THE BOMBAY INDUSTRIAL RELATIONS ACT 1946

The Government of Bombay enacted the Bombay Industrial Disputes Act, 1938,
which came into force with effect from 1/6/1939. Subsequently, The Bombay Industrial
Relations Act, 1947, was brought on the statute book and was enforced in 1947, replacing
The Bombay Industrial Disputes Act, 1938. Shri G.L.Nanda, who was then the Labour
Minister for Bombay Province, was the pioneer of this Act. The Act is based on three
Gandhian principles, namely, negotiations, conciliations, and arbitrations.

OBJECT OF THE ACT

The principle objectives of the Act may be stated as below:
1. to regulate relations between employers and employees and to promote
harmonious relations between them,
2. To provide a machinery for settlement of disputes by adjudication or arbitration
on considerations of justice, equity and good conscience.
3. To promote collective bargaining.

APPLICABILITY
1. The Act extends to the state of Maharashtra and Gujarat and is applicable only to
certain industries like silk, cotton, hosiery, woolen, textile processing, sugar, co-
operative banking, generation and supply of electricity and transport (BEST
Undertaking).

IMPORTANT DEFINATIONS
1. Employees:” Employees” means any person employed to do any skilled or
unskilled work for hire or reward in any industries, and includes a person
employed by a contractor but does not include a person employed primarily in a
managerial, administrative, supervisory or technical capacity drawing basic pay
excluding allowances exceeding Rs. 1000 per month.
2. Industry: “Industry” means (a) any business, trade, manufacture or undertaking or
calling of employees. (b) any calling, service, employment, handicraft, or,
occupation or avocation of employees; and includes (i)agriculture and agriculture
operations; (ii) any branch of industries or group of industries which the (State)
Government may be notification of the Official Gazette declare to be an industry
for the purposes of this Act.

AUTHORITIES UNDER THE ACT

Commissioner of Labour
The duty of the Commissioner of Labour is to mediate and settle the disputes
under this Act. He is also empowered to settle the standing orders, regulate the relation
between the employer and employees with regard to the industries matters.
Registrar, Additional Registrars, and Assistant Registrars of Unions
The additional registrar is not subordinate to the registrar. The function of the
registrar is to make enquiry as he deems fit and recognize for the purpose of this act any
concern in any industry to be an undertaking and any section of an undertaking to be an
occupation. Further, he is to maintain registers of union and list of approved unions. He is
also empowered to cancel registrations of any union. The Deputy Commissioner of
Labour (Admin) Bombay, is notified as Registrar of Trade Unions and Chief Conciliator
for the purpose of this Act for the whole of the state of Maharashtra.

Chief Conciliator and Conciliators

The State Government shall appoint a person to be the Chief Conciliator. It may
also appoint one of more Chief Conciliators. A conciliator is a public servant within the
meaning of the Indian Penal Code. He has to hold proceedings in the prescribed manner.
He has power to call for the inspect documents. The conciliator’s function is to mediate
and Endeavour to settle the dispute between the employer and employees.

Board of Conciliation
The State Government may by notification constitute a Board of Conciliation and
when an industrial dispute arises for promoting the settlement of such dispute. The board
consists of a Chairman who is an independent person and an even number of members
representing the interests of employer and employees. Its powers are wider than those of
conciliators.

Labour Officer
The State Government may by notification in the Official Gazette appoint Labour
Officers and Assistant Labour Officers for any local area or areas. The Labour Officer’s
duty is to:
1. watch the interest of employees and promote harmonious relations between
employer and employees;
2. investigate the grievances of employees and represent to employers such
grievances and make recommendations to them in consultation with the
employees concerned for their redressal;
3. Report to the State Government the existence of any industrial disputes of which
no notice of change has been given together with the names of the parties thereto.

Labour Officer is also entitled to appear in any proceedings under this Act.
However, he will not appear in any proceedings in which the employees are represented
by a representative union, and if there is an approved union for an industry in local area,
then he can only appear only after consultation with the union.

Labour Court
The labour court has powers to decide disputes regarding:
1. the propriety or legality of an order passed by an employer acting or purporting to
act under the standing orders,
2. the application and interpretation of standing orders,
 3. Any changes made by an employer or desired by employees in respect or an
industrial matter specified in Schedule III (expect item No. 5 thereof) and matters
arising out of such change.

It can also try offences punishable under this Act. A Lobour Court may refer any
question of law arising in any proceeding before it to the Industrial Court for a decision.
The State Government may constitute one or more Labour Court and appoint persons
having the prescribed qualifications to preside over such courts.

Industrial court:
The state government shall constitute a court of industrial arbitration.
The industrial court shall consist of 3 or more members one of whom shall be its
president.
They must not be connected with industrial dispute
Every member of the industrial court shall be a person who is or has been a judge of high
court or is eligible for being appointed as a judge of such court.
The industrial court acts as a court of appeal against the order of the labour court.

Powers of industrial court

1) To review both the findings of fact and law arrived at by labour court.

2) Superintendence over all labour court and can call for returns.

3) It can transfer proceedings from one court to another.

4) It has also to decide disputes regarding any changes desired by any employee or
representative union in respect of industrial matters

5) The law declared by the industrial court is recognised as binding and is to be

followed in all proceedings under this act.

Court of enquiry

The state government may constitute the court of enquiry consisting of such
number of person as it may think.

Registration of unions
Union registration will be
• Any union in which has the whole period of three calendar months a
membership of not less than 25% of total number of employed in any
industry or local area may apply in prescribed form to the registrar for
registration as a representative union for such industry in local areas.

• They are the sole bargaining agents for representing employees in each
industry in local areas.

• In any ,local area if no representative union has been registered , a union

having a membership of not less than 5% of the total numbers of
employees employed in such industry in the said area may apply for
registration

• If neither a representative union nor a qualified union has been registered,

a union having a membership of not less than 15% of the total number of
employees employed may apply for primary unior.

Registration can be granted on payment of prescribed fees & after

holding necessary inquiry by the registrar.

In local area there shall not be more than one representative union in
respect of same industry

The registrar may not grant registration

• If he is satisfied that the application is not made bonafide in the

interest of employees.

• Within six months immediately preceding the date of application

or thereafter the union has instigated, assisted the commencement
of an illegal strike.

• The registration can be cancelled:

• If the industrial courts directs for the same

• After giving show case notice if the registrar agrees it was

registered under mistake.

• If membership of union has fallen below the minimum required for

continuous period of three months or more.

• RU has not conducted bonafide in interest of the employees

• Registration is cancelled under the trade union act 1926.

 • The union can make an application for registration after a period of
three months from the date of cancellation

• Under the act periodical returns are to be submitted to the registrar.

Approved unions:
Apart from registration of union as representative union the act
recognises another class of union as approved union. The registrar can
enter the name on the approved list if the union makes application in that
behalf & if its rules provide that:

• Membership subscription shall not be less than 50 paise

• Executive committee shall meet at intervals not less than3months

• All the resolutions passed by executive committee or by the

general body of the union shall be recorded in minutes book

• Auditor audits the a/cs at least once in each financial year

• No stoppages which is illegal under this act shall be sanctioned

The registrar may not enter the union in the approved list if he is
satisfied that it is not being conducted in the bonafide interest of its
member, but to their prejudice.

If any union after period of 2years has elapsed since the approval
union was entered in the approval list applies to the registrar
claiming that he is having larger membership in industry or local
area than an already approved union for such industry then
registrar may after holding enquiry enter its name in the approved
list .

The aggrieved party may within 30 days from the date of order
passed by the registrar appeal against such order to the industrial
court

THE RIGHTS OF OFFICERS OF APPROVED UNIONS

(a) To collect sums payable by members to the union

(b) To put up or cause to be put up a notice-board on the premises of undertakings in
which its members are employed & affix notices thereon
(c) For prevention or settlement of an industrial dispute
 (i) to hold discussions with the employees concerned who are members of
the union
(ii) to meet & discuss with an employer for redressing the grievances of its
members employed in the undertaking
(iii) to inspect, if necessary
(d) An approved union is entitled to appear before a Labour Court or Industrial Court
for the grant of legal aid at the expense of the State Government.

REPRESENTATION OF DISPUTES

(a) Association of employers shall be entitled to represent any employer

(b) Only representatives shall be allowed to appear or act in the proceedings

The Order of Appearance before the Proceedings should be Representative Union,

Qualified Union, Primary Union, The Labour Officer authorized by the employees
concerned & 5 Elected representatives of employees respectively.
The representative unions are the sole bargaining agents for representing employees
in each industry in a local area.

STANDING ORDERS

• The employer is required to submit for the approval of the Commissioner of

Labour within six weeks in the prescribed manner Draft Standing Orders.
• The views of representative union or elected representatives are considered before
settling standing orders.
• The Labour Commissioner shall forward a copy of the standing orders to the
Registrar.
• The Model Standing Orders are applicable until standing orders in respect of an
undertaking come into operation.
• Any person aggrieved by the decision of the Commissioner of Labour may appeal
to the Industrial Court within 30 days from the date when standing orders come into
operation.
• Any employer or employee can apply to the Commissioner of Labour for change
in the standing orders only after a period of at least one year from the settlement date.

NOTICE OF CHANGE

• Employer has to give a notice of change in the prescribed form (form K) to the
representative of employees & has to send a copy of notice to the Chief Conciliator,
Conciliator, Registrar & Government Labour Officer for any change in respect of
industrial matters under section 42(1) Rule 51.
• He has also to affix a copy of such notice at a conspicuous place.
• Then the parties will discuss the change demanded & try to reach settlement
within 7 days.
 • If the desired change is in respect of an industrial matter not specified in Schedule
I or III then the employee has to give notice in form L to the employer through
representative of employees.
• If the dispute is not settled then it will be referred to the Conciliator & if still the
dispute is not settled then Conciliator will declare that the dispute has ended in a
failure & will give certificate to the employer.
• Then the dispute will be referred to the Industrial Court under Section 73A of the
Act of its Adjudication & Industrial court will make an award in respect of the
dispute after haring both the parties.
• For the change in standing orders or industrial matter specified in Schedule III,
except Item 5 thereof, employee shall make an application to the Labour Court & in
respect of Item 5 to the Industrial Court. Before the application to the Labour Court or
Industrial Court, employee has to approach the employer with a request for change.
• If after notice of change is served, an agreement is arrived then a copy of
agreement is to be forwarded to the Chief Conciliator, Registrar & Labour Officer.

ILLEGAL CHANGE
(1) The employer cannot make any change in the standing orders settled
as per the provisions of this Act, without following the procedure.

(2) The employer cannot make any change in any industrial matter
mentioned in Schedule II before giving notice of the change as
required and within the period provided, if no agreement is arrived at
then before the completion of the conciliation proceedings and during
the period of 10 days thereafter, where no settlement is arrived at,
before the date on which the award of the arbitrator or Industrial Court
or the decision of the wage Board comes into operation.

(3) The employer cannot make any change in contravention of the terms
of a settlement, effective award, registered agreement or effective
order or decision of a Wage Board.

Any change made in contravention of the aforesaid provisions is illegal. Further, failure
to carry out the terms of a settlement, award, registered agreement, effective order or
decision of a Wage Board, Labour Court or the Industrial Court affecting industrial
matters is also deemed to be an illegal change.
JOINT COMMITTEES
 A Joint Committee can be constituted for an undertaking or occupation
with the consent of the employer and the registered union for the
industry.

 The Joint Committee is normally not constituted in respect of an

undertaking or occupation where there is no representative union,
unless at least 15 per cent of the employees are members of a
registered union.
  The Joint Committee consists of an equal number of members, one half
of which are nominated by the union and the other half appointed by
the employer.

 A representative of the registered union may attend any meeting of

the Joint Committee.

 Any member of the committee may move a proposal regarding any

change that is affecting relations between the employer and the
employees. They try to resolve matters such as cleanliness, hygiene,
canteen, welfare, etc. They cannot take decisions on important matters
such as alteration of conditions of service by rationalization.

CONCILIATION PROCEEDINGS
 If after notice of change is given and the proposed change is objected
to, the party who gave such notice and desires to effect the change
has to send a full statement of the case to the Registrar, the Chief
Conciliator and the Conciliator.

 After receipt of the statement, the Conciliator has to commence the

conciliation proceedings. It is the duty of the Conciliator to endeavor to
bring about a settlement of the industrial dispute.

 If a settlement is arrived at, then a memorandum of such settlement is

to be drawn up and signed by the parties. If no settlement is arrived at,
the Conciliator has to close the proceedings before him and send a full
report to the Chief Conciliator who in turn forwards the same to the
State Government.

 The State Government may constitute a Board of Conciliation and may

refer any dispute to it for promoting the settlement for the same.

ARBITRATION
 Any employer and a Representative Union or any other registered
union which is a representative of the employees may by written
agreement agree to submit any present or future industrial dispute to
the arbitration of any person and such agreement is called as
submission.

 It is also called as arbitration of a Labour Court or Industrial Court. A

copy of every such submission is sent to the Registrar.

 An arbitrator may refer any question of law arising before him inn any
proceeding under this Act to the Industrial Court for its decision.

 The arbitrar has to give award on the dispute after hearing the parties.
  The award of the arbitrator comes into operation on the date specified
or where no such date is specified, then on the date on which it is
published.

WAGE BOARDS
 The State Government may constitute a Wage Board for one or more
industries after notification in the Official Gazette.

 The wage Board consists of an equal number of persons nominated by

the State Government to represent employers and employees and
such number of independent persons as the State Government may
nominate.

 The Chairman of the Wage Board is appointed by the State

Government.

 If a dispute is referred to Wage Board, no proceedings regarding the

same shall be commenced before a Conciliator, Board, Labour Court or
Industrial Court.

 The wage Board shall submit its decision t the State Government,
which shall by order in writing declare the decision to be binding.

 The Decision of the wage Board comes into operation o the date
specified in the decision and where no date is specified, then on the
date on which it is published in the Official Gazette.

Illegal Strikes:

A strike is illegal if:

1. Industrial matter is specified in schedule lll or regulated by any standing order for
the time being in force.
2. Without giving notice (sec 42)
3. Employer has not carried out the provisions of any standing orders or has made an
illegal change.
4. Where notice of change is given in accordance with the provisions of section 42
and where no agreement in regard to such change is arrived at before the
submission of case is received by the conciliator.
5. Where conciliation proceeding in regard to the industrial dispute to which the
strike relates has commenced, before the completion of such proceeding and
during the period of 10 days thereafter.
6. Where such limitations has been sent under section 52(a) to the conciliator before
the receipt of the intimation by the person to whom it is to be given.
7. Where submission relating to such dispute or such type of dispute is registered
and before such submission is lawfully revoked.
8. Where an industrial dispute has been referred to arbitration of a labour court or
the industrial court before the day on which the arbitration proceedings are
 completed or the date on which the award of the Labour Court or the Industrial
Court comes into operation.
These provisions are not applicable if the union has offered in writing to submit
the industrial dispute to arbitration and the employer does not accept the offer or
after accepting the offer because of disagreement on the choice of the arbitrator
does not agree to submit to the arbitrator without naming an arbitrator and
thereafter the dispute has been referred to the arbitration.
9. If the strike has been commenced or continued in contravention of the terms
of a registered agreement or a settlement or effective award.
10. Where an industrial matter or industrial dispute is referred to a Wage Board
for decisions, before the date on which the decision comes into operation.
11. When there is any contravention of the decision of a Wage Board.
12. Where there is conciliation proceeding in regard to any industrial dispute has been
completed, strike relating to such dispute will be illegal if it is commenced at any
time after the expiry of two months after the completion of such proceedings.
13. If 14 days clear notice of a strike not falling under conditions no. 1, 7, 8 and 9 was
given to the employees and the labour officer, and the strike was not commenced
either before the expiry of the period of notice or after 6 weeks from the date of
its expiry and the employees who resume work within 48 hours from the time
when Labour Court or the Industrial Court declares such strike to be illegal, will
not incur any penalty under this act for such strike.

Illegal Stoppage:

A stoppage is illegal if:

1. It is commenced with the object of compelling Government or any
Public servant to take or abstain from taking any particular course
Of action in regard to an industrial matter.
2. Such stoppage is in support of or in sympathy with a strike which is illegal.
Illegal lockout:

A lockout is illegal if:

1. It relates to any industrial matter specified in schedule ll or regulated by any
standing order for the time being in force.
2. Without giving notice (sec 42)
3. Where notice of change is given in accordance with the provisions of section 42
and where no agreement in regard to such change is arrived at before the
submission of case is received by the conciliator.
4. Where conciliation proceeding in regard to the industrial dispute to which the lock
out relates has commenced, before the completion of such proceeding and during
the period of 10 days thereafter.
5. Where such limitations has been sent under section 52(a) to the conciliator before
the receipt of the intimation by the concerned person.
6. Where submission relating to such dispute or such type of dispute is registered
and before such submission is lawfully revoked.
7. Where an industrial dispute has been referred to arbitration of a labour court or
the industrial court before the day on which the arbitration proceedings are
completed or the date on which the award of the Labour Court or the Industrial
Court comes into operation.
These provisions are not applicable if the employer has offered in writing to
submit the industrial dispute to arbitration and the union does not accept the offer
or after accepting the offer because of disagreement on the choice of the arbitrator
does not agree to submit to the arbitrator without naming an arbitrator and
thereafter the dispute has been referred to the arbitration.
8. If the lockout has been commenced or continued in contravention of the terms
of a registered agreement or a settlement or effective award.
9. Where an industrial matter or industrial dispute is referred to a Wage Board
for decisions, before the date on which the decision comes into operation.
10. When there is any contravention of the decision of a Wage Board.
11. Where there is conciliation proceeding in regard to any industrial dispute has been
completed, lockout relating to such dispute will be illegal if it is commenced at
any time after the expiry of two months after the completion of such proceedings.
12. If 14 days clear notice of a lockout not falling under conditions no. 1, 7, 8 and 9
was given to the employees and the labour officer, and the lockout was not
commenced either before the expiry of the period of notice or after 6 weeks from
the date of its expiry and the employees who resume work within 48 hours from
the time when Labour Court or the Industrial Court declares such lockout to be
illegal, will not incur any penalty under this act for such lockout.

Illegal Closure:

A closure by the employer is declared to be illegal if it is commenced with the object

of compelling the government or any public servant to take or abstain from taking any
particular course of action in regard to any industrial matter.

By
Pooja Bhavar
Snehal Patil
Renu Wagh
Chetna Sawant
Pooja Waghmare