Role of the Government

and Legal Framework of

Industrial Relations in India

Industrial Dispute Act, 1947

1
 Role of the Government in IR

• To provide a legal framework

• To see social justice is done

• To see that no exploitation is done by any

party of IR.

2
 Main Features of the ID Act 1947
Applies to whole of India
1. Provides framework of Collective Bargaining for
Workmen

2. Provides provisions for settlement of Industrial Disputes

3. Provides two sets of lab. administration: Central/ State

4. Ensures Govt.’s major control in IR/industrial peace

Cont…
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 Main Features of ID Act 1947 contd.
5. Notice for changing the service conditions (such as
change in shift, etc.) (Has been withdrawn in the IR Code 2020)

6. Regulates strikes/lockouts (Has been modified in IR Code 2020)

7. Defines Labour court powers

8. Prohibits parties to indulge in Unfair Labour Practices

9. Provides relevant definitions

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Main Definitions
in the IDA:
Industry, Workman,
Industrial Dispute

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 What is meant by industry? - Sec. 2 (j)
Industry: Means any….
• Any systematic activity carried on by cooperation
between an employer and his workmen (employed
directly or through agency, including contractors) for the
production, supply or distribution of goods and services.

• It means…. industry include any business, trade,

undertaking, manufacture, work on contract
--- and includes any service, employment, handicraft,
or industrial occupation of Workmen
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 What is meant by industry

Later decisions held the following as industry:

––Forest department––Postal service––Khadi Gram Udyog––
Panchayat Samiti––Indian Navy Sailors Home – water supply
board, etc.
(Bangalore Water Supp. & Sewage Board v. Rajappa (Karnataka HC, 1978) held that Boards
providing basic amenities fall under “industry” and therefore employees are “workmen”)

It excluded: domestic, agricultural & religious activities

(IR Code 2020: Domestic services and the institutions engaged in charitable, social or
philanthropic service are excluded from the term “industry”).

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 Who is a Workman under IDA [Sec. 2 (s)]
Any person (including apprentice)
employed in industry
to do any of the following work:
Manual/unskilled/skilled/technical/operational/clerical/
supervisory
for hire on reward (with express or implied terms)

• Note: Designation not of importance, but….. nature of

duty is the essence
Cont….
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 Who is a Workman under IDA contd…

But Workman does not include:

One who is subject to Army/ Air Force/ Navy Act
Employed in police/ prison service
Employed mainly in managerial or administrative
capacity
Employed as supervisor but draws salary of
Certain fixed amount (Currently revised @ Rs. 18,000+ per month)

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 Case of NGO:
Rural Development International

Discussion

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 What is an Industrial dispute?

Any dispute or difference

between : Employers & Employers
Employers & Workmen
Workmen & Workmen
which is connected with
…employment, ….., ……terms of employment, or
……..conditions of labour

Cont…
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 Industrial Dispute Continues….
Who can raise an industrial dispute?:
oIn most cases the disputes arises from the demands or proposals
for improvement in wages, benefits, job security or terms or
conditions of employment
oA workman can raise a dispute directly before a Conciliation
Officer in case of ……..
odischarge, dismissal, retrenchment, or any form of termination of
service, to accept it as an industrial dispute
oIn all other cases the dispute has to be raised by a union (even
minority) About 20% WM held as substantial for raising a dispute
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Authorities Under
the IDA

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 Bodies/Authorities Provided under the IDA

Works Committee (Section 3)

–– To be constituted in industries with 100 or more WM
–– Members representing workers & magt. must be equal
–– Rep. of workers must be selected in consultation with TUs
–– To promote measures for amity and good relations

• Major Issues discussed in Work Committees :

amenities (canteen, drinking water, rest rooms), recreation, medical
services, health and safety. Thus the issues which are discussed in WCs
are often unimportant from the point of view of preventing disputes

(Note: WCs have not been effective almost everywhere due to limited scope)
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 Authorities under the IDA Cont….
I. Conciliatory Mechanism (Third party mediates disputes)
1. Conciliation Officer (S. 4)
–– Can be appointed for an area or industry
–– CO is not a judicial officer – Can only persuade the parties
–– Chief Labour Commissioner – LCs – (Central) acts as the
primary conciliatory agency in the Central Govt.
–– Regional LCs and Assistant LCs act as Conciliatory Officers
in different parts of the country
–– If dispute is not resolved, he submits a failure report
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 Framework of Conciliation under IDA contd…

2. Board of Conciliation: Constitution & Duty (S. 5)

• BOC consists of : 2 or 4 members + chairman

––Members equally represent parties––Chairman is
independent

• ––BOC is appointed by govt. on recommendation of parties

• ––Duty: Promoting settlement

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Framework of Conciliation under IDA

Conciliation Procedure for CO and BOC

• Time for conciliation
––CO: 14 days––Can be extended by parties
––BOC: 1 month + 1 month + Extension by parties

• Conciliation Procedure: Settlement & Failure

–– (a) Memorandum of settlement U/S 12(3) or
(b) Failure Report U/S 12(4) is submitted or
(c) the dispute is referred for adjudication

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 II. Arbitration
• Arbitration is a provision that can be suggested by CO in
Conciliation process fails.

• Parties can chose their arbitrator, unlike CO.

• Arbitration is voluntary, which in a way is resolving

dispute outside the court. Party can have choice not to
go for arbitration and move for adjudication process if
conciliation fails.

• Award by arbitrator or arbitrators will however be legally

binding and enforceable in courts.

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 III. Adjudicatory Mechanism
• Ministry of labour after receiving failure of
Conciliation can refer the dispute for adjudication
• It can be referred for adjudication to Industrial or
Labour Courts.
• After the matter is referred to any of these courts,
the adjudication process begins
• At the end of the proceedings an award is given by
the Presiding officer.

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 Adjudicatory Authorities under the IDA

1. Labour Court (Section 7)

2. Industrial Tribunal (Sec 7-A)
3. National Tribunal (Sec 7-B)
–– Central Govt. constitutes NT for adjudicating
IDs, which involve questions of national
importance
–– or when WM in more than one state are likely
to be affected
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–– Qualification: High Court Judge
Unfair Labour Practices
in the
IDA

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 Unfair Labour Practices (ULPs)
(FIFTH SCHEDULE)

I What are ULPs? (on part of employers)

1. To interfere/coerce WM in exercise of their right to organise

2. To dominate, interfere, give financial support to any TU, i.e.:

3. To encourage/discourage membership in any TU by:

4. To discharge or dismiss workmen for union reasons.

5. To abolish regular work to give to contractors to break strike

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 ULPs (on Part of Employers) contd…

6. To transfer a WM in pretext of following mgt. policy

7. Insist as pre-condition to WM on legal strike: sign good-conduct

bond

8. To recruit WM in a strike

9. To refuse to bargain collectively with recognised TUs

10. Proposing/continuing a lockout deemed to be illegal under this

Act
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 ULPs (on Part of Workmen)
II. On the part of workmen/ trade unions of WM

1. To actively support/instigate a strike deemed to be illegal

2. To coerce WM to join a TU/refrain from joining a TU i. e.:

––To picket in manner that non-striking WM can’t enter work places
––To indulge in force/threats against non-striking WM/ mgrl. Staff

3. For a recognised TU to refuse to bargain collectively

4. Indulge in coercive acts against certification of a bargain. rep.

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 ULPs (on Part of Workmen) contd…
5. To stage, instigate coercive actions such as:
––Wilful “go slow”, squatting on premises after work hours, gherao

6. To demonstrate at residences of employers/ mgrl.

staff

7. To incite wilful damage to employer's property––

industry connected

8. Force/threats against a WM to prevent him from

attending work
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 Right to Strike in Public Utility Services
(Now they may be applicable to all kinds of organizations)

• No person in PUSs can go on strike without

giving the employer notice of strike:
• Within 6 weeks before striking
• During the pendency of any conciliation proceedings
before a Conciliation officer & 7 days after the conclusion
of proceeding

• Similarly No employer can lockout industrial

establishment (PUS) without following above
procedure 26