Industrial Disputes Act, 1947

Dr. Shailendra Kumar

History Of Industrial Disputes Act 1947
• World war i sparked a new awakening among working-class
individuals who had previously been ruled by employers in terms of
service and compensation.
• To meet their goals, employees went on strike, while bosses
countered by announcing lockouts. several strikes and lock-outs in
1928-29 compelled the government to pass the trade disputes act of
1929.
• The trade dispute act of 1929 was enacted to resolve industrial
disputes. the trade union act established trade unions as legal entities.
• The fundamental flaw of the act was that no provision was provided for the
procedures launched under the act to be rendered when restrictions on the right
to strike and lock-out in public utility services were enforced.
• However, this flaw was eventually remedied by authorising, under rule 81-a of
the defense of Indian rules, the referral of industrial conflicts to adjudicators for
resolution during the second world war (1938-1945).
• Rule 81-a was going to expire on October 1, 1946, with the end of the second
world war, but it was saved by using the government’s emergency powers. the
major clause was kept in the 1947 industrial disputes act.
 Objectives of Industrial Dispute Act 1947
• The industrial disputes act’s goal is to ensure industrial peace and
harmony by establishing apparatus and procedures for the investigation
and resolution of industrial disputes through discussions.
• The legislation only applies to the organized sector.
• This act provides precise instructions and guidelines for the works
committee for both firms and all workers to pursue measures for healthy
working relationships.
• To promote good relations between labour and industry and to offer a
forum for conflict resolution through adjudicator authority.
• To establish a committee for conflict resolution between industry and
labour, with the right of representation by a registered trade union or
an employer organization.
• Prevent illegal strikes and lockouts.
• Reach out to workers who have been laid off, unfairly terminated,
and so on.
• Give workers the right to collective bargaining and encourage
conciliation.
 Features of Industrial Disputes Act 1947
• While the mediation and adjudication procedure is underway, strikes and lockouts
are unlawful.
• Any industrial dispute can be referred to an industrial tribunal by consent of the
parties involved or by the state government.
• An award must be binding on both parties to the dispute for a period of no more
than one year, and it must be enforced by the government.
• In the public interest or in an emergency, the competent authority may declare the
transportation, coal, iron, and steel industries to be public utility services under the
industrial disputes act for a maximum of six months.
• When an employee is laid off or reduced in size, the
company is required to provide compensation.
• Workers’ compensation is also covered in the statute.
• Several agencies are available to resolve industrial
disputes, including a works committee, a conciliation
officer, a board of conciliation, a labor court, and a
tribunal.
 Authorities Under the Industrial Disputes
Act
• Works Committee
• This is stated in section 3 of the legislation, which states that each industrial
establishment must have a works committee, with equal participation from both
the employer and the employee.
• It is to try to settle the issue in the first instance through the mediation procedure
in the early stages of the conflict. The works committee also makes remarks on
disputed issues from time to time.
• Conciliation officer
• The provisions of the conciliation officer are discussed in
section 4 of the industrial disputes act of 1947.
• It specifies that the competent government, i.E. The federal
government, state government, or local authority, will appoint
as many conciliation officers as it deems necessary.
• It is the conciliation officer’s responsibility to mediate and
facilitate the resolution of industrial disputes. The conciliation
officer might be appointed permanently or on a temporary
basis.
• Board of Conciliation:
• The board of conciliation is appointed by the competent government under
section 5. The board of conciliation was formed to promote the resolution of
industrial disputes. The board is made up of the chairman and two or four
additional members.
• The chairman of the board is an independent person, and the other members
are appointed in equal numbers to represent the parties in disputes, and the
person who represents the party is appointed by the party.
• The party must designate such representatives within the time frame
specified, and if the party fails to do so, the competent government may
appoint the individual to be the party’s representative.
• Courts of Inquiry
• Section 6 of the legislation goes on to discuss the establishment of a
court of inquiry to investigate the topic at hand.
• The court of inquiry will be presided over by an independent person
or individuals chosen by the competent authorities. If the court has
two or more members, any one of them may be selected as
chairman.
• Labour Court
• Section 7 of the legislation discusses the establishment of
the labour court by the competent authorities. It may
establish as many labour courts as it sees proper for the
adjudication of industrial disputes as indicated in schedule
II.
• It is made up of one individual who is selected by the
appropriate government.
• Tribunal
• Section 7A deals with the provision for the establishment of
one or more tribunals for the adjudication of disputes
concerning the features stated in schedules second or third.
The tribunal will be composed of one person who will be
chosen by the relevant government.
 Applicability of Industrial Disputes Act 1947
• The industrial disputes act applies across India to every industrial institution
engaged in any business, commerce, production, or distribution of products
and services, regardless of the number of workers employed.
• The act applies to everyone hired in an institution for hire or reward, including
contract labour, apprentices, and part-time workers, to do any manual, clerical,
skilled, unskilled, technical, operational, or supervisory work.
• This act does not apply to persons primarily engaged in managerial or
administrative capacity, persons engaged in a supervisory capacity and persons
subject to the army act, air force act, and navy act, or those in police service or
officers or employees of a prison.
Definition
• “appropriate Government” means
a. Central Government ( Explanation 1a and 1B and
b. State government ( state government undertaking, subsidiary, autonomous
body undertaking)
c. in case of contract Laboure, the centre or State who has control over it

• Tata memorial Hospital worker union v/s Tata memorial centre and another
2010 SC, on the test of control – State government become Appreciate
government.
• Bharta glass works (p) LTD v/s West Bengal AIR 1957, CAL. – Control Industry
by central government – hens Centre government appropriate government –
reference made by state government- Court held for State is appropriate
government. Control not mean belonging to central government
• Indian Nevele Canteen control v/s Industrial tribunal 1955 TC- Canteen for navel
officer – State government appropriate government .
• the control industry or granting licence I is not necessary but also actual
control over it .
• Workman
• “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, whether the terms of employment be
express or implied, and for the purposes of any proceeding under this Act in
relation to an industrial dispute, includes any such person who has been
dismissed, discharged or retrenched in connection with, or as a consequence of,
that dispute, or whose dismissal, discharge or retrenchment has led to that
dispute, but does not include any such person
• who is subject to the Air Force Act, 1950 (45 of 1950), or the Army
Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or
• who is employed in the police service or as an officer or other
employee of a prison, or
• who is employed mainly in a managerial or administrative capacity,
or
• who, being employed in a supervisory capacity, draws wages
exceeding one thousand six hundred rupees per mensem or
exercises, either by the nature of the duties attached to the office or
by reason of the powers vested in him, functions mainly of a
managerial nature
• 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;

• Bangalore Water Supply and Sewerage Board v. R. Rajappa

• Any activity will be industry if it fulfills the ‘triple test’,
Systematic and organized activity
With the cooperation between Employers and employees
For the production and distribution of good and services whether or
not capital has been invested for this activity.
• 2.It is immaterial whether or not there is profit motive or whether or not there is
capital.

• 3. If the organization is a trade or business it does not cease to be one because of

philanthropy animating the triple test, cannot be exempted from scope of
definition of industry.

• 4. Dominant nature test – whether there is complex of activities, the test would
be predominant nature of services and integrated nature of departments. All
departments integrated with industry will also be industry.
• The exceptions to industry are
Casual activities (because they are not systematic).
Small clubs, co – operatives, research labs, gurukuls which have an
essentially non employee character.
Single door lawyer taking help from clerk (because there is no
organized labour).
Selfless charitable activities carried on through volunteers e.g. free
legal or medical service.
Sovereign functions – strictly understood, i.e., maintenance of law
and order, legislative functions and judicial function.
Charitable Institutions
 Those that yield profit, but the profits are not siphoned off for
altruistic purposes;
 Those that make no profit but hire the service of employees as in
any other business, but the goods/ services which are the output, are
made available at a low or no cost to the indigent poor; and
Those that are oriented on a humane mission fulfilled by men who
work, not because they are paid wages, but because they share the
passion for the cause and derive job satisfaction.
• The first two categories are industries, but not the third, on the
assumption that they all involve co-operation between employers and
employees.
• Hospitals
• In State of Bombay v. Hospital Mazdoor Sabha, the Supreme Court held
the State is carrying on an ‘undertaking’ within Sec. 2(j) when it runs a
group of hospitals for purpose of giving medical relief to the citizens and
for helping to impart medical education. The court observed as follows
1. An activity systematically or habitually undertaken for the production or
distribution of goods or for the rendering of material services to the
community at large or a part of such community with the help of
employees is an ‘undertaking.
2. It is the character of the activity in question which attracts the provisions
of Sec. 2 (j), who conducts the activity and whether it is conducted for
profit or not, do not make a material difference.
Thus, activities that have no commercial implications, such as hospitals
carried on with philanthropic motives would be covered by the expression
‘undertaking’. The mere fact that Government runs such activity is
immaterial. In case an activity is industry if carried on by a private person, it
• In Management of Safdarjung Hospital v. Kuldip Singh, it was held
that a place of treatment of patients run as a department of the
government was not an industry because it was a part of the functions
of the government. Charitable hospitals run by Government or even
private associations cannot be included in the definition of industry
because they have not embarked upon economic activities analogous
to trade or business. If hospitals, nursing home or a dispensary is run
as a business in a commercial way, there may be elements of industry
• In Bangalore Water Supply v A. Rajappa, the Supreme Court
overruled Safdarjung Hospital and Dhanrajgiri Hospital
cases, and approved the law laid down in Hospital Mazdoor
Sabha case. It was held that hospital facilities are surely
services and hence industries. The government departments
while undertaking welfare activities cannot be said to be
engaged in discharging sovereign functions and hence
outside the ambit of Sec.2(j) of the Act.
• Therefore, a charitable hospital run by a private trust, offering free services and employing a
permanent staff is an industry as there is a systematic activity, a co – operation between employer
and employees and rendering of services which satisfies human wants and wishes. Further, the
services of employees are hired as in any other business.
Law firm

• National Union of Commercial Employees v. M.R. Meher, it was held

that a solicitor’s firm is not an industry, although specifically
considered, it is organized as an industrial concern. The court
held that a person following a liberal profession does not carry
on his profession in any intelligible sense with the active co-
operation of his employees, and the principal/sole capital which
he brings into his profession is his special and peculiar
intellectual and educational equipment.
• overruled by Bangalore Water Supply case wherein it was held that
in view of the infrastructure of the offices of professional persons, the
contribution to the success of the institution comes not merely from
the professional or specialist but from all those whose excellence in
their respective spheres makes for total proficiency.
• “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.
1. Parties to the dispute who may be
 Employers and workmen
Employers and Employers
Workmen and workmen
2. There should be a factum of dispute not merely a difference of opinion
3. It has to be espoused (means supported) by the union in writing at the
commencement of the dispute. Subsequent espousal will render the reference
invalid. Therefore date when the dispute was espoused is very important
4. It affects the interests of not merely an individual workman but several
workmen as a class who are working in an industrial establishment
5. The dispute may be in relation to any workman or workmen or any other
person in whom they are interested as a body.
• Certain type of disputes will not be industrial dispute For e.g. disputes between a
government and an industrial establishment or between workmen and non-workmen
• Jadhav J. H. vs. Forbes Gobak Ltd: (2004 (102) FLR 916, In this case, it was held
that, a dispute relating to a single workman may be an industrial dispute if either it is
espoused by the union or by a number of workmen irrespective of the reason the
union espousing the cause of workman was not the majority of the union
• There is divergence of opinion on the issue whether a mere demand to the
appropriate government or to the Conciliation Officer without a dispute being
raised by the workmen with the employer regarding such demand can be called
an industrial dispute?.
• industrial dispute must be inexistence or apprehended on the date of preference.
The net effect of the principle is that even if the demand is not made earlier before
the management and rejected by them and is raised at the time of reference or
conciliation proceedings, the dispute may be an industrial dispute, Shambhunath
Goel v. Bank of Baroda
• Workmen of Hindustan Lever Ltd v. Hindustan Lever Ltd ,
Maharashtra Government referred a dispute between Hindustan
Lever Ltd and its employees for adjudication to the Industrial
Tribunal. The employers objected that the reference was incompetent
because the dispute raised by the workmen and referred by the
government was not an industrial dispute. This contention was
accepted by Industrial Tribunal but rejected by SC by saying that ‘the
expression of industrial dispute has been widely defined and any
that may develop between the employer and its workmen cannot
go outside the purview of the definition
• Sindhu Resettlement Corporation Ltd v. Industrial Tribunal, SC said
that if there is no dispute raised by the workmen with the
management, any request sent by them to the government would only
be a demand. A mere demand to the government without a dispute
being raised cannot become an industrial dispute.
• In Fedders Lloyd Corporation Pvt Ltd v. Lieutenant Governor the
Delhi High Court went a step further by saying that a demand by the
workmen must be raised first on the management and rejected by it
before an industrial dispute can be said to arise
• ‘any person’ is also subject to limitation under the process of judicial
interpretation. Any person must have a direct relation with the
workmen about whose employment or non-employment or terms of
employment or conditions of labour workmen have direct and
substantial interest. It means that any person must be an employee of
the industry in which the workmen are employees.
• The United Commercial Bank Ltd, Delhi v. Kedar Nath Gupta, it
was held that any person only means workmen.
• But in Narendra Kumar Sen v. All India Bank Dispute, Bombay High
Court , gave a broader interpretation of ‘any person’ by saying that
any person is those about whom the workmen have substantial
interest in the employment or non-employment or terms of
employment or conditions of labour
• Workmen of Dirakuchi Tea Estate v, Management of
Dirakuchi Tea Estate, Supreme Court, said that the
expression ‘any person’ in the definition clause means a
person in whose employment or non-employment or terms
of employment or conditions of labour, the workman as a
class have a direct or substantial interest with whom they
have under the scheme of the Act a community of interest.
The court further said that only the aggrieved party can raise a
dispute but in case of industrial dispute it is put in collective
basis because it is settled that an industrial dispute not
espoused by others of the class to which the aggrieved party
belongs is not an industrial dispute
• [2A. Dismissal etc., of an individual workman to be deemed to be an
industrial dispute.- Where any employer discharges, dismisses,
retrenches or otherwise terminates the services of an individual
workman, any dispute or difference between that workman and his
employer connected with, or arising out of, such discharge, dismissal,
retrenchment or termination shall be deemed to be an industrial
dispute notwithstanding that no other workman nor any union of
workmen is a party to the dispute.]
• Before insertion of Section 2-A of the Act an
individual dispute could not per se be an industrial
dispute, but it could become one if taken up by the
Trade Union or a number of workmen. The
Supreme Court and majority of Industrial Tribunals
held that, a dispute raised by a dismissed employee
would not be treated as an industrial dispute,
unless it is supported by a trade union or by a
body or Section of workman
• Bombay Union of Journalists vs. The Hindu: A person working in ‘The
Hindu, Madras’ was terminated for claiming as full time employee. The
Bombay Union of Journalist raised the dispute. It was found that, there
were ten employees of which seven in administrative side and only three
in journalism side. Of these three, only two were the members of the
union. Therefore, the Supreme Court held that the Bombay Union of
Journalists is not competent to raise this dispute. Even if it had raised, it
could not have become an industrial dispute
• Workmen of Indian Express Newspapers Ltd. vs. Management Indian
Express Newspapers: A dispute relating to two workmen of Indian
Express Newspapers Ltd, was espoused by the Delhi Union of
Journalists which was an outside union. About 25 percent of the
working journalists of the Indian Express were members of that
union. But there was no union of the journalists of the Indian
Express. It was held that the Delhi Union of Journalists could be
said to have a representative character Qua the working
journalists employed Indian Express and the dispute was thus
transformed into an industrial dispute.
• Thus, an individual dispute to fall within the definition of
industrial dispute, it must be sponsored by the Trade Union of
the workmen or if there is no trade union, it must be sponsored
by the majority of the workmen or it must comply with the
requirements of Section 2-A of the Industrial Disputes Act, 1947
• Any workman may make an application directly to the
labour court or Industrial Tribunal for adjudication of such
dispute after the expiry of 3 months when an application was
made before the conciliation officer. This has been done to
prevent inordinate delay.
• The said application however should be made within 3 years
of the date of dismissal, discharge, retrenchment or
termination of service.
• The court shall proceed to hear the matter as if it was
referred to it U/S 10 of the ID Act.
• Section 2A does not declare all individual disputes to be
industrial disputes. It is only when a dispute is connected with a
discharged, dismissed retrenched or terminated workman that it
shall be treated as an industrial dispute.

• State of Bihar vs. kripa Shankar Jaiswal , If the dispute or

difference is connected with some other matter e.g. payment of
bonus/ gratuity etc. then it would have to satisfy the test laid
down in judicial decisions. Thus only a collective dispute could
constitute an industrial dispute but collective dispute does not mean
that the dispute should either be sponsored by a recognized union or
that all or majority of the workmen of an industrial establishment
should be parties to it.
• Express Newspapers (Private) Ltd. Vs. First Labour Court, West
Bengal & Others, held A dispute is an industrial dispute even where it
is sponsored by a union which is not registered but the Trade Union
must not be on unconnected with the employer or the industry
concerned.

• an individual dispute is espoused by union the question of the

employee being a member of the union when the cause arose is
immaterial. Those taking up the cause of the aggrieved workman
must be in the same employment i.e., there must be community of
interest when the act complained against happened and not when the
dispute was referred to
Industrial disputes settlement machineries

• Works Committee,
• Conciliation Officers,
• Board of Conciliation
• Voluntary Arbitration
 Works Committee Sec.3
• As per the the Industrial Disputes Act, 1947, industry employing 100 or more
persons have to set up works committees at unit level. These committees have
equal number of representatives from the workers and the employers.
• Works committees are purely consultative in nature and have been regarded as
the most effective agency for the prevention of industrial disputes.
• This committee represents workers and employers.
• Under the Industrial Disputes Act 1947, works committees exist in industrial
establishments in which one hundred or more workmen are employed during the
previous year.
• It is the duty of the works Committee to promote measures for securing and
preserving amity and good relations between the employers and workers. It also
deals with certain matters viz. Condition of work, amenities, safety and accident
• Number of Members - The Number of members constituting the
Committee shall be fixed so as to afford representation to the various
categories, groups and classes of workmen engaged in, and to the sections,
shops or departments of the establishment:
• Provided that the total number of members shall not exceed twenty
• Provided further that the number of representatives of the workmen shall
not be less than the number of representatives of the employer
• employer shall be nominated by the employer and shall, as far as possible,
be official in direct touch with or associated with the working of the
establishment
 OBJECTIVES OF WORKS COMMITTEES
• 1. Remove the causes of friction in the day-to-day work situation.
• 2. Foster amity and harmonious relationship between the parties.
• 3. Create an atmosphere for voluntary settlement of disputes and frictions
• Kemp and Co. Ltd v/s their Workmen (1955 I LLJ 48) Work Committee are
normally Concerned with the problem arising day to day working and seek
amicable settlements
• Northbrook Jute Co ltd V/s Workmen 1960 SC ( work committee do not
represent all worker and it only discharge duty mention in Act.
Conciliation Officers Sec. 4
• (1) The appropriate Government may, by notification in the Official
Gazette, appoint such number of persons as it thinks fit, to be
Conciliation Officers, charged with the duty of mediating in and
promoting the settlement of industrial disputes.

• (2) A Conciliation Officer may be appointed for a specified area or

for specified industries in a specified area or for one or more
specified industries and either permanently or for a limited period.
• On receiving information about a dispute, the conciliation officer
should give formal intimation in writing to the parties concerned of
his intention to commence conciliation proceedings from a specified
date. He should then start doing all such things as he thinks fit for the
purpose of persuading the parties to come to fair and amicable
settlement of the dispute
• Qualifications and experiences: unlike the adjudicating authorities the
Act does not prescribe any qualification and/or experience for
conciliation officer or member or a Board of Conciliation. A report of
the study committee of National Commission on Labour, however,
reveals that one of the causes of failures of conciliation machinery is
lack of proper personnel in handling the dispute. T
 Board of Conciliation: Sec 5
• (1) The appropriate Government may as occasion arises by notification in the
Official Gazette, constitute a Board of Conciliation for promoting the
settlement of an industrial dispute.
• (2) A Board shall consist of a Chairman and two or four other members, as
the appropriate Government thinks fit.
• (3) The Chairman shall be an independent person and the other members shall
be persons appointed in equal numbers to represent the parties to the dispute
and any person appointed to represent a party shall be appointed on the
recommendation of that party :
Provided that, if any party fails to make a recommendation as aforesaid
within the prescribed time, the appropriate Government shall appoint such
persons as it thinks fit to represent that party.
• (4) A Board, having the prescribed quorum, may act notwithstanding the
absence of the Chairman or any of its members or any vacancy in its
number : Provided that, if the appropriate Government notifies the Board
that the services of the Chairman or of any other member have ceased to be
available, the Board shall not act until a new chairman or member, as the
case may be, has been appointed.
 COURT OF ENQUIRY (SEC. 6)
• The appropriate Government may as occasion arises by notification in the
Official Gazette constitute a Court of Enquiry for enquiring into any matter
appearing to be connecting with or relevant to an industrial dispute. A court
may consist of one independent person or of such number o f independent
persons as the appropriate Government may think fit and where a Court
consists of two or more members, one o f them shall be appointed as the
chairman. Court shall not be able to act unless minimum number o f members
required to transact business i.e. quorum is present. Absence of chairman or
nay member or any vacancy of its member will not affect the validity o f the
proceedings o f the Court if they are otherwise valid and regula
Duties of Court of Enquiry

• A court shall enquire into the matters referred to it and report thereon
to the appropriate Government ordinarily within a period of 6 months
from the commencement of its enquiry.
• In case of the failure of the conciliation proceedings to settle a dispute,
the government can appoint a Court of Inquiry to enquire into any matter
connected with or relevant to industrial dispute. The court is expected to
submit its report within six months. The court of enquiry is required to
submit its report within a period of six months from the commencement
of enquiry.
• report is subsequently published by the government within 30 days of its
receipt. Unlike during the period of conciliation, workers‟ right to strike,
employers right to lockout, and employers right to dismiss workmen,
etc. remain unaffected during the proceedings in a court to enquiry. A
court of enquiry is different from a Board of Conciliation. The former
aims at inquiring into and revealing the causes of an industrial dispute.
On the other hand, the latter's basic objective is to promote the settlement
of an industrial dispute. Thus, a court of enquiry is primarily fact-finding
machinery.
 Grievance Settlement Authorities Sec. 9 C
• 9C. Setting up of Grievance Settlement Authorities and reference of certain
individual disputes to such authorities.- (1) The employer in relation to every
industrial establishment in which fifty or more workmen are employed or have
been employed on any day in the preceding twelve months, shall provide for,
in accordance with the rules made in that behalf under this Act, a Grievance
Settlement Authority for the settlement of industrial disputes connected with
an individual workman employed in the establishment.
• (2) Where an industrial dispute connected with an individual workman arises
in an establishment referred to in sub-section (1), a workman or any trade
union of workmen of which such workman is a member, refer, in such manner
as may be prescribed such dispute to the Grievance Settlement Authority
provided for by the employer under that sub-section for settlement
• (3) The Grievance Settlement Authority referred to in sub-section (1)
shall follow such procedure and complete its proceedings within such
period as may be prescribed.
• (4) No reference shall be made under Chapter III with respect to any
dispute referred to in this section unless such dispute has been
referred to the Grievance Settlement Authority concerned and the
decision of the Grievance Settlement Authority is not acceptable to
any of the parties to the dispute.]
 Voluntary Arbitration Sec.10 A
• [10A. Voluntary reference of disputes to arbitration:- (1) Where any industrial
dispute exists or is apprehended and the employer and the workmen agree to
refer the dispute to arbitration, they may, at any time before the dispute has been
referred under Section 10 to a Labour Court or Tribunal or National Tribunal, by
a written agreement, refer the dispute to arbitration and the reference shall be to
such person or persons (including the presiding officer of a Labour Court or
Tribunal or National Tribunal) as an arbitrator or arbitrators as may be specified
in the arbitration agreement.
• [(1A) Where an arbitration agreement provides for a reference of the dispute to
an even number of arbitrators, the agreement shall provide for the appointment
of another person as umpire who shall enter upon the reference, if the arbitrators
are equally divided in their opinion, and the award of the umpire shall prevail
and shall be deemed to be the arbitration award for the purposes of this Act.]
• (2) An arbitration agreement referred to in sub-section (1) shall be in such form
and shall be signed by the parties thereto in such manner as may be prescribed.
• (3) A copy of the arbitration agreement shall be forwarded to the appropriate
Government and the Conciliation Officer and the appropriate Government
shall, within [one month] from the date of the receipt of such copy, publish the
same in the Official Gazette.
• [(3A) Where an industrial dispute has been referred to arbitration and the
appropriate Government is satisfied that the persons making the reference
represent the majority of each party, the appropriate Government may, within
the time referred to in sub-section (3), issue a notification in such a manner as
may be prescribed; and when any such notification is issued, the employers and
workmen who are not parties to the arbitration agreement but are concerned in
the dispute, shall be given an opportunity of presenting their case before the
arbitrator or arbitrators.]
• (4) The arbitrator or arbitrators shall investigate the dispute and submit to the
appropriate Government the arbitration award signed by the arbitrator or all
the arbitrators, as the case may be
• [(4-A) Where an industrial dispute has been referred to arbitration and a
notification has been issued under sub-section (3-A), the appropriate
Government may, by order, prohibit the continuance of any strike or lock out
in connection with such dispute which may be in existence on the date of
reference.]
• (5) Nothing in the Arbitration Act, 1940 (10 of 1940)6, shall apply to
arbitrations under this section.]
Adjudication:

•
(a) Labour courts,
(b) Industrial tribunals,
(c) National tribunals.
 Labour courts, Sec. 7
• (1) The appropriate Government may, by notification in the Official Gazette,
constitute one or more Labour Courts for the adjudication of industrial disputes
relating to any matter specified in the Second Schedule and for performing such
other functions as may be assigned to them under this Act.
• (2) A Labour Court shall consist of one person only to be appointed by the
appropriate Government.
• (3) A person shall not be qualified for appointment as the presiding officer of a
Labour Court, unless
• [(a) he is, or has been, a Judge of a High Court; or
• (b) he has, for a period of not less than three years, been a District
Judge or an Additional District Judge;
• (c) 3[***]
• 4[(d) he has held any judicial office in India for not less than seven
years; or
• 5[(e) he has been the Presiding Officer of a Labour Court constituted
under any Provincial Act or State Act for not less than five years.]
• Duties of Labour Court:
• The Labour Court shall hold its proceedings expeditiously and shall
as soon as practicable on the conclusion thereof submit its award to
the appropriate Government. (Sec. 15)
Jurisdiction of Labour Courts
• The Labour Courts adjudicate the following disputes relating to matters
specified in the second schedule;
• 1. The propriety or legality o f an order passed by an employer under the
standing order,
• 2. The application and interpretation of standing orders ,
• 3. Discharge or dismissal of workmen including reinstatement of or grant
of relief to workmen wrongfiilly dismissed.
• 4. Withdrawal o f any customary concession or privilege.
• 5. Illegality or otherwise of strike or lock-out and
• 6. All matters other than those specified in the Third schedule.
• The Statement (p) Ltd v/s H. R Deb AIR 1968 Sc 1495
• Haryana Cooprative transport ltd v/s State of Punjab AIR 1969Punj
7A. Tribunals.-
• - (1) The appropriate Government may, by notification in the Official
Gazette, constitute one or more Industrial Tribunals for the
adjudication of industrial disputes relating to any matter, whether
specified in the Second Schedule or the Third Schedule [and for
performing such other functions as may be assigned to them under
this Act].
• (2) A Tribunal shall consist of one person only to be appointed by the
appropriate Government.
• (3) A person shall not be qualified for appointment as the presiding
officer of a Tribunal unless-
• (a) he is, or has been, a Judge of High Court ; or
• 1[(aa) he has, for a period of not less than three years, been a
District Judge or an Additional District Judge; 2[***]
• (b) 3[***
• (4) The appropriate Government may, if it so thinks fit, appoint two
persons as assessors to advise the Tribunal in the proceeding before
it.
Jurisdiction of Industrial Tribunals [Sec.7 (A)
(l)|:
• 1. Wages, including the period and mode of payment.
• 2. Compensatory and other allowances.
• 3. Hours of work and rest intervals.
• 4. Leave with wages and holidays.
• 5. Bonus, Profit sharing. Provident Fund and gratuity.
• 6. Shift working otherwise than in accordance with standing orders. 7.
Classification by grades.
• 8. Rules of discipline.
• 9. Nationalization.
• 10. Retrenchment of workmen and closure of establishment, and
• 11. Any other matter that may be prescribed.
 National Tribunals Sec. 7B
• (1) The Central Government may, by notification in the Official Gazette,
constitute one or more National Industrial Tribunals for the adjudication of
industrial disputes which, in the opinion of the Central Government, involve
questions of national importance or are of such a nature that industrial
establishments situated in more than one State are likely to be interested in,
or affected by, such disputes
• (2) A National Tribunal shall consist of one person only to be appointed by
the Central Government.
• (3) A person shall not be qualified for appointment as the Presiding Officer
of a National Tribunal 4 [unless he is, or has been, a Judge of a High Court.]
• (4) The Central Government may, if it so thinks fit, appoint two persons as
assessors to advise the National Tribunal in the proceeding before it.
Disqualifications for the presiding officers of Labour
Courts, Tribunals and National Tribunals. Sec. 7C

• - No person shall be appointed to, or continue in, the office of the

Presiding Officer of a Labour Court, Tribunal or National Tribunal, if-
• (a) he is not an independent person; or
• (b) he has attained the age of sixty-five years.
 Finality of orders constituting Boards, etc
Sec.9
• (1) No order of the Appropriate Government or of the Central Government
appointing any person as the Chairman or any other member of a Board or a
Court or as the presiding officer of a Labour Court, Tribunal or National
Tribunal shall be called in question in any manner; and no act or proceeding
before any Board or Court shall be called in question in any manner on the
ground merely of the existence of any vacancy in, or defect in the constitution
of, such Board or Court.
• (2) No settlement arrived at in the course of a conciliation proceeding shall be
invalid by reason only of the fact that such settlement was arrived at after the
expiry of the period referred to in sub-section (6) of Section 12 or sub section
(5) of Section 13, as the case may be
• (3) Where the report of any settlement arrived at in the course of
conciliation proceeding before a Board is signed by the Chairman and
all the other members of the Board, no such settlement shall be
invalid by reason only of the casual or unforeseen absence of any of
the members (including the Chairman) of the Board, during any stage
of the proceeding.]
 REFERENCE OF DISPUTES TO BOARDS,
COURTS OR TRIBUNALS
• Where the appropriate Government is of opinion that any industrial dispute
exists or is apprehended, it may at any time], by order in writing.
• (a) refer the dispute to a Board for promoting a settlement thereof; or
• (b) refer any matter appearing to be connected with or relevant to the dispute,
to a Court for inquiry; or
• [(c) refer the dispute or any matter appearing to be connected with, or relevant
to, the dispute, if it relates to any matter specified in the Second Schedule, to a
Labour Court for adjudication; or
• (d) refer the dispute or any matter appearing to be connected with, or relevant
to, the dispute, whether it relates to any matter specified in the Second
Schedule or the Third Schedule, to a Tribunal for adjudication:
• Provided that where the dispute relates to any matter specified in the Third
Schedule and is not likely to affect more than one hundred workmen, the
appropriate Government may, if it so thinks fit, make the reference to a
Labour Court under Clause
• [Provided further that] where the dispute relates to a public utility service and
a notice under Section 22 has been given, the appropriate Government shall,
unless it considers that the notice has been frivolously or vexatiously given or
that it would be inexpedient so to do, make reference under this sub-section
notwithstanding that any other proceedings under this Act in respect of the
dispute may have commenced.
• Provided also that where the dispute in relation to which the Central
Government is the appropriate Government, it shall be competent for the
Government to refer the dispute to a Labour Court or an Industrial Tribunal,
as the case may be, constituted by the State Government;]
• 1[(1-A) Where the Central Government is of opinion that any industrial dispute
exists or is apprehended and the dispute involves any question of national
importance or is of such a nature that industrial establishments situated in
more than one State are likely to be interested in, or affected by, such dispute
and that the dispute should be adjudicated by a National Tribunal, then, the
Central Government may, whether or not it is the appropriate Government in
relation to that dispute, at any time, by order in writing, refer the dispute or
any matter appearing to be connected with, or relevant to, the dispute,
whether it relates to any matter specified in the Second Schedule or the Third
Schedule, to a National Tribunal for adjudication.]
• [(6) Where any reference has been made under sub-section (1-A) to a National
Tribunal, then notwithstanding anything contained in this Act, no Labour Court
or Tribunal shall have jurisdiction to adjudicate upon any matter which is under
adjudication before the National Tribunal, and accordingly,-
• (a) if the matter under adjudication before the National Tribunal is pending in a
proceeding before a Labour Court or Tribunal, the proceeding before the Labour
Court or the Tribunal, as the case may be, in so far as it relates to such matter,
shall be deemed to have been quashed on such reference to the National
Tribunal; and
• (b) it shall not be lawful for the appropriate Government to refer the matter
under adjudication before the National Tribunal to any Labour Court or Tribunal
for adjudication during the pendency of the proceeding in relation to such
matter before the National Tribunal.
• Explanation.- In this sub-section “Labour Court” or “Tribunal” includes any Court
or Tribunal or other authority constituted under any law relating to investigation
and settlement of industrial disputes in force in any State].
 Strikes and Lockouts in industrial units
• Definition of Strike “strike” means a cessation of work 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 work or to
accept employment; Sec. 2 (q)
• Defination of Lock-out- “lock-out” means the 1[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
Sec. 2(l)
 Strikes
• Definition of Strike “strike” means a cessation of work 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 work or to accept employment; Sec. 2 (q)
• (a) Plurity of workmen;
• (b) Combination or concerted action;
• (c) Cessation of work or refusal to do work.
Indian Iron & Steel ltd. v/s Its Workmen, it was held that Mere cessation of work does not come within the
preview of strike unless it can be shown that such cessation of work was a concerted action for the
enforcement of an industrial demand. Cessation of work or refusal to work is an essential element of strike.
This is the most significant characteristic of the concept of strike. There can be no strike if there is no cessation
of work. The cessation of work may take any form. It must however be temporary and not forever and it
mustbe voluntary. No duration can be fixed for this in fact duration for cessation of work is immaterial.
Cessation of work even for half an hour amounts to strike
Reasons for Strike

• Working hours
• Working Conditions
• Salary, Incentive etc
• Time payment of wages
• Reduction in salary/wages
• Issue related Minimum wages
• Leave/Holidays
• Dissatisfaction with the company policy
• PF, ESI, Profit Sharing etc
• Retrenchment of workmen and closure of establishment
Kinde of strike

• General strike-
• The general strike is one where the workmen come together under a
common understanding and stay away from work emitting the
employer where heavy costs in the process as the work is brought to
a standstill. General strikes are resorted to for securing economic
demands like improvement in the matters of basic pay, bonuses,
leaves and holidays etc. Such strikes are common in the Railways,
Post and Telegraph Department and also by government employees.
• Mass casual leave
• Mass casual leave is another way adopted by the workers to
ventilate their grievances, where all the workers go on leave at the
same time, in negation of what is stated in the standing orders. The
employees have a right to avail leave only in accordance with the
standing orders, but this sort of a strike is resorted to by workers so
that the management is pressurised to talk to them and settle their
demands.
• Stay in, sit down, pen down strikes
• In the strikes, the worker centre the place of work, but do not work.
They also do not believe their place of work. In these forms of strike
the entry of the workers. Is legal, when they refused to leave the
place of work. There squatting on the premises, constitutes, friends,
as there is an element of a criminal trespass present in the same.
When strikes are basically staged in banks, wherein the purpose.
Many a times is to shake the credit of the bank in the market. If such
strikes are continued for a long period, it certainly affects the repute
of the employers and the market and such strikes sometimes lead to
untoward incidences
• Go slow
• Go slow in the form of strike wherein there is a deliberate delaying of
production by the workmen pretending to be engaged in working. It
is one of the most pernicious practices which are discontented and
disgruntled workers sometimes resort to. This is nothing less than
being dishonest because by going slow. In such strikes, there is a
delayed production, reduced output and many a times the
machineries also kept going on a reduced speed which is extremely
damaging to the machinery parts. The workers remain entitled to full
wages and other emoluments, as well as conditions of service, which
even otherwise are to flow through them, but at the same time, the
managements do not get the quantum of production which is
expected from the workers for the salaries which they get.
• Token strike
• The strikes are staged as a token of protest for some grievance which
the worker's hammer. Such strikes many a times are of a small
duration for a span, but they qualify to be a strike if at all. All the
ingredients of the definition in section 2(q) are satisfied.
• Lightning or quickly strikes
• As the name suggests, the strikes are held in a flash of a second. And
that is why they are called as lightning or quickly strikes. These
strikes are staged all of a sudden and the thought behind it is to
spread the message of an instant strike with all the workers.
Normally, the workers, if at all they are to go on strike given notice
and then carry the thought into an action, but here, the strikers first
strike and then start to bargain. As there is no notice present in the
strike, such strikes are illegal ex-facie
• Sympathetic strikes
• Such strikes are staged to extend sympathies to some other union,
who are really on strikes against the management and in such strikes
the workers do not have some grievance of their own. It is just staged
to extend their support to some other union. However, the workers
fail to understand that in this sort of a strike. It is the managements
who have. To pay the salary packets to workers who really do not
have a grievance of their own, and thus such strikes are not at all
justified, besides being illegal, as there is no satisfaction of all the
other ingredients present in section 2(q) of the Industrial Disputes Act
1947
• Hunger strike
• Hunger strike in the strike were by the workmen resorting to this site of a
strike refrain from having food and also stop from working. The hunger
strike of Mahatma Gandhi was called as 'satyagrah' merits goal was to
secure the ends of truth. The hunger strike by strikers is just the restraint
imposed from having food where the goal to be achieved is a monetary one.
The hunger striker is also liable under section 309 of the Indian Penal Code,
which is an attempt to commit suicide. It is not that every strike will incur a
penalty. However, the stage reached by the strikers should be such a stage
where there is a certainty of a suicide and only then would section 309,
Indian Penal Code come into picture. Section 309 of the Indian Penal Code
deals with attempt to commit suicides
• Work to rule strike
• This is a new form of a strike which is resorted to by the disgruntled
workmen to circumvent the provisions of law governing their service
conditions. The striking employees here added to the service rules in
such a fashion that it causes harassment to the general public. The
striking employees do not usually added to the rules in such a manner
which they do it in this form of a strike. A minute of the ones of the
rules causes harassment rather than helping the general public, and
which also results down in slowing the momentum of work. Such
strikes are usually staged in public utility services where the object is
to harass the public in an indirect manner so that the government is
pressurised to succumb to the demands of the workmen
• Mass resignations
• Mass resignations is another form of a strike wherein all the workmen
who are employed in an industry submit their resignations to the
management. It becomes cumbersome and difficult for the management
to accept every worker's resignation as that would have an effect of
bringing the very industry to a standstill. The pressure which is exerted
by the workers. By giving a mass resignation is basically to make the
management agree to their demands and the standpoint of view
• Gherao
• Gherao is a word of vernacular origin and is synonymous with the idea of confining
a person to the place from where he is not allowed to move in any manner. It is said
to be a physical blockade of a target, who could be any manager, the managing
director for anybody from the management. Here the victim is encircled by the
workers to block the ingress and egress from a particular place, workshop or even a
factory. The blockade subjected to by the workers very partial or may be total. There
is an element of wrongful restraint and wrongful confinement is present in this form
of a strike. Sometimes a gherao, takes an ugly turn wherein the victim is subjected to
cruel and inhuman confinement, and that too without basic amenities such as the
laxity and fans. Sometimes the rectum is also not given food or is restrained from
communicating with the outside world. Rarely they are beaten and humiliated by
abused and even not allowed to answer calls of nature. The victim is totally at the
mercy of the besiegers. In this form of a strike, there is a wanton disregard of the law
• the right to form an association by the unions can be found in under
Article 19(1)(c) of the Constitution of India.
• No doubt strike is the last weapon in the armoury of labour, and is also
recognised as a legitimate weapon in all democratic countries, though it
may not be a fundamental right, undoubtedly) is as redress and mode for
solving the problems of the workers. The right to strike, however, is not
an absolute one and some restrictions on the put upon it under the
provisions of the Industrial Disputes Act, 1947.
• (3) Where an industrial dispute has been referred to a Board, [Labour
Court, Tribunal or National Tribunal] under this section, the appropriate
Government may by order prohibit the continuance of any strike or lock-
out in connection with such dispute which may be in existence on the
date of the reference.
• legal right of going on strikes as stipulated in sections 22, 23 and 24,
right to strike under Industrial Disputes Act, 1947 is very much
limited and regulated.
• B. R. Singh v/s Union of India[ (1989) II Lab LJ 591 (SC)] it was
held that the strike is a form of demonstration. Though the right to
strike or right to demonstrate is not a fundamental right, it is
recognized as a mode of redress for resolving the grievances of the
workers. Though this right has been recognized by almost all
democratic countries but it is not an absolute right
• Dharma Singh Rajput v/s Bank of India, it was held that right to
strike as a mode of redress of the legitimate grievance of the workers
is recognized by the Industrial Disputes Act. However, this right is to
be exercised after complying with the conditions mentioned in the
Act and also after exhausting the intermediate and salutary remedy
for conciliation.
• T.K. Rangarajan v/s Tamil Nadu[(2003) 7 ACE 30], the Tamil Nadu
government terminated the services of all employees who resorted to strike.
The Apex Court held that Government staffs have no statutory, moral or
fundamental right to strike.
• Sasa Musa Sugar Works Pvt. Ltd. v/s Shobrati Khan & Ors [AIR 1959
SC 923] Go-Slow strike is not a strike” within the meaning of the term in the
Act, but is serious misconduct which is insidious in its nature and cannot be
countenanced.
• Piparaich Sugar Mills Ltd. v/s Their Workmen[AIR 1960 SC 1258]
Certain employees who held key positions in the mill resorted to hunger
strike at the residence of the managing Director, with the result that even
those workmen who reported to their duties could not be given work. Held:
That concerted action of the workmen who went on Hunger Strike amounted
to strike” within the meaning of this sub-section.
 Lockout
• A lock-out declared in consequence of an illegal strike or a strike declared in
consequence of an illegal lock-out shall not be deemed to be illegal. Section
24 (3) of Industrial Disputes Act 1947.
• Lockout means temporary shutdown of the factory by the employer, but not
winding up (permanent) of the factory.
• Lockout of the factory maybe happened due to the failure in the management
affected by internal disturbances or maybe by external disturbances.
• Internal disturbances maybe caused when the factory management goes in to
financial crisis or got succumbed into financial debts, disputes between
workers and workers, disputes between workers and management or may be
caused by ill-treatment of workers by the management.
 REASONS BEHIND THE LOCKOUTS
• Disputes or clashes in between workers and the management.

• Unrest, disputes or clashes in between workers and workers.

• Illegal strikes, regular strikes or continuous strikes by workers may lead to lockout of factory or industry.

• External environmental disturbance due to unstable governments, may lead to lockouts of factories or industries.

• Continuous or accumulated financial losses of factory or industry, may lead to opt lockout by the management.

• Maybe lockout, if any company involves in any fraudulent or illegal activities.

• Failure in maintaining proper industrial relations, industrial peace and harmony.

• Lockout of the factory is regarded as major issue which affects both management of the factory and their
employees. Management should always monitor employees behaviour and relationship between employees and
relationship in between management and employees To avoid disputes which leads to lockouts .
Procedure of lockout - meaning
• Proposal to go on lockout factory should be intimated to workers by
way of prior notice, that is 14 days stipulated time period should be
given to the workers to respond . During this 14 days time employer
should not lockout. Only after expiry of the that 14 days and
management fails to resolve issues within that 14 days, employer can
go for lockout on fixed date by giving notice of lockout. Such lockout
should be done before the expiry of that six weeks only.

• Simply putting in words lockout of factory should be done only after

the expiry of 14 days of prior notice given by the management.
• Sometimes factory lockouts may be caused by external influences, such as
unnecessary political parties involvement in management of workers union may
be provoked for unjustified demands that may be unaffordable by the
management, which may ultimately lead to lockout of the factory. Factory
lockout is procedural aspects governed by the labour legislation of that country.
Lockout of the factory is a major issue, which affects workers as well as
management and cannot be initiated for a simple reason.
• Management Of Kairbetta ... vs Rajamanickam And Others on 24
March, 1960
• a lockout is a weapon available to the employer to persuade by a
coercive process the employees to see his point of view and to accept his
demands. In the struggle between capital and labour, the weapon of
strike Is available to labour and is often used by it, so is the weapon of
lockout available to the employer and can be used by him. The use of
both the weapons by the respective parties Must, however, be subject to
the relevant provisions of the Industrial Disputes Act 1947 . Chapter V
which deals with strikes and lockouts clearly brings out the antithesis
between the two weapons and the limitations subject to which both of
them must be exercised.
• Factory lockout is the ultimate weapon in the hands of the management
when an uncontrollable situations arises in the factory. No matter what it
is factory lockout will cause great loss to the management and to the
workers. If lockout re-occurs, it may become threat for the existence of
the factory, which finally leads to the loss of the jobs of workers.

• Kingfisher airlines of India went into losses amounts of 8,000 crores due
to failure in meeting competition in the aviation industry eventually had
not paid salaries to its employees for a period of six months which led to
agitation among employees eventually resorted for strike. With the loss of
Rs. 8,000 crores by Kingfisher airlines additionally got a burden of
another Rs. 7,000 crores hence declare partial lockout by its top officials
on 1st September 2012
• In the case of Shri Ramchandra Spinning Mills vs State of Madras, (1957)
ILLJ 90 Mad, it was seen that if the employer closes his place of business
as a means of reprisal or as an instrument of coercion or as a mode of
exerting pressure on employees or generally speaking when his act is what
may be called an act of belligerency there will be a lock-out.
• In the case of Lord Krishna Sugar Mills Limited Saharanpur vs State of UP,
( Alld , 2011) the verdict was that a lock-out may sometimes be not at all
connected with economic demands; it may be resorted to as a security
measure.
• In the case of Lakshmi Devi Sugar Mills Limited vs Ram Sarup 1957 AIR
82, 1956 SCR 916, the verdict was that in the case of lockout there is neither
alteration to the prejudice of workmen of the conditions of the service
application to them nor a discharge or punishment whether by dismissal or
otherwise
WAGES DURING STRIKE
• In Crompton Greaves vs. the Workmen(1978) 3 SCC 155, Hon'ble
Supreme Court held that "It is well settled that in order to entitle the
workmen to wages for the period of strike, the strike should be legal
as well as justified. A strike is legal if it does not violate any
provision of the statutes. It is also well settled that the use of force or
violence or acts of sabotage resorted to by the workmen during a
strike disentitles them to wages for the strike period
• In case of Bank of India vs. T.S. Kelawala(1990) II LLJ 39, the
Hon'ble Supreme Court had a different view and held that "where the
contract, Standing Orders or the service rules/regulations are silent
on the subject, the management has the power to deduct wages for
absence from duty when the absence is a concerted action on the
part of the employees and the absence is not disputed.” .whether
the strike is legal or illegal, the workers are liable to lose wages for
the period of strike. The liability to lose wages does not either make
the strike illegal as a weapon or deprive the workers of it. When
workers resort to it, they do so knowing full well its consequences."
Sec. 22. Prohibition of strikes and lock-outs.- (1) No person employed in a
public utility service shall go on strike in breach of contract-
• (a) without giving to the employer notice of strike, as hereinafter provided,
within six weeks before striking; or
• (b) within fourteen days of giving such notice; or
• (c) before the expiry of the date of strike specified in any such notice as
aforesaid; or
• (d) during the pendency of any conciliation proceedings before a
conciliation officer and seven days after the conclusion of such proceedings
• (2) No employer carrying on any public utility service shall lock-out any
of his workmen-
• (a) without giving them notice of lock-out as hereinafter provided, within
six weeks before locking-out; or
• (b) within fourteen days of giving such notice; or
• (c) before the expiry of the date of lock-out specified in any such notice as
aforesaid; or
• (d) during the pendency of any conciliation proceedings before a
conciliation officer and seven days after the conclusion of such proceedings
• (3) The notice of lock-out or strike under this section shall not be necessary
where there is already in existence a strike or, as the case may be, lock-out in
the public utility service, but the employer shall send intimation of such lock-
out or strike 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
• (4) The notice of strike referred to in sub-section (1) shall be given by such
number of persons to such person or persons and in such manner as may be
prescribed.
• (5) The notice of lock-out referred to in sub-section (2) shall be given in such
manner as may be prescribed.
• (6) If on any day an employer receives from any person employed by him any
such notices as are referred to in sub-section (1) or gives to any persons
employed by him any such notices as are referred to in sub-section (2), 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
• 23. General prohibition of strikes and lock-outs.- No workman who is
employed in any industrial establishment shall go on strike in breach of
contract and no employer of any such workman shall declare a lock-out
• (a) during the pendency of conciliation proceedings before a Board and
seven days after the conclusion of such proceedings;
• (b) during the pendency of proceedings before a Labour Court, Tribunal
or National Tribunal] and two months after the conclusion of such
proceedings;
• (bb) 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 subsection (3-A) of Section 10-A; or]
• (c) 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.
• 24. Illegal strikes and lock-outs.- (1) A strike or a lock-out shall be illegal if-
• (i) it is commenced or declared in contravention of Section 22 or Section 23;
or
• (ii) it is continued in contravention of an order made under subsection (3) of
Section 10 4[or sub-section (4-A) of Section 10-A]
• (2) Where a strike or lock-out in pursuance of an industrial dispute has already
commenced and is in existence at the time of the reference of the dispute to a
Board, an arbitrator, a Labour Court, Tribunal or National Tribunal, the
continuance of such strike or lock-out shall not be deemed to be illegal,
provided that such strike or lock-out was not at its commencement in
contravention of the provisions of this Act or the continuance thereof was
not prohibited under subsection (3) of Sec.10 , or sub- section 4(A) of
Section 10-A].
• (3) A lock-out declared in consequence of an illegal strike or a strike declared
in consequence of an illegal lock-out shall not be deemed to be illegal.
• Sec. 25. Prohibition of financial aid to illegal strikes and lock-outs.- No
person shall knowingly expend or apply any money in direct furtherance or
support of any illegal strike or lock-out.

• Sec. 26. Penalty for illegal strikes and lock-outs.- (1) Any workman who
commences, continues or otherwise acts in furtherance of, a strike which is
illegal under this Act, shall be punishable with imprisonment for a term
which may extend to one month, or with fine which may extend to fifty
rupees, or with both.
• (2) Any employer who commences, continues, or otherwise acts in
furtherance of a lock-out which is illegal under this Act, shall be punishable
with imprisonment for a term which may extend to one month, or with fine
which may extend to one thousand rupees, or with both.
Basis the above referred observations of the
Apex Court,
• a) If a strike is not in contravention of any statutory provision and is not
illegal nor is unjustified:
• - there is no reason to deprive the workmen of their wages during the
period of strike
• b) However, if the strike is either illegal or unjustified:
• - the workmen are not entitled to any wages for the period of strike
• whether a particular strike is justified or not depends upon the facts
of each case by taking into consideration factors such as:
• a) service conditions;
• b) nature of demands;
• c) the cause which led to the strike; and
• d) reason for not resorting to the dispute resolving machinery under
the Act”
RIGHT OF EMPLOYER IN STRIKE

• Right to claim compensation for loss caused by strike

In Rothas Industries v. Its Union AIR 1976 SC 425, the Supreme Court
held that the remedy for illegal strike has to be sought exclusively in
Section 26 of the Act. The award granting compensation to employer
for loss of business though illegal strike is illegal because such
compensation is not a dispute within the meaning of section 2(k) of the
Act.
• Dismissal of workmen
• In M/S Burn & Co. Ltd. V, Their Workmen AIR 1959 SC 529,
Hon’ble Supreme Court held that, mere participation in the strike
would not justify suspension or dismissal of workmen, however if the
strike was illegal, the only question of practical importance would be
the quantum or kind of punishment. To decide the quantum of
punishment a clear distinction has to be made between violent
strikers and peaceful strikers
• In Punjab National Bank v. Their Employees AIR 1960 SC 160., it
was held that in the case of strike, the employer might bar the entry
of the strikers within the premises by adopting effective and
legitimate method in that behalf. The employer may call upon
employees to vacate, and, on their refusal to do so, take due steps to
suspend them from employment, proceed to hold proper inquires
according to the standing order and pass proper orders against them
subject to the relevant provisions of the Act.
• Dismissal on account of misconduct
In case of 'Ram Kishan Iron Foundry, Howrah v their workmen'1954 II
LLJ (L.A.T.) 372 , Hon’ble Court held when the “strike is resorted to
with the real object of compelling the employer to reopen a demand
settled by adjudication or when it is reported to frivolously and
frequently with a dominant motive of running the industry or when it is
on the account of extraneous considerations, then there will be
misconduct and the employer will have the right to dismiss the
employees”
 Lay-off and Retrenchment
• Layoff refers to the removal of employees by the employer for reasons other
than the employee’s fault. A layoff is temporary in nature as it indicates the
incapability of an employer to continue the employment of the workers for a
short period.

• Sec.2 [(kkk) “lay-off” (with its grammatical variations and cognate

expressions) 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 [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;
• Retrenchment refers to a situation where the employer removes his employees to
increase profits and decrease losses. Even in retrenchment, there is no fault of the
employee that results in the termination of the employment.
• Sec.2[(oo) “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, but does not include
• (a) voluntary retirement of the workman; or
• (b) retirement of the workman on reaching the age of superannuation if the contract of
employment between the employer and the workman concerned contains a stipulation
in that behalf; or
• [(bb) termination of the service of the workman as a result of the on-renewal of the
contract of employment between the employer and the workman concerned on its
expiry or of such contract being terminated under a stipulation in that behalf
contained therein; or]
• (c) termination of the service of a workman on the ground of continued ill-health;]
 Sec 25 A- LAY-OFF
• Application of Sections 25-C to 25-E.- (1) Sections 25-C to 25-E inclusive [shall not apply to
industrial establishments to which Chapter V-B applies,] or
• (a) to industrial establishments in which less than fifty workmen on an average per working day
have been employed in the preceding calendar month; or
• (b) to industrial establishments which are of a seasonal character or in which work is performed
only intermittently
• 2) If a question arises whether an industrial establishment is of a seasonal character or whether
work is performed therein only intermittently, the decision of the appropriate Government
thereon shall be final
• [Explanation.- In this section and in Sections 25-C, 25-D and 25-E, “industrial establishment”
means-
• (i) a factory as defined in clause (m) of Section 2 of the Factories Act, 1948 (63 of 1948); or
• (ii) a mine as defined in clause (f) of Section 2 of the Mines Act, 1952 (35 of 1952); or
• (iii) a plantation as defined in clause (f) of Section 2 of the Plantations Labour Act, 1951 (69 of
Conditions essential for a lay-off
• There must exist an inability, failure or refusal from the employer’s
side to provide employment to the workmen.
• Such inability, failure or refusal must be due to lack of power, coal,
raw materials, accumulation of stocks, breakdown of machinery or
natural calamity for any other relevant reason.
• The name of the workman must be mentioned in the muster roll of
the employer’s industrial establishment.
• The workman must not have been subjected to retrenchment.
• A workman whose name is mentioned in the muster roll of the employer’s
industrial establishment and who is present for work during the working hours
of any day is not employed within two hours of him being present for work is
said to be laid-off for that particular day.
• if the workman is asked to work during the second half of his shift and is
employed then he is said to be laid off for half of the day. In case he is not
employed even after being present for work during the second half of the day,
then he is considered to be laid-off for the whole day.
Compensation to a laid-off workman
• Section 25C of the said Act, the workman who is laid off is entitled to
compensation that is equivalent to half of the total wages and
allowance given for the said period of lay-off.
• Such compensation is subject to the following conditions –
• The workman is not a badli or a casual worker.
• The workman’s name must be mentioned in the muster roll of the
industrial establishment.
• The workman must have rendered at least one year of continuous
service under such an employer.
 Non-applicability of compensation on workmen

• Section 25E states when a workman shall not be entitled to layoff

compensation-
1.If the workman is absent from the establishment during the required working
hours at least once a day.
2.If the workman is laid off for slowing down the efficiency of workmen in
another part of the establishment or due to the reason for a strike.
3.If the workman expresses his refusal towards the alternative employment
being given to him, provided that:
• Such employment is given in the same establishment he has been laid
off from.
• Such employment is given in any other establishment under the same
employer within 5 miles radius from the establishment to which he
belonged.
• Such employment as per the employer does not require any previous
experience or special skills as compared to the work that the
workman can do
• Such employment provides the same wages to the workman as his
previous employment did.
 25M. Prohibition of lay-off
• - (1) No workman (other than a badli workman or a casual workman) whose
name is borne on the muster rolls of an industrial establishment to which this
Chapter applies shall be laid-off by his employer except [with the prior
permission of the appropriate Government or such authority as may be
specified by that Government by notification in the Official Gazette
(hereafter in this section referred to as the specified authority), obtained on an
application made in this behalf, unless such lay-off is due to shortage of power
or to natural calamity, and in the case of a mine, such lay-off is due also to fire,
flood, excess of inflammable gas or explosion]
• (2) An application for permission under sub-section (1) shall be made by the
employer in the prescribed manner stating clearly the reasons for the intended
lay-off and a copy of such application shall also be served simultaneously on
the workmen concerned in the prescribed manner.
• (3) Where the workmen (other than badli workmen or casual workmen) of an
industrial establishment, being a mine, have been laid-off under sub-section
(1) for reasons of fire, flood or excess of inflammable gas or explosion, the
employer, in relation to such establishment, shall, within a period of thirty
days from the date of commencement, of such lay-off, apply, in the
prescribed manner, to the appropriate Government or the specified
authority for permission to continue the lay-off.
• (4) Where an application for permission under sub-section (1) or subsection (3)
has been made, the appropriate Government or the specified authority, after
making such enquiry as it thinks fit and after giving a reasonable
opportunity of being heard to the employer, the workmen concerned and
the persons interested in such lay-off, may, having regard to the
genuineness and adequacy of the reasons for such lay-off, the interests of
the workmen and all other relevant factors, by order and for reasons to be
recorded in writing, grant or refuse to grant such permission and a copy of
such order shall be communicated to the employer and the workmen
• (5) Where an application for permission under sub-section (1) or subsection (3)
has been made and the appropriate Government or the specified authority
does not communicate the order granting or refusing to grant permission
to the employer within a period of sixty days from the date on which such
application is made, the permission applied for shall be deemed to have
been granted on the expiration of the said period of sixty days.
Retrenchment
• Retrenchment refers to the termination of a workman for any reason
except for a form of punishment in furtherance of imposing
disciplinary action.
• Retrenchment does not include voluntary retirement of a workman,
workman retiring upon reaching the age of superannuation as
mentioned in the employment contract, removal of a workman on
basis of continued ill-health, and removal of the workman because
the employment contract is terminated or is non-renewed after its
expiry.
• 25N. Conditions precedent to retrenchment of workmen.—(1) No workmen
employed in any industrial establishment to which this Chapter applies, who
has been in continuous service for not less than one year under an employer
shall be retrenched by that employer unti-
• (a) the workman has been given three months notice in writing indicating
the reasons for retrenchment and the period o f notice has expired, or the
workman has been paid in lieu of such notice, wages for the,period of the
notice; and
• (b) the prior permission of the appropriate Government or such authority
as may be specified by that Government by notification in the Official
Gazette (hereafter' in this section referred to as the specified authority) has
been obtained on an application made in this behalf
• (2) An application for permission under sub-section (1) shall be made by
the employer in the prescribed manner stating clearly the reasons for the
intended retrenchment and a copy of such application shall also be served
simultaneously on the workmen concerned in the prescribed manner.
Section 25F of conditions to retrenchment
• No workman employed in any industry who has been in continuous
service for not less than one year under an employer shall be retrenched
• As per this Section, the employer must give one month’s written notice
to the workman that includes the reasons for retrenchment, or in lieu of
such notice, the workman must be paid wages for the period of the
notice.
• The employer at the time of retrenchment must pay the workman the
compensation which is equal to the average pay of 15 days for each
year of continuous service provided by such workman.
• The notice regarding retrenchment must be served to the appropriate
Government as well.
• 25G. Procedure for retrenchment.- Where any workman in an industrial
establishment, who is a citizen of India, is to be retrenched and he
belongs to a particular category of workmen in that establishment, in the
absence of any agreement between the employer and the workman in
this behalf, the employer shall ordinarily retrench the workman who was
the last person to be employed in that category, unless for reasons to be
recorded the employer retrenches any other workman
• 25H. Re-employment of retrenched workmen.- Where any workmen are
retrenched and the employer proposes to take into his employ any
persons, he shall, in such manner as may be prescribed, give an
opportunity 2[to the retrenched workmen who are citizens of India to
offer themselves for reemployment, and such retrenched workmen] who
offer themselves for reemployment shall have preference over other
persons
• Byram Pestonji Gariwala v Union Bank of India and Others (1975) ILLJ 453
Mad, the Apex court restricted the definition of ‘retrenchment’ as defined
under Section 2(oo) (bb) of the Industrial Disputes Act, 1947. It held that only
when ‘discharge of excess of labour’ is done by the employer then
retrenchment is said to occur.
• State Bank of India v N. Sundaramony (1975) ILLJ 453 Mad, the Court put
an end to its earlier decision expressed in Byram Pestonji Gariwala v Union
Bank of India and Others by expanding the definition of retrenchment as
defined under Section 2(oo) of the Industrial Disputes Act, 1947. It held that
any retrenchment done as per Section 2(oo) shall mean that the termination
of a workman is done by the employer for any reason whatsoever other
than as a punishment in furtherance of imposing disciplinary action and
those explicitly excluded by clauses (a), (b) and (c) of the said definition
• G. Jagadishwar Reddy v Railways, Guntakal Division (1975) ILLJ
351 AP, it was held that retrenchment compensation can also be
claimed by casual workers under the provisions of Section 25F of
the Industrial Disputes Act, 1947 if such casual worker had
rendered continuous service for a period of one year.

• Delhi Cloth and General Mills v Union of India 1987 AIR 2414,
1988 SCR (1) 383, it was held by the Supreme Court that if the
name of any workman is removed from the muster roll of an
industrial establishment then it would automatically be deemed
as the retrenchment of such workman
• 25Q. Penalty for lay-off and retrenchment without previous
permission.-Any employer who contravenes the provisions of Section
25M or of Section 25-N shall be punishable with imprisonment for a
term which may extend to one month, or with fine which may extend
to one thousand rupees, or with both.
 Closure of an undertaking under Section 25 (O)
• Subsection (1): An employer who intends to close down an undertaking of an
industrial establishment to which this Chapter applies shall, in the prescribed
manner, apply, for prior permission at least ninety days before the date on
which the intended closure is to become effective, to the appropriate
government, stating clearly the reasons for the intended closure of the
undertaking and a copy of such application shall also be served simultaneously
on the representatives of the workmen in the prescribed
• PROVIDED that nothing in this sub-section shall apply to an undertaking set
up for the construction of buildings, bridges, roads, canals, dams or for other
construction work.
• (2):Where an application for permission has been made under subsection (l),the
appropriate government, after making such enquiry as it thinks fit and after
giving a reasonable opportunity of being heard to the employer, the workmen
and the persons interested in such closure may, having regards to the,
genuineness and adequacy of the reasons stated by the employer, the interests
of the general public and all other relevant factors, by order. and for reasons
to be recorded in writing, grant or refuse to grant such permission and a copy
of such order shall be communicated to the employer and the workmen.
• (3):Where an application has been made under sub-section (1) and the appropriate
government does not communicate the order granting or refusing to grant
permission to the employer within a period of sixty days from the date on
which such application is made, the permission applied for shall be deemed to
have been granted on the expiration of the said period of sixty days.
 Undertakings Covered Under Section 25(O)
• Those in which 100 or more workmen were employed on an average per working day for the
preceding 12 months;
• Those which satisfy the definition of “an industrial establishment” contained in Section 25(L).
• (a) “industrial establishment” means- (i) a factory as defined in clause (m) of Section 2 of the
Factories Act, 1948 (63 of 1948);
• (ii) a mine as defined in clause (j) of sub-section (1) of Section 2 of the Mines Act, 1952 (35 of
1952); or
• (iii) a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of
1951);
• (b) notwithstanding anything contained in sub-clause (ii) of clause (a) of Section 2,-
• (i) in relation to any company in which not less than fiftyone per cent of the paid-up share capital
is held by the Central Government, or
• (ii) in relation to any corporation not being a corporation referred to in sub-clause (i) of clause (a)
of section 2] established by or under any law made by Parliament, the Central Government shall
be the appropriate Government.
 Undertakings Excluded From Obtaining Prior
Permission Before Closure

• The exceptions are mentioned in Section 25 (o) Subsections (1) and (7) of the
Industrial Disputes Act, 1947.
• As per Subsection (1) of Section 25(o) the provisions of Section 25(o) are not
applicable to an undertaking set up for the construction of building, bridges,
roads, canals, dams or for other construction work (infrastructure projects).
• As per Subsection (7) of Section 25(o), the appropriate government may if it
is satisfied that owing to such exceptional circumstances as accident in the
undertaking or death of the employer or the like it is necessary so to do, by
the order can allow closure of establishment without approval notice.
Appeal:
• The provision for an appeal by the employer or any workman against
the refusal or grant to the permission of the closure of an undertaking is
discussed in Subsection (5) of Section 25 (o) the Industrial Disputes Act,
1947.
• The appeal should be made within 30 days from the date of an order
of the refusal to the permission of the closure of an undertaking.
• The industrial tribunal within 30 days from the filing of appeal should
affirm the order of the appropriate government or set aside it.
• The award by the tribunal is bound on all parties.
• The validity of the order of refusal for closure is for one year.
 Illegal Closure:
• The topic of illegal closure is discussed in Subsection (6) of Section 25
(o) the Industrial Disputes Act, 1947.
• If an application for permission for the closure of the undertaking under
sub-section (l) is not made at least ninety days before the date on which
the intended closure is to become effective, to the appropriate
government. then the closure is illegal Or
• The permission for closure has been refused, by the appropriate
government then the closure of the undertaking is deemed to be illegal
from the date of closure and the workmen are entitled to all the benefits
under any law for the time being in force as if the undertaking had not
been closed down
 Compensation to Workmen
• The method of compensation to workmen after the closure of an
undertaking is discussed in Subsection (8) of Section 25 (o) the Industrial
Disputes Act, 1947.
• When an undertaking is approved or permitted or deemed to be permitted
to be closed down, every workman in the undertaking who has been in
continuous service for not less than one year immediately before the date
of application for the permission is entitled to notice and compensation as
specified in Section 25 (N) as if the said workman had been retrenched
under that section.
• The compensation shall be equivalent to fifteen days’ average pay for
every completed year of continuous service or any part thereof in excess
of six months.
 Penalty for Closure of Undertaking Without
Permission S 25(R)
• (1): Any employer, who closes down an undertaking without complying
with the provisions of sub-section (1) of section 25-O shall be punishable
with imprisonment for a term which may extend to six months, or with
fine which may extend to five thousand rupees, or with both.
• (2): Any employer, who contravenes [an order refusing to grant
permission to close down an undertaking under sub-section (2) of section
25-O or a direction given under section 25P], shall be punishable with
imprisonment for a term which may extend to one year, or with fine which
may extend to five thousand rupees, or with both, and where the
contravention is a continuing one, with a further fine which may extend to
two thousand rupees for every day during which the contravention
continues after the conviction
 Unfair labour practices
• 2[(ra) “unfair labour practice” means any of the practices specified in the
Fifth Schedule;
• unfair labour practices are deceitful practices by either employers or
labourers to obtain profits that are prohibited by the statutes. Unfair
labour practices are defined under the Fifth Schedule
• Industrial Dispute Act, 1947, unfair labour practices can be done by
employers and trade unions as well. The Fifth Schedule has mentioned
the activities which amount to unfair labour practices
 Unfair labour practices by the employer
• 1. To interfere with, restrain from, or coerce, workmen in the exercise of their
right to organise, form, join or assist a trade union or to engage in concerted
activities for the purposes of collective bargaining or other mutual aid or
protection, that is to say—
• (a) threatening workmen with discharge or dismissal, if they join a trade
union;
• (b) threatening a lock-out or closure, if a trade union is organised;
• (c) granting wage increase to workmen at crucial periods of trade union
organisation, with a view to undermining the efforts of the trade union
organisation
1. The employer can not prohibit their employees 11.Maliciously transferring workers.
from joining or establishing any trade union or can 12.Appointing contract workers to cut down on the
not interfere in their work. wages and compensation that permanent workers
2. If an employee joins a union, the employer is not must receive.
permitted to harass or control them. 13.Appointment of new workmen when a legal strike
3. The employer can not bully an employee for being is going on by the existing workmen.
a part of legal lock-outs or strikes. 14.Refusing collective bargaining with trade unions.
4. Imposing any penalty or giving threats to dismiss 15.Not awarding the workmen for their work.
them from the services.
16.Creating violence among the workmen.
5. No discrimination or partiality for their workmen’s
trade union. 17.Discriminating against the employee who reported
any false or illegal practice, discrimination, or any
6. Create workmen’s trade unions supported by other practice against
employers.
18.Paying fewer wages concerning the work assigned
7. Refuse to promote a worker because they supported to workmen.
unions.
19.Demotion of the workmen because they took part in
8. Promoting ineligible workers instead of eligible trade union activities.
workers.
20.Dismissing the workers who are members of any
9. Firing any employee on false allegations, and little trade union.
technical mistakes made by the workers.
10.Assigning work to contractors instead of workmen.
 Unfair labour practices by Trade Unions
1.Promoting and supporting illegal strikes.
2.Threatening the workers to join trade unions.
3.Prohibiting any worker from entering the workplace who is not participating in illegal
strikes.
4.Using criminal force against workers who are not participating in strikes or lockouts that
are not permitted as per the provisions of the legislation.
5.Not aiming for workers’ welfare.
6.Refusing collective bargaining as representatives of workmen.
7.Entering the residence of the employers and damaging their personal property.
8.Encourage the workers to demolish the industrial assets.
9.Imposing illegal strikes such as going slow, or gherao(surrounding the employers to
fulfil the demands of the workers).
10.Threatening or harassing the workers who are going to work.
• UNFAIR LABOUR PRACTICES 25T. Prohibition of Unfair Labour
Practice.- No employer or workman or a trade union, whether registered
under the Trade Unions Act, 1926 (16 of 1926) or not shall commit any
unfair labour practice.
• 25U. Penalty for committing unfair labour practices.- Any person who
commits any unfair labour practice 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.]
 Enforcement of the Awards and Settlements
• Award:
• Section 2(b) of the Industrial Disputes Act, 1947 ‘Award’
• means an interim or a final determination of any Industrial Dispute or of any
question relating thereto by any Labour Court, Industrial Tribunal or National
Industrial Tribunaland includes an arbitration award made under section 10A.
• Section 2(b) of the Industrial Dispute Act, 1947, definition of award has two
parts.
• The first part covers a determination, final or interim, of any industrial dispute.
• The second part takes in a determination of any question relation to an
industrial dispute. Thus, both the part of definition assumes the existence of an
industrial dispute, actual or apprehended.
Ingredients of Award:
• To constitute Award under Section 2(b) of the Industrial Dispute Act,
1947 the following ingredients are to be satisfied –
• An Award is an interim or final determination of an industrial dispute.
• It is an Interim or final determination of any question relating to such
dispute.
• Such interim or final determination is made by any Labour Court,
Industrial Tribunal or National Industrial Tribunal.
• Award (Judgement) of Arbitrators under section 10A is an Award.
• The section 16 of Industrial Dispute Act provides for procedure that,
the report of board or Court shall be in writing and shall be signed by
all the members of the Board or Court, as the case may be, to be
followed. The award of a Labour Court or Tribunal or National
Tribunal shall be in writing and shall be signed by its Presiding
Officer
Publication of Award:
• The section 17 of the act mentions about publication procedure of the
award decided after the due course.
• The clause (1) of the section states: Every report of Board or Court
together with any minute of dissent recorded therewith, every arbitration
and every award of a Labour Court, Tribunal or National 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 thinks fit.
• The second clause of the same section provides for immunity against any
legal proceedings, thus avoiding any further delay, to the award finalised.
Commencement of Award:
• Commencement of award is described under section 17-A of the act.
• According to Section 17A, an award (including an arbitration award)
shall become enforceable on the expiry of the thirty days from the
date of its publication under section 17.
• But if the Central Government is of opinion, in any case where the
award has been given by National Tribunal will be inexpedient on
public grounds affecting economy or social justice to give effect to
the whole or any part of the award the appropriate Government, or as
the case may be, the Central Government may, by notification in the
Official Gazette, declare that the award shall not become enforceable
on the expiry of the said of thirty days.
Enforcement of an Award:
• An award may be enforced of the following ways:
• The aggrieved party may apply to Appropriate Government for
prosecuting the defaulting party under section 29 or section 31 of this
Act.
• Where any money is payable by the employer to a workman, the
workman may move the Appropriate Government for recovery of the
money due to him under award.
• The party in whose favour the award has been granted may file a suit
and obtain a decree, which shall be enforced by execution under the
provisions of the Civil Procedure Code.
Settlement:
• Section 2(p) of the Industrial Dispute Act, 1947 “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 authorised in this behalf by the appropriate Government and
the conciliation officer.
• The common mechanisms for settlement of disputes under the
Industrial Dispute Act,1947 are conciliation and mediation. Conciliation
is the procedure in which there is an involvement of a third party who
provides assistance to the parties in dispute to carry out negotiation
between them.
• Section 4 of the Industrial Dispute Act, 1947 lays down the function of
a conciliation officer which is to create a kindred atmosphere within the
industry which will help the parties to settle the disputes between them.
This is a function with an administrative nature and not a judicial one. A
conciliation officer is required to hold proceedings, carry out
investigations regarding the dispute in a fair manner to help the parties
arrive at a settlement.
 Common Points of Awards and Settlement
• Persons bound by the Award and settlement:
• The person bound by any award decided, under section 18:
1.A settlement arrived at by agreement between the employer and workman
otherwise than in the course of conciliation proceeding shall be binding on the
parties to the agreement.
2.Subject to the provisions of sub section (3), an arbitration award which has
become enforceable shall be binding on the parties to the agreement who
referred the dispute to arbitration.
3.A settlement arrived at in the course of conciliation proceedings under this
Act or arbitration award in a case where a notification has been issued under
sub section (3-A) of section 10-A 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, as the case may be, records the opinion that they were so summoned
without proper cause.
• (c) Where a party referred to in clause (a) or clause (b) is an employer his heirs,
successors or assigns in respect of the establishment to which the dispute
relates.
• (d) Where a party referred to in clause (a) or clause (b) is composed of
workmen, all persons who were employed in the establishment or part of the
establishment, as the case may be, which the dispute relates on the date of the
dispute and all persons who subsequently become employed in that
establishment or part.
Penalty for breach of Settlement or Award:

• If any person who commits breach of any terms of a settlement or

Award is liable for punishment. The punishment provided for is
imprisonment which may extend to 6 months or with fine or with
both.
 Period of operation of settlement and Award
• Section 19 speaks about the period for which settlement and award will be
binding upon the parties to the concerned industrial dispute.
• A settlement shall come into operation on such date as is agreed upon by the
parties to the dispute,
• if no date is agreed upon, on the date on which the memorandum of the
settlement is signed by the parties to the dispute. Such settlement shall be
binding for such period as is agreed upon by the parties, and if no such period is
agreed upon, for a period of six months from the date on which the
memorandum of settlement is signed by the parties to the dispute, and shall
continue to be binding on the parties after the expiry of the period aforesaid,
until the expire two months from the date on which a notice in writing of an
intention to terminate the settlement is given by one of the parties to the other
party or parties to the settlement
• An award shall, subject to the provisions of this section, remain in
operation for a period of one year from the date on which the award
becomes enforceable under section 17-A. Provided that the
appropriate Government may reduce the said period and fix such
period as it thinks fit.
The Code on Wages, 2019

• The Code on Wages, 2019, It seeks to regulate wage and bonus

payments in all employments where any industry, trade, business, or
manufacture is carried out. The Code replaces the following four
laws: (i) the Payment of Wages Act, 1936, (ii) the Minimum Wages
Act, 1948, (iii) the Payment of Bonus Act, 1965, and (iv) the Equal
Remuneration Act, 1976.
• Appropriate Government, Sec 2 (d)
• (i) in relation to, an establishment carried on by or under the authority
of the Central Government or the establishment of railways, mines,
oil field, major ports, air transport service, telecommunication,
banking and insurance company or a corporation or other authority
established by a Central Act or a central public sector undertaking or
subsidiary companies set up by central public sector undertakings or
autonomous bodies owned or controlled by the Central Government,
including establishment of contractors for the purposes of such
establishment, corporation or other authority, central public sector
undertakings, subsidiary companies or autonomous bodies, as the
case may be, the Central Government;
• (ii) in relation to any other establishment, the State Government;
• Sec. (k) "employee" means, any person (other than an apprentice
engaged under the Apprentices Act, 1961), employed on wages by an
establishment to do any skilled, semi-skilled or unskilled, manual,
operational, supervisory, managerial, administrative, technical or
clerical work for hire or reward, whether the terms of employment be
express or implied, and also includes a person declared to be an
employee by the appropriate Government,
• but does not include any member of the Armed Forces of the Union;
• (z) "worker" means any person (except an apprentice as defined under clause (aa) of section 2
of the Apprentices Act, 1961) employed in any industry to do any manual, unskilled, skilled,
technical, operational, clerical or supervisory work for hire or reward, whether the terms of
employment be express or implied, and includes—
• (i) working journalists as defined in clause (f) of section 2 of the Working Journalists and other
Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955; and
• (ii) sales promotion employees as defined in clause (d) of section 2 of the Sales Promotion
Employees (Conditions of Service) Act, 1976, and for the purposes of any proceeding under
this Code in relation to an industrial dispute, includes any such person who has been
dismissed, discharged or retrenched or otherwise terminated in connection with, or as a
consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that
dispute,
• but does not include any such person––
• (a) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or
• (b) who is employed in the police service or as an officer or other employee of a prison; or (c)
who is employed mainly in a managerial or administrative capacity; or
• (d) who is employed in a supervisory capacity drawing wage of exceeding fifteen thousand
rupees per month or an amount as may be notified by the Central Government from time to
• (f) "contractor", in relation to an establishment, means a person, who
—
• (i) undertakes to produce a given result for the establishment, other
than a mere supply of goods or articles of manufacture to such
establishment, through contract labour; or
• (ii) supplies contract labour for any work of the establishment as
mere human resource and includes a sub-contractor;
• (g) "contract labour" means a worker who shall be deemed to be
employed in or in connection with the work of an establishment when
he is hired in or in connection with such work by or through a
contractor, with or without the knowledge of the principal employer
and includes inter-State migrant worker but does not include a worker
(other than part-time employee) who ––
• (i) is regularly employed by the contractor for any activity of his
establishment and his employment is governed by mutually accepted
standards of the conditions of employment (including engagement on
permanent basis), and
• (ii) gets periodical increment in the pay, social security coverage and
other welfare benefits in accordance with the law for the time being
in force in such employment;
• (l) "employer" means a person who employs, whether directly or through any
person, or on his behalf or on behalf of any person, one or more employees in his
establishment and where the establishment is carried on by any department of the
Central Government or the State Government, the authority specified, by the head
of such department, in this behalf or where no authority, is so specified the head of
the department and in relation to an establishment carried on by a local authority,
the chief executive of that authority, and includes,—
• (i) in relation to an establishment which is a factory, the occupier of the factory as
defined in clause (n) of section 2 of the Factories Act, 1948 and, where a person
has been named as a manager of the factory under clause (f) of sub-section (1) of
section 7 of the said Act, the person so named;
• (ii) in relation to any other establishment, the person who, or the authority which,
has ultimate control over the affairs of the establishment and where the said affairs
is entrusted to a manager or managing director, such manager or managing
director;
• (iii) contractor; and
• (q) "industrial dispute" means,—
• (i) any dispute or difference between employers and employers, or
between employers and workers or between workers and workers
which is connected with the employment or non-employment or the
terms of employment or with the conditions of labour, of any person;
and
• (ii) any dispute or difference between an individual worker and an
employer connected with, or arising out of, discharge, dismissal,
retrenchment or termination of such worker;
• Sec 2 (s) Sec 6, appropriate Government shall fix the minimum rate
of wages payable to employees in accordance with the provisions of
section 8.
• 5. No employer shall pay to any employee wages less than the
minimum rate of wages notified by the appropriate Government.
• Sec 2 [(rr) “wages” means all remuneration capable of being
expressed in terms of money, which would, if the terms of
employment, expressed or implied, were fulfilled, be payable to a
workman in respect of his employment, or of work done in such
employment, and includes-
• (i) such allowances (including dearness allowance) as the workman is
for the time being entitled to;
• (ii) the value of any house accommodation, or of supply of light,
water, medical attendance or other amenity or of any service or of
any concessional supply of foodgrains or other articles;
• (iii) any travelling concession;
• [(iv) any commission payable on the promotion of sales or business
or both;
• But does not include
• a) any bonus;
• (b) any contribution paid or payable by the employer to any pension
fund or provident fund or for the benefit of the workman under any
law for the time being in force;
• (c) any gratuity payable on the termination of his service;]
• Sec.2 (y) "wages" means all remuneration whether by way of salaries,
allowances or otherwise, expressed in terms of money or capable of being so
expressed which would, if the terms of employment, express or implied, were
fulfilled, be payable to a person employed in respect of his employment or of
work done in such employment, and includes,—
• (i) basic pay;
• (ii) dearness allowance; and
• (iii) retaining allowance, if any,
• but does not include––
• (a) any bonus payable under any law for the time being in force, which does not
form part of the remuneration payable under the terms of employment;
• (b) the value of any house-accommodation, or of the supply of light, water,
medical attendance or other amenity or of any service excluded from the
computation of wages by a general or special order of the appropriate
• (c) any contribution paid by the employer to any pension or provident fund, and
the interest which may have accrued thereon;
• (d) any conveyance allowance or the value of any travelling concession;
• (e) any sum paid to the employed person to defray special expenses entailed on
him by the nature of his employment;
• (f) house rent allowance;
• (g) remuneration payable under any award or settlement between the parties or
order of a court or Tribunal;
• (h) any overtime allowance;
• (i) any commission payable to the employee;
• (j) any gratuity payable on the termination of employment;
• (k) any retrenchment compensation or other retirement benefit payable to the
employee or any ex gratia payment made to him on the termination of
employment:
• Provided that, for calculating the wages under this clause, if payments
made by the employer to the employee under clauses (a) to (i) exceeds
one-half, or such other per cent. as may be notified by the Central
Government, of the all remuneration calculated under this clause, the
amount which exceeds such one-half, or the per cent. so notified,
shall be deemed as remuneration and shall be accordingly added in
wages under this clause:
• Provided further that for the purpose of equal wages to all genders and for
the purpose of payment of wages, the emoluments specified in clauses (d),
(f), (g) and (h) shall be taken for computation of wage.
• Explanation.––Where an employee is given in lieu of the whole or part of
the wages payable to him, any remuneration in kind by his employer, the
value of such remuneration in kind which does not exceed fifteen per
cent. of the total wages payable to him, shall be deemed to form part
of the wages of such employee;
• Floor wage: According to the Code, the central government will fix a
floor wage, taking into account living standards of workers. Further, it
may set different floor wages for different geographical areas. Before
fixing the floor wage, the central government may obtain the advice of the
Central Advisory Board and may consult with state governments.
• The minimum wages decided by the central or state governments must be
higher than the floor wage. In case the existing minimum wages fixed by
the central or state governments are higher than the floor wage, they
cannot reduce the minimum wages.
• Fixing the minimum wage: The Code prohibits employers from
paying wages less than the minimum wages. Minimum wages will
be notified by the central or state governments. This will be based on
time, or number of pieces produced. The minimum wages will be
revised and reviewed by the central or state governments at an
interval of not more than five years. While fixing minimum wages,
the central or state governments may take into account factors such
as: (i) skill of workers, and (ii) difficulty of work.
• Overtime: The central or state government may fix the number of
hours that constitute a normal working day. In case employees work
in excess of a normal working day, they will be entitled to overtime
wage, which must be at least twice the normal rate of wages.

• Payment of wages: Wages will be paid in (i) coins, (ii) currency

notes, (iii) by cheque, (iv) by crediting to the bank account, or (v)
through electronic mode. The wage period will be fixed by the
employer as either: (i) daily, (ii) weekly, (iii) fortnightly, or (iv)
monthly.
• Deductions: Under the Code, an employee’s wages may be deducted
on certain grounds including: (i) fines, (ii) absence from duty, (iii)
accommodation given by the employer, or (iv) recovery of advances
given to the employee, among others. These deductions should not
exceed 50% of the employee’s total wage.
• Advisory boards: The central and state governments will constitute
advisory boards. The Central Advisory Board will consist of: (i)
employers, (ii) employees (in equal number as employers), (iii)
independent persons, and (iv) five representatives of state governments.
State Advisory Boards will consist of employers, employees, and
independent persons. Further, one-third of the total members on both the
central and state Boards will be women. The Boards will advise the
respective governments on various issues including: (i) fixation of
minimum wages, and (ii) increasing employment opportunities for women.
• Determination of bonus: All employees whose wages do not exceed a
specific monthly amount, notified by the central or state government, will
be entitled to an annual bonus. The bonus will be at least: (i) 8.33% of
his wages, or (ii) Rs 100, whichever is higher. In addition, the employer
will distribute a part of the gross profits amongst the employees. This
will be distributed in proportion to the annual wages of an employee. An
employee can receive a maximum bonus of 20% of his annual wages.

• Gender discrimination: The Code prohibits gender discrimination in

matters related to wages and recruitment of employees for the same work
or work of similar nature. Work of similar nature is defined as work for
which the skill, effort, experience, and responsibility required are the
same.
The Industrial Relations Code 2020
• 104. (1) In the notification issued under sub-section (3) of section 1
for the commencement of any provision of this Code, the Central
Government may specify that the provisions of—
• (a) the Trade Unions Act, 1926;
• (b) the Industrial Employment (Standing Orders) Act, 1946; and
• (c) the Industrial Disputes Act, 1947,
• shall stand repealed with effect from the date appointed in the
notification in this behalf and the remaining provisions of the
enactments referred to in clauses (a) to (c) shall remain in force till
they are repealed by like notifications in the like manner.
Definations
• Sec 2 (b)"appropriate Government" means,—
• (i) in relation to any industrial establishment or undertaking carried on by or
under the authority of the Central Government or concerning any such
controlled industry as may be specified in this behalf by the Central
Government or the establishment of railways including metro railways,
mines, oil fields, major ports, air transport service, telecommunication,
banking and insurance company or a corporation or other authority
established by a Central Act or a central public sector undertaking,
subsidiary companies set up by the principal undertakings or autonomous
bodies owned or controlled by the Central Government including
establishments of the contractors for the purposes of such establishment,
corporation, other authority, public sector undertakings or any company in
which not less than fifty-one per cent. of the paid-up share capital is held by
the Central Government, as the case may be, the Central Government.
• Explanation.—For the purposes of this clause, the Central Government
shall continue to be the appropriate Government for central public sector
undertakings even if the holding of the Central Government reduces to less
than fifty per cent. equity in that public sector undertaking after the
commencement of this Code;
• (ii) in relation to any other industrial establishment, including State public
sector undertakings, subsidiary companies set up by the principal
undertaking and autonomous bodies owned or controlled by the State
Government, the State Government:
• Provided that in case of a dispute between a contractor and the contract
labour employed through the contractor in any industrial establishment
where such dispute first arose, the appropriate Government shall be the
Central Government or the State Government, as the case may be, which
has control over such industrial establishment;
• (h) "closure" means the permanent closing down of a place of employment or
part thereof;
• (l) "employee" means any person (other than an apprentice engaged under the
Apprentices Act, 1961) employed by an industrial establishment to do any
skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial,
administrative, technical or clerical work for hire or reward, whether the terms
of employment be express or implied, and also includes a person declared to be
an employee by the appropriate Government, but does not include any member
of the Armed Forces of the Union;
• (m) "employer" means a person who employs, whether directly or through any
person, or on his behalf or on behalf of any person, one or more employee or worker
in his establishment and where the establishment is carried on by any department of
the Central Government or the State Government, the authority specified by the
head of the department in this behalf or where no authority is so specified, the head
of the department, and in relation to an establishment carried on by a local authority,
the chief executive of that authority, and includes,—
• (i) in relation to an establishment which is a factory, the occupier of the factory as
defined in clause (n) of section 2 of the Factories Act, 1948 and, where a person has
been named as a manager of the factory under clause (f) of sub-section (1) of
section 7 of the said Act, the person so named
• (ii) in relation to any other establishment, the person who, or the authority which
has ultimate control over the affairs of the establishment and where the said affairs
are entrusted to a manager or managing director, such manager or managing
director;
• (iii) contractor; and
• (p) "industry" means any systematic activity carried on by co-operation between an
employer and worker (whether such worker is 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), whether or
not,—
• (i) any capital has been invested for the purpose of carrying on such activity; or
• (ii) such activity is carried on with a motive to make any gain or profit, but does not
include —
• (i) institutions owned or managed by organisations wholly or substantially engaged in
any charitable, social or philanthropic service; or
• (ii) any activity of the appropriate Government relatable to the sovereign functions of
the appropriate Government including all the activities carried on by the departments
of the Central Government dealing with defence research, atomic energy and space; or
• (iii) any domestic service; or
• (iv) any other activity as may be notified by the Central Government;
• (q) "industrial dispute" means any dispute or difference between
employers and employers or between employers and workers or
between workers and workers which is connected with the
employment or non-employment or the terms of employment or with
the conditions of labour, of any person and includes any dispute or
difference between an individual worker and an employer connected
with, or arising out of discharge, dismissal, retrenchment or
termination of such worker;
• (r) "industrial establishment or undertaking" means an establishment or
undertaking in which any industry is carried on:
• Provided that where several activities are carried on in an establishment or
undertaking and only one or some of such activities is or are an industry or
industries, then,—
• (i) if any unit of such establishment or undertaking carrying on any activity, being
an industry, is severable from the other unit or units of such establishment or
undertaking which is not carrying on or aiding the carrying on of any such activity,
such unit shall be deemed to be a separate industrial establishment or
undertaking;
• (ii) if the predominant activity or each of the predominant activities carried on in
such establishment or undertaking or any unit thereof is an industry and the other
activity or each of the other activities carried on in such establishment or
undertaking or unit thereof is not severable from and is, for the purpose of
carrying on, or aiding the carrying on of, such predominant activity or activities,
the entire establishment or undertaking or, as the case may be, unit thereof shall
be deemed to be an industrial establishment or undertaking;
• (t) "lay-off" (with its grammatical variations and cognate expressions) 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 break-down of machinery or natural calamity or for
any other connected reason, to give employment to a worker whose name is borne on the
muster rolls of his industrial establishment and who has not been retrenched.
• Explanation.—Every worker whose name is borne on the muster rolls of the industrial
establishment and who presents himself for work at the establishment at the time
appointed for the purpose during normal working hours on any day and is not given
employment by the employer within two hours of his so presenting himself shall be
deemed to have been laid-off for that day within the meaning of this clause:
• Provided that if the worker, instead of being given employment at the commencement of
any shift for any day is asked to present himself for the purpose during the second half of
the shift for the day and is given employment then, he shall be deemed to have been laid-
off only for one-half of that day:
• Provided further that if he is not given any such employment even after so presenting
himself, he shall not be deemed to have been laid-off for the second half of the shift for
the day and shall be entitled to full basic wages and dearness allowance for that part of
the day
• (u) "lock-out" 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;
• (zh) "retrenchment" means the termination by the employer of the service of a
worker for any reason whatsoever, otherwise than as a punishment inflicted by
way of disciplinary action, but does not include—
• (i) voluntary retirement of the worker; or
• (ii) retirement of the worker on reaching the age of superannuation; or
• (iii) termination of the service of the worker as a result of the non-renewal of
the contract of employment between the employer and the worker concerned on
its expiry or of such contract being terminated under a stipulation in that behalf
contained therein; or
• (iv) termination of service of the worker as a result of completion of tenure of
fixed term employment; or
• (v) termination of the service of a worker on the ground of continued ill-health;
• (zi) "settlement" means a settlement arrived at in the course of
conciliation proceeding and includes a written agreement between the
employer and worker 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 authorised in this behalf by the
appropriate Government and to the conciliation officer;
• (zk) "strike" means a cessation of work 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 work or to accept
employment and includes the concerted casual leave on a given day by
fifty per cent. or more workers employed in an industry
• (zl) "Trade Union" means any combination, whether temporary or
permanent, formed primarily for the purpose of regulating the
relations between workers and employers or between workers and
workers, or between employers and employers, or for imposing
restrictive conditions on the conduct of any trade or business, and
includes any federation of two or more Trade Unions
• Provided that the provisions of Chapter III of this Code shall not
affect —
• (i) any agreement between partners as to their own business; or
• (ii) any agreement between an employer and those employed by him
as to such employment; or
• (iii) any agreement in consideration of the sale of the goodwill of a
business or of instruction in any profession, trade or handicraft;
• (zm) "Trade Union dispute" means any dispute holidays.
relating to Trade Union arising between two or • 6. Requirement to enter premises by certain
more Trade Unions or between the members gates, and liability to search.
of a Trade Union inter se;
• 7. Closing and reporting of sections of the
• (zj) "standing orders" means orders relating industrial establishment, temporary stoppages
to matters set-out in the First Schedule; of work and the rights and liabilities of the
• THE FIRST SCHEDULE employer and workers arising therefrom.
• 1. Classification of workers, whether • 8. Termination of employment, and the notice
permanent, temporary, apprentices, thereof to be given by employer and workers.
probationers, badlis or fixed term employment. • 9. Suspension or dismissal for misconduct,
• 2. Manner of intimating to workers periods and acts or omissions which constitute
and hours of work, holidays, pay-days and misconduct.
wage rates. • 10. Means of redress for workers against
• 3. Shift working. unfair treatment or wrongful exactions by the
• 4. Attendance and late coming. employer or his agents or servants.
• 5. Conditions of, procedure in applying for, • 11. Any other matter which may be specified
and the authority which may grant leave and by the appropriate Government by notification
• (zq) "wages" means all remuneration, whether by way of salary, allowances or
otherwise, expressed in terms of money or capable of being so expressed which
would, if the terms of employment, express or implied, were fulfilled, be
payable to a person employed in respect of his employment or of work done in
such employment, and includes,—
• (i) basic pay;
• (ii) dearness allowance;
• (iii) retaining allowance, if any
• but does not include—
• (a) any bonus payable under any law for the time being in force, which does not
form part of the remuneration payable under the terms of employment;
• (b) the value of any house-accommodation, or of the supply of light, water,
medical attendance or other amenity or of any service excluded from the
computation of wages by a general or special order of the appropriate
Government;
• (c) any contribution paid by the employer to any pension or provident fund, and
the interest which may have accrued thereon;
• (d) any conveyance allowance or the value of any travelling concession;
• (e) any sum paid to the employed person to defray special expenses entailed on
him by the nature of his employment;
• (f) house rent allowance;
• (g) remuneration payable under any award or settlement between the parties or
order of a court or Tribunal;
• (h) any overtime allowance;
• (i) any commission payable to the employee;
• (j) any gratuity payable on the termination of employment; or
• (k) any retrenchment compensation or other retirement benefit payable to the
employee or any ex gratia payment made to him on the termination of
employment:
• Provided that, for calculating the wage under this clause, if any payments made
by the employer to the employee under sub-clauses (a) to (i) exceeds one-half,
or such other per cent. as may be notified by the Central Government, of all
remuneration calculated under this clause, the amount which exceeds such one-
half, or the per cent. so notified, shall be deemed to be remuneration and shall
be accordingly added in wages under this clause:
• Provided further that for the purpose of equal wages to all genders and for the
purpose of payment of wages the emoluments specified in sub-clauses (d), (f),
(g) and (h) shall be taken for computation of wage
• Explanation.—Where an employee is given in lieu of the whole or part of the
wages payable to him, any remuneration in kind by his employer, the value of
such remuneration in kind which does not exceed fifteen per cent. of the total
wages payable to him, shall be deemed to form part of the wages of such
employee;
• (zo) "unfair labour practice" means any of the practices specified in the Second
Schedule;
• (zp) "unorganised sector" shall have the same meaning as assigned to it in clause
(l) of section 2 of the Unorganised Workers' Social Security Act, 2008 ((l)
“unorganised sector” means an enterprise owned by individuals or self-
employed workers and engaged in the production or sale of goods or providing
service of any kind whatsoever, and where the enterprise employs workers, the
number of such workers is less than ten)

• (zr) "worker" means any person (except an apprentice as defined under clause
(aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do
any manual, unskilled, skilled, technical, operational, clerical or supervisory
work for hire or reward, whether the terms of employment be express or
implied, and includes working journalists as defined in clause (f) of section 2 of
the Working Journalists and other Newspaper Employees (Conditions of
Service) and Miscellaneous
• Provisions Act, 1955 and sales promotion employees as defined in clause (d) of section 2 of
the Sales Promotion Employees (Conditions of Service) Act, 1976, and for the purposes of
any proceeding under this Code in relation to an industrial dispute, includes any such person
who has been dismissed, discharged or retrenched or otherwise terminated in connection
with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment
has led to that dispute,
• but does not include any such person—
• (i) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or
• (ii) who is employed in the police service or as an officer or other employee of a prison; or
• (iii) who is employed mainly in a managerial or administrative capacity; or
• (iv) who is employed in a supervisory capacity drawing wages exceeding eighteen thousand
rupees per month or an amount as may be notified by the Central Government from time to
time:
• Provided that for the purposes of Chapter III, "worker"—
• (a) means all persons employed in trade or industry; and
• (b) includes the worker as defined in clause (m) of section 2 of the Unorganised Workers'
Social Security Act, 2008.
 Bi-Partite Forums
• 3. (1) In the case of any industrial establishment in which one hundred or more
workers are employed or have been employed on any day in the preceding twelve
months, the appropriate Government may by general or special order require the
employer to constitute a Works Committee, in such manner as may be prescribed,
consisting of representatives of employer and workers engaged in the establishment
• (2) The representatives of the workers shall be chosen, in such manner as may be
prescribed, from among the workers engaged in the establishment and in consultation
with their Trade Union, if any, registered in accordance with the provisions of section
9
• 4. (1) Every industrial establishment employing twenty or more workers shall have
one or more Grievance Redressal Committees for resolution of disputes arising out of
individual grievances
• (2) The Grievance Redressal Committee shall consist of equal number of members
representing the employer and the workers to be chosen in such manner as may be
prescribed.
 Trade Unions
• 5. (1) The State Government may, by notification, appoint a person to be the Registrar of
Trade Unions, and other persons as Additional Registrar of Trade Unions, Joint Registrar
of Trade Unions and Deputy Registrar of Trade Unions, who shall exercise such powers
and perform such duties of the Registrar as the State Government may, by notification,
specify from time to time.
• 6. (1) Any seven or more members of a Trade Union may, by subscribing their names to
the rules of the Trade Union and by otherwise complying with the provisions of this Code
with respect to registration, apply for registration of the Trade Union under this Code
• (2) No Trade Union of workers shall be registered unless at least ten per cent. of the
workers or one hundred workers, whichever is less, engaged or employed in the
industrial establishment or industry with which it is connected are the members of such
Trade Union on the date of making of application for registration
• (4) A registered Trade Union of workers shall at all times continue to have not less than
ten per cent. of the workers or one hundred workers, whichever is less, subject to a
minimum of seven, engaged or employed in an industrial establishment or industry with
which it is connected, as its members
• (a) the name of the Trade Union;
• (b) the whole of the objects for which the Trade Union •
has been established;
• (c) the whole of the purposes for which the general
funds of the Trade Union shall be applicable, all of
which purposes shall be purposes to which such funds •
are lawfully applicable under this Code;
• (d) the maintenance of a list of members of the Trade
Union and adequate facilities for the inspection
thereof by the office-bearers and members of the
Trade Union;
• (e) the admission of ordinary members (irrespective of
their craft or category) who shall be persons actually
engaged or employed in the industrial establishment, •
undertaking or industry, or units, branches or offices of
an industrial establishment, as the case may be, with
which the Trade Union is connected, and also the
admission of such number of honorary or temporary
members, who are not such workers, as are not
permitted under section 21 to be office-bearers to
form the executive of the Trade Union;
• (f) the payment of a subscription by members of the
Trade Union from such members and others, as may
be prescribed;
(g) the conditions under which any member shall be
entitled to any benefit assured by the rules and under
which any fine or forfeiture may be imposed on any
member;
(h) the annual general body meeting of the members
of the Trade Union, the business to be transacted at
such meeting, including the election of office-bearers
of the Trade Union;
• (i) the manner in which the members of the executive
and the other officebearers of the Trade Union shall be
elected once in a period of every three years and
removed, and filling of casual vacancies;
(j) the safe custody of the funds of the Trade Union, an
annual audit, in such manner as may be prescribed, of
the accounts thereof, and adequate facilities for
theinspection of the account books by the office-
bearers and members of the Trade Union;
• (k) the manner in which the rules shall be amended,
varied or rescinded; and
• (l) the manner in which the Trade Union may be
dissolved
• 8. (1) Every application for registration of a Trade Union shall be made to the
Registrar electronically or otherwise and be accompanied by—
• (a) a declaration to be made by an affidavit in such form and manner as may be
prescribed;
• (b) copy of the rules of the Trade Union together with a copy of the resolution
by the members of the Trade Union adopting such rules;
• (c) a copy of the resolution adopted by the members of the Trade Union
authorising the applicants to make an application for registration; and
• (d) in the case of a Trade Union, being a federation or a central organisation of
Trade Unions, a copy of the resolution adopted by the members of each of the
member Trade Unions, meeting separately, agreeing to constitute a federation
or a central organisation of Trade Union
• Explanation.—For the purposes of this clause, resolution adopted by the
members of the Trade Union means, in the case of a Trade Union, being a
federation or a central organisation of Trade Unions, the resolution adopted by
• 15. (1) The general funds of a registered Trade Union shall not be spent on any objects
other than such objects as may be prescribed
• (2) A registered Trade Union may constitute a separate fund, from contributions separately
levied for or made to that fund, from which payments may be made, for the promotion of
the civic and political interests of its members, in furtherance of such objects as may be
prescribed
• 16. (1) No suit or other legal proceeding shall be maintainable in any civil court against any
registered Trade Union or any office-bearer or member thereof in respect of any act done in
contemplation or furtherance of an industrial dispute to which a member of the Trade
Union is a party on the ground only that such act induces some other person to break a
contract of employment or that it is an interference with the trade, business, or
employment of some other person or with the right of some other person to dispose of his
capital or of his labour as he wills.
• 17. No office-bearer or member of a registered Trade Union shall be liable to punishment
under sub-section (2) of section 120B of the Indian Penal Code in respect of any agreement
made between the members for the purpose of furthering any such object of the Trade
Union as is specified in section 15, unless such agreement is an agreement to commit an
offence
• 27. (1) Where the Central Government is of the opinion that it is necessary or
expedient that a Trade Union or federation of Trade Unions is to be recognised
as Central Trade Union at the Central level, it may recognise such Trade Union
or federation of Trade Unions as Central Trade Union in such manner and for
such purpose, as may be prescribed, and if any dispute arises in relation to such
recognition, it shall be decided by such authority in such manner as may be
prescribed by the Central Government.
• (2) Where the State Government is of the opinion that it is necessary or
expedient that a Trade Union or federation of Trade Unions is to be recognised
as State Trade Union at the State level, it may recognise such Trade Union or
federation of Trade Unions as State Trade Union in such manner and for such
purpose, as may be prescribed, and if any dispute arises in relation to such
recognition, it shall be decided by such authority in such manner as may be
prescribed by the State Government.
Standing Orders

• 28. (1) The provisions of this Chapter shall apply to every industrial
establishment wherein three hundred or more than three hundred
workers, are employed, or were employed on any day of the
preceding twelve months