a works committee consisting equal
number of representatives of employer and employees. The main purpose of such
committees is to promote industrial relations. According to Indian Labour
Conference work committees are concerned with:-
Administration of welfare & fine funds.
Educational and recreational activities.
Safety and accident prevention
Occupational diseases and protective equipment.
Conditions of work such as ventilation, lightening, temperature & sanitation
including latrines and urinals.
Amenities such as drinking water canteen, dining rooms, medical & health
services.
The following items are excluded from the preview of the work committees.
Wages and allowances
Profit sharing and bonus
Programs of planning and development
Retirement benefits
PF and gratuity
Housing and transport schemes
Incentive schemes
Retirement and layoff
4. Joint Management Councils: Just to make a start in labour participation in
management, the govt: suggested in its Industrial Resolution 1956 to set up joint
management councils. It consists of equal numbers of workers and employers
(minimum 6 & maximum 12) decisions of the JMC should be unanimous and
should be implemented without any delay. JMC members should be given proper
training. JMC should look after 3 main areas:-

15

information sharing
consultative
administrative
Representation of workers to the JMCs should be based on the nomination by the
representation.
Objectives
Satisfy the psychological needs of workers
Improve the welfare measures
Increase workers efficiency
Improve the relation and association between workers, managers and
promoters.
JMC deals with matters like:-
Employee welfare
Apprenticeship scheme
5. Suggestion Schemes:
6. Joint Councils: Joint Councils are set up for the whole unit and deals with
matters relating optimum production and efficiency and the fixation of productivity
norms for man and machine for the as a whole. in every industrial unit employing
500 and more workers there should be a Joint Council for the whole unit.
Features
Members of the council must be actually engaged in the unit.
The chief executive of the unit will be the chairman of the council and vice
chairman will be nominated by worker members.
Term of the council will be two years.
JC shall meet at once in a quarter.
Decision of the council will be based on consensus and not on voting.
Functions
Optimum use of raw materials and quality of finished products
Optimum production, efficiency and function of productivity norms of man
and machine as a whole.
Preparation of schedules of working hours and of holidays.

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Adequate facilitates for training.
Rewards for valuable and creative suggestions received from workers.
7. Collective Bargaining: Collective Bargaining is a process in which the
representatives of the employer and of the employees meet and attempt to
negotiate a contract governing the employer-employee-union relationships.
Collective Bargaining involves discussion and negotiation between two groups as
to the terms and conditions of employment.
8. Labour welfare officer: The factories Act, 1948 provides for the appointment
of a labour welfare officer in every factory employing 500 or more workers. The
officer looks after all facilities in the factory provided for the health, safety and
welfare of workers. He maintains liaison with both the employer and the workers,
thereby serving as a communication link and contributing towards healthy
industrial relations through proper administration of standing orders, grievance
procedure etc.
9. Tripartite bodies: Several tripartite bodies have been constituted at central,
national and state levels. The India labour conference, standing labour committees,
Wage Boards and Industries Committees operate at the central level. At the state
level, State Labour Advisory Boards have been set up. All these bodies play an
important role in reaching agreements on various labour-related issues. The
recommendations given by these bodies are however advisory in nature and not
statutory.

REFERENCE OF DISPUTES
Any industrial disputes should have to referred by the Appropriate Government
under section 10 for adjudication, to the Conciliation Board, Labour Court, Court
of Inquiry or Industrial Tribunal or National Tribunal
.
A. Reference of disputes to various Authorities:

A matter is referred to the Conciliation Board for promoting the settlement of the
disputes. The Conciliation Board is to promote settlement and not to adjudicate.
But if the purpose of reference of the matter is investigatory instead of conciliatory
or adjudicatory, it should be referred to Court of Inquiry. Again, if the matter is
related to the Second Schedule or Third Schedule, it is referred to the Labour court.

17

On the other hand, any matter of the industrial disputes which may relate to the
Second Schedule or Third Schedule may refer to the Industrial Tribunal.
Where the disputes relate to a public utility service and a notice of the same is
given, it becomes mandatory of the Appropriate Government or the Central
Government to refer the matter for adjudication. But the power of the Appropriate
Government to make a reference is discretionary and it is open to judicial review.

B. Reference of disputes to National Tribunal involving question of
importance, etc:

When industrial disputes are of national importance or they are likely to be affect
the industrial establishments situated in more than one State then they are referred
to the National Tribunal by the Appropriate Government for adjudication. Again if
any matter referred to National Tribunal is pending in a proceeding before a
Labour Court or Tribunal,
the proceeding before Labour Court or Tribunal becomes invalid. On the other
hand, it is not lawful to refer any matters which are under adjudication before the
National Tribunal to Labour Court or Tribunal.

C. Reference on application of parities:

If a person individually or jointly applies any matter in a prescribed manner to the
Conciliation Board, Labour Court, and Court of Inquiry, Industrial Tribunal or
National Tribunal for adjudication and the Appropriate Government on being
satisfied on the same specifies such time limit as it these proper to submit the
award.



D. Time limit for submission of awards:

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Section 10 (2A) of the Act specifies the time period for submitting award by the
Appropriate Government, when any reference is made to the Labour Court,
Industrial Tribunal or National Tribunal for adjudication.
VOLUNTARY REFERENCE OF DISPUTES TO ARBITRATION:
The settlement of industrial disputes may be done through voluntary reference
under section 10-A.
i) When an industrial dispute is not referred to Conciliation Board, Labour Court,
and Court of Inquiry, Industrial Tribunal or National Tribunal for adjudication, the
employer and the workmen through a written agreement forward the matter for
arbitration specifying the names of the arbitrator.
ii) The arbitration agreement should be made in prescribed form and should be
signed by the parties.
iii) Within one month from the receipt of the arbitration agreement which should
be forwarded to Appropriate Government and the Conciliation Officer, a copy of
the same has to be published in the Official Gazette.
iv) The arbitrator or arbitrators shall have to investigate the disputes and submit to
the Appropriate Government the award.
v) The award should be signed by the arbitrator or the arbitrators.
vi) The strike or lock-out in connection with the disputes should be prohibited by
an order of the Appropriate Government.

2A. Dismissal, etc., of an individual workman to be deemed to be an industrial
dispute :-


Where any employer discharges, dismisses, retrenches or otherwise terminates the
services of an individual workman, any dispute or difference between that
workman and his employer connected with, or arising out of, such discharge,
dismissal, retrenchment or termination shall be deemed to be an industrial dispute
notwithstanding that no other workman nor any union of workmen is a party to the
dispute.


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PROCEDURE & POWER OF AUTHORITIES
Section 11 provides that every Conciliation Officer or member of a Board or Court
or Presiding Officer of a Labour Court, Industrial Tribunal or National Tribunal
after giving notice can enter the premises occupied by any establishment to which
the disputes relate and follow such procedure as the arbitrator or other authority
concerned may think fit. They have the same power as are vested in the Civil Court
under the Code of Civil Procedure, 1908 while trying a suit in matters like,

a. enforcing the attendance of any person and examining him on oath,
b. compelling the production of documents and material objects,
c. issuing commissions for the examination of witnesses,
d. in respect of other such other matters as may be prescribed.

An assessor or assessors may be appointed by the Conciliation Board, Labour
Court, and Court of Inquiry, Industrial Tribunal or National Tribunal for advice
having special knowledge on that matter. The Conciliation Officer may enforce the
attendance of any person for the purpose of examination of such person or call for
and inspect the documents. The Conciliation Board, Labour Court, and Court of
Inquiry, Industrial Tribunal or National Tribunal has the full power to determine to
what extent, by whom and subject to what conditions costs are to be paid.

Thus, it is seen that section 11 (1) has given wide power to the Conciliation Board,
Labour Court, and Court of Inquiry, Industrial Tribunal or National Tribunal in the
settlement of industrial disputes.






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APPLICABILITY
The Industrial Disputes Act extends to whole of India and applies to every
industrial establishment carrying on any business, trade, manufacture or
distribution of goods and services irrespective of the number of workmen
employed therein. Every person employed in an establishment for hire or reward
including contract labour, apprentices and part time employees to do any manual,
clerical,skilled, unskilled, technical, operational or supervisory work, is covered by
the Act. This Act though does not apply to persons mainly in managerial or
administrative capacity,persons engaged in a supervisory capacity and drawing >
10,000 p.m or executing managerial functions and persons subject to Army Act,
Air Force and Navy Act or those in police service or officer or employee of a
prison.


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AWARD & SETTLEMENT
Award means an interim or a final determination of any industrial disputes or of
any question relating thereto by any Labour Court, Tribunal or National Tribunal
and includes an arbitration award made under section 10A Section 2 (b).The report
of the Board of Conciliation or the Court of Inquiry shall be in writing and shall be
signed by all the members and the award of a Labour Court and Industrial Tribunal
shall be in writing and shall be signed by the Presiding Officer.
Section 21 requires certain matters to be kept confidential and it is further
provided by the section that certain matters are not disclosed without the written
consent of the secretary of the trade union or firm or company in question as the
case may be of any information obtained by Conciliation Board, Labour Court, and
Court of Inquiry, Industrial Tribunal or National Tribunal.
An award usually is enforceable on the expiry of 30 days from the date of its
publication except when the Appropriate Government declares that the award
given by the Labour Court and Industrial Tribunal shall not be enforceable on the
expiry of 30 days from the date of its publication. Again, it may not be enforceable
on the expiry of 30 days from the date of its publication, if the Central Government
get the opinion regarding the award given by the National Tribunal.
In such case, the Appropriate Government or the Central Government may within
90 days from the date of publication of the award under section 17 make an order
rejecting or modifying the award. But, if it appears that the award given by the
Industrial Tribunal is fair and just, it is authorised to issue direction that the award
takes effect retrospectively.

Persons on whom settlements and awards are binding (Section 18):

1. Settlement and awards are binding on all the parties under the agreement arrived
at between the employers and workers in the course of conciliation proceedings.

2. An arbitration award is binding on the concerned parties of the agreement who
referred the disputes to arbitration.

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3. An arbitration award or settlement award or award of Labour Court, and
Industrial Tribunal or National Tribunal is binding on

a. All the parties to the disputes,

b. On all other parties who are summoned to appear in the proceeding as parties to
the disputes, unless the Board, Arbitrator, Labour Court, Industrial Tribunal or
National Tribunal in the settlement of industrial disputes as the case may be,
records the opinion that they were so summoned without proper cause.

c. Where a party referred to Clause (a) and Clause (b) is an employer, his heirs,
successors assigned in respect of the establishment to which the dispute relates.
d. But if the parties referred to in Clause (a) or Clause (b) is of workmen, all person
who were employed in the establishment or part of the establishment, as the case
may be, to which the disputes relates on the date of the dispute and all persons who
subsequently become employed in that establishment or part.

A settlement arrived at in the course of conciliation proceedings before a
Conciliation Officer shall come into operation on such date as is agreed upon by
the parties to the disputes and on the date on which the memorandum of the
settlement is signed by the parties to the disputes when no date is agreed. But, if a
person breaches any term of any settlement or award which is binding on him he
shall be punishable with imprisonment for a term which may extend to 6 months or
with fine or both.
Persons on whom settlement and awards are binding (Sec. 18)
For this purpose, settlements are classified into two catagories, namely
(i) Settlement arrived at otherwise than in the course of conciliation
proceedings, i.e. without the aid of statutory agency; and
(ii) settlement arrived at in the course of conciliation proceedings; Le. with
the aid of statutory agency.

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STRIKES & LOCKOUTS
Strike is collective stoppage of work by workmen undertaken in order to
bring pressure upon the employer. It is a spontaneous and concerted withdrawal of
workmen from production. A strike in usually organized by common agreement on
the part of the workers with a view to obtaining or resisting change to their
conditions of work.
Lockout is a weapon in the hands of the employer; which is used to curb the
militant spirit of the workers. In Lock-out, an employer shuts down his place of
business as a result of reprisal, or 2S an instrument of coercion or as a mode of
exerting pressure upon the employees with a view it dictate his own terms to them.
Strikes and lockouts have now become important factors in the employer -
employee relations.
Prohibition of strikes and lockouts (Sec. 22 and 23)
Sec.22 of the Industrial Disputes Act provides that:
(1) No person employed in a public utility service go on strike in breach of
contract:
(a) without giving notice of strike to the employer within six weeks
before striking, or
(b) within 14 days of giving notice, or
(c)before the expiry of the date of strike specified in any such
notice as aforesaid, or
(d) during the pendency of any conciliation proceedings and 7 days
after the conclusion of such proceedings.
(2) No employer on any public utility service shall lockout any of his
workmen
(a) without giving them notice of lock-out as herein after provided
within six weeks before locking out; or
(b) within 14 days of giving such notice.


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LAY-OFF & RETRENCHMENT
The Industrial Disputes Act, 1947, as originally enacted made no provision for the
payment of "Lay-Off" or "Retrenchment" compensation. Therefore, there were no
uniform rule that can be said to have observed by the adjudicating bodies in the
case of payment of compensation for "lay-off" or "retrenchment". In order to
overcome the situation, the President of India promulgated the Industrial Disputes
(Amendment) Ordinance in Oct., 1953 to the effect from 24th Oct. 1953. The said
Ordinance was repealed and replaced by the Industrial Disputes (Amendment)
Act, 1953 took effect from 23rd Dee ember 1953. According to this amendment,
Section 25-A to Section 25-J were added by this Amendment Act of 1953.
According to Sec. 25A (application of Sections 25-C to 25E inclusive) shall
not apply to industrial establishment to which Chapter V-B applies, or :
(a) to industrial establishment in which less than 50 workmen, on an average
per working day have been employed in the preceding calendar month,
and
(b) to industrial establishment which are of a seasonal character or in which
work is performed only intermittantly.

Conditions precedent to retrenchment of workmen (Sec. 25 F)
This section lays down the requirements for a valid retrenchment of an
employed who has been in continuous service for not less than one year.
This section prescribes three conditions for a valid retrenchment; namely.
(a) The workman should be given one months notice in writing indication the
reasons for retrenchment. .
(b) The workman has been paid, at the time of retrenchment, compensation
equivalent to 15 days average pay for every completed year of continuous
service or any part thereof in excess of 6 months.



25

Difference between lockout and lay-off:
(1) Lockout is an act on the part of the employer to pressurise the labour;
while layoff is for trade reasons, beyond the control of the employer;
i.e., it is not intentional act.
(2) Lockout is exercised due to an industrial dispute and continues during
the period of dispute; layoff is not necessiorily concerned with dispute
with workmen.

Difference between lock-out and retrenchment:

(1) Temporary or permanent: Lockout is temporary measure, while
retrenchment is permanent.
(2) Relationship: In lockout the relationship of employer and employee is
only suspended; it does not come to an end. In retrenchment such a
relationship is severed at the instance of the employer.
(3) Motive: Lockout is with a motive to coerce the workmen; the intention
of retrenchment is to dispense with surplus labour.
(4) Trade dispute: Lockout is due to an industrial dispute, whereas in
case of retrenchment, there is no such dispute

Difference between lock-out and closure
(1) Temporary/Permanent: Lockout is temporary measure, whereas closure
is permanent. .
(2) Weapon of coercion: Lockout is a weapon of coercion in the hands of
employer; while closure is generally made for trade reasons.
(3) Trade Dispute: Lockout is declared during an industrial dispute, while
in case of closure, there need not be any dispute.


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PREVENTION AND SETTLEMENT OF INDUSTRIAL DISPUTES:

Machinery for prevention of disputes in India:
The frequency with which the strikes took place and the serious industrial and
social dislocation which they cause has underlined the importance of preserving
industrial peace. The methods for prevention of industrial disputes include broadly
all such measures which directly or indirectly contribute towards improvement of
Industrial relations. The prevention methods, therefore cover the entire field of
relations between industry and labour which are described below:
(1) Strong Trade Union
(2) Profit Sharing and Co-partnership
(3) Joint Consultation
(4) Inrlustrial Employment Standing Orders
(5) Code of Discipline
(6) Collective Bargaining
(7) Works Committees
(8) Workers Participation in Management
(9) Tripartite Bodies/ Machinery
(10) LabourWelfare Officer
(11 ) Wage Board




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CONCLUSION























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Biblography: