Industrial Jurisprudence; Labour history and

policy in India:

Industrial Jurisprudence

Definition & Scope:

● Jurisprudence refers to the science or philosophy of law. Industrial Jurisprudence,

therefore, focuses on laws governing industrial relations, primarily addressing the
employeremployee relationship in an industrial context. This field encompasses not just
statutory laws but also constitutional provisions, judicial interpretations, and administrative
rulings concerning labour issues.

● Industrial jurisprudence plays a crucial role in maintaining a balanced power dynamic

between labour and capital, ensuring that the economic might of employers does not override
the basic rights of workers.

Historical Context:

● The initial concept of the employeremployee relationship was rooted in the

MasterServant doctrine. This gave employers significant control over employees, who had
limited rights and could be dismissed at will. This system was inherently exploitative.

● With the rise of industrialization, laissezfaire capitalism became dominant, characterized

by minimal government intervention in labour markets. The law was merely a spectator unless
it involved breaches of peace. Under this regime, employment contracts heavily favored
employers, and workers had limited avenues for legal recourse against unfair treatment​.

Shift Towards Welfarism:

● The Industrial Revolution (18th19th centuries) highlighted the dire working conditions of
laborers, leading to the growth of trade unionism and demands for better labour laws.
Governments began to recognize the need for regulatory frameworks to protect workers from
exploitation.
● The welfare state emerged as a response to the excesses of laissezfaire, mandating state
intervention in regulating working conditions, wages, safety, and industrial relations.

● Globalization (Post1991) in India: The liberalization policies of 1991 introduced a

significant shift in labour relations, especially with the rising influence of international market
forces. Employers, under competitive pressure, began to adopt policies like voluntary retirement
schemes (VRS) and workforce reduction measures, while the state retained a regulatory role to
ensure industrial peace​.

Key Principles of Industrial Jurisprudence:

1. Right to Form Unions: Workers have the right to form and join unions to collectively
bargain with employers. This is recognized both in national legislation and international
conventions (such as those of the ILO).

2. Collective Bargaining: Labour jurisprudence supports the right of workers to negotiate

better conditions of employment as a group rather than individuals. This is essential in
balancing the unequal power dynamics between individual workers and employers.

3. Tripartism: Involves the participation of workers, employers, and the state in resolving
industrial disputes. It promotes a more collaborative approach to labour relations.

4. State Intervention: The state is a guarantor of minimum standards in industrial relations,

ensuring workers are not subjected to exploitative conditions. This includes enforcing laws
regarding working hours, safety, wages, and dispute resolution​.

Labour History and Policy in India

Colonial Era (PreIndependence):

● The origin of labour laws in India can be traced back to the colonial period, with the
British government's first interventions aimed more at controlling the native labour force than
improving their conditions.
○ The Factories Act of 1881 was one of the earliest labour regulations, focusing on
improving working conditions for factory workers but largely driven by pressure from British
industrialists seeking to eliminate unfair competition from Indian manufacturers using cheap
labour​.

○ The rise of trade unions in the 1920s, alongside global movements for workers' rights, led
to key legislative enactments such as the Workmen’s Compensation Act, 1923, Trade Union Act,
1926, and Trade Disputes Act, 1929.

PostIndependence (19471990):

● After independence, India's Constitution (1950) laid down the framework for labour
rights through the Directive Principles of State Policy (Part IV). Articles like 39, 41, 42, 43, and
43A advocate social justice for workers, including equal pay for equal work, humane working
conditions, and participation in management​.

○ The postindependence era saw the enactment of several landmark laws aimed at
improving workers' conditions, including:

■ Factories Act, 1948: Ensures safety, health, and welfare measures for workers in
factories.

■ Minimum Wages Act, 1948: Sets the minimum wage rate to protect workers from
exploitation.

■ Employees' State Insurance Act, 1948: Provides social security to workers, including
medical and cash benefits during sickness, maternity, or injury.

■ Maternity Benefit Act, 1961: Provides paid maternity leave and job protection during
pregnancy​.

Liberalisation and Globalization (Post1991):

● India’s shift towards a market economy in the 1990s brought significant changes to
labour policy. With globalization, there was an increased focus on making Indian industries
competitive globally, often at the expense of workers' rights. Labour laws began to reflect this
shift, emphasizing flexibility in employment, contractual employment, and voluntary retirement
schemes (VRS). Despite this, the state continues to play a regulatory role in ensuring a basic
standard of worker welfare​.
 Constitutional Paradigm of Labour and Industrial Law

Fundamental Rights (Part III of the Constitution):

● Article 14 (Right to Equality): Ensures that no person, including workers, faces

discrimination based on gender, caste, religion, or economic status. This is especially relevant in
laws like the Equal Remuneration Act, 1976, which mandates equal pay for equal work
regardless of gender​.

● Article 19(1)(c) (Right to Form Unions): Workers have the constitutional right to
form associations and trade unions to protect their interests and negotiate with employers​.

Directive Principles of State Policy (Part IV):

● Article 39: Advocates for equal pay for men and women, ensuring that economic
resources do not get concentrated in the hands of a few.

● Article 41: Promotes the right to work and public assistance during unemployment, old
age, sickness, and disability.

● Article 42: Calls for just and humane working conditions and maternity benefits.

● Article 43: Mandates the state to ensure a living wage and decent standards of living for
all workers​.

● Article 43A: Calls for the participation of workers in the management of industrial
undertakings, promoting industrial democracy​.

Principles and Need for Labour Legislation in India

Principles Underlying Labour Legislation:

1. Social Justice: Labour laws ensure that workers are treated with fairness and justice,
safeguarding their basic rights. This includes laws like the Minimum Wages Act, 1948 and
Maternity Benefit Act, 1961.
 2. Social Equality: Ensures there is no discrimination in the workplace based on gender,
caste, religion, etc. The Equal Remuneration Act, 1976 is a prime example, ensuring women
receive equal pay for equal work.

3. Social Security: Labour laws provide mechanisms to protect workers from the
uncertainties of life such as unemployment, sickness, and old age. Laws like the Employees’
State Insurance Act, 1948 and Workmen's Compensation Act, 1923 fall under this category​.

4. National Economy: The goal is to ensure that labour laws contribute positively to
national economic development by maintaining industrial peace and ensuring that workers are
healthy, productive, and fairly treated.

Principles and Need for Labour Legislation in India

Principles

1. Social Justice

○ Objective: To protect workers from exploitation and ensure fair wages and working conditions.

○ Implementation:

■ Minimum Wages: Laws like the Minimum Wages Act, 1948, ensure that workers
receive a minimum standard of pay, preventing exploitation.

■ Working Hours: Regulations on working hours, overtime, and rest periods are
enforced to prevent overwork and ensure workers’ health and wellbeing.

■ Safety Standards: The Factories Act, 1948, mandates safety measures to protect
workers from industrial accidents and occupational diseases.

2. Social Equality

○ Objective: To eliminate discrimination in the workforce based on gender, religion, caste, etc.

○ Implementation:

■ Equal Remuneration: The Equal Remuneration Act, 1976, ensures that men and
women receive equal pay for equal work.
 ■ AntiDiscrimination: Various laws prohibit discrimination in hiring, promotion,
and other employment practices.

■ Affirmative Action: Policies and laws promote the inclusion of marginalized

groups in the workforce.

3. Social Security

○ Objective: To protect workers from social risks such as unemployment, injury, or illness.

○ Implementation:

■ Insurance Schemes: The Employees’ State Insurance Act, 1948, provides health
insurance and medical care to workers.

■ Provident Funds: The Employees’ Provident Funds Act, 1952, ensures financial
security for workers postretirement.

■ Compensation: The Workmen’s Compensation Act, 1923, provides compensation

for workers injured in the course of employment.

4. National Economy

○ Objective: To contribute to national economic growth by maintaining industrial peace and

ensuring productive efficiency.

○ Implementation:

■ Industrial Relations: The Industrial Disputes Act, 1947, provides mechanisms

for resolving industrial disputes, thereby maintaining industrial harmony.

■ Productivity: Laws ensure that workers are motivated and productive,

contributing to economic growth.

■ Investment Climate: Stable industrial relations and fair labor practices attract
foreign investment and boost economic development.

Need for Legislation

● Prevention of Exploitation: Labour laws prevent exploitation by setting standards for

wages, working hours, and conditions, ensuring that workers are treated fairly.
● Industrial Peace: By providing mechanisms for dispute resolution, labor laws help
maintain industrial peace, preventing strikes and lockouts that can disrupt economic activity.

● Fair Wages: Legislation ensures that workers receive fair wages for their labor,
preventing underpayment and wage theft.

● Job Security: Laws provide job security by regulating termination procedures and
protecting against arbitrary dismissal.

● Improved Working Conditions: Labour laws mandate safe and healthy working
conditions, reducing workplace accidents and occupational diseases.

Classification of Labour and Industrial Laws

Regulative Labour Legislations

● Purpose: To regulate the relationship between employers and employees and manage
industrial disputes.

● Examples:

○ Trade Unions Act, 1926: Provides for the registration and regulation of trade unions,
granting them legal recognition and the right to negotiate on behalf of their members.

○ Industrial Disputes Act, 1947: Establishes mechanisms for the investigation and
settlement of industrial disputes, including conciliation, arbitration, and adjudication.

Protective Labour Legislations

● Purpose: To ensure minimum standards in working conditions and protect workers’

health and safety.

● Examples:

○ Factories Act, 1948: Regulates working conditions in factories, including safety,

health, and welfare measures such as ventilation, lighting, and sanitation.

○ Mines Act, 1952: Provides for the health, safety, and welfare of workers in mines,
including measures to prevent accidents and occupational diseases.
WageRelated Labour Legislations

● Purpose: To set methods of wage payment and ensure minimum wages for workers.

● Examples:

○ Payment of Wages Act, 1936: Regulates the payment of wages to certain classes of
employed persons, ensuring timely and full payment without unauthorized deductions.

○ Minimum Wages Act, 1948: Provides for the fixation of minimum rates of wages in
certain employments, ensuring that workers receive a basic standard of living.

Social Security Labour Legislations

● Purpose: To provide social security benefits like insurance, compensation for injury, and
maternity benefits.

● Examples:

○ Workmen’s Compensation Act, 1923: Provides for the payment of compensation to

workers for injuries sustained in the course of employment, ensuring financial support during
recovery.

○ Employees’ State Insurance Act, 1948: Provides health insurance and medical care
for workers, including benefits for sickness, maternity, and employment injury.

○ Maternity Benefit Act, 1961: Provides for maternity leave and benefits for women
workers, ensuring their health and wellbeing during and after pregnancy.

Welfare Labour Legislations

● Purpose: To improve workers’ welfare and living conditions.

● Examples:

○ Beedi Workers Welfare Fund Act, 1976: Provides for the welfare of workers in the
beedi industry, including health, education, and housing benefits.

○ Plantation Labour Act, 1951: Regulates the conditions of work in plantations and
provides for the welfare of plantation workers, including housing, medical facilities, and
education for their children.
 Employment Rights and Problems of the Working
Force

Employment Rights

● Right to Fair Wages: Workers have the right to receive fair wages for their labor, as
mandated by laws like the Minimum Wages Act, 1948.

● Humane Working Conditions: Workers are entitled to safe and healthy working
conditions, as provided by the Factories Act, 1948.

● Collective Bargaining: Workers have the right to form and join trade unions and
engage in collective bargaining, as per the Trade Unions Act, 1926.

● Social Security: Workers are entitled to social security benefits like insurance,
provident funds, and compensation for injuries, as provided by various social security
legislations.

● NonDiscrimination: Workers have the right to be free from discrimination based on

gender, religion, caste, etc., as mandated by laws like the Equal Remuneration Act, 1976.

Problems

● Exploitation: Despite legislation, workers often face exploitation in terms of low wages,
long working hours, and poor working conditions. This is particularly prevalent in the informal
sector, where labor laws are often not enforced.

● Unequal Wages: Wage disparities based on gender, caste, and other factors persist in
many sectors, despite laws aimed at promoting equality.

● Unsafe Working Conditions: Many workers, especially in hazardous industries like

mining and construction, work in unsafe and unhealthy conditions, leading to accidents and
occupational diseases.

● Lack of Social Security: A significant portion of the workforce, particularly in the

informal sector, lacks access to social security benefits, leaving them vulnerable to economic
shocks and health crises.
● Globalization and Contractual Employment: The rise of globalization and
contractual employment has led to job insecurity and challenges in enforcing labor rights.
Contract workers often lack the protections and benefits afforded to permanent employees,
leading to exploitation and precarious working conditions.

Conclusion

● Industrial Jurisprudence in India has evolved significantly since independence,

with a focus on balancing the rights and interests of workers and employers. The judiciary has
played a crucial role in interpreting and shaping labor laws to promote social justice and
industrial peace. However, challenges such as the informal sector and effective implementation
of laws remain, necessitating continuous efforts to ensure fair labor practices and the protection
of workers’ rights.
 Collective Bargaining: Concept and Application
in Harmonious Industrial Relations

Concept of Collective Bargaining:

● Definition: Collective bargaining is a bipartite negotiation process between

employers and employees (or their representatives) regarding employment conditions such as
wages, benefits, working conditions, and dispute resolution. The term was popularized by
Sidney and Beatrice Webb, and in the U.S., by Samuel Gompers. The International Labour
Organization (ILO) describes it as a joint determination of employment rules between workers
and employers.

● Process: Collective bargaining is a voluntary and peaceful method where parties

attempt to resolve disputes without thirdparty intervention. This method promotes industrial
democracy and bipartism, facilitating industrial peace through mutual agreements.

● Supreme Court Case on Collective Bargaining: The Supreme Court of

India emphasized the importance of collective bargaining in the Karol Leather Karamchari
Sangathan v. Liberty Footwear Company (1989) case. The Court stated that collective
bargaining is a method for resolving disputes about employment conditions through agreement
rather than coercion. It underlined that the refusal to bargain collectively in good faith amounts
to an unfair labor practice under the Industrial Disputes Act, 1947.

● Functions of Collective Bargaining:

1. RuleMaking: It defines and regulates workplace rules, such as wage structures,

benefits, and dispute resolution mechanisms.

2. Conflict Resolution: Prevents industrial disputes through preemptive negotiations

and agreements, fostering peace and preventing strikes or lockouts.

3. Standardization and Flexibility: Balances industrywide standardization and

regional/plantlevel flexibility in agreements.
● Types of Collective Bargaining:

1. Distributive Bargaining: A winlose scenario where one party's gain is the other's loss
(e.g., wage negotiations).

2. Integrative Bargaining: A winwin situation, where both parties collaborate to solve

problems for mutual benefit. For example, productivity bargaining.

3. Concessionary Bargaining: In challenging economic conditions, employees agree to

concessions (e.g., reduced benefits) in exchange for job security.

● Levels of Collective Bargaining:

1. NationalLevel Bargaining: Occurs mainly in public sector industries like banking,

coal, and steel. Central government acts as the employer, setting uniform wages and working
conditions across the sector.

2. IndustryLevel Bargaining: Common in sectors like textiles, jute, and tea plantations.
Agreements are made at the industry level and supplemented by regional agreements.

3. PlantLevel Bargaining: Specific to individual plants or factories. These negotiations

address local concerns, such as productivity or regionspecific cost of living.

● Collective Bargaining Process:

1. Preparation of Initial Demands: Both the trade union and management prepare their
objectives and proposals based on internal data analysis.

2. Negotiation: Discussions between management and union representatives aim to reach a

consensus. Counterproposals are made and debated.

3. Agreement Drafting: Once both sides agree, a formal collective bargaining agreement is
drafted. This document legally binds both parties to the agreedupon conditions.
 4. Implementation and Monitoring: The agreement is implemented, and both parties
monitor compliance.

5. Conciliation and Arbitration (if necessary): If the parties fail to agree, they can opt for
arbitration or conciliation through a third party.

● Collective Bargaining Agreements:

1. Voluntary Agreements: Negotiated directly between unions and employers, binding both
parties.

2. Settlements and Consent Awards: Agreements resulting from government involvement

or arbitration.

● Challenges in Collective Bargaining:

1. Legal Framework: Although laws like the Industrial Disputes Act, 1947 and Trade Unions
Act, 1926 exist, the lack of compulsory recognition of agreements hinders effective
implementation.

2. Multiple Unions: In organizations with multiple unions, the negotiation process can
become complicated and inefficient.

3. Lack of Trust and Transparency: Successful collective bargaining relies on open

communication, trust, and negotiation in good faith.

Application in Harmonious Industrial Relations

1. Promoting Industrial Peace

○ Structured Negotiations: Collective bargaining provides a formal platform

for dialogue between employers and employees. This structured approach helps
in addressing grievances and demands systematically.
 ○ Preventing Escalation: By engaging in regular negotiations, potential
conflicts can be identified and resolved early, preventing them from escalating
into strikes, lockouts, or other forms of industrial action.

○ Building Trust: Continuous dialogue fosters mutual trust and respect

between management and workers, contributing to a more cooperative work
environment.

2. Economic Stability

○ Early Dispute Resolution: Collective bargaining facilitates the early

resolution of disputes, which minimizes disruptions to production and
operations. This stability is crucial for maintaining consistent productivity and
profitability.

○ Predictable Labor Costs: Agreements reached through collective bargaining

often include provisions for wages, benefits, and working conditions, allowing
businesses to plan and budget more effectively.

○ Investment in Workforce: Stable industrial relations encourage investment

in employee training and development, leading to a more skilled and efficient
workforce.

3. Adaptation to Change

○ Flexibility in Agreements: Collective bargaining agreements can be tailored

to address specific economic or technological changes, ensuring that both
parties can adapt to new circumstances without conflict.

○ Continuous Improvement: The process encourages ongoing dialogue about

workplace improvements, technological advancements, and changes in market
conditions, fostering a culture of continuous improvement.

○ Shared Responsibility: Both management and workers share the

responsibility of adapting to changes, which promotes a sense of ownership and
collaboration in implementing new policies or technologies.
 International Labour Organization
(ILO)
The International Labour Organization (ILO), founded in 1919, plays a pivotal
role in promoting labor rights globally. It is a tripartite organization that brings
together representatives from governments, employers, and workers to address
labor standards, rights, and social justice. Here is a detailed overview of the
ILO’s structure, its key contributions, and its influence on collective bargaining
and labor rights.

Emergence and Role of the ILO:

Formation: The ILO was established as a result of the Versailles Peace

Conference in 1919. It became a specialized agency of the United Nations in
1946. The organization is unique due to its tripartite structure, which includes
representatives from governments, employers, and workers, giving all parties a
voice in labor standards discussions. Currently, 187 nations are members,
including founding member India.

Core Aims:

● Promoting Full Employment: Ensuring that all people are employed

based on their skills and capabilities.

● Raising Living Standards: The ILO focuses on improving living

standards globally by developing strategies and policies that ensure fair
wages and safe working conditions.

● Social Security: The ILO emphasizes extending social security to

provide a basic income and access to medical care for all.

● Child Welfare and Maternity Protection: Ensuring children are

protected in labor laws, and women have proper maternity rights.

Role in Indian Labor Policy: The ILO has had a significant influence
on Indian labor laws and policies. Several key labor laws, such as the Factories
Act (1922), Mines Act (1952), and Workmen’s Compensation Act (1923), were
influenced by ILO conventions.

Collective Bargaining and Tripartism:

Tripartism: The ILO advocates for tripartite decisionmaking involving

governments, employers, and workers. This collaboration ensures that labor
policies are formulated equitably and that all stakeholders are involved in
shaping industrial relations. Tripartism helps foster peaceful negotiation of
labor issues and promotes industrial harmony.

Collective Bargaining:

● Promoting the Right to Collective Bargaining: The ILO has been

a strong advocate for workers' right to engage in collective bargaining.
Since its foundation, it has viewed collective bargaining as a powerful
instrument for achieving social justice by allowing workers to negotiate
for fair wages, benefits, and working conditions.

● Voluntary Nature of Collective Bargaining: The ILO supports the

idea that collective bargaining should remain voluntary and free from
governmental interference. It maintains that workers and employers
should decide the terms and level of their negotiations independently.

● Government’s Role: The ILO also recognizes that governments play

an essential role in supporting collective bargaining by creating a legal
framework to enforce collective agreements and ensuring that laws and
regulations are in place to support effective negotiations.

Recognition of Collective Bargaining as a Social Justice

Tool: Collective bargaining has been seen as a vital mechanism for improving
labor conditions, resolving employment disputes peacefully, and promoting
fairness in workplaces globally.
 International Labour Standards (ILS):

Core Labour Standards:

The ILO's core labor standards focus on protecting workers’ rights against
forced labor, discrimination, and child labor, while promoting the right to form
unions and engage in collective bargaining. These standards are enshrined in
the Fundamental Conventions.

Recommendations and Conventions:

The ILO adopts Conventions (legally binding international treaties) and

Recommendations (nonbinding guidelines). These form the foundation of
international labor standards and cover areas such as employment conditions,
social security, and workplace safety. Once adopted by the International Labour
Conference (ILC), these instruments are presented to member states for
ratification and implementation into national laws.

Fundamental Conventions:

These conventions cover fundamental principles and rights at work. Some of

the key fundamental conventions include:

1. Freedom of Association and Protection of the Right to Organise

Convention, 1948: Establishes the right of workers and employers to form
and join organizations of their choice, free from interference.

2. Right to Organise and Collective Bargaining Convention, 1949:

Protects workers from antiunion discrimination and promotes collective
bargaining.

3. Equal Remuneration Convention, 1951: Prohibits discrimination based

on sex, promoting equal pay for equal work.

4. Discrimination (Employment and Occupation) Convention, 1958:

Prohibits discrimination in employment on grounds such as sex, race, religion,
and political opinion.
Governance Conventions:

These conventions are essential for the functioning of the international labor
standards system:

1. Labour Inspection Convention, 1947: Ensures adequate labor

inspections to enforce working condition laws.

2. Employment Policy Convention, 1964: Promotes policies aimed at

achieving full and productive employment.

3. Labour Inspection (Agriculture) Convention, 1969: Extends labor

inspection to the agricultural sector.

4. Tripartite Consultation (International Labour Standards)

Convention, 1976: Ensures tripartite consultations for creating and
monitoring international labor standards.

Technical Conventions:

These conventions focus on specific labor issues:

1. Unemployment Convention, 1919: Addresses unemployment issues by

offering guidance on managing unemployment and supporting affected
workers.

2. Maternity Protection Convention, 1919: Ensures maternity leave, job

security, and health benefits for women before and after childbirth.

ILO’s Impact in India:

Ratifications: India has ratified 47 ILO conventions, including six out of

eight fundamental conventions, demonstrating the country's commitment to
promoting labor standards. Ratified conventions cover various labor rights,
including collective bargaining and worker protections.
Influence on Indian Laws: Many of the ILO's principles are reflected
in the Directive Principles of State Policy in the Indian Constitution, and several
labor laws, including the Trade Unions Act (1926), Mines Act (1952), and
Workmen’s Compensation Act (1923), have been shaped by ILO standards.

Organizational Structure of the ILO:

● International Labour Conference (ILC): The ILC acts as the
legislative body of the ILO, creating international labor standards in the
form of conventions and recommendations. It meets annually to set
policies, approve budgets, and address labor issues .

● Governing Body: The executive arm of the ILO, responsible for

implementing the decisions of the ILC. It appoints the DirectorGeneral
and supervises the work of the International Labour Office.

● International Labour Office: The secretariat of the ILO, it ensures

the daytoday functioning of the organization and the implementation of
ILO policies. It conducts research, collects labor data, and assists
governments in adopting ILO standards.

●
● GC- General Council: meets once a year, conference assisted by
governing body- budget, programme- adopts. International Labour
standards in form of convention, recommendations and provides form
fordiscussion.
● Governing Body- executive wing- since 1922. India- elective seat in GB.

GB-functioning through various committees.

-India is member of all 6 committees.

1) ProgrammePlaning Administration
2) Freedom Association
3) Legal Issue and International Labour Standard
4) Employment and Social Policy
5) Technical Co-operation
6) Sectoral and technical meeting and related issues
 Industrial Disputes Act, 1947
Topic 1: Aim and Objective of the Act

● Introduction
The Industrial Disputes Act, 1947 was enacted with the purpose of providing a permanent
mechanism for the investigation and settlement of industrial disputes. The Act aims to minimize
conflicts between labor and management and promote social and economic justice, ensuring
industrial peace, which is essential for uninterrupted production and national prosperity.

● Aims of the Industrial Disputes Act:

1. Industrial Peace and Economic Justice:

The Act was introduced to ensure continuous production and prevent industrial unrest caused
by disputes between employers and employees. The focus is on improving the service conditions
of labor to achieve harmonious relations.
By promoting industrial peace, the Act helps boost the productive activities of the country,
leading to national prosperity.

2. Mechanism for Dispute Resolution:

The Act provides for the establishment of machinery like Conciliation Officers, Boards of
Conciliation, and Labour Courts to settle disputes and prevent strikes or lockouts.

● Objectives of the Industrial Disputes Act:

The Supreme Court in Workmen of Dimakuchi v. Management of Dimakuchi Tea

Estate outlined the key objectives of the Act:

1. Promotion of Good Relations: The Act promotes measures to ensure amity between
employers and workers.

2. Investigation and Settlement: It provides for the investigation and settlement of

industrial disputes between employers and employees or between workmen themselves.
3. Prevention of Illegal Strikes and Lockouts: The Act aims to prevent unlawful strikes
and lockouts.

4. Relief to Workers: It provides for relief to workers in case of layoffs and retrenchment,
ensuring economic stability for the workforce.

● Main Features of the Act:

1. Applicability: The Act applies to industries and certain categories of industrial workers.

2. Machinery for Settlement: It lays down comprehensive provisions for conciliation,

voluntary arbitration, and compulsory adjudication to resolve disputes.

3. Reference to Adjudicating Authorities: The Act empowers the government to refer

disputes to appropriate authorities like Labour Courts, Industrial Tribunals, and National
Tribunals. The awards of these authorities are binding for up to one year and enforceable by the
government.

4. Restrictions on Strikes and Lockouts: The right to strike by workers and lockout by
employers is regulated and not absolute.

5. Public Utility Services: The government can declare certain industries as public utilities,
which imposes additional restrictions on strikes and lockouts.