The Industrial Disputes Act, 1947

 An Act to make provision for the investigation and settlement of industrial disputes,
and for certain other purposes.
 It extends to the whole of India.
 The objectives of the Industrial Disputes Act are as follows:
i. To support measures for securing and preserving good relations between
employers and employees.
ii. To provide suitable machinery for the equitable and peaceful settlement of
industrial disputes.
iii. To prevent illegal strikes and lockouts.
iv. To afford relief to workers against layoffs, retrenchment, wrongful dismissal
and victimisation.
v. To promote collective bargaining.
vi. To improve the conditions of workers.
 Work committees-According to the Industrial Disputes Act of India, every employer
should form a works committee if they have more than 100 employees in the
organization. The works committee members should be comprised of equal number
of workmen (employees) and individuals representing employers.
 Court of inquiry- Court of Inquiry is for inquiring into any matter appearing to be
connected with or relevant to an industrial dispute. A court may consist of one
independent person or of such number of independent persons as the appropriate
Government may think fit and where a court consists of two or more members, one
of them shall be appointed as the chairman.
 Appropriate Govt-When conciliation fails to bring an amicable settlement of the
dispute, the conciliation officer has to submit a report of failure to the appropriate
govt. The appropriate govt, after proper examination refers it either to the labour
court or industrial tribunal for promoting a settlement of the dispute.
 Arbitrator- an independent person or body officially appointed to settle a dispute.
 Average pay- means the average of the wages payable to a workman
monthly paid workman- in the three complete calendar months
weekly paid workman-in the four complete weeks
 daily paid workman-in the twelve full working days, preceding the date on which the
average pay becomes payable
 Collective Bargaining is a process/Method by which problems of wages and
conditions of employment are settled amicably, peacefully and voluntarily between
labour and management. In collective bargaining, the parties to the dispute I.e., the
employer and the employees/workmen settle their disputes by mutual discussions
and agreements without the intervention of a third party. Such settlements are
called "bipartite settlement".
 Voluntarily Arbitration - The expression 'Arbitration' simply means "the settlement
or determination of a dispute outside the court". Parties to the dispute, without
going to the Court of law, may refer the dispute/Matter to a person in whom they
have faith, to suggest an amicable solution. Such person, who acts as a mediator
between the disputants to settle the dispute is called "Arbitrator".
 Award-interim or a final determination of any Industrial Dispute. Such interim or
final determination is made by any Labour Court, Industrial Tribunal or National
Industrial Tribunal.
 Banking company- ?
 Board-means a Board of Conciliation constituted under this Act
 Closure- means the permanent closing down of a place of employment or part
thereof
 Conciliation officer-means a conciliation officer appointed under this Act
 Conciliation proceeding-means any proceeding held by a conciliation officer or
Board under this Act.
 Controlled industry- means any industry the control of which by the Union has been
declared by any Central Act to be expedient in the public interest.
 Court- means a Court of Inquiry constituted under this Act.
 Executive- in relation to a trade union, means the body, by whatever name called, to
which the management of the affairs of the trade union is entrusted.
 A person shall be deemed to be independent for the purpose of his appointment as
the chairman or other member of a Board, Court or Tribunal, if he is no way related
to the industrial dispute. No person will cease to be independent coz hes a
 shareholder of an incorporated company that can anyhow get affected coz of the
dispute. In such case, the person can disclose to the appropriate govt. the nature
and extent of shares held by him in such a company.
 Industry- means any systematic activity carried on by co- operation between an
employer and his workmen (whether such workmen are employed by such employer
directly or by or through any agency, including a contractor) for the production,
supply or distribution of goods or services with a view to satisfy human wants or
wishes (not being wants or wishes which are merely spiritual or religious in nature).
 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 person.
 Industrial establishment or undertaking-means an establishment or undertaking in
which any industry is carried on.
 Muster rolls-labour attendance registers maintained at work sites.
 Lay- off-means the failure, refusal or inability of an employer (on account of shortage
of coal, power or raw materials or the accumulation of stocks or the breakdown of
machinery 5 or natural calamity or for any other connected reason) to give
employment to a workman whose name is borne on the muster rolls of his industrial
establishment and who has not been retrenched .
 Retrenched- reduce in extent or quality. Make (an employee) redundant.
 Retrenchment- means the termination by the employer of the service of a workman
for any reason whatsoever, otherwise than as a punishment inflicted by way of
disciplinary action other than-
i. voluntary retirement of the workman
ii. retirement of the workman on reaching the age of superannuation
iii. termination of the service of the workman as a result of the non- renewal of
the contract of employment between the employer and the workman
concerned on its expiry.
 Settlement -means a settlement arrived at in the course of conciliation proceeding
and includes a written agreement between the employer and workmen arrived at
otherwise than in the course of conciliation proceeding where such agreement has
been signed by the parties thereto in such manner as may be prescribed and a copy
thereof has been sent to an officer authorized in this behalf by the appropriate
Government and the conciliation officer.
 Strike- means a cessation of work by a body of persons employed in any industry
 Trade union-means a trade union registered under the Trade Unions Act, 1926
 Unfair labour practices- any of the practices mentioned in 5th schedule
 Village industries-any industry located in a rural area which produce any goods or
renders any service with or without the use of power and in which the fixed capital
investment in plant and machinery and land and building per head of an artisan or
worker does not exceed 15,000 rupees.
 Wages- means all remuneration capable of being expressed in terms of money
payable to a workman in respect of his employment or of work done in such
employment. Includes- dearness allowances, value of house accommodation, any
travel concession, commission payable for promotion or sales (does not include
bonus, amount paid by employer to PF, gratuity)
 Workman- means any person (including an apprentice) employed in any industry to
do any manual, unskilled, skilled, technical, operational, clerical or supervisory work
for hire or reward.
 Section 12: Duties of conciliation officers (NOT IMPORTANT)
1) If any industrial disputes occur or there is a chance of dispute, the conciliation
officer may hold conciliation proceedings in the prescribed manner.
2) Conciliation officers can investigate the dispute and all matters related to the
dispute and can do all things that he thinks is fit for bringing the parties in a fair
and amicable settlement.
3) Once the dispute arrives in a settlement in the course of conciliation
proceedings, the conciliation officer can send a report to the appropriate
government (or an officer appointed on behalf of the appropriate government)
together with a memorandum of the settlement signed by the parties in the
dispute.
4) If no settlement is arrived at, the conciliation officer can send a full report to the
appropriate government stating the steps taken by him for discovering the facts
and circumstances related to the dispute and stating the reason, in his opinion,
why a settlement could not be arrived at.
5) The appropriate government, after consideration of the report (from sub-section
4), can refer the case to a Board, Labour court, Tribunal or National Tribunal. If
the appropriate government does not make such a reference, then it will record
and communicate the reasons (why it was not referred) to the parties concerned.
6) A report shall be submitted within 14 days of the commencement of the
conciliation proceedings or within a shorter period fixed by the appropriate
government. The time for the submission of the report might be extended
subject to the approval of the conciliation officer, to a period which is agreed
upon by all the parties in dispute in writing.

Section 17: Publication of reports and awards(JUST LOOK)

1) Every report made by a Board or court along with any dissent recorded, every
arbitration award and every award of a Labour court, Tribunal court or National
Tribunal can be published by the appropriate government within a period of 30
days from the date of receipt of the report by the appropriate government.
2) Subject to provisions in 17(A), the award published under sub-section (1) shall be
final and shall not be questioned by any court in any manner.
 Section 17(A): Commencement of the award(JUST LOOK)
1) An award (including an arbitration award) shall become enforceable on the expiry of
30 days from the date of its publication under section 17 under the following
conditions-
a. if the appropriate Government approves the award (when the award has been
given by a Labour Court or Tribunal.)
b. if the Central Government approves it (when the award has been given by a
National Tribunal).
The award will not be applicable on public grounds affecting national economy or
social justice if the appropriate government or the central government, by
notification in the official gazette, declare that the award shall not become
enforceable.
2) If any declaration has been made in relation to an award, the appropriate
Government or the Central Government within ninety days from the date of
publication of the award can make an order rejecting or modifying the award
together with a copy of the order before the Legislature of the State, if the order has
been made by a State Government, or before Parliament, if the order has been made by
the Central Government.
3)An award that was rejected or modified by an order and laid before the legislature or
parliament shall become enforceable on the expiry of 15 days from the date on which it
was laid.
Section 18(3): Binding of Settlement & Awards
A settlement arrived at in the course of conciliation proceedings or an arbitration award
or an award of a Labour Court, Tribunal or National Tribunal (which has become
enforceable) shall be binding on—
a. all parties to the industrial dispute
b. all other parties summoned to appear in the proceedings as parties to the dispute,
unless the Board, arbitrator, Labour Court, Tribunal or National Tribunal records
the opinion that they were so summoned without proper cause.
c. If the party referred in (a) or (b) is an employer, then the award or settlement binds
to his/her heirs, successors or assigns (assignment is the process whereby a person,
 the assignor, transfers rights or benefits to another, the assignee) in respect of the
establishment to which the dispute relates.
d. If the party referred in (a) or (b) is a workman, then the award or settlement binds
to all persons who were employed in the establishment or part of the
establishment(which was related to the dispute, according to the case) and also
binds to all persons who subsequently become employed in the establishment or
part(which was related to the dispute).