Industrial Dispute Act

EMPLOYEE RELATIONS AND LABOUR LAW
HARI PRIYA -- CMS20MBA062

SREE VIDHYA -- CMS20MBA075
INDUSTRIAL DISPUTES ACT 1947
• An industrial dispute may be defined as a conflict or difference of opinion between
management and workers on the terms of employment.
• Disagreement or controversy between management and Labour with respect to wages,
working conditions, other employment matters or union recognition.
• As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined as any
dispute or difference between employers and employees, or between employers and
workmen, or between workmen and which is connected with the employment or non-
employment or with the conditions of Labour.
• The Act was passed with a view of removing certain shortcomings found in the working of the
Trade Disputes Act, 1929. It came into force on the first day of April 1947 [sec. 1(3)].
Scope Or Purpose Of Industrial Disputes Act 1947
• The Industrial Disputes Act, 1947 came into existence in April It was enacted to make
provisions for investigation and settlement of industrial disputes and for providing certain
safeguards to the workers.
• Industrial disputes are considered to overcome the disagreement made between
employer and employee in industrial relations.
• Acts as connectivity between the firm and the protesters for inappropriate consequences.
• Industrial dispute performs a high degree of trust to be made to make a propensity for
communication made for conflict.
• To handle the desired situation through lockout, strikes, picketing, bans, etc., which are
highly applicable to maintain the situation.
• Its aim is to protect the workmen against victimization by the employers and to ensure
social justice to both employers and employees.
Objectives Of Industrial Disputes Act 1947
• To provide a suitable machinery for the just, equitable and peaceful settlement of industrial disputes.
• To promote measures for securing and preserving amity and good relations between employers and employees.
• To prevent illegal strikes and lockouts.
• To provide relief to workers against layoffs, retrenchment, wrongful dismissal and victimization.
• To promote collective bargaining.
• To avoid unfair labour practices.
Applicability
• This act applies to every industry and its various industrial establishment carrying on
any business, trade, manufacture or distribution of goods and services irrespective of the number of
workmen employed there in.
• It includes every person in a establishment for hire or reward like contract labour, part-time employees etc.
• This act does not apply to persons in managerial or administrative capacity, persons engaged in a
supervisory capacity and drawing greater than 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.
Salient features of Industrial Disputes Act 1947
• This act extends to the whole of India including the state of Jammu and Kashmir.
• It encourages arbitration over the disputes between employers and employees.
• It provides for setting up of works committees as machinery for mutual consultation between employers
and employees to promote cordial relation.
• This Act paved the way for setting up permanent conciliation machinery at various stages having definite
time limits for conciliation and arbitration.
• This Act emphasis on compulsory adjudication besides conciliation and voluntary arbitration of Industrial
Disputes.
• The Act empower the Government to make reference of the dispute to an appropriate authority i.e.,
Labour court, Industrial tribunal and National tribunal depending upon the nature of the dispute either on
its own or on the request of the parties.
• The right to strike by the workers and lock–out by the employees has been subjected to the restriction as
laid down in the Act.
Reasons/Causes of Industrial Disputes
• Demand for higher wages and allowances.
• Demand for payment of bonus and determination of its rate thereof.
• Demand for higher social security benefits.
• Demand for good and safer working conditions, including length of a working day, the interval and frequency of
leisure and physical work environment.
• Demand for improved labour welfare and other benefits.
For example -adequate canteen, rest, recreation and accommodation facility, arrangements for travel to and from
distant place’s, etc.
Settlement of Disputes
Whatever may be the cause of industrial disputes, the consequences are harmful to all stakeholders management,
employees, economy and the society .
• For management, disputes result in loss of production, revenue, profit, and even sickness of the plant.
• for Employees, it would be hard hit as the disputes may lead to lockouts and consequent loss of wages and
even jobs
Penalty for illegal strikes and lock-outs [Section 26] of the
Industrial Dispute Act 1947
• Any workman who commences, continues or otherwise acts in furtherance of, a strike
which is illegal under this Act, shall be punishable with imprisonment for a term which may
extend to one month, or with fine which may extend to fifty rupees, or with both.
• Any employer who commences, continues, or otherwise acts in furtherance of a lock-out
which is illegal under this Act, 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.
Conclusion
• Industrial disputes can be resolved by way of adjudication i.e. settlement of an
industrial dispute by labour court or industrial tribunal. The appropriate
government may refer a dispute to adjudication depending on the failure of
conciliation proceedings.
• While the Act provides for both internal and external bodies for dispute resolution
and prevention of illegal strikes, lockouts and mitigates the use of unfair labour
practices, from a compliance perspective it is important to have robust internal
mechanisms that address disputes.

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EMPLOYEE RELATIONS AND LABOUR LAW

HARI PRIYA -- CMS20MBA062

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