Program- Mechanical Engineering

Code- 22509
Unit Outcome 3- Explain the main
provision
of The Industrial Dispute Act,
Dr. Shrikant Gorane,
1947
Lecturer in Mechanical Engineering,
Government Polytechnic, Nashik
8th July 2020

MSBTE LEAD
 Management
22509
The main provision of The
Industrial Dispute Act, 1947
MSBTE LEAD

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 OBJECTIVES

 To know the objectives, scope and coverage of the Act

 To remember the important aspects of act

 To have knowledge about authorities under Industrial dispute act

 To understanding rights of employee and employer

 To understand the collective bargaining concept

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 INTRODUCTION

 According to Industrial Disputes Act, 1947, Industrial dispute is any dispute between
employees and employees, or between employers and employees

 Labour and management oppose each other in numerous ways in the course of daily work.

 Most industrial jobs are repetitive, monotonous, difficult, dirty and even accident prone

 As a result of this, management uses strict supervision to get the work done

 On the other hand, the workers are think that they are being exploited by the management

 The interests of these two parties are in conflict with each other

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 IMPORTANT DEFINITIONS
 Award: Decisions of Labour Court and Industrial Tribunals

 Average pay: It means the average of wages payable to employee:

• In case of monthly paid employee, Average payment of three months

• In the case of weekly paid employee, Average payment of four weeks

• In the case of daily paid employee, Average payment of twelve working days

 Industry: production, manufacturing or services rendered by organisation

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 IMPORTANT DEFINITIONS
 Lay-off: It means inability of an employer to run the organisation on account of financial crises,
shortage of coal, power, raw material, accumulation of stock, breakdown of machinery or for any
other reason to continue to employ workers

 Lay-off is a temporary phase

 The employee-employer relations do not come to an end, but are simply suspended for some
period

 Lock-out: It means the closing factory or suspension of work or the refusal by employer to continue
to employ any number of workers employed by him.

 Utility services: steam, Power, light or water, Sanitation, Coal, oil etc.

 Strike: It means refusal to work by employee for a demand against the employer
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 IMPORTANT DEFINITIONS
 Retrenchment: It means the termination of the services of a worker by the employer for any reason

 Retrenchment does not include, Voluntary retirement of the worker, superannuation, and
Termination of services on the ground of continued ill health.

 Settlement: setting common minimum demands between employee and employer

 Employee: worker working in the industry and doing any type of work

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 NECESSITY OF THE ACT
 To insure social justice to both employers and employees and advance progress of industry by
bringing about harmony and cordial relationship between the parties.

 To settle disputes arising between the employee and employer by peaceful methods or by
approaching the tribunals

 To promote good relations between the employer and workmen.

 To prevent illegal strikes and lockouts.

 To provide compensation to workmen in cases of lay-off, retrenchment and closure.

 To protect workmen against victimization by the employer

 To ensure termination of industrial disputes in a peaceful manner.

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 CAUSES OF INDUSTRIAL DISPUTES/CONFLICT
 Economic causes – Wages, salaries, profit, etc.

 Social causes – Low morale, corruption, pollution, rising unemployment

 Political causes – Political rivalry, unstable government, etc.

 Technical causes – Loss of jobs due to automation, unsuitable technology

 Psychological causes – Loss of job, Low job satisfaction, etc.

 Market causes – Competition, loss, recession, etc.

 Legal causes – Court order of closing down factories, shifting

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 AUTHORITIES UNDER THE ACT
 Any industry, in which 100 or more workers are employed, shall constitute a works
committee.

 Works committee shall have equal representatives of workers and employer both.

 Works committee shall promote good relationship between the workers and employer.

 Conciliation officers- Appointed by any Appropriate Government and they shall mediate and
promote the settlement of industrial disputes.

 Board of Conciliation- Appropriate Government may constitute a Board of Conciliation to

promote settlement of an industrial dispute.

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 AUTHORITIES UNDER THE ACT

 Board of conciliation will be headed by a chairman (an independent person) and shall have
two or four other members which will be representatives of the both parties

 Courts of Enquiry- Appropriate Government may constitute a court of enquiry to look into
any matter connected with industrial dispute

 Court (of enquiry) may consist of one or more independent persons.

 The court shall inquire and submit a report ordinarily within six months from the
commencement of inquiry.

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 AUTHORITIES UNDER THE ACT
Labour Court

 The appropriate government may constitute Labour Court consisting relating to industrial
disputes specified in the 2nd Schedule.

 The matters within the jurisdiction of Labour Court are :

• The order passed by employer under the standing orders

• Legality of a Strike or Lock-out

• Dismissal of workers

• Withdrawal of any concession or privilege

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 TRIBUNALS
 The appropriate Government may constitute one or more Industrial Tribunals for the
judgement of industrial disputes whether specified in the Second Schedule or the Third
Schedule

 A Tribunal shall consist of one person only to be appointed by the appropriate Government.

 A person shall not be qualified for appointment as the presiding officer of a Tribunal unless:

• He is, or has been, a Judge of High Court; or

• He has, for a period of not less than three years, been a District Judges or an
Additional District Judge.

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 NATIONAL TRIBUNALS
 Under Section 7-B, the Central Government has been empowered to constitute one or more
National Tribunals for the judgement of industrial disputes

 A National Tribunal shall consist of one person only to be appointed by the Central
Government.

 A person shall presiding Officer of a National Tribunal unless: he is, or has been, a Judge of
a High Court and appoint two persons as assistant to advise the National Tribunal

 Section 7-C further provides that such a presiding officer should be an independent person
and must not have attained the age of 65 years.

 When a matter has been referred to a National Tribunal, it must judge the dispute and
submit its to the Central Government. (Section 15)

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 STRIKES AND LOCK-OUT
 If industry employee want to go on strike then they should give notice to employer before
fourteen days

 No employer of any public utility service shall lock-out, without giving notice of lock-out
within six weeks before locking out

 The employer shall send information of strike or lock-out to the specified authority on the
day on which it is declared.

 A strike or lock-out is illegal if it is declared in contravention of points 1 & 2 of section 22 and

23 of the act, respectively.

 Nobody shall knowingly expend any money in direct support of an illegal strike or lock-out.

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 DIFFERENCE BETWEEN LAY-OFF AND LOCK-OUT

Lay- off Lock- Out

It’s a temporary phase It may be temporary or permanent

Business continues Business get closed down

Wages Continuous No question of any wages

Lay-off is not concerned with a dispute Lack out may be due to an industrial
with the workmen. dispute

Lay-off is for trade reasons beyond the Lock out is an act on the part of the
control of the employer, i.e, it is not an employer taken to pressurize the workers
intentional act.

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 RIGHT OF EMPLOYEE LAID OFF FOR COMPENSATION

 A worker having more than one year of continuous service under an employer, he shall get
compensation equal to 50% of the total of his basic wages and dearness allowance for 45
days for lay off

 No compensation shall be paid to a worker laid-off under following conditions :

• If he refuses to accept alternative employment involving same wages, offered to him

• If the lay-off is due to a strike, etc.

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 PENALTIES
 Penalty for workers participating in strike

• Any workman who commences, continues a strike which is illegal under this Act, shall be
punishable with imprisonment for a term which may extend to one months, or with fine which
may extend to fifty rupees, or with both.

 Penalty for provocation

• Any person who provocate others to take part in strike or lock-out which is illegal under this
Act, shall be punishable with imprisonment for a term which may extend to six months, or with
fine which may extend to one thousand rupees, or with both (section 27).

 Penalty for giving financial aid to illegal strikes:

• Any person who knowingly supplies any money to support of a strike which is illegal under this
Act, shall be punishable with imprisonment for a term which may extend to one year, a fine
which may extend to one thousand rupees, or both.
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 COLLECTIVE BARGAINING
 Collective bargaining is a procedure by which the terms and conditions of workers are
regulated by agreements between their bargaining agents and employers.

 The trade union and workers pressurizing their employers for improving the terms and
conditions of employment

 There are various concepts of collective bargaining with different emphasis and stress,
namely,

• Marketing concept- This concept focuses on agreements on the pay hours of work, and
non financial benefits, which are mutually agreed between employers and trade union
representatives on behalf of their members.

• Government concept- The governmental concept of collective bargaining, regards rule

making process, which determines relation between management and trade union
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 CONCLUSIONS

 Industrial Disputes Act, 1947 tries to resolve any dispute between employees and
employees, or between employers and employees

 Industrial dispute act containing many provisions regarding good relation between the
employers and workers, investigation and settlement of industrial disputes, prevention of
illegal strikes and lock– outs, relief to workmen in the matter of lay– off and retrenchment
and Promotion of collective bargaining

 The responsibility of administration of this acts rests with tribunal and labor court

 If this act implemented properly the there will be social and economical progress of the
workers and finally the social status of workers will be enhanced

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 THANK YOU

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