LABOUR LAW 1

1) Industrial dispute act 1947

2) Employee’s compensation act 1923
3) Industrial employment (standing orders) act 1946
4) MRTU and PULP act 1971
5) Collective bargaining act

Basic: Ordinary Courts- those are traditional courts Ex-taluka level, district courts, HC and SC. In this
courts civil and criminal cases are handled.

Those law were made by British were in favour of British people. Those acts were made for Indian
people are called Indian Welfare Acts.

1) Industrial Disputes Act, 1947:-

Background- Starting with the Bengal Regulation 7th of 1819, Labour law has made many enactments
of the Industrial Disputes Act, 1947.

2) The main labour laws were present before this Industrial Disputes Act of 1947 were:-
a) The workmen’s breach pf contract act, 1859.
b) the employments and workmen’s act, 1860
c) the trade disputes act, 1920.
d) the Indian trade unions act, 1926
e) trade disputes act, 1929
f) Bombay trade disputes act, 1934
g) The trade disputes act, 1938.

3) Objective and Purpose of Industrial Disputes Act, 1947:-

a) The industrial disputes act makes the provision for the investigation and settlement of
industrial disputes.
b) The object of the act is to achieve the promotion of harmony in labour-capital
relationship.
c) It provides a machinery for the settlement of Industrial disputes by arbitration or
adjudication.
d) It attempts to ensure social justice and economic progress by fostering industrial
harmony.
e) It enables workmen to achieve their demands by means of the legitimate weapon of
strikes and thus facilitates collective bargaining.
f) It prohibits illegal strikes and lockouts.
g) It enables the state to play a constructive role in employer- workmen relationship, in
keeping with the concept of a welfare state.

4) Extent:- The act came into force on 1st April, 1947 and extends to the whole of India. It
applies to the sate of Jammu and Kashmir only to the extent to which the Act applies to Govt
of India workmen. The subject matter of the Act is in the concurrent list of the Indian
Constitution.
 Definition:
1) Industry: Section 2 (j), Industry means any business, trade, undertaking, manufacture or
calling of employers and includes any calling service, employment, handicraft or
industrial occupation or avocation of workmen.
a) Means: Any systematic activity carried on by co-operation between an employer and his
workmen for the production, supply or distribution of goods and services.
b) Include: 1) Any activity of the Dock Labour Board established under Section 5A of the Dock
workers Act, 1948. 2) Any activity relating to the promotion of sales or business or both
carried on by an establishment.
c) But does not include: Agricultural operation does not include-
1) Any activity carried on in a plantation as defined in clause (f) of section 2 of the Plantation
Labour Act, 1951.
2) Hospitals or dispensaries,
3) educational, scientific, research or training institutions,
4) institution which are wholly owned or manged by any charitable, social or philan-thropic
service,
5) Khadi or village industries,
6) any activity of the government relatable to the sovereign function of the govt, including
all the activities carried on by the central govt dealing with research, defence, atomic energy
or space,
7) Any domestic service.

Case:- Bangalore water supply and sewage board vs Rajappa (AIR 1978 S.C. 548)
In this case, all employee were fined by Bangalore Water Board for misconduct. Fine was
too heavy and not reasonable. They said that the fine which was imposed on them was
violation of natural justice. Rajappa and ors filled an application under Sec 33(2) of Industrial
Dispute Act, 1947. Sewage board said that we are not industry and therefore labour court
has no jurisdiction to hear this case. HC stated that this industry comes under
comprehensive import, meaning was given to word ‘Industry’.
SC laid out some principles to determine whether an enterprise/establishment is and
industry or not.
a) Any activity will come under definition of industry if he fulfils the triple test.
1) It is systematic activity.
2) There is co-operation between employer and employee.
3) There is a production/distribution of goods, or rendering of services which satisfy
human wants and wishes ( not spiritual or religious needs ).
b) Profit Motive is immaterial.
c) Philanthropy or charitable nature is also immaterial.

Industrial Dispute:-
Section 2(k) definition defines Industrial Disputes as- An industrial dispute means any
dispute or difference between:
a) Employers and employees
b) Employers and workmen
c) Workmen and workmen which is connected with- 1) the employment or
employment. 2) the terms of employment. 3) the conditions of labour of any person.
Industrial dispute maybe defined as a conflict or difference of opinion between management and
workers on the terms of employment.

Case:- Dimakuchi tea estate vs the management of dimakuchi tea estate (AIR 1958 S.C. 353).

Appellant: 1) Dr Banerjee was appointed as assistant medical officer on 3 months probation by the
respondents.

2) After 3 months he was terminated on the grounds of incompetency.

3) Assam Karamcahri sangh opposes to this decision. The case goes in the hands of
Industrial tribunal.
4) Decision of the industrial tribunal- he is not a workmen so we have no jurisdiction to
adjudicate the dispute. We jurisdiction over only industrial disputes.
5) After that workmen raised a plea to SC the plea is that a person can have right to go to
Industrial court though he is not a workmen and this also comes in industrial dispute.
6) SC asks how it is possible? Then the learned person from workmen says that it is
according to the definition of Industrial dispute act, 1947 section 2(k).
7) In this definition Any person is written in the last sentence so it applies that a person is
not needed to be a workmen.
8) SC said- any person cannot mean anybody everybody in this world. The subject matter of
dispute must relate to employment or non-employment or the terms of employment.
9) Decision of the SC- Dr Banerjee is not a workmen.

Employer:
1) Employer is a person who employs someone to do something for him.
2) Labour law regards nit only the person who engages another to work for him as a
employer but also such person’s legal representative and successors.
3) Employer means- in relation to an industry carried on by or under the authority of any
department the authority prescribed in his behalf.

Workmen:- Any person employed in any industry to do any skilled or unskilled, manual,
supervising, technical, clerical or operational for hire or reward.

Includes:- For the purpose of any proceedings under the Act in relation to an industrial
dispute any such person who has been dismissed, discharged or retrenched in connection
with or as consequence of that dispute or whose dismissal, discharge or retrenchment has
led to that dispute.

Does not include:- Any such person

a) who is subject to Army Act 1950, or the Air Force Act, 1950 or the Navy Act, 1957.

b) Who is employed in the police service or as an officer or other employee of a person.

c) who is employed mainly in a managerial or administrative capacity.

d) employed in supervisory capacity if their wages exceed Rs. 10,000 per month.

All Employees are not Workmen, but all Workmen are Employees.
 Appropriate Government:- Section 2(a) 1) The Central Govt: In relation to any industrial
disputes concerning any industry carried on by or under the authority of the Central Govt, or
by railway company or concerning any such controlled company as maybe specified in his
behalf by the Central Govt.

2) The State Govt:- In relation to any other industrial disputes including the state public
sector undertaking subsidiary companies set up by the principal undertaking and
autonomous bodies owned or controlled by the state govt.

Arbitrator:- Section 2(aa) Arbitrator includes an Umpire.

Average pay:- Section 2(aaa) Average pay means the average of wages payable to a
workmen.

1) In the case of monthly paid workman in the three complete calendar months.
2) In the case of a weekly paid workman in the 4 complete weeks and
3) In the case of daily paid workman in the 12 full working days.

Award:- a) It means an interim or a final determination of any industrial dispute.

b) It resembles the judgement of a court.

Banking Company:- Section 2(bb) Banking company means having branches or other establishments
in more than one state, and includes the Industrial Development Bank of India, The RBI, The State
Bank of India, a corresponding new bank.

Courts :- Court means a court of Inquiry constituted under the Act. Section 2(f).

Executive:- Section 2(gg) Executive in relation to a trade union means the body to which
management of the affairs of the trade union is entrusted.

Industrial Establishment or Undertaking:- The term means an establishment or undertaking in

which any industry is carried on.

Khadi:- Section 2(kka) Khadi has the same meaning as is assigned to it in section 2(d) of the Khadi
and village industries commission Act, 1956.

Layoff:- section 2(kkk) 1) Layoff is a practice whereby the employer cannot give employment to
workmen for various reasons.

2) Including shortage of raw materials, coal or power, accumulation of stocks, break-down of

machinery, etc.

Lockout:- Section 2(I) Lockout means the temporary closing of a place of employment, or the
suspension of work or the refusal by an employer to continue to employ any number of persons
employed by him.

Lockout means work stoppage.

Public Utility Service:- section 2(n)

1) Any railway service or any transport service for the carriage of passengers or goods by Air.
2) Any service or connection with working of any major port or dock.
3) Any postal, telegraph or telephone service.
4) Any industry which supplies power, light or water to the public.
 5) Any system of public conservancy or sanitation.
6) It also includes any industry that is mentioned in the 1st schedule that the Govt may declare
to be a public utility service though (though if the need arise) a notification in the official
gazette is given.

Retrenchment:- The reduction of the cost or the action of making an employee redundant (out
of work).

Retrenchment:- Section2 (oo)

1) The termination by the employer of the service of a workman for any reason what so ever,
otherwise than as a punishment inflicted by way of disciplinary action, but does not include
a) Voluntary retirement of the workman, or
b) Retirement of the workman on reaching the age of superannuating if the contract of
employment between the employer and the workman concerned contains a stipulation in
that behalf, or
c) Termination of the service of the workman as a result of the non-removal of the contract of
employment between the employer and the workman concerned on its expiry or of such
contract terminated under a stipulation in that behalf contained therein or
d) Termination of the service of a workman on the grounds of continued ill health,

The definition of retrenchment was not included in the Industrial Dispute Act, 1947 in its original
form.

Settlement:- Section 2(p)

1) A settlement means a settlement arrived at in the course of conciliation proceedings and includes
a written agreement.

2) A written agreement between the employer and workman arrived at otherwise than in
course of conciliation proceeding.
3) A settlement is an agreement reached among the parties to a workers compensation claim.

Strike:- Section 2(q) of IDA defines a strike as a Cessation of a work by a body of person
employed in any industry acting in combination or a concerned refusal or a refusal under the
common understanding.

Cessation:- the stopping of something a pause of something.

Trade Union:- section 2(qq) Trade union means a trade union registered under the trade union
act 1926.

Tribunal:- Section 2(r) Tribunal means an Industrial Tribunal constituted under section 7. A and
includes an Industrial Tribunal constituted before 10th March, 1957 under the Act.

Unfair Labour Practice:- Section 2(ra) Unfair labour practice means any of the practice specified
in the 5th schedule.

Village Industries :- Section 2 (rb) Village industries has the same meaning as it is assigned in
Section 2(h) of the khadi and village industries commission act, 1956.
Wages:- Section 2(rr) as all remuneration capable of being expressed in terms of money, which
would if the terms of employment, express or implied were fulfilled be payable to a workmen in
respect of his employment or of work done in such employment.