Labour Law Internal Answers

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 7

Can an individual dispute become an industrial dispute?

Before the introduction of Section 2-A of the Act, an individual dispute could not in itself be
an industrial dispute, but it could become one if the trade union or a number of workers had
been involved. The Supreme Court and the majority of Industrial Tribunals held that a
dispute raised by a dismissed employee would not be treated as an industrial dispute unless
it is supported by a trade union or by a body or Section of a workman.

In a landmark case of  Workmen of Dimakuchi Tea Estate v. The Management of


Dimakuchi Tea Estate  SC identified two tests to determine whether a dispute was industrial
or individual. They are-

 A real dispute that can be resolved by relief from one party to another.
 The person for whom the dispute arises must be one in whose employment, non-
employment, working conditions or working conditions the parties to the dispute have
a direct or substantial interest and this must depend on the facts and circumstances of
each case.
 Section 2A does not state that all individual disputes are industrial disputes. It is only
when a dispute relates to a  discharged, dismissed retrenched or terminated worker
that it is treated as an industrial dispute.
 If the dispute or difference relates to some other matter, e.g. the payment of a
bonus/gratuity, etc., then the test laid down in court decisions would have to be met.

Conditions under which an individual dispute becomes an


industrial dispute
SC held that an individual dispute could be transformed into an industrial dispute if

 it was sponsored by a trade union or


 if it was sponsored by a significant number of workers.

1.→In order to make an individual dispute into an industrial dispute, it must be taken up by a
union of employees of the establishment and, where no such union exists, it can be married
by any union of workers employed in similar trade.

2.→With regard to the second condition, if an individual dispute between a worker is dealt
with by a considerable number of workers of the same establishment, it becomes an industrial
dispute. The court admitted that the term ” number appreciable” does not mean a majority of
the workers.

Time to raise Industrial Discrepancies


Delay to raise an industrial dispute is not a bar to a dispute ‘s reference. In Guest Keen,
Williams Pvt. Ltd., Calcutta v. P.J. Sterling SC stated that the Tribunal would definitely
take this fact into account when dealing with the merits of the dispute if a dispute arises after
a considerable delay that is not reasonably explained.

How can an individual workman raise an industrial dispute


1. Through Grievance Settlement Authority [Sec. 9 (c)]

 This section is included in Chapter II B of the Act. Under this section, the employer
shall provide a grievance settlement authority in accordance with the rules laid down
in that name under this Act in respect of each industrial establishment in which fifty
or more workers are employed or have been employed on any day in the preceding
twelve months.
 In order to resolve disputes arising from individual grievances, each industrial
establishment employing 20 or more workers shall have one or more grievance
redress committee.
 The Grievance Redress Committee may complete its proceedings within 45 days of
receipt by or on behalf of the aggrieved Party of a written request.
 The employee who is grieved by the decision of the Grievance Redressal Committee
may prefer an appeal to the employer against the decision of the Grievance Redressal
Committee and the employer shall dispose of the decision within one month of the
date of receipt of that appeal.

2. Through Trade Union


 Chapter III of the 1926 Trade Union Act, sections 15 to 28 of the 1926 Trade Union
Act lays down provisions relating to the rights and obligations of registered trade
unions.
 Right to represent- If the employee gives written permission to represent, a trade
union may make representations on behalf of the employee or individual dispute. A
trade union may make presentations with that authorization before any consolation
officer, industrial court or labor court.
 Right to sue– A trade union registered is a legal entity and can, therefore, sue the
employer or anyone else. He may argue before any labor court, authority, the court in
his own name and on behalf of his members.

In Bombay Union of Journalists v. The Hindu  Further reduction of the industrial dispute
scope. In this case, the Bombay Union of Journalists, of whom the Workers ‘ Union was a
member, raised a workers ‘ dispute. The Bombay Journalists Union was not a union of one
job, but of all employees in the Bombay journalism industry. Its members were none of the
Hindu employees. SC held the dispute to be individual rather than industrial.

In Workmen of Dharampal Premchand v. M/S Dharampal Premchand out of the 45


workers, 18 were rejected. There was no workers union. The court said that a considerable
number of workers are involved in this dispute and can, therefore, be called an industrial
dispute.SC thus relaxed the requirement that an individual dispute be considered an industrial
dispute and thus overruled the case of the Bombay Union of Journalists. The net effect of the
above decisions is that an individual employee who is not supported by a significant number
of employees or unions has no remedy under the Industrial Disputes Act, 1947.

Workmen of Indian Express Newspapers Ltd. v. Management Indian Express


Newspapers A dispute concerning two Indian Express Newspapers Ltd workers was raised
by the Delhi Union of Journalists, which was an external union. About 25 percent of the
Indian Express working journalists were members of that union. But there was no union of
Indian Express journalists. It was held that the Delhi Union of Journalists had a representative
character. The working journalists used Indian Express and the dispute thus became an
industrial dispute.

A dispute is an industrial dispute even if it is sponsored by a union that is not registered but
not unrelated to the employer or industry concerned. (Express Newspapers (Private) Ltd. v.
First Labour Court, West Bengal & Others )
3. Through the Labour Court
Labour Court [Sec. 7]: The appropriate government is empowered to establish one or more
Labor Courts. Its function is to settle industrial disputes concerning any matter specified in
the second schedule.

The Second Schedule deals with matters within the competence of the Labor Courts:

1. the legality of an order placed under standing orders by an employer;


2. Use and interpretation of standing orders;
3. Discharge or dismissal of workers including the reinstatement of workers who were
wrongly dismissed or the granting of relief;
4. Cancelation of any customary grant or privilege;
5. Illegality or otherwise of a strike or lock-out; and

 According to [Sec.10 (1) (c)] Dispute not affecting more than 100 workers may be
referred to the labor court on matters specified in the THIRD SCHEDULE.

 According to [Sec.10 (2)] Where parties to the industrial dispute apply to the
government to refer the dispute to the labor court and submit a reference to the labor
courts if satisfied by the government.
 According to [Sec.10 (6)] No Labor Court or Tribunal shall have jurisdiction to
adjudicate any matter before the National Tribunal to be adjudicated.
 The adjudication process begins after the matter has been referred to any CGIT- cum-
Labour Court. At the end of the proceedings, the Chairman gives an award. The Labor
Ministry under Section 17 of the I.D. The Act publishes the award in the Official
Gazette within 30 days of the date on which the award is received.

What are the possible remedies an individual


workman can seek in any of the above
forums?
Cordial relations between employer and employees should be maintained in the interests of
the industry in particular and the national economy in general. The following methods of
settling industrial disputes are provided for in the Act to ensure cordial labor-management
relations and to achieve industrial harmony:

1) Collective Bargaining – Collective bargaining or negotiation is one of the ways in which


industrial disputes are resolved. It plays an important role in fostering relationships between
labor management and industrial harmony. Collective bargaining is a process/method by
which wage problems and employment conditions are resolved in a friendly, peaceful and
voluntary manner between labor and management.

2) Conciliation – Conciliation is a process through which a third party persuades parties to


reach a friendly solution to the industrial dispute. This third party is called the conciliation
officer of the Council of Conciliation.’ Sections 4 and 5 of the Act provide for the
appointment of the Conciliation Officer and the formation of the Council.

3) Voluntarily Arbitration – The term ” arbitration” simply means ” solving or resolving a


dispute outside the court.” The parties to the dispute may refer the dispute /matters on in
whom they have faith to propose a friendly solution without going to the Court of Law.

Such a person who acts as a mediator between the disputants is called an arbitrator. The
decision of the parties that binds the parties is called the ” Award”.

Arbitration is thus a judicial process in which one or more external parties make a binding
decision on the basis of the merits of the conflict. Section 10-A of the industrial dispute law
of 1947 confers the power to enter into an arbitration agreement on the parties. The
agreement shall be in prescribed form and the name/ name of the arbitrator or arbitrator shall
be specified.

4) Adjudication – If an industrial dispute cannot be settled either through negotiations or


through the conciliation machinery or through voluntary arbitration, the final stage to which
an industrial dispute can be settled is the arbitration or compulsory arbitration, which
provides for government references to statutory bodies such as the Labor Court or the
Industrial Tribunal or the National Court.

Section 7, 7-A and 7-B of the Industrial disputes Act, 1947 provide for the constitution of
Labour Court, Industrial Tribunal and Labour Tribunal respectively.

Forums to seek remedies


1. Grievance Settlement Machinery

[Sec.19] Period of operation of settlements and awards.

 A settlement shall enter into force on the date agreed by the parties to the dispute and,
if no date is agreed, on the date on which the parties to the dispute sign a settlement
memorandum.

 An award shall remain in operation for a period of one year from the date on which
the award is enforceable pursuant to section 17A: provided that the government can
reduce that period and fix the period it deems appropriate
 The appropriate Government may, before the expiry of the said period, extend the
period of operation by any period not exceeding one year at a time as it thinks fit, so
however, that the total period of operation of an award does not exceed three years
from the date on which it came into operation.

2.Through the Labour Court

 [Sec.16(2)]– The award of a Labor Court or a National Tribunal shall be written and
signed by its Chairman.
 [Sec.17(1)]-Any arbitration award and any award of a Labor Court, Tribunal or
National Tribunal shall be published in such manner as the appropriate Government
considers appropriate within 30 days of the date of its receipt by the appropriate
Government.
 [Sec.17 (2)]-The award issued shall be final and shall not in any way be called into
question by any Court.

 [Sec.17A (1)]– The award issued shall be final and shall not in any way be called into
question by any Court.
 [Sec.17A (3)] – Any award as rejected or modified laid before the legislature of state
or parliament shall become enforceable on the expiry of 15 days from the date on
which is so laid.
 The declared award shall be enforceable on the specified date if no declared award is
enforceable under the above rules.

I) Introduction - 

         The Industrial Dispute Act was passed in 1947 and the same come into force from 1st April
1947.  This Act was enacted for the promotion of good, cordial relations between the employer and
workmen, To investigate and settle disputes between employers and employers, employers and
workmen, workmen and workmen. Section 2(k) of the said Act defines Industrial Dispute. There are
certain conditions, if these conditions are satisfied, an Individual Dispute may be declared as an
Industrial Dispute.

II) Industrial dispute - 

          Section 2(k) of the Industrial Dispute Act defines “Industrial dispute” means any dispute or
difference between employers and employers, or between employers and workmen, or between
workmen and workmen, which is connected with the employment or non-employment or the terms
of employment or with the conditions of labour, of any persons;

III) Ingredients of Industrial Disputes - 

(1) Dispute or difference between -

            i) employers and employers


            ii) employers and workmen

            iii) workmen and workmen;

(2) The Dispute or difference should be connected with  the employment or non-employment or the
terms of employment or with the conditions of labour of any person

IV) When an individual dispute becomes an industrial dispute?

 
        Newspaper Ltd Vs State of U.P and others, AIR 1957 SC532  In this case, The supreme court and
maturity of industrial tribunals held that "a dispute raised by a dismissed employee will not be
treated as an industrial dispute unless it is supported by a Trade union or by a body or section of
Workman.

 Any individual dispute to be declared as an industrial dispute the following conditions are to be
satisfied - 

A body of workmen trade union or considerable number of workmen, are found to have made
common cause with the individual Workman

That that is put individual dispute was taken up or sponsored by the workman as a body Trade union
or by a considerable section of them before the date of reference

Section 2: Definition:

(a). Appropriate Government: The Central Government, as well as the


State Government, are vested with various powers and the duties in
relation to matter dealt with this act. In relation to some industrial
disputes the Central Government and in relation to some other the
State Government concerned are appropriate government to deal with
such dispute. The appropriate government shall be the Central
Government or the State Government, which has control over such
industrial establishment.

You might also like