CHAPTER 10-INDUSTRIAL DISPUTES

CHAPTER 05 THE INDUSTRIAL DISPUTES ACT, 1947

OBJECTIVES
The Industrial Disputes Act, 1947, was enacted to secure industrial peace and harmony by providing machinery and procedure for the Investigation and settlement of industrial disputes by negotiations instead of by trial of strength through stri es and loc outs! This legislation is calculated to ensure social "ustice to both employers and employees and, thereby promote industrial progress!

CASE EXAMPLE In the case of Workmen of Dimakuchi Tea Es a e !s" Dimakuchi Tea Es a e , AI# 19$% &' ($(, the &upreme 'ourt laid down following ob"ectives of the Act) ## *romotion of measures of securing and preserving amity and good relations between the employer and wor men! Investigation and settlement of industrial disputes between employers and employers, employers and wor men, or wor men and wor men with a right of representation by registered trade union or federation of trade unions or an association of employers or a federation of associations of employers! ## *revention of illegal stri es and loc outs! ## #elief to wor men in the matter of lay+off and retrenchment ! ## *romotion of collective bargaining!

SCOPE AND COVERAGE

The Act e,tends to the whole of India and applies to every industrial establishment carrying any business, trade, manufacture or distribution of goods and services, irrespective of the number of, wor men employed therein, i!e. even in case of a single employee the Act shall apply! -&ection ./"0 and / a01 The Act was designed to provide a self+contained code to compel the parties to resort to industrial arbitration for the resolution of e,isting or apprehended disputes without prescribing statutory norms for vireo and variegated industrial relating norms so that the forums created for resolution of disputes may remain unhampered by an any statutory control and devise rational norms eeping pace with improved industrial relations reflecting and imbibing socio+economic "ustice! This being the ob"ect of the Act, the 'ourt by interpretative process must strive to reduce the field of conflict and e,pand he area of agreement and show its preference of upholding agreements sanctified by mutuality a consensus in larger public interest, namely, to eschew industrial stri e, confrontation and conse2uent wastage - Workmen$ Hin%us an Le&er Limi e% !s" Hin%us an Le&er Limi e% /19%40 1 &'' 7.%1

DEFINITONS `Industry [Section 2(j)]

3Industry3 means any business, trade, underta ing, manufacture or calling of employers and includes any calling, service, employment, handicraft or Industrial occupation or avocation of wor men!
CASE EXAMPLE

Tests for determination of "Industry"

The &upreme 'ourt, laid down the following tests in the 'an(a)ore Wa er Su**)+ case to determine whether an activity Is covered by the definition of 4Industry4 or not! It is also referred to as the triple test) + I! /a0 5here there is /i0 systematic activity, /ii0 organised by co+operation between employer and employee, /iii0 for the production and6or distribution of goods and services calculated to satisfy human wants and wishes /not spiritual or religious but inclusive of material things or services geared to celestial bliss e!g!, ma ing, on a large scale, prasad or food0 prima facie, there is an 4Industry4 in that enterprise! /b0 Absence of profit motive or gainful ob"ective is Irrelevant wherever the underta ing is whether in the public, "oint, private or other sector! /c0 The true focus is functional and the decisive test is the nature of the activity with special emphasis on the employer+ employee relations! /d0 If the organisation is a trade or business, it does not cease to be one because of philanthropy animating the underta ing! 7ence, the &upreme 'ourt observed that professions, clubs educational institutions, co+operatives, research institutes, charitable pro"ects and other indred adventures, if they fulfil the triple tests listed in /10, cannot be e,empted from the scope of &ection ./"0! A restricted category of professions, clubs, cooperatives and guru ulas and little research labs, may 2ualify for e,emption if, in simple ventures substantially and going by the dominant nature criterion, substantively no employees are entertained but in minimal matters, marginal employees are hired without destroying the non+employee character of the unit! If in a pious or altruistic mission many employ themselves, free or for small honorarium or li e return, mainly drawn by sharing in the purpose or cause, such as lawyers volunteering to run a free legal services clinic or doctors serving in their spare hours in a

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free medical centre or ashramites wor ing at the bidding of the holiness, divinity or li e central personality and the services are supplied fee or at nominal cost and those who serve are not engaged for remuneration or on the basis of master and servant relationship, then the institution is not an industry even if stray servants, manual or technical, are hired! &uch underta ings alone are other generosity compassion, developmental compassion or pro"ect!

Section 2(j) - as Amended by Amendment Act 1992 [date of effect is yet to be notified]
In view of the &upreme 'ourt decision in 'an(a)ore Wa er Su**)+ case, the definition of 8Industry8 is proposed to be elaborated! The amendments may be noted!

`Industrial Dispute` [Section 2(k)] W at is an !Industria" #is$ute !%

An 3industrial dispute3 means any dispute or difference between employers and employers, or between employers and wor men, or between wor men and wor men, which is connected with the employment or non+ employment or the terms and conditions of employment of any persons! -&ec ./ 01!

CASE EXAMPLE An industrial dispute has three ingredients, vi9/a0 there should be real and substantial dispute or difference: /b0 the dispute or difference must be between employers and or wor men: /c0 the dispute or difference must be connected with /i0 the employment or non+employment or /ii0 terms of employment, or /iii0 with the conditions of labour of any person!-S an%ar% !acuum Refinin( Co of In%ia L % !s" Their Workmen /19;<0 AI# &' 94%1 =nless there is a demand by the wor men and that demand is not complied with by the management, there cannot be any industrial dispute within the meaning of &ection ./ 0! >ere participation by the employer in the conciliation proceedings will not be sufficient -WS Insu)a ors of In%ia L % !s" In%us ria) Tri-una)$ .a%ras 1977+II ?abour ?aw @ournal ..$1 'ertain individual disputes relating to dismissal, discharge, retrenchment or termination of services of a wor man, are also covered under this Act, since the Act applies even to industrial establishments employing a single wor man) Aut dispute in relation to a person who is not a 3wor man3 within the meaning of the Act is not an industrial dispute under &ection ./ 0 -Workmen of Dimakuchi Tea Es a e !s" Dimakuchi Tea Es a e, AI# 19$% &' ($(1!

`Workman` [Section2 (s)]

4wor man4 means any person /including an apprentice0 employed in any industry to do any manual, uns illed, s illed, technical, operational, clerical or supervisory wor for hire or reward, whether the terms of employment be e,press or implied, inc)u%es any such person who has been dismissed, discharged or retrenched in connection with, or as a conse2uence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, -u %oes no inc)u%e any such person+ /i0 who is sub"ect to the Air Borce Act, 19$<, or the Army Act, 19$<, or the Cavy Act, 19$7: or /ii0 who is employed in the police service or as an officer or other employee of a prison: or /iii0 who is employed mainly in a managerial or administrative capacity: or /iv0 who, being employed in a supervisory capacity, draws wages exceeding Rs. 1,600/- p.m. or exercises, either by
the nature of the duties attached to the office or by reason of the powers vested in him, function mainly of a managerial nature!

`Strikes` [Section 2 (q)]

4&tri eD means a cessation of wor by a body of persons employed in any industry acting in combination or a concerted refusal, or a refusal, under: a common understanding of any number of persons who are or have been so employed to continue to wor or to accept employment -&ection ./201

CASE EXAMPLE Stri&e ' a (ea$on of co""ecti)e bar*ainin* &tri e can ta e place only when there is a cessation of wor or refusal to wor by the wor men acting in combination or in a concerted manner! Time factor or duration or purpose of the stri e is immaterial! It is enough if the cessation of wor is in defiance of the employerEs authority! A concerted refusal or a refusal under a common understanding of any number of persons to continue to wor or to accept employment will amount to a stri e! A general stri e is one when there is a concert of combination of wor ers stopping or refusing to resume wor ! Foing on mass casual leave under a common understanding amounts to a stri e! 7owever, the refusal by wor men should be in respect of normal lawful wor , which the wor men are under an obligation to do! #efusal to do wor which the employer has no right to as for performance, such a refusal does not constitute a stri e -Nor h-rooke /u e Co" L % !s" Their Workmen$ AI# 19;< &c %791! If on the sudden death of a fellow+wor er, the wor men acting in concert refuse to resume wor , it amounts to stri e - Na iona) Te0 i)e Workers1 Union !s" Shree .eenakshi .i))s /19$10 II ??@ $1;1

Ty$es of stri&e

(i)+ Stay-in, sit do(n, $en do(n or too" do(n stri&e (ii)+ -o-s"o(

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(iii)+ .un*er Stri&e (i))+ Wor&-to-ru"e ())+ Sym$at etic stri&e W en stri&e and "oc&out bot are i""e*a" - `Doctrine of apportionment of blame8
In .arine Ser&ice P& " L % !s" Their Workman AI# 19;( &' $.%, the &upreme 'ourt evolved the 8Doctrine of apportionment of blame8! According to this doctrine, when the wor men and the management are e2ually to be blamed, the 'ourt normally awards half of the wages! The &upreme 'ourt in several cases followed this doctrine!

ock!out [Section 2(l)]

4?oc +out4 means the temporary dosing of a place of employment, or the suspension of wor , or the refusal by an employer to continue to employ any number of persons employed by him -&ection ./l01 ?oc out is an antithesis to stri e! In loc out the employer refuses to continue to employ the wor man employed by him even though there is no intention to close down the unit! The essence of loc out is the refusal of the employer to continue to employ the wor man! Gven if suspension of wor is ordered, it would constitute loc out! Aut ere suspension of wor , unless it is accompanied by an intention on the part of employer as a retaliation, will not amount to loc out!

ay!off [Section 2(kkk)]

It has been e,plained that every wor man shall be deemed to have been laid+off for that day whose name is borne on the muster rolls of the industrial establishment an% who presents himself for wor at the establishment at the time appointed for the purpose during normal wor ing hours on any day an% is not given employment by the employer within two hours of his so presenting himself) Aoth lay off and loc +out resemble each other in some respects! Aoth are of temporary nature and arise out of an emergency, though the nature of emergencies in each case is different! Aut in lay+off and loc +out the relationship of the employer and the employee is only suspended and not terminated! 7owever, there many points of distinction which are as under) + 1! ?ay+off generally occurs in a continuing business, whereas loc +out is closure of business for the time being! .! in the case of lay+off the employer is unable to give employment to one or more wor men on account of the reasons specified in &ection . / 0 whereas in the case the employer deliberately close the business for reasons which have no connection with the cause specified in &ection ./ 0! (! in the case of lay+off, the employer may be liable to pay compensation as provided in &ection .$' of the Act! Aut this liability cannot be invo ed in the case of loc +out! The liability of the employer in case of loc +out will depend upon whether the loc +out was "ustified and legal or not! 4! loc +out is resorted to by the employer as a weapon of collective bargaining while lay+off is due to trade reasons! $! the Act imposes certain penalties on loc +out but there are none in the case o lay+off! 4retrenchments4 means the termination by the employer of the service of a wor man for any reason whatsoever, o her2ise han as a punishment inflicted by way of disciplinary action It does not include+ /a0 voluntary retirement of the wor man: or /b0 retirement of the wor man on reaching the age of superannuation if the contract of employment between the employer and the wor man concerned contains a stipulation in that behalf: or /bb0 termination of the service of the wor man as a result of the non+renewal of the contract of employment between the employer and the wor man concerned on its e,piry or of such contract being terminated under a stipulation on that behalf contained therein: or1 /c0 termination of the service of a wor man on the ground of continued ill+health:

#ifference bet(een "ay-off and "oc&-out

"etrenc#ment [Section 2(oo)]

CASE E3A.PLE The &upreme 'ourt in the case of 5or men of Su-on( Tea Es a e !s" Su-on( Tea Es a e /19;40 1 ??@ (((, laid down following principles with regard to retrenchment) + The management can retrench is employees only for proper reasons, which means that it must not be actuated by any motive of victimi9ation or any unfair labour practice! It is for the management to decide the strength of its labour force, and the number of wor men re2uired to carry out efficiently the wor in his industrial underta ing must always be left to be determined by the management in its discretion!

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If the number of employees e,ceeds the reasonable and legitimate needs of the underta ing, it is open to the management to retrench them! 5or men may become surplus on the ground of rationali9ation or on the group of economy reasonably and bona fide adopted by the management or of other industrial or trade reasons!

$%&ard$ [Section2 (b)]

It means an interim or a final determination of any industrial dispute or of any 2uestion relating thereto by any ?abour 'ourt, Industrial Tribunal or Cational Industrial Tribunal and includes an arbitration award made under &ection 1HA of the Act! 4'losure4 means the permanent closing down of a place of employment or part thereof! It envisages two categories of settlements /i0! A settlement arrived at in the course of conciliation proceedings: and /ii0! A written agreement between employer arrived at otherwise in the course of conciliation proceedings! CASE EXAMPLE
4H PANDHI ! Presi%in( 5fficer$ A%%i iona) La-our Cour 6 Anr ! -.<<41 1<; B@# 94( /Del0 1 >adan A! ?o ur, @ -Decided $!<.!.<<41 Industrial Disputes Act 1947 I section ./s0+5or man+ Gmployee performing mostly accounting duties+&ometimes performs incidental duties also in addition to his primary duties+whether the employee is a wor man I 7eld yes 'rief 7ac s) The petitioner was an accountant with the resp-ndent management and was dismissed from the services after one and half year! 7e raised an industrial dispute! The ?abour 'ourt held tha he was not a wor na and dismissed the dispute! The petitioner+wor man approached the 7igh 'ourt under a writ challenging the award of the labour 'ourt! Decision) *etition allowed! Reasons) The designation of an employee is of no conse2uence! to determine whether an employee is a wor man or not, what is of conse2uence is his main or primary duty! If the employee performs some duties which are incidental or even in addition to his main or primary duties, that by itself, will not ta e away his status as a 8wor man3 provided, as a result of his main or primary duties, he falls within the meaning of the definition of 8wor man3 under the Act! A perusal of the duties performed by the petitioner suggested that his duties were only, if not primarily, clerical in nature! 7e was re2uired to write accounts and prepare related statement of accounts! 7e was also re2uired to ma e entries of the vouchers in the account boo s! 7e was performing accountancy wor only on the basis of and according to the guidelines issued by the chief accountant and the chartered accountant! The activities that the petitioner performed in relation to cash, that was, to deposit cash in the ban or to withdraw it, were under the supervision of the technical director! The daily accounts of the cash in hand prepared by the petitioner were chec ed and signed by the technical director! It was only after the technical director authorised the issue of vouchers for payments that they were entertained by the petitioner! In other words, there was little wor , which the petitioner could do on his own! Juite clearly, the wor done by the petitioner fell in the category of clerical wor and nothing more! It is not necessary to have any further in2uiry because the facts are sufficient for coming to the conclusion that the petitioner was a wor man within the meaning of section ./s0!

`'losure`[Section 2 (cc)]

`Settlement` [Section 2 p)]

AUTHORITIES UNDER THIS ACT

The Appropriate Fovernment appoints following authorities for the purposes of this Act+ /a0 !or s "ommittee + Bor securing and preserving amity and good relations between the employer and the wor men, in Industrial establishments wherein 1<< or more wor men are employed! /b0 "onciliation #fficers and $oards of "onciliation - These are responsible for mediating in and promoting settlement of industrial disputes! /c0 "ourts of %n&uiry + Bor in2uiring into any matter connected with an industrial dispute! /d0 'abour 'ourts, Industrial Tribunals +Bor ad"udication of industrial disputes relating to matters specified in &chedule II or &chedule III or 2uestions of national importance and such other functions as may be assigned to them! *rovisions of Article 1(7 of the ?imitation Act do not apply to reference of dispute to the ?abour 'ourt! In case of delays, the 'ould can mould relief by refusing bac wages or directing payment of past wages -1999 ?AA 1' &' 14($1 5hen an industrial dispute has been referred to a ?abour 'ourt for ad"udication, it is the duty of the said to 1! hold its proceedings e,peditiously: and .! submit its award to the appropriate Fovernment soon after the conclusion of the proceedings!

/imitation Act ' not to a$$"y

/abour 0ourt to adjudicate e1$editious"y

(ribunals (Section )%) A$$ro$riate *o)ernment may notify constitution of Industria" Tribuna"

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The appropriate government may notify constitution of one or more Industrial Tribunals! A @udge of a 7igh 'ourt or District "udge or an Additional District @udge with three years e,perience as such shall be 2ualified for appointment as the *residing Hfficer! 7e shall be an independent person and not more than ;$ years of age!

*ational (ribunals (Section )+) 0entra" -o)ernment may notify constitution of 2ationa" Tribuna"
The 'entral Fovernment may, constitute one or more Cational Industrial Tribunals! It shall consist of one person only to be appointed by the 'entral Fovernment! The *residing Hfficer shall be 2ualified for appointment as the presiding officer of a Cational Tribunal unless he is, or has been, a @udge of a 7igh 'ourt!

REFERENCE OF CERTAIN INDIVIDUAL DISPUTES TO GRIEVANCE SETTLEMENT AUTHORITIES

The employer in relation to an industrial establishment wherein $< or more wor men are employed or were employed on any day during the preceding 1. months, shall set up a Frievance &ettlement Authority for settlement of individual disputes of the wor men employed in that establishment! Any wor man or any trade union, of which such wor man is a member, may refer a dispute to the Frievance &ettlement Authority! Co dispute shall be referred for ad"udication by the 'onciliation Aoard, ?abour 'ourt or Tribunal, unless it has been referred to the Frievance &ettlement Authority and the decision of the Authority is not acceptable to any of the parties to the dispute!

CONCILIATION PROCEEDINGS (Section 1 !n" 1#$

If the employer and the wor men fail to arrive at a settlement through negotiations, the 'onciliation Hfficer may intervene as a mediator, endeavor to reconcile the differences of opinion and help the labour and management in achieving a successful settlement! 7owever, 'onciliation Hfficer is not competent to decide the various points of issue between the opposing parties! Intervention by the 'onciliation Hfficer is mandatory in case an industrial dispute has arisen in a public utility service and a notice of stri e or loc +out /u6s ..0 has been served! The 'onciliation Hfficer shall send a report of proceedings to the Fovernment, as to whether a settlement has been achieved or not, within 14 days of the commencement of the conciliation proceedings or within such e,tended time as may be allowed and in the prescribed manner! If a settlement is arrived at as a result of conciliation proceedings, a memorandum of settlement is wor ed out and it becomes binding on all parties concerned for a period agreed upon! If no settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send a full report to the appropriate Fovernment setting forth the steps ta en by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, and the reasons on account of which a settlement could not be reached! Hn consideration of the report, the appropriate Fovernment may, if it feels necessary, refer the dispute to the 'onciliation Aoard: labour 'ourt, Tribunal or Cational Tribunal! If no such reference is made, the appropriate Fovt! shall record and communicate to the parties concerned the reasons therefore! 5here a dispute is referred to the 'onciliation Aoard, the Aoard shall endeavour to bring about a settlement of the same after, investigating into the dispute! If a settlement has been arrived at, the Aoard shall send a report thereof together with a memorandum of settlement signed by the parties to the dispute, to the appropriate Fovernment with two months of the reference or within such e,tended time as may be allowed! If no settlement is arrived at, the Aoard shall also send a similar detailed report as re2uired above from the 'onciliation Hfficer!

REFERENCE OF DISPUTES TO BOARDS% COURTS OR TRIBUNALS 3eference of dis$utes to 4oards, courts or Tribuna"s ' by a$$ro$riate *o)ernment in (ritin* (Section 15)
5here the appropriate government is of opinion that any industrial dispute e,ists or is apprehended, it may at any time, by order in writing+ (a) refer the dispute to a $oard for promoting a settlement thereof* or (b) refer to a court for in&uiry* or (c) refer to a 'abour "ourt (d) refer to a +ribunal

Submission of re$ort by 0ourt6 Adjudicatin* aut orities

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The court shall in2uire into the matters referred to it and report thereon to the appropriate government ordinarily within a period of si, months from the commencement of its in2uiry /&ection 140! Burther, the Ad"udicating authority shall hold its proceedings e,peditiously and shall submit its award to the appropriate government, within the specified period in the order referring such industrial dispute or the further e,tended period as may be fi,ed by the concerned authority! /&ection 1$0 The 'entral or &tate Fovernment shall ma e a reference under this section where the dispute relates to a public utility service and a notice of &tri e or ?oc +out /section ..0 has been given!

3eference by State or 0entra" -o)ernment ( en notice of Stri&e or /oc&-out *i)en ' $ub"ic uti"ity ser)ices

3eference by 0entra" -o)ernment of industria" dis$ute of nationa" im$ortance or affectin* more t an one state - to 2ationa" Tribuna"
5here the 'entral Fovernment is of opinion that any industrial dispute e,ists or is apprehended an% the dispute involves any 2uestion of national importance or is of such a nature that industrial establishments situated in more than one &tate are li ely to be interested in, or affected by such dispute, an% that the dispute should be ad"udicated by a Cational Tribunal! Thereupon, the 'entral Fovernment may, at any time, by order in writing, refer the dispute or any matter appearing to be connected with, or relevant thereto, to a Cational Tribunal for ad"udication! &uch may relate to any matter specified in the IInd &chedule or IIIrd &chedule! The persons representing the ma"ority of each party to an industrial dispute may apply in the prescribed manner, whether "ointly or separately, for a reference of the dispute to a Aoard, court, ?abour 'ourt, Tribunal or Cational Tribunal! The appropriate government, if satisfied, shall ma e the reference accordingly! An order referring an industrial dispute to a ?abour 'ourt, Tribunal or Cational Tribunal shall specify the period within which it shall submit its award on such dispute to the appropriate government 5here such industrial dispute is connected with an individual wor man + period shall be three months! The parties to an industrial dispute may apply in the prescribed manner, whether "ointly or separately, to the ?abour 'ourt, Tribunal or Cational Tribunal for e,tension of such period or for any other reason! This period may however, be e,tended by the presiding officer, for reasons to be recorded in writing as considers necessary or e,pedient to e,tend such period, Co proceedings before a ?abour 'ourt, Tribunal or Cational Tribunal shall lapse merely on the ground that any period specified under this sub+section had e,pired without such proceedings being completed! 5here an industrial dispute has been referred to a Aoard, ?abour 'ourt, Tribunal or Cational Tribunal, the appropriate Fovernment may by order prohibit the continuance of any stri e or loc +out in connection with such dispute which may be in e,istence on the date of the reference! The appropriate government in an order referring an industrial dispute to a ?abour 'ourt, Tribunal or Cational Tribunal or in a subse2uent order may specify the points of dispute for its ad"udication! Co proceedings pending before a ?abour 'ourt, Tribunal or Cational Tribunal in relation to an industrial dispute shall lapse merely by reason of the death of any of the parties to the dispute being a wor man, and such ?abour 'ourt, Tribunal or Cational Tribunal shall complete such proceedings and submit its award to the appropriate government

3eference by a$$ro$riate *o)ernment ' u$on a$$"ication by $arties to industria" dis$ute+

7rder ma&in* reference to s$ecify ' $eriod of submission of a(ard

8residin* 7fficer may e1tend t e $eriod

8ro ibition of continuance of Stri&e or /oc& out

Terms of reference may be s$ecified in order

8roceedin*s not to "a$se u$on deat of (or&man, a $arty to dis$ute

,oluntary %rbitration (Section -. %) 9m$"oyer and Wor&man may refer t e dis$ute to Arbitration
Aefore an industrial dispute is referred to a ?abour 'ourt or Tribunal or Cational Tribunal, the employer and the wor men may refer the dispute to arbitration of any person or persons of their choice, by means of a written arbitration agreement! A copy of the arbitration agreement, signed by representatives of both the parties representing ma"ority of each party should be forwarded to the Fovernment and the conciliation officer! 5ithin one month from the date of the receipt of such receipt of such copy, publish the same in the Hfficial Fa9ette!

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The arbitrator/s0 shall investigate who shall within one month of the receipt thereof, publish the same in into the dispute and submit the arbitrator award to the government, the Hfficial Fa9ette!

PROCEDURE% PO&ERS AND DUTIES OF AUTHORITIES Adjudicatin* aut orities may $rescribe $rocedures
An arbitrator, a Aoard, court, ?abour 'ourt, Tribunal or Cational Tribunal shall follow such prescribed rules besides the procedure as the arbitrator or other authority concerned may thin fit! A conciliation officer or a member of a board or court or the presiding officer of a ?abour 'ourt, Tribunal or Cational Tribunal may for the purpose of in2uiry into any e,isting or apprehended industrial dispute, after giving reasonable notice, enter the premises occupied by any establishment to which the dispute relates! Gvery in2uiry or investigation by a Aoard, court, ?abour 'ourt, Tribunal or Cational Tribunal, shall be deemed to be a "udicial proceeding within the meaning of sections 19( and ..% of the Indian *enal 'ode! Gvery Aoard, court, ?abour 'ourt, Tribunal and Cational Tribunal shall have the same powers as are vested in a 'ivil 'ourt under the 'ode of 'ivil *rocedure, 19<%, when trying a suit, in respect of the following matters, namely)+ /a0 enforcing the attendance of any person and e,amining him on oath: /b0 compelling the production of documents and material ob"ects: /c0 issuing commissions for the e,amination of witnesses: /d0 in respect of such other matters as may be prescribed, A court, ?abour 'ourt, Tribunal or Cational Tribunal may, if it so thin s fit, appoint one or more persons having special nowledge of the matter under consideration as an assessor or assessors to advise it in the proceeding before it! &uch costs may, on application made to the appropriate government by the person entitled, be recovered by that government in the same manner as an arrear of land revenue!

9)ery in:uiry or in)esti*ation ' deemed judicia" $roceedin*s

8o(ers of 4oard, and Tribuna"s under 080 and 0r+ 8 0

Aut ority to a$$oint 91$erts6 to a(ard costs etc

/o&ers of

abour 'ourt (ribunal0 and *ational (ribunal to 1i2e appropriate relief in case of disc#ar1e or dismissal of &orkmen (Section --%)

5here an industrial dispute relating to the discharge or dismissal of a wor man has been referred to a ?abour 'ourt, Tribunal or Cational Tribunal for ad"udication and, in the course of the ad"udication proceedings, it is satisfied that the order of discharge or dismissal was not "ustified, it may, by its award, set aside the order of discharge or dismissal and direct reinstatement of the wor man on such terms and conditions, if any, as it thin s fit, or give such other relief to the wor man including the award of any lesser punishment in lieu of discharge or dismissal as the circumstances of the case may re2uire!

3orm of "eport or %&ard (Section -4)

The report of a Aoard or 'ourt shall be in writing and shall be signed by all the members of the Aoard or court, as the case may be! Any member of the Aoard of 'ourt may record any minute of dissent from a report or recommendation made therein!

/ublication of "eport and %&ard (Section -) 8ub"ication (it in ;5 days< of recei$t

Gvery report of a Aoard or court together with any minute of dissent recorded therewith, every arbitration award and every award of a ?abour 'ourt, Tribunal or Cational Tribunal shall, within a period of thirty days from the date of its receipt by the appropriate government, be published in such manner as the appropriate government thin s fit! The award published shall be final and shall not be called in 2uestion by any court in any manner whatsoever!

'ommencement of t#e a&ard (Section -%) A(ard becomes enforceab"e after ;5 days< of $ub"ication
An award /including an arbitration award0 shall become enforceable on the e,piry of thirty days from the date of its publication! The 'entral Fovernment may, by notification in the Hfficial Fa9ette, declare that the award shall not become enforceable on the e,piry of the said period of thirty days!

In $ub"ic interest 0entra" -o)t+ may notify ' t e A(ard not enforceab"e 7rder rejectin* A(ard by A$$ro$riate=0entra" -o)t+ ' to be "aid before .ouse (it in 95 days<

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The appropriate government or the 'entral Fovernment may, within ninety days from the date of publication of the award ma e an order re"ecting or modifying the award, and shall, on the first available opportunity, lay the award together with a copy of the order before the ?egislature of the &tate! &uch award shall become enforceable on the e,piry of fifteen days from the date on which it is so laid! 5here no re"ection order is made, the award shall become enforceable on the e,piry of the period of ninety days from the date is it so laid!

/ayment of full &a1es to &orkman pendin1 proceedin1s in #i1#er courts (Section -+) Wor&man not em$"oyed in any estab"is ment and fi"es an affida)it
5here in any case, a ?abour 'ourt, Tribunal or Cational Tribunal by its award directs reinstatement of any wor man and the employer prefers any proceedings against such award in a 7igh 'ourt or the &upreme 'ourt, the employer shall be liable to pay such wor man, during the period of pendency of such proceedings in the 7igh 'ourt or the &upreme 'ourt, full wages last drawn by him, inclusive of any maintenance allowance admissible to him under any rule if the wor man had not been employed in any establishment during such period and an affidavit by such wor man had been filed to that effect in such court!

/ersons on &#om settlements and a&ards are bindin1 (Section -5) Sett"ement sacrosanct
A settlement arrived at by agreement between the employer and wor man shall be binding on the parties to the agreement! This is enforceable and shall be binding on+ /a0 all parties to the industrial dispute: /b0 all other parties summoned to appear in the proceedings as parties to the dispute,: /c0 an employer, his heirs, successors or assigns in respect of the establishment to which the dispute relates: /d0 all persons who were employed in the establishment or part of the establishment!, to which the dispute relates on the date of the dispute and all persons who subse2uently become employed in that establishment or part!

/eriod of operation of settlements and a&ards (Section -6) Sett"ement to become o$eration from
A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the parties to the dispute! An award shall, sub"ect to the provisions of this section, remain in operation for a period of one year or may be further e,tended so that total period of operation of the award does not e,ceed three years from the date of operation! 5here the appropriate government, whether of its own motion or on the application of any party bound by the award, considers that since the award was made, there has been a material change in the circumstances on which it was based, the appropriate government may refer the award or part of it to a ?abour 'ourt, or Tribunal or to Cational Tribunal, as the case may be, for decision whether the period of operation should not, by reason of such change, be shortened and the decision of ?abour 'ourt or the Tribunal, shall be final! The award shall continue to be binding on the parties until a period of two months has elapsed from the date on which notice is given by any party bound by the award to the other party or parties intimating its intention to terminate the award! The Cotice under this &ection is re2uired to be given by a party representing the ma"ority of persons bound by the settlement or award, as the case may be!

>a"idity $eriod of A(ard ' one year6 A$$ro$riate -o)ernment may e1tend u$ to ma1+ ; years

7n materia" c an*es in circumstances a$$ro$riate *o)t+ may refer to t e A(ard 0ourt or Tribuna"

'ommencement and conclusion of proceedin1s (Section 2.)

A conciliation proceeding shall be deemed to have commence% on the date on which a notice of stri e or loc out is received by the conciliation officer or on the date of the order referring the dispute to a Aoard, as the case may be! A conciliation proceeding shall be deemed to have conc)u%e%+ /a0 where a settlement is arrived at, when a memorandum of the settlement is signed by the parties to the dispute: /b0 where no settlement is arrived at, when the report of the conciliation officer is received by the appropriate government or when the report of the Aoard is published under section 1, as the case may be: or /c0 when a reference is made to a court, ?abour 'ourt, Tribunal or Cational Tribunal under section 1< during the pendency of conciliation proceedings!

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*roceedings before an arbitrator or before a ?abour 'ourt, Tribunal or Cational Tribunal shall be deemed to have commenced on the date of the reference of the dispute for arbitration or ad"udication, as the case maybe, and such proceedings shall be deemed to have concluded on the date on which the award becomes enforceable under section If any information is obtained by a 'onciliation Hfficer, Aoard, 'ourt, ?abour 'ourt, Tribunal, Cational Tribunal or an arbitrator, in the course of any investigation or in2uiry as to a trade union or as to any individual business /whether carried on by a person, firm or company0 2hich is no a&ai)a-)e o her2ise han hrou(h he e&i%ence (i&en -efore such officer$ 'oar%$ cour $ La-our Cour $ Tri-una)$ Na iona) Tri-una) or ar-i ra or

Information obtained durin* t e course of in)esti*ation ' ( en to be treated confidentia"

STRI'ES AND LOC'(OUTS Definition of Strike [Section 2(q)]

&tri es means a cessation of wor by a body of persons employed in any industry acting in combination, or a concerted refusal, or a refusal under a common understanding, of any number of persons who are or have been so employed to continue to wor or to accept employment
CASE EXAMPLE 5here the facts disclosed clearly ## There was a dispute relating to a room in building belonging to the company between some of its wor ers KK &ome of the wor ers indulged in riotous acts in the presence of the conciliation officer and two officers of the company ## #eport were submitted to the >anager of the company and he suspended those wor ers who e,hibited an unmannerly conduct at the time of the en2uiry ## As a result of the suspension, the >anager was served with a notice that a to en stri e was going to be staged for .4 hours commencing from % A> on the .9th Covember 19$. ## The =nion was informed by the 'onciliation Hfficer and also by the >anager that such a stri e would be illegal for contravention of &ection ../10/b0 of the Act: and ## Inspite of the attention of the =nion having been drawn to this situation, a large number of wor er, including the five respondents referred above ceased to wor and refused to do any wor when as ed by their superior, the court held that there could be no doubt therefore, that those five respondents had ceased to do wor in a concerted action with the other wor men of the company and that they were acting in combination! The act of these wor men or employees, therefore, did amount to stri e -S a e of 'ihar ! Deo%ar /ha 6 5 hers AI# 19$%!

/ro#ibition of strikes and ockouts (Section 22) 8ro ibition on stri&e

Co person employed in a public utility service shall go on stri e in breach of contract+ /a0 without giving to the employer notice of stri e, within si, wee s before stri ing: or /b0 within fourteen days of giving such notice: or /c0 before the e,piry of the date of stri e specified in any such notice as aforesaid: or /d0 during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings! Co employer carrying on any public utility service shall loc +out any of his wor men+ /a0 without giving them notice of loc +out, within si, wee s before loc ing+out: or /b0 within fourteen days of giving such notice: or /c0 before the e,piry of the date of loc +out specified in any such notice as aforesaid! or /d0 during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings! The notice of loc +out or stri e shall not be necessary where there is already in e,istence a stri e or, as the case may be, loc +out in the public utility service! 7owever, the employer shall send intimation of such loc +out or stri e on the day on which it is declared, to such authority as may be specified by the appropriate government either generally or for a particular area or for a particular class of public utility services! The notice of stri e and loc out shall be given by such number of persons to such person or persons and in such manner as maybe prescribed!

8ro ibition on /oc& out

2otice not necessary - stri&e or "oc& in continuance

2otice of stri&e and "oc& out to be *i)en in $rescribed manner

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9m$"oyer to send notice (it in ? days< of recei$t

If on any day an employer receives from any person employed by him any such notices or gives to any person employed by him any such notices, he shall within five days thereof report to the appropriate government or to such authority as that government may prescribe, the number of such notices received or given on that day!

7eneral pro#ibition of strikes and ockouts (Section 28)

Co wor man who is employed in any industrial establishment shall go on stri e in breach of contract and no employer of any such wor man shall declare a loc out /a0 during the pendency of conciliation proceedings before a Aoard and seven days after the conclusion of such proceedings: /b0 during the pendency of proceedings before a ?abour 'ourt, Tribunal or Cational Tribunal and two months, after the conclusion of such proceedings: /bb0 during the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such proceedings, where a notification has been issued under sub+section /(A0 of section 1<A: or /c0 during any period in which a settlement or award is in operation, in respect of any of the matters covered by the settlement or award!

Ille1al Strikes and ock!outs

Any stri e or loc +out commenced or declared or continued, in contravention of any of the above restrictions or any prohibitory order of the government under section 1< or 1<+A, shall be illegal /&ection .40 If the stri e is illegal, wor men are not only liable to lose wages but are also liable to punishment by way of discharge or dismissal !

ay!off
An employee is said to have been laid+off on any day, if the employer fails, refuses or is unable to provide him employment on that day within two hours of his presenting himself for wor at the normal appointed time, on account of shortage of coal, power or raw materials, or accumulation of stoc s or brea +down of machinery or natural calamity or for any such other reason!

*otice of ay!off
The employer is re2uired to give a notice of layoff of wor ers in Borm <+1 within 7 days of such layoff! Cotice of withdrawal of lay+off is also to be given in Borm <+., within 7 days of such withdrawal!

ay!off 'ompensation (Section 29 f)

The employer of any factory, mine or plantation establishment /e,cluding seasonal establishment0, employing atleast $< but less than 1<< wor men on an average per wor ing day, is re2uired to pay compensation to the wor men being laid+off! The compensation shall be payable at the rate of $<L of basic wages and dearness allowance, for all days of lay+off e,cept wee ly holidays!

"etrenc#ment [Section 2 (oo)]

#etrenchment means termination by the employer, of the service of a wor man for any reason whatsoever, but e,cludes) /a0 dismissal inflicted by way of disciplinary action, /b0 voluntary retirement of the wor man, /c0 retirement on reaching the age of superannuation, /d0 termination as a result of non+renewal of contract of employment - Ram Prasa% 6 5rs !s S a e of Ra>as han 6 5rs /199(0 MMIN ??# $9 /#a"!01,and /e0 termination due to continued ill+health of the wor man!

'onditions for "etrenc#ment (Section 29 : and 29 *)

Co wor man who has been in continuous service for at least one year, shall be retrenched until and unless the following conditions are fulfilled) /a0 In case of a factory mine or plantation establishment /other than seasonal establishment0wherein at least 1<< wor men were employed on an average per wor ing day, for the preceding 1.months: ! /i0 ,otice/,otice -ay./ three months3 notice of intention to retrench the wor man with reasons or wages in lieu therefor! /ii0 0pproval of the 1overnment/ to obtain prior approval of the appropriate Fovernment within ;< days before the proposed retrenchment! A copy of the application should be served simultaneously on the wor man concerned! /iii0 Retrenchment "ompensation/ upon, the wor man being retrenched shall be entitled to receive retrenchment compensation!

"e!employment of "etrenc#ed Workmen (Section 29;)

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5here any wor men are retrenched, shall be given preference for re+employment!

'losure of an <ndertakin1 )Section (cc$*

'losure means the permanent closing down to a place to employment or part thereof! -Sec ion 8 @ccA1 Thus, an underta ing or establishment may be closed down wholly or partly, but the closure must be permanent! It is for this reason that a closure is differentiated from a loc out!

Intimation to %ppro2al of t#e 7o2ernment (Section 29 33%)

An employer who intends to close down an underta ing, wherein $< or more wor men are employed or were employed during the preceding 1. months, has to serve a notice on the government, atleast ;< days before the date of the intended closure, stating reasons for the same!

*otice=*otice /ay and 'ompensation

In case of closure of an underta ing wherein atleast $< wor men are employed, or were employed on an average per wor ing day in the preceding 1. months every employee!

Ille1al 'losure [Section 29 > (4)]

5here no application for permission u6s .$ H /10 is made within the specified period or where the permission for closure has been refused, the closure of the underta ing shall be deemed to be illegal from the date of closure and the wor men shall be entitled to all the benefits available under law as if the underta ing had not been closed down!

"e!openin1 of closed undertakin1s [Section 29 /]

Any underta ing /wherein 1<< or more wor ers were employed can be restarted if the government so directs its employer, on being satisfied that + /i0 the underta ing was not closed down for unavoidable reasons, /ii0 there are possibilities of restarting it, /iii0 its reopening is necessary for rehabilitating the wor men employed therein before its closure or for maintaining supplies and services essential to the life of the community, and, /iv0 restarting will not cause any hardship to the employer!

<nfair abour /ractices [Section 29 (]

Co employer, wor man or a trade union should indulge in any unfair labour practice as mentioned in Bifth &chedule of the Act!
EMPLO+ER
/10 /.0 /(0 /40 /$0 /;0 /70 /%0 /90 /10 /.0 5'LIBATI5NS Cot to ma e any change in the service conditions of the wor men, without giving a notice! To constitute 5or s 'ommittee and to ensure that it functions properly! To assist the conciliation officer6board and the arbitrator in resolving any dispute! To implement all agreements, settlements and awards! To maintain a muster roll of the wor men employed in the establishment, even at the time when wor men have been laid off! Cot to declare, support or finance an illegal loc out, in the establishment! Cot to lay+oft or retrench any wor man or close down an underta ing, without obtaining prior approval of the government if so re2uired! ! To pay lay+off, retrenchment and closure compensation, compensation to wor men for illegal loc out, as prescribed under the provisions of the Act! Cot to indulge in unfair labour practices! RIBHTS #ight to retrench or lay+off wor ers declare loc out and close down an underta ing, in accordance with the provisions of the Act! #ight to appeal against the awards of the labour 'ourt or Industrial Tribunal, before the 7igh 'ourt!

EMPLO+EE
5'LIBATI5NS /10 To assist and co+operate with the conciliation officer6board, arbitrator and other authorities, in resolving any industrial dispute! /.0 Cot to participate in, support or finance an illegal stri e! /(0 To abide by all agreements, settlements and awards! /40 Cot to indulge in unfair labour practices!

RIBHTS /10 #ight to be informed by means of a notice, before any change is made in the service conditions, or before loc +out, lay+off, retrenchment or closure of the underta ing! /.0 #ight to receive compensation for lay+oft, retrenchment or closure! /(0 #ight to recover any legal dues! /40 #ight to be represented by an officer of a registered trade union or any other wor man, in relation to any industrial dispute! /$0 #ight to appeal against an award of the labour 'ourt or Industrial Tribunal.

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