ind dis act

7/30/2019 Ind Dis Act

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To promote measures for securing and

preserving good relations between employerand employee.

To provide a suitable machinery for

investigation and settlement of IndustrialDisputes.

To prevent illegal strikes and lock outs.

To provide relief to workmen in matters of layoffs, retrenchment, wrongful dismissals.

To give the workmen the right of collective

bargaining and promote conciliation.


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Definitions:

Industry:Industrial Disputes Act 1947 defines anindustry as any systematic activity carried onby co-operation between an employer and hisworkmen for the production, supply ordistribution of goods or services with a viewto satisfy human wants or wishes whether or

not any capital has been invested for thepurpose of carrying on such activity; or suchactivity is carried on with a motive to makeany gain or profit.


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Employermeans

(i) in relation to an industry carried on by or

under the authority of any department of theCentral Government or a State Government,

the authority prescribed in this behalf, or

where no authority is prescribed, the head of

the department;

(ii) in relation to an industry carried on by or on

behalf of a local authority, the chief executive

officer of that authority;


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Workman means any person (includingan apprentice) employed in any industry to doany manual, unskilled, skilled, technical,operational, clerical or supervisory work forhire or reward, whether the terms ofemployment be express or implied, and forthe purposes of any proceeding under this

Act in relation to an industrial dispute,includes any such person who has beendismissed, discharged or retrenched inconnection with, or as a consequence of, that

dispute, or whose dismissal, discharge orretrenchment has led to that dispute, butdoes not include any such person


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(i) 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(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 oradministrative capacity; or

(iv) who, being employed in a supervisory

capacity, draws wages exceeding one

thousand six hundred rupees per month.


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Industrial Dispute means any dispute or

difference between employers and

employers, or between employers andworkmen, 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.

Labour Court means a Labour Court

constituted under section 7.


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Retrenchment means the termination byemployer services of workman for any reasonwhat so ever other wise then as punishment

by way of disciplinary action but does notinclude

(a) voluntary retirement of the workman; or(b) retirement of the workman on reaching the

age of superannuating or(bb) termination of the service of the workman

as a result of the non-removal of the contractof employment between the employer and the

workman concerned on its expiry or(c) termination of the service of a workman on

the ground of continued ill-health;


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Lay-off means the failure, refusal or inability

of an employer on account of shortage of

coal, power or raw materials or theaccumulation of stocks or the break-down 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.


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Lock-out means the temporary closing of a

place of employment or the suspension of

work, or the refusal by an employer tocontinue to employ any number of persons

employed by him.

Trade union means a trade union registeredunder the Trade Unions Act, 1926 (16 of

1926).

Closure means the permanent closing down

of a place of employment or part thereof.


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Strike means a cessation of work by a body

of persons employed in any industry acting in

combination, or a refusal under a commonunderstanding, of any number of persons

who are or have been so employed to

continue to work or to accept employment.


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DISMISSAL meanswhere any employer

discharges, dismisses, retrenches or

otherwise terminates the services of anindividual 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.


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Works Committee

Conciliation Officer

Board of Conciliation

Courts of Enquiry

Labour Courts

Tribunals

National Tribunals


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Strikes

Strike is a very powerful weapon used by

trade unions and other labor associations toget their demands accepted. It generally

involves quitting of work by a group of

workers for the purpose of bringing the

pressure on their employer so that their

demands get accepted. When workers

collectively cease to work in a particular

industry, they are said to be on strike.


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According to Industrial Disputes Act 1947

Strikeis a cessation of work by a body of

persons employed in an industry acting incombination; or refusal of any number of

persons who are or have been so employed

to continue to work or to accept employment;

or a refusal under a common understanding

of any number of such persons to continue to

work or to accept employment.


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This definition throws light on a few aspects

of a strike:

Firstly, a strike is a referred to as stoppage ofwork by a group of workers employed in a

particular industry.

Secondly, it also includes the refusal of a

number of employees to continue work under

their employer.


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In a strike, a group of workers agree tostop working to protest against somethingthey think is unfair where they work.

Labors withhold their services in order topressurize their employment or governmentto meet their demands.

Demands made by strikers can range

from asking for higher wages or betterbenefits to seeking changes in the workplaceenvironment.

Strikes sometimes occur so that

employers listen more carefully to theworkers and address their problems.


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Strikes can occur because of the followingreasons:

Dissatisfaction with company policy Salary and incentive problems Increment not up to the mark Wrongful discharge or dismissal of workmen Withdrawal of any concession or privilege Hours of work and rest intervals Leaves with wages and holidays Bonus, profit sharing, Provident fund and

gratuity Retrenchment of workmen and closure of

establishment

Dispute connected with minimum wages


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Lockout Temporary closing of

place of work

Due to ID

No compensation

paid.

Not necessary toreport for work.

No alternative

employment provided.

Layoff Failure on part of

employer to run the

industry.

Not connected to ID 15 days

compensation paid.

Ees have to report togate everyday.

Alternative

employment is

provided.


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Economic Strike:

Under this type of strike, labors stop theirwork to enforce their economic demands such

as wages and bonus. In these kinds of

strikes, workers ask for increase in wages,allowances like traveling allowance, house

rent allowance, bonus and other facilities

such as increase in general leaves and

casual leave.


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Sympathetic Strike:

When workers of one unit or industry go on

strike in sympathy with workers of anotherunit or industry who are already on strike, it is

called a sympathetic strike. The members of

other unions involve themselves in a strike to

support or express their sympathy with the

members of unions who are on strike in other

undertakings.


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General Strike:

It means a strike by members of all or most of

the unions in a region or an industry. It maybe a strike of all the workers in a particular

region of industry to force demands common

to all the workers. These strikes are usually

intended to create political pressure on the

ruling government, rather than on any one

employer. It may also be an extension of the

sympathetic strike to express generalizedprotest by the workers.


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Sit down Strike:

In this case, workers do not absent

themselves from their place of work whenthey are on strike. They keep control over

production facilities. But do not work. Such a

strike is also known as 'pen down' or 'tool

down' strike. Workers show up to their place

of employment, but they refuse to work. They

also refuse to leave, which makes it very

difficult for employer to defy the union andtake the workers' places.


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Slow Down Strike:

Employees remain on their jobs under this

type of strike. They do not stop work, butrestrict the rate of output in an organized

manner. They adopt go-slow tactics to put

pressure on the employers.

Wild cat strikes:

These strikes are conducted by workers or

employees without the authority and consent

of unions.


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Sick-out (or sick-in):

In this strike, all or a significant number of

union members call in sick on the same day.They dont break any rules, because they

just use their sick leave that was allotted to

them on the same day. However, the sudden

loss of so many employees all on one day

can show the employer just what it would be

like if they really went on strike.


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A lockout is a work stoppage in which anemployer prevents employees from working. It isdeclared by employers to put pressure on theirworkers. This is different from a strike, in whichemployees refuse to work. Thus, a lockout isemployers weapon while a strike is raised on

part of employees.Acc to Industrial Disputes Act 1947, lock-out

means the temporary closing of a place ofemployment or the suspension of work or the

refusal by an employer to continue to employany number of persons employed by him.


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No workman who is employed in any

industrial establishment shall go on strike

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;


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(b) during the pendency of proceedings beforea Labour Court, Tribunal or National Tribunaland two months after the conclusion of such

proceedings;(c) during the pendency of arbitration

proceedings before an arbitrator and twomonths after the conclusion of such

proceedings, where a notification has beenissued under sub-section (3A) of section10A; or

(d) during any period in which a settlement or

award is in operation, in respect of any of thematters covered by the settlement or award.


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Str ikes/Lockou ts are prohib i ted in the

publ ic ut i l i ty services i f the fol low ing

cond i t ion s are no t ful f il led:A statutory notice of the strike/lockout must

be given to the employer or to the workers as

the case may be within six weeks before a

strike or a lock-out takes place

There must be the date of the strike /lock-out

within fourteen days of giving such a notice.

Where the date is specified in the notice no

strike/lock out can be called before the expiry

of the date.


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Where any conciliation proceeding are

pending before a conciliation officer no

strikes can be called for or lockouts must bedeclared during the pendency of any

conciliation proceedings and seven days after

the conclusion of such proceedings.


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Transport (other than railways) for the carriage of

passengers or goods by land or water.

Banking.

Cement.

Coal.

Cotton textiles.

Foodstuffs.

Iron and steel.

Defence establishments. Service in hospitals and dispensaries.

Fire brigade service.

Copper Lead Zinc Mining.

Manufacture or production of mineral oil and many more.


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Strikes and lockouts are legal when they

commence or are declared in compliance withthe provisions of the ACT. Otherwise they are

illegal.

(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 ordermade under sub-section (3) of section 10.


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(2) 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.


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1

) Any workman who commences, continuesor otherwise acts in case of, a strike which isillegal under this Act, shall be punishablewith imprisonment for a term which may

extend to one month, or with fine which mayextend to fifty rupees, or with both.

(2) Any employer who commences, continues,or otherwise acts in case of a lock-out whichis illegal under this Act, shall be punishablewith imprisonment for a term which mayextend to one month, or with fine which may

extend to one thousand rupees, or with both.


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Strike

Declared by

employees. Employer not liable

to pay.

Penalty: workmenOne month

imprisonment or

fine of Rs 50 or

both.

Lockout

Declared by

employer. No compensations

payable.

Penalty: employerOne month

imprisonment or

fine of Rs 1000 or

both.


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Lay-off means the failure, refusal or inability

of an employer on account of shortage ofcoal, 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 workman whose name is borne on the

muster-rolls of his industrial establishment

and who has not been retrenched.


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Refusal to employ workers is only for thereasons specified in sec 2.

The lay off occurs due to something beyondthe control of the employer.

It should result in temporary non employmentof the workman whose name appears on themuster rolls of the industrial establishment.

The employer expects that within areasonable time the industry would continueand the right of the workers be restored tothem.


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Lay off always occurs in a continuing concern.

A layoff cannot be declared merely for the

reason that the employer has sufferedfinancial losses.


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The workman who are laid off are entitled to

compensation.To be entitled to compensation the workman:

Must not be a badli workman.

His name must be on the muster rolls of theestablishment.

He must have completed not less than one

years of continuous service.

Th i i f l ff ti ill


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The provisions of lay off compensation will

not be applicable to:

Industrial establishment in which less than50 workman are employed on an average

per working day in the preceding calendar

month or

An establishment is of a seasonal or in which

work is performed only intermittently.


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Workman not entitled to Lay off

Compensation:

Where workman refuses to accept anysuitable alternative employment offered to

him by the employer.

Where a workman who has been laid offdoes not present himself for work at least

once a day during the normal business

hours.

Where the layoff is due to strike or slowing

down of production.

R h h i i b


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Retrenchment means the termination byemployer services of workman for any reasonwhat so ever other wise then as punishment

by way of disciplinary action but does notinclude

(a) voluntary retirement of the workman; or

(b) retirement of the workman on reaching theage of superannuating or

(bb) termination of the service of the workmanas a result of the non-removal of the contractof employment between the employer andthe workman concerned on its expiry or

(c) termination of the service of a workman on

the ground of continued ill-health;

A k b t h d if th f ll i


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A workman can be retrenched if the following

conditions are satisfied:

Three months notice in writing has beengiven to the workman indicating the reasons

for retrenchment.

The workman has been paid at the time of

retrenchment compensation equivalent to

fifteen days average wages for every

completed years of continued service.

Notice in the prescribed manner has beenserved on the appropriate government.

RE EMPLOYMENT OF RETRENCHED


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RE-EMPLOYMENT OF RETRENCHED

WORKMEN.

Where any workmen are retrenched, and theemployer proposes to take into his

employment any persons, he shall, in such

manner as may be prescribed, give an

opportunity to the retrenched workmen whoare citizens of India to offer themselves for

re-employment, and such retrenched

workmen who offer themselves for re-employment shall have preference over

other persons.


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An employer who intends to close down an

undertaking of an industrial establishmentshall , in a prescribed manner apply prior

permission at least 90 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 be served simultaneously onthe representatives of the workmen.

Wh li ti f th i i h


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When an application for the permission has

been made to appropriate government and

after given appropriate time to the employer

for being heard, the workmen and the and

persons interested in such closure may

check the genuineness and adequacy of the

reasons stated by the employer.


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Where an application has been made under

sub-section (1) and the appropriate

Government does not communicate theorder 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.

A d f h i G


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An order of the appropriate Government

granting or refusing to grant permission shall,

subject to the provisions of sub-section (5),be final and binding on all the parties and

shall remain in force for one year from the

date of such order.

The appropriate Government may, either on

its own motion or on the application made by

the employer or any workman, review its

order granting or refusing to grant permissionunder sub-section (2) or refer the matter to a

Tribunal for adjudication.

Wh li ti f i i d


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Where no application for permission under

sub-section (1) is made within the period

specified therein or where the permission forclosure has been refused, the closure of the

undertaking shall be deemed to be illegal

from the date of closure and the workmen

shall be entitled to all the benefits under any

law for the time being in force as if the

undertaking had not been closed down.

Wh d t ki i itt d t b


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Where an undertaking is permitted to be

closed down under sub-section (2) or where

permission for closure is deemed to begranted under sub-section (3), every

workman who is employed in that

undertaking immediately before the date of

application for permission under this section,

shall be entitled to receive compensation

which shall be equivalent to fifteen days'

average pay for every completed year ofcontinuous service or any part thereof.


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Any employer who closes down an

undertaking without complying with theprovisions of sub-section (1) of section 25-O

shall be punishable with imprisonment for a

term which may extend to six months, or withfine which may extend to five thousand

rupees, or with both.

Any employer who contravenes an order


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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 thousandrupees, or with both, and where the

contravention is a continuing one, with a

further fine which may extend to twothousand rupees for every day during which

the contravention continues after the

ind dis act

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