'

.. f
'il;
,.

t t,Atrotrtt LAWs

Lalroul Larvs consisl ol'follorving L**,s and pafderu of r*lsrfts

is ;l.l
unrlcr':-
I ) f ndustrial Disputcs Act, 1947 - 40 ll!:rrkr
2) Collective Bargaining - l0 mar.ks
.l)"(a.FepFfifes Act,|936- !S rurl:t s
L-!,-.((*j :.:.1f .
: r.,. t-. l-
.. -
+) Werkrne#s Conrprnsatirin Ac{,19)-l - l5 nrar.Ls
FrLf\!Ulrr
5) ['1:rharashtra llccognition .i"r'radc [Juitrns and p!^er.€*trc.o
ot
[.]nlair Lalro:rr lrrar:ticcs Acl. 19,/ l- 20 nrrrlis
$i[ulTtsI4 r*.!]!U_U_l 8!,Ae_l., r e,17.

_ I-he
l!]ry,rli-"_ Sif trtlr-rrrirl pr.og. :ss , , .: clr,lrii:,i rJerrcncl:; upilr
^
1h;:
irrrlrritli:tl dcvcl,rpntenl llrcr-clirr,:, ii:,Ir.ir.iul iri,., ltt
1-,!1r., inrltoriai it
ioic in the natiortal econont! of ir c:in1111.;;.
l'hc ob.lect$/ of ti - r.ri:u-ir.rul ruirtrions icgisJation in gcner.al ;s
lndusir ral peace an<.i cconotnic
.justice. T'hrr pfosperit), o{-lirr1, rnr:lustr.).
vet-v ttiueh depends upon its ur.ot ing plo,-iircLitrri. -ih-.
1.rr.,,rcluct ion is
lcssible rvhen tlrc indLrstt.r. li tcljons srncotlih, \,i,,ilo:,;t ai.r],
orri1,,

interfuprions. I'he.e a.e soruc urr,ei riretors ivbicir influeircc

thc
pi'oductinn vjz. absencc oi' displlicr;, i.e. ilarin,.lltious lclationsh4r
belween the lalroul ancl thc nranA.qt-'nlent. I'herej,ore, el,e{;
i,xilstr.al
teiations legislation necessaril; jrirts .rt
llrri,;(lln-!. "-otrdjljols congcnial
to thc irrrJrrstljal pcace. llcononriir ;u.i;i", ii ono,t,.i n61.Cfi,,c
aiurecl al
b1' strch ir:gislations. Alr irrc'r'Lrrrlirrs in rrrodrrctior-r a!.i d.e 1i)
industt ial disputes, J)issrtisfacrion r.r,ith tlrc existinii
I ccor_,orlic:
j
t
i
.l
I
d
t
-2-
j
eon(lilions is the nxrt eirrrsc ol industlial disputcs. The history ol labour
stlugglc is lbr gctting lhir tclurrr to llrbour i..e increase in riages.

resistance to decrease in wages, grant of allowance and benefits, etc. Il'

an individual labourer wanls to achieve these gains, he fails because ot-
his weaker bargaining power, as the manageruent with better economic
footing stands in a better position to dictate its tenns. 'l'herelbre. the
economic struggle of labour u'ith capital is fought collectivell' by
organised labours. By collective bargaining tlrey are plaCed in a berter
position to exert pressure lipon the capital to plovide therrl f air
aereater-
retllnr to lheir labcur'. It is rvith a vicrv tu provir.ic economic justicc bv
ensuring fair return to the lahour thal the State as the custodian of
public intelest intervenes by Statc regulation. lcottcntic iustice has

also bcen cnsured to the pcople o1'lndia by our Constittttiott

'l'he to r;r. wltole ol' india. lt
ID Act, 1947 extends came into
opcratiorr on lstApril, 1947.'the obiect is to trake provision for tlrt:

investigation and settlemirnt of industrial disputes. The oblcct ofall the

laborrr legisia'rions is to ensnt'e-Iair s'ages aud to pteveut dispuies so

that production rniglrt not b,-'adversql)r afibctcil.

1'lre principal objects of thc Aot as analysed b)' the Suprcmc'

Court ale as under: -
1. l'he pronotiott oj' rneasut'es iirt sccut'ing amity and goocl relatiotls
belu,een the employel aud l'ot'klren.
2. An invcstigatiori and seltlerr']cr)i of induslr'ial clisputes beiu'een

emplol'crs and employcls. etlllli';r'tt:l antl worktnett or workmen and

 -l-
lvorkrnen with a right of rcprescntation ty a legistered lrads Union or
ljedelation ol''l'raclc IJnions or Association of enrployers or a federatior.l
oI assoc tauon or enrproycrs.

3. The olevcntion of illccal stlikcs aud lock-outs.

' A P.x,J icvt"-'t*
4. Relief( to w8lkrneri in tlrc nralter of lav-oll. letrenchment and
closure of an undertaking.
5. Coilectivebargaining.
T'he ID Act is a progressivc rllasure of sccial legislation aining at
the anreliora',ion o1'the conditiorrs o1'rvolknren irr industr1'.

MAIN FEATURES OF- TTIE ACT:-

II' l. .{rrr industliirl disuute rnirv bt rel'ened to an Irrdustlial 'l'r'ibunal bv
B

an asreelllcnl ol- parties to thc disr)ote o| b1, tlrr: Staie ( r. if it dcenrs

'o',
it e.r;pedienl to do stl.
.p2. .'\n ar.r,ard shall be binciing on bolh the parties to tlte clisputr: for thc
L

specified period rxrt exoeeding olle veal'. It shall be rtolrnall]-' cnforced

by tlrt-' Covernnrent-

.,, 3. Stlilics anti lock-c-ruls are prohibitcd, - .

(a) clLrlirrg tlrc pendencl of conciliutioir altl adjudicatiorr procee<iings;

(b) dLrring the pendency' oi' sr.tllcrlrcnts r'oachccl in the coul'se of

concil iation proceeclings; and
(c) cluring 1he pendent:v of au,alds of lndustlial 'fribunal declaleij
bindir:g Il' the appropriate Gor elnrreln.

uA. ht public inlelesl or elncfgcnc\ thc appropliaie (iovL. lTas po\\/er to

declarc lhc transpofl ( olher llrarr lailu,il,s ), ccr.rl; cotlon, lextjlcs, lbod
 -!-
stuffs and iron and steel industries to be a public utility service for tlre
purposes of lhis Act, for a nraximum period of six nronths.

f 5. In case of lay. ofior retrenchment of u,orkmen thc' ernplol,sl 15

required to pay compensaticn to them-

1 6. Provisions has also been rnade for payment of compensation to

u,orkmen irr case oftransfer ol closure ofan undertaking.

J -/.' A nunrber o[ authorities such as Works Conrnrittee, Conciliation

Oificers. lJoard oi Corrciliatiorr, Courts ol Inquiry', I-abour Courts.
l'ribunal anci Natirrnal Tribunal are n:'or, ided lot settlcrrrr,'nt of industria!
disputes. 'l'l'r" notur" of porvers, lunctions and duties of thcse
authorities dilitr liom each other bnt eacl] oue ol'them plays an
inrpotant role in ensuring industlial peacc.
 ;
--::-:.ii.|.l:-::1a::-:ji-j -l

-^\!'or'l:nlirn is :ltnsi 1itit.r,r tarrl i.:lL'ment. Tribunal can adl i:iiiiilie an

jrdu-striiii dispute oui'; v'"'hcl such dispute relates to an enrployt:es
who 1S

li r" otkmatt.
\1:'orkntan nreatrs:-
Agv p€rsotr ( incluciing an riporentice )enulol'cd in arif industri.:
to do,
!t/ --
,\f ;.lquitl. ,.kil h..!, u nskiiisd. iech itilli, Lrp.rrii;olii l. cblitili. or slpcn't'soL1r
/ _
!,, i )i i\

f ,-.1- hlre li lc',i,eid .

\lrbethei- Lhe ten'ils ol' cmprlovnielt I bc explr:s; .-,1 i;.i;,i,lie rj .

l-or ihe irurpiises of ;any pl'oceedi.igs uud€r tire Act irr rel:rtion to a
' :\r r-r-tb!v
!*clu:;:r'ial dispuie inr'irrdes -. r
-il1_r t,, !1r.. i.,:
iJ! iljcrr0,i \!iii.) , ..ii:. i:ri;:;c d. liir,;ir:il ir:-l ri:..-i:r.:jiiiitg.:i I

G ----':
U,r .jJ,rr'iecrtc:1
...r,:l',
cr i .:O:t\Cit'.t.r ce O.t thht dispuieJ alid whust:
-
:/l'::l',;{i:il. Oi.;Cili:rqe,rr I"'l::::a:,_;..;:i ltar i.:ri !i).tnrij d;!fr.::::.
il.i'r iloes nct i:iclude rrnj/ per:jon.
\r.'iro i:, suLrjeci i:l ,{ir Force
ce.\ct..195C"
.,\ct,.195 or'l'hc,4.r'm.v Jrct, 1950, or thc
___-_:-* @
.F'':! r'J" itr(:t, !957 lrr
$iho is crrrpi+i'e,--l il rhc police service nr r,c rn 'rflin.,r r.'..r1'-."
e npicvee oi a pr.isonl or.
trl'ho is ernployed lnainly,.ir a nranageriai or admin jstr:rti,.,e
car)acltv; or
ir enrpl:r cr1 rD superVisorv cirp cilv anti rirarvs wages exceeding
_J).jrr.
1t sl00O0'. per n'ldtisrl.n or

il'iri;st i'r-rrrcti,Irr ar.e ltainlv of a na;iapsriai ratL:re.

!'iiere mnsf be a rciaiionship of inaster unt! sel.l.:,tr1.
 lJlrry lr. r,rCi-ll-a i.lrllliical !i Lt.!.. Vs. Staie of Sa!-}i-ashtra
{),-ks
ji,. l:ii,:. ii,aic tr\ ;,.i ilrt rlcl,:rntrnaiion oflhr r:lllirrrr.hl:r
irrl.rr'een ntas'Ler and serviltl :.. litr: exisicnce of the right in tirc nriisier i'.:
:--
Silper|tSC tiitti cclltrcll thc ivor.i,,jirrrc h\ Ihr \(.rU rt I l (ri-jl\ lli tite !!la:ict
r\t ,tir*atin*
:il rcCttng,ra,hitt
ia,hat v,'ork thi
rhr: .e:i
.e: rrr is to rl0 [rut :rls,r i].li r;;:i ne, in $,hich
hr shail rlo his rvolk.
Anand Birzar Patrika Vs. tl: .,!yo&!:€n
Piiiicipll rir;ik of cinp ioj,ci_ r:orc:cfter.l rl,as nrriiltilinirr::
:i!rL] i,tiliing
Lu), L --r
^..-L L'uuK. prcpa'!'ts \rarr{:us rclurns Senior i!f.:.t i!er.k . 5;ade
in
'.hr:rs..: ,,:ii pF reclion. ar.i
.r,:le[ r'runiF,n, *,r,.,-.---,--.. a pu,,,,,ia,
l
hi'. ile ,,vas :iilt:tting ,,\.Lrr!.. to tireirl, ull.r'i;:g rhcsi io ieaije c.liicc.
I
recoiii:11; il.la;ng ihei[ leiive i$plicarions.
The SC] h.,i,-l ihat ciriries of
Senioi cli:rit \\:ere rot of a st.r;,:Ltrsort, !tiilli-l;c Lrcl(:irls.:
ihe tcv,, ti.ti:ior.

Burm:rh Sheil Ce' Ys. Biir;ni,.rr Shell llanagemeltt

Srrtlf Associirti*r,,
?AiR iqTl 5{'ql2
.10 r'o:kmetr ( inclriciiirg gil.j:grs. gener:il r,,.t)rklr!,,1. i.r:ick(i.s. altri
(o';nllL"il :nl\rI5 ) q,etC rV()rkinr' rrrrder a Fnrc,-,,,r ,1.ir,..-.;-. ,, .-
sf----=-*-<-'-
aliotted l'"orl< lo them. sigrreC gate parsses. cther voitclteis.
tecinr,nendi,cl
ilioniolid0s r'li rirer: ll,.rking undcr iiirn, Jrurrd ,,,."inruin utilisirti(-\u of.
p')v"er', iesponsibie ibr blencring i:he':'.rals. Thc s(r oirservtcr - l{e u.as
{loirlg $.,.)j-K ..)1'sUpEl-\.isioi _ sc,:ing
iYhciher ihc) rrle n:.opcrlv doine the
utr'I': .. but also the l,?ict ih;r.t l,.,o,ki-,icrr furrctiorr
rLrirler hls conlroi and
 Li-i Y+
iilsii:natitill s. iiot iJiii.ir i ._,.)llsiflerution of the nature
o{ ctuties
*'ii-t!' lln ir 1r4!'r:r'iu1!-t0 dq r€t-l:.!1t, lil-:rli4!r.!_s
l::",:,i:'"r:.'
In &fiss A. Sundarantba! \,r.i.liegjf (]oa. Dilnran :rr:r} Diu
(1989i 1 Lab LJ 6t (SC;
-;1 l,.ts hettt that in ortje r.;,, bc a rvork-nuil
anfelrpkr.r ee shouici Lc cnrpi(i./eil
ro tJo skilfd or unskiii,:ti. fiianual.
suDen,isory.. rechnical oi.i.jcrii.ii ,;,,ork. .luclged in -f&ls*lg"lff.lueaslgl
litlttlQll:g.lallgd eJgitkfi r* n.
Xe"ttsn.i! lr:1g:.rgrl. ilx_lldii:rr:grltd.Jsl&r r K&ra,:-lii.$.erad!-d
otirer _ttLI2IJ8
Ll f..ab L.I 16.-L|SC) _

,'ilil "t ":!giij!g!., i,..trr mainij, repoiiing i,ri,.i chcc.:ting

cn

rlrucpen,lc :)l : ;gl;r ol tri:lhoiir

_ " "nt uccislon anJ jtis dii::.ii\i; cii,.i nt:r
r
:------_.-_
o;rtc
____.-_
c.;:np;lnr. .Hr,31. tnt31r,*: *.gf4g.
ir.u tvolkr*an ani rnf a

SgLctitref
Tlre ller.eloprnenl Of.ficer of
!,I{l ,,r.as lrclcl to Lrc a worknan.
Ke epirig in r.,le.rv tl:e
oatut.e of duiies perlornred iincl pc,iivers vesied
irr
thcrx' rhe{nrii!!
<--_-j_::::_,,-._y_ (u be
bc, srrid-ro uc r.;llga_qeo
enga-qed |1 in :any aaminish.arive o
n,talagerial r;iork,
 Sec. 2 - Definitions

l4 Appropriate (iover.nnrenl:- :r-cc. 2(a)

The Central Goveftllre n1 :ts well :rs lhc State Ccrvcrntncnl trre
vested with various porvers arrcl thc
dutics ilr rclation t() nlatte,.s dcaii
wiih in this Act. In relation fo sonrc irrclustrial
disputes the (.lcnrral Covt.
and in relation to some othcrs the
State Government concenled ilre the
Appropriate Goverrrnrent to deal rvith
such disputes.
Thc Appropriate Governnrent is the Central (;olernntenl
in
relation to the following:_
(i)(a) anf indrrstr')' cnrded on by u,der a,rthor.ii.y of thc ct ntrar
Gqvernnrent ol" b.y
'r
a milrvRl, company or concerning an5, such
:1'ITll:{_Tglll.i--:l_-llL,i :llltilieq in this behalf b}. rhe cenrrat
Governntcn l: or-: '-].----
(iiXlr) a Docl< Lai.ruur Boar.d e:stablished
uncler Sec.5_,,\ ol-the Dock
worke:r's ( Regulatio. ancl Emproynrent
) Acr, 19.1g. or t,re rndustr.ial
Financc corporation of India l-imited
rbrrrred ancr regisrered under the
Companies Act. l9-;6. or the
Enrployees, Statc Insurancc
Corporation establisheJ under Sec,
3 of the Enlployees Slare Insurlrcc
Act. 1948. or the Boar.d of Trustees
constituted under. Sec. 3-A of the
Coal Mines Pr-ovitlent Fund and
l\{iscellaneous provisions Acf, t9Jg.
or lhe Ceutral Board of Trostees and Statc Boar.rl ot. l"rustccs
constituted under Sec.S_A and
S-IJ rcspectil el1, of the Enrplol.ecs,
Providelt li'uud and fi{iscellaneous prot,isious
Act, 1952 ur. the Lit,e
Insu rance Corporation ol lndia
 F

6
.E
$ estai,iishcd undijr Scc. j
ol rlle I il{r ir}surirnce Corporation Act. l1)-i(r _ ii;.
lt
|!
. the oil and I'latural (ias ( or1xr*r(i'rr Lir'ited resistered uude: rlu:
Companies Act. l(J.5() ol lhc l)c|osil lustrlrrrt.c:rrrtl Credit Guertlitlr
Corporation established urrdcr S(r. .l ol thc I)cru:rl lrisLriunce auii C.rcdii
Guarantee Coerporation Acr, l9(r I , or tlrc Clentral l!urehcusir,g
Corporztion established undcr Scc.3 of the Warehousing Citrrporations
Act. 1962 or rhe unit f'r'usl'(.rn<ria estabrished u'rrcl secrion 3
.i rhc
l Unit Trust of India Act. l9(;-j or the liood Curprnration of India
I
;siablished under Foocl Corl;oration Act. 196-1. or the Airpnr.ts
.4.uthority of lirdia coustilued urrcler Scc. 3 of the Air.ports Autho!ii.\.
oi
India Act. l9!)4 cr a Regiorral Rurat Bank establi:;herl urrtJer
Sr:c. -i Ltf
the Regional Rural Banks A,:r. l97fi, or the Expor( Cl.edit
a,nc{
(luarantee Ltd., or the Industrial
Reconstt.uction liank od Ilrlia of
the Naiional Ilousing l}:nk,..;lablished untier Scc. 3 .l.tl)c
Nilti(rrrirl
Housing Bank Act, 1987 or rhe Banking Se.,ice Cornuiissi.*
established under Sec. 3 of the Ballking Service
Corunrissiioti .^\ct. i,i7:\
or an air l-l?nsport service, or a banking, or an insrrrance
Coruiiiin3.
a Mine, an Oil Irield, a Cantonment Board or a N.Iajor porr
(ii) In all other the .r1 iilte Governnrent is thc S!aic
vernmcnI within rv t'r'it the ind diil-ug-srres.
r- wherher the appropriate
covt. is the central co't. or statc G.r,,r.
depeircls on the sulrject matter.of
thc dispute. The gclrer.;rl pnucrplc <lr;
which the lrroacl classificatiorr of
the Central or Sfate authoril!, ovef the
 -o- 11

iadusrial disputes is based is that in case of any industry carried oir b-l' .
..
or under the authority of the Centra.l Crovernment, or the ifldusfry beiag
,located in more tha$ ooe State , the Appropriate Gsvernmenr is the

Central Covr. so'that the problens may be convenie ntly and uniform'lv
dealt with.

't-
 -1-

CASE l-AWS:-

l) Bharat Glass Works ( Ilrivate ) Ltd.. Vs. Stqte of West llergali

( AIR 1957 Cal 347 ) lL F,n !-'{ '-' ^' 1{*i
It was conlrolled industry lrrd therefbre Central Govt. is the
' Appropriate Govt. Held that an industry mentioncd in lhe first
schedule of the Industries (Development and Regulation)Acr,l9-5 i
is a controlled industry, but it is not necessarily an industry carried
on by or under the authority of Central Govt. For an industr_v- tcr bc

carried on under ihe authority of the Central Govt., it must be arr

industry belouging to the Central Covt. i.e. its own undert:rkins.
2) Shti Sankara Allorn Ltd., \/s. The State cf Tr.ar ancor-e Cociiio
(ArR 19ss TC 662)
Held that merely because the rnanufacture of salt was carried on
by the comparry under a li\'euce fro,n th*tdii. it cannor becoi.r'rc l
Govt. buSiness or one carried on under authority of the Govt_
3) India Naval Canteen Controt tsoard Vs. Industrial fribrrnal!
((r96st2LLt3s6)
Held that the question as to whether an industry is carried on by or
under the authority of CG. it is essentially a question of fact
depending on the circumstiinces of each case. As such a bLrsines-r
carried on by a Naval Canteen Control Board was held not tLr be

carried on h1' or under the authority of the CG even if rhe tiusl. tvas
constituted by the CG.
--..----.-''-------
 -,1 *

Conclusion: That simply becausc au industry is a corrtrolled iir{lsfr1,or

the ncccssary licence is granted by the CG, that industrf is not
nccessarily one carried on by or under the authority of the CG.

The requirement of this Section is not only that the inrlustry

9&
should be controlled industry but also the CG rnust specify in this
behalfthat the industry concerned is a controlled industry for the
purposes of this Act ,( Biiav Cotton Milts Ltd. Vs, Their. Worlairent
and another AIr 1960 SC 692)
When a banking or an insurance conrpan)'has iis trranches in
rnore than one State, the Apprnpriat€ Govt,, in case of an industrial
dispute relating to such cornpany, is the Central Govt.
4) Goa samrrline Emnloyees'Association Vs. General Sunerinterrd-
nce Co. of IndivPvt. Ltd.. dnC oth€rs ( ( I987 ) 2 Lat; !-.I, Zt7 (SC_tr

In case of a dispute arising in a rJnion Territory refelence may be mlcle

by the C$since CG is the Appropriare Govt in relation to a UT.
5)M/s,.T.R. Jueele. Railwav Contractor Vs. Smt. Sitabai Atnlar:rnr il
1991) 1 Lab L.I 233.) The services of Respondent rvere terminated hy
the contractor who was her immediate employer, aDd who was engaged
by South Easiern Railway, and he has engaged labourt'rs on the premiscs
oi the railways dt the ratcs iixed by the railways. The dispute zrbolr
termination of services of Smt.Sitabai was referred by the Stati Giivr. Lo

Lab6ur f6u11 for adjudication. u hich gar e an rwar.d. It was challcugcd.

and it was helcl that SE Railwaf ivas the principal employ.er ancl the
 contractor was immediate employer of Respondent. Thc arvard *,as
quashed because in the opinion of the HC the work was connectecl

with SE railway, and the Central Govt. was the Appropriate (iovt. tc)

d refer the d ispute.

t.
$

i
6) General Employees Association Vs, Union of India and othem
( (19921 | Lab Ll 242 ( Bom.\
A Canteen was run by a contractor Suvidha Catering Service in the
establishment and premises of the Hindustan Petloleum Corpolation
Ltd. ( a pubiic sector corporation). It u'as held that in case of a

dispufe in respecr of employees of a cirnteeu the CG rvill be the AG

because the Corporation malntains the Canteen unrJer rhe Factories

Act and AG in respect of the Corp. is the CG.

(aa) Arbitrator - Arbitrator includes an Urnpire. A person ,

wbo is appbinted to resolve disputes among two or more pelsoBs.

(Mediator, Intermediary, Conciliator, Negotiator, referce,
Adjudicator ) The Term Arbitrator has not been defined in the
Aibitration Act, 1940 or even in the Arbitration and Conciliation
Ac| 1997. The term is generally known as a PA-i'iCfI in flindi,
meaning an Adjudicator appointed by a party to the dispute or by
consent of both the parties if he is a sole arbifrator. Urnpire is the
head of the Arbitrators of the rrarties to the dispute. elqcted br
the Arbitrators of parties themselves and not directlv bv the
parties to lhe dispule.
t
t

(aaa) Average Pav:- Average pay means the average ofwagcs

payable to a worknan. It lays down method for calculating average

pay in respect of a workman whether he paid by month, try rveek. t'rr

of monthly paid workmen - averagc

by day. Average pay (i) in case
of monthly wages payable inl1l"o-llogJglgSdqllngllhs
(ii) In case of weekly paid workmen - average of the weekly wages
payable in four complete weeks.

(iii) in case
-- of daily
paid workman thc averlge of wages for Nvclvr
full q,orking days.
But any of the above three.periods must be the period preceding the
date on which the average pay becomes payable, provided the
workrnan had worked during the said period, If he has not put
required service, the average pay shall be caiculated as the average
of vrages payable to a ivirkman during the period he actualll,
worked.
(b) AWARD: Award means an interim or final determination of
any industrial dispute or ol any question relating thcrcto by tny
Labour Court, Industria! Tribunal, or National Tribunal. It includes
an arbilration award made under Section 10-A.

The first part of the definition covers deternrination. final or

inlerim, of any industrial dispute, and the second part takes in
determination of any question relating to an industrial dispute. The
common thing to both the parts is the existence of an industrial
dispute, actual or appreheuded. The determination is of the
 -t0-

industrial dislrute qrjestion relating thereto on

<rr a
merits. ln order to
be an awarl a dclcinrination
mrrst he an adjudication of a
qucstrorr or
pornt relating to llr i|dustrial
dispute which has been specified
in rhc
order of reference or is incidental
thercto, and such adjudicatiorr
.l ( !
, s<.' l6et d' C rV-+
one.ol
!: 1 lrG_
r^frx".or^ p.rit1._ Co-*-
lqt] Ki^.,r,
o- '' ',tq L ye - -tLa". _
Award includes finai as rverll as-'nt-.ill
- deLemi,rution. ftI,.
tribunal can grant only ,r.h
,*rirn;arcls rvhich rher, are
competent to grant at the time
of fintrl arvard, bccause lhc lclic.l.
which the Tribunal has no right
to granr at rhe rinre ol. l.in:rl
determination. shall be outsitle
ils .,u,Iln, iry u, ,,,r, .,,g. oi ,,-t.
proceedinssf
- -,/
An interim award is nol thefin l determinarion of sonre of the
. polnts involved in an indr.rstrial
dispute. It is a pro_r,isional or
. temporary arrangement macle
in a n]otfa, ofu,ganay antl subject
ro a
final adjustment on the final tleternrinatjon
of a dispute.
Interirn relief is granted in aid
of the tjnal relief to be granted. ll.
4ifinal relief itserf cannot be granted no te'porary relier of the sarne
nature can be given. While
awarcling interitn rel.iel, fhe final
adjustment to be made at the
time of ihe award must be kept rn
urincl.
BNFORCEMENT OF AN ,AIVARD
An award may be enforced in the
following way:-
- (1) The aggrievecl party may apply
to Appr.opriate Govt.lirr
prosecu ting the dclaulting
party under Sec.29 or 32
of.this Acr.
 -l t-
(2) Where arr1, ntorrcy is p:rvable by the employcr to a workman. rhc
workman ntay nlovc the Appropriate Govt. for recovery of the
money due to hinr under thc Arvard.
(3) The party in whosc favour the award has been granted n,o/r'lil"
I
a suit and obtain a decree, which shall be enfbrced by exeCutiu!r

under the provisions of Civil Procedure Code.

(bb) Bankins Companv: Banking Company means il banking

company as defined in Sec. -5 of the ISanking Cornpanies Act.
1949 having branches or other establisbrnents in more than one

State. Sec. 5 says that any bank which transact:i the business cf
banking in India is a banking company.
It includes - Expr rt Intporr Ranl* of India, industrial
Reconsiruction Bank of India. Industrial Development Bank of India.
RBI, SBI. a borresponding new Bank constiruted under Sec. 3 of the
Banking Conrpanies ( Acquisition and Transfer of Undertakings )
Act. 197() or Sec. 3 of the Bank.ing Comp;rnies ( Acquisition and
Transfer ol Undertakings ) Atf. 1980, and any subsidiary bank as
definied in SBI ( Subsidiary Banks ) Act, 19,59.
For auy company to be a Banking Cornpany hvo condirions are
necessary:-
(a) lt rnust be a bankitrg conpany as defined abbve'aird
(t, It must have branches or other cstablishrncnt in rnore llraii
one State of India.
 .ttj:Lulj3-!:lf li $ U riDEii l'H]$_4_-{ll_Ge{.lrrijt.,.
.:;ii,,;t .rb,icci {ri,,ic'r irr'esti-grrIir::i ai,,,i r!.itiillltalii itl ;n.ltisl:.iai clisl;ulcs
\,:il;i.Lt: auriiijriiir:s hav: i:rlc;: r.i:i.::eJ i.l i!ahiei.ij tiiil i,;1ircl.
l hi' Wuliis ciir.:tmiriec. Concil!:riion Otii
iicer. Boatrtl uf i
lru r.j1 l,,quily ro sclic rh. -a.ilSr6,{i-'beli)r.e ii nlav l}e
encieavour.

airjirciicirterj upon blv the Labour Court,.l""d usrrial .Iiibr"r:,"il, The varlous
:.lrt:thtrtls of anricirLrle settiellclli ui tiisputes pro.:irl:d uii!i!r the ,\ct c::l;
ire irli,:rril]' c:liissitlcd as:-
I II CoEuilirtiun if ,t ttutli,:rr:icn r;1j Arl:iir.ariri:r
lVrirks Curriinittee, Conciliritioil tlfi;r.e!., ancl .iirrar.il *! {.'oricili* ( ior:
:I$ri!i!i*$'a":fjlI" j:9:1',"d,,igl11:rr n{ dis}rures.
Lilbl,ur Llcpurt" 'l'ribu;ral ,lrir.1 N:ltiosai I riLu:r:,1 ,jre it (iiu(licatiitg.
It::l,.rttij.::r ihai ileiide a:1., ,ii:_.-;ie.rcie:red irnrivr tli.J Acr.
L-.asl'r (rf InqTirj's t'ita;n. iiril,-::iri: ls ro iiicpir-ir:i..,
:rr\ jt-tattef .iDl),,:t!.inr.:

:l jf jIllgj Uj{_glrel"uacrtoaiild..sr,-ip.kiispulf
\l itn Of rei,-iV;V;i rn ;r:r ii'drrctrir,l ;ii

Sclii--l{slk-cog $49sllee.-{__Escer.ragll!_g{$tcll_les S.
Bgarj,s of Conciliation - Sec, 6 Cou*s of In{uir.y

$scZ- bqlrt Court :-

-l'h. . ,Fp:aDriiiir
\t. hirs ilic pir.,i.cr of a intmerl cl i-iibour Courts.
Se&1?l_:4 l-rbtuj]=]\L$lat! constsr__efss_pjilejt_lrtlurlro shail be
rti-lyllo-slaX_be
:4#y!-+r_!wlr_!2,!.-.!l-L_r_{:.vg:!l!ll\
4polUelby!1-c:*ApB.ceil :---:4
," I\9I 1o l-c appointcd a.. I'r,.sidin,at O_ffic_ei
i:::_-{i1r :ru.tl5al9,'s
oI tne l,nbouf ! oltri:-
---j:-__
{t) h(. rs ()1. ltirs hcc;i judgc i
iligh ( u:r'L ,:i
(ri) lre hi s fcr a periot! cl loi Dist..!ird_ge or
Aiiil. Disl.J Lirlse. c:
(iri) hc it:ts lr,:ld Eq;' judicial tiif icer \itrilii. 1 :r';r:r1 jc55 1fix11 /
]'ear s.
 ; 1.,-:ll[l!_il - .dir:i:,:rilies r:.131l**1gi:LLi,i.r Scr.j,.yf;
l!:. J_--lIg3:!Ss Crur ru i t t e r
li: ilrt\ l,iiiitslri.ri r-'ti:rbiish':,:i:i lt3virtq tUtl .r iti()r,,:
-..i: !\r)rlinlen
..: _ lne
dr'l'LPrr(rrr \JU\;r. ntil\ J5i.: i;lC atntil!(i:\ r!- lr.l cofl(l;:ilir:
..=------.'- ilie woil.s
/--.,.. --- i.. -
\ urllllllttee l)JVjt)g c(lUil nu;:FJi r)l fCl)tc\r.,tli:li:\u\ ()i .l
tplO\.Cr an,l
i;rkmen. - Recognised union shall apt
',r

the wuikneri.
Dpuini ;t\
'f'
rir;nrinceg|{ to rcpl.cscni

DutJ,'of \!'crks Committec i\ io prc)ntoie n,;asut(::s ti)r securing aitd

pi'-esc'rv'ng r;nity.. and sood ri:ialions
bellveen ernplol,er antl workmes
;rirU Lr) corlftujll uDorr ntalle;.:r,r{.
lhcir u,r:nn:drl l|]it,lrili,l curtcertr art,J
c i..i i iii, (,.u r rc co rrpose
a ny inr Lc r.i r l .lil t-.,t.a.;,4;"l
i

i; il;;*,a,.a
such mii efs.

Sqi. -!. Lr_,iii

'c. +. Conrili,iliatir,n
ii ti (iificer
! rc l\ i)l) rr) p l t lr I C (IUti. njn, Liv iluliiicaii()ll rn rlru t:tliciai quze.:._.
appoir;r such nun
P9l-!i-!9E$jf.'t think lii ro be C'O. I)uiv is
medi$i!!g_i-u_and_prq.molirc_the seft lenrent
cfjndusrr.ifl i dilpgtes. He
1l_,.:tttll:gt"fa specii.ied area cir ib; rrrc,':!"mo!.e specifietr
-_ -r_.__..-.:_LI-
_5.,.,',C5
:g.,st,res tte
aud pet'tnanentlyorlbra
ano d pcricd.

lL I ()i ill.l puicosd i,i en...:- ..---

i:i:;,-, r,!,(i .ln\ eliriin!g or apprehended
rrfter givirtg reasonablc ilor;ce. e')iei rl:e
J'"'],l!Ml! ['rcnrist::
any Estahli.shnent to rvhich dispure rctiires.
Tt!:l!
t)jl3 *lar." .ittendtnce ol any person for rhe
rf
.,rurnure e. a;.r:rnatiorr

___ __1,
rlr' tiitl)ltnlc:il ititrrt: u1 lil!t, i-..,v,ird,
" r,Lr:::-,.r;l!-',\:'\ ,ii :t Cr\;i 1 ,rirr; Iildrjt. CP(- !it lir;:,;.1 Of cnfCrr:irt1
.rir, !lC.lir!i Ot 31t\ ilrrsort*+_, r,ltd e:i;:miiiing h j:-it i_.'l COm0ellin!l tiirj
i):iti.r.rio!t l ci0cu mc it ls.
'-.-.--
-5) Dci:ntecl i,: be a Public Sen,ir'rt o/s. 2l IPC.

Duties of (10 :-
l. Where industrial dispirtc_r'rist-s or appreh-ndei: if it relates ic. a
lpubiicuti.lityservice hcldconciliiirionprcceedinris.
2. FoI brinqine alrout a seltleircnt, witholt ieley. i:r', i:ttigiite thc
Dispute and all matters ll'lectinq the rnerii-c anil : ishl seulenlL.itt
iliereof * Do all:uch thjnqs to induce thc it:il!e:; lo come tc fair
eni a'.nicable setrlerrlent.

-,r. Ii sciilcnrenr
\--_--_- is arrived ir ilrc course of cr::t l.iiiliiit- n oroceedinp:
. - ic j':(, icp(Di (0 App.Govi. ar auth0tisr'd i-rli-jr.ci :i-.::cther rvitit h

tol:.lrnud,,nt of serdemtnr signed by parrie:t to {lisr}ule..

If No settlement is arrivt r.j at -
sencl full report st:iting sreps takc:t
=-
by him for ascertaining iiicts ancl circum-sit nces rcliiiin.q io clispute
And ft r l-.r'inqing ahout a settlement tlielecf. - re:rscns fcrr not
ir rrivin g settle meggr.

f App.(iovt. on consideration of CO's lcpoll.il'satislied, nray r.eflr it

ro !)oltru. :-a[]c]t.rr cour;. i-iiLllriil or Nriicn:rl Trib'-r:lal If nct
fir Krng relerence. recLrrd ieason s snd cornnrullici,Le to parties
concerned,.
 i.i ri:,\ r irl \ ()tf,llteicenl3gni Ci llti: concilii,li,,r
iihiu 5urh \lr,)ft.rr prriod [ixed bu \'p.trovt. lt)c ( ll
orl.
_C ouits / .:ilrour Courts. Tribunals and Nationai
luhgldttu:_Bcferls!
IC0VERY OF IVIO DUti l"RoNI A EMPLOYER

Where an\'\ntone..,is due to rtorkmail fronl ar: entpit;r,ct urtdct:

(i) a :\etilenenl or

iii.l ;n .\u :iicl or

(iii) uncic\ thr provi.,lorrs of ('hapter V.\ or !'8 ( la!'
off,'rc t\ench ment. ciu -ur.e coniperrszrtion )
rhe rvorkrlen hims{i. a,,ithoris:d prr:ion byJ. Li,n
hi t)r' I -.-.;h
^,, uudi tri ilalkrrtan
''r,,rr
hr\ assigncr or treil\ t w iirioLrr .prejuCice lo other :mii.jc ot reco\reiy )

mlike.an apoiicarion rd1.ip.Govi. rvithin one year.iron rhe. datc on whirh

nronev becar.ne due to h\n , and if App.Govt. ii sarisfied - ir shall issuc
a ceriiticate ior that a nt lo the Collector - rvhc shaii rccover thc
sarnc rn the same ntanner\as an arrear of lanil rer..enue. Delay to fii,t
application aire r one 5 car\ ntavbe condoned b,", ihc . App.Covt. foi
su fi;uie i-r I cirusi.
Where a ',vorknan rs enlitl k) receive rnoney anc! any other beneli t.
which is capable of being cornp tejd in ternrs of mcr(y - if any question
ar rses b be c0mpu d for such he uetits-\ it rvill be decideti
about mcne'{
bv Labour Court *.itliil 3 months] This period can l;i .xte ndeC by PO
la:r ieasons lo i,-e recordeC iit *'riting.
 ii;ntmi.sioncr lajr i;,:: ;ii:piisJ \ii
thi: Lrcncfii, and oii ih. i.pori of il'!u
i ' : i:: ir.r i :r: ;. '!l:-.|':.t",su: ( ,1,:; .l:i:Ll tltl:;r:littr' ih! srni)ui' . l hf
. i ;; t

.., .r.rr,rF ol i..l/.C a,ttr. sh;r! I'r :.,t., ;r;'.i,-.i io .\p,gor,. :lnii i:; oti'l] i lbit !tal

tiitc will l'r; iii:i-rvg'gt1 hv tIc (i,r,,'t.

$eq-r: jesrd-Qlllucilisllrt
--"
ilre ;\ppri.Liovl. lray coii.;titu!e h1 nt-.lificltion in Oil. Gazeite ;i
B,raid for Conciliaiiorr lbr prerrrioting the scttlerneni e.i an industritl
disqrute. It ci:nsisrs oi a tlhait.irr.:n ancl tu,o or li.iitr ot!isr" \lemllers. --

Ch:rirm::n shall be i'l jt:depeldcnl psfson and oiller ;rc,ill_lers shal! be

appcinierl ir', cqu:rl nLrnrbers t:'r rep!.cs€tit parlics lo tittj ilsjlute on thE
! ecoil.iill Jn r:lrl;ilri t;.1 ih :. plrtv c(irtcernecl.
\---
Sec.6 Ccults of Eneuit.r
-_ l-hc App.(iovt.ma\'.clr!srrrrru a C.tilrl trl i:ricluir.i t;t itoiilic:itloll ;n
QC t'<il snquitine irrto nnv ri:-i:ilSljglxgdIg-tc.bg-51gqgg.11ed_rvith r_il

.{_ele"v3!.llg_Lt1JildrJ!tl.ial dinl)ute. It l:av c()rts]ist Jl r.ir. ildepend.rli

pefsori cj such nurltrer of indcpcndent l)ersonlr - ()iic oi (hem t,l be tire
Clririrrnan,
Sec. 7-- !,abour Courts
t hc .':!lpr-Cir.. i. ll.r:tv crlisiiiui,: !i., i:otificalion it OG orri:, or lnore
Lsbo url sr$!-tqr-tle-ediiud i cr[sn-!i$id.ugugl-Cunrir-rr-"rL:,:
g*I-lEtiglgeqcj$ed i n secrlnd stthedu le o n ri .!!r I ns -such
-.1!-(-l-i!UnU
Qtbi']j[U:$Ein_9 ali_rnar tre as![gtgdlgJ:!U::r!.Bdel!h]j-,:!,{i.

-q!,{:!}i:il}*$e}!l}ELII-g-- Miittefs \,,:thiir iurrsdicliLrn t;r'Liir.:i:rur Couir-

i . ;): r-,priL.lv or. te,qalitl, oi a;r ttrcier
;rir:,:;tcl i,.;,. ;iii eruilollt. ti;raler lhc
\tilniliiig o! defs.
 - fi.

\1 rilri:liilrrt ;tt,rl inlt'rpli.r ,tr,,rrt i \!iutding ijt.dct:.

i)ischiii_gr r.u tli:ltis:.:li li u,rlrknrc,rr inclutiing teinsait{elllent ot. |.\;
granl (ri rclief ti) uroiLt t.it u r.|nqltrlll, disntis.icc!.
Withdrawai ol aitv cusl{)11ilrt _\, rollr,-:ssiotr 0r pl.ivilcee.
Ille_qalit_r, <''r bthc;rvil.,e' ol l \lt.iLc oi :ork-()ut- and
Ali matters othcf rhan thosc spcciticd in the Third Scheduie.
( which are rvirhirr rhe juiistliction
of Indu-srrial lribunals.)

i. He is oi hus L.,r:rr: :i Ilish ('cuitiurlgc \: irr

i liisi.Jurigc or Aridi.Disr,.iu.lge for a period of nr)l lcss ihln -l .irs.
i tl:ld any judicili oiJice iir Iniliaz iirr nor lcr;s thait 7 is. _r

! Pr:rctiseC ils .\rl.t ocillc eI Aitornc), ior not 1c.,,. ijtil.t I t !.s.ill I-.j(.rir
a suh-r'rrdilate court or ]itctustrjrl Cctuirt, or Irji:ir;ral .:i Lal_.or:r
Court consritutaC unrlcr r,:;1. law lbl rhe rine lreing in for;e..
-i. Degiee in Lar'., - hoiding or held an office not lo,,,1ci ir1 liiiil: than
lhat {ll'ir D;' Re_tisrrar of ;in! such Industrial Coull or Tribunal fcr
not less ihan ,5 vl.s.
{i,. Dcgrce ir I aw - h,,rlding or held an otllce not io\\,er jn rank than
iirtii ui- a Assistiir.il (lonr r';t;., ii: i,ci of Laboui !-ntclri Siate til't. lor
nol less lhat) 5 \ rs.

ll Has l:eer Presirling Oftlicer of a labour (tourt collsrirureJ uncler ernv

lriovincial ol Statc Act - lor nol lcss 1fi4p.5 i,e615.

 -9-

-",r ., 7-A lRIilL'N;{t!

. . !.iii.)1.\r{r! {. !llir.\ !,.,rj.lr .:, one cr noi(' ilduitriiii Tribunals il;r
',:rj-q!i&A!qj!-StlE d u sidr |
(11.r1.)!r te s re
arins io an I

;pggified iir the Second Scl_li.dule ol the l.hir.d Scheiiule asci t.or
lcrlbrming such other funciinl... rrssignecl to it uni|_"r Act.
Tribunal to consist of one per.stlrr only to be appoinierJ by App.Govt.
jgIED SCHEDUT.E - Mril",
l
i . Wag,-s. including periori an,l u,ode of pavl:ent

2. C'L-irnlinsii t()ry and bther iil!1)\r.,1:lces

,1. Iilufs oi wurk and rest intci-vats.

j. !.ri', c lvith ,,r'uucs and holiil:rls.
5. Rr,riir-is, prr:fii sharing . provident iund and gr.at,,iit_...
11 Si;ili rt'orking otheilvise r_h;rrr iri uicorianc:e wii,h sui;:riilg
ortler.s._
1.. (lilssrticirtior, bt qrirdes.
8. itiilcs ot discipline.
'r. r,iiri:tlchment Lrt \^,orkilen arrd ciosur.e of establislinrci:i. antt
i(t. Ar:r cihei inattes that mav be prescribed.

Qt.t3l{-tcatiorr ot ttre pr Tribungl

He is i;r has beer: a FiC.iutigc oi Disr.Juclge o!.ir person
qualilied
iol itFpointntent as a judg;e
",i'ii{.., ur
Iic bas been Dist..luclge ol.Acldl.llisL.Jutlger
or.Arsit.Juclqe for nol
Irss lhan -? -1 rs.
.1. lle has bee' a Pre siding Olfir:er o1,a l...airetLir Couri fbi not less .)ar:

5 r'l's.
 -r" irrgi.-:rl j.ir.,\ ti:,;.:rrir r,: heii.i itiiiec
I{it :i-ln.€l. il r-ank then rll:rt
:i . \s:.,..1.iit. a,r::lriri\:ii,rl .'li
. Labcur ,,.. i^- .. , r-- ^
u,r.rrj ,rl:l L.o1't, l()f niri
j.ss tllitir i{} I,ears.
'!'he $or
t. rna.l, appiii; i i*.rr1 pg1-c6 s as AsresJsr! to adi,ise thc
flibunal in the proceedings.l;r,firre
it, if it so thinks Jir.

-l-he
Ceiiiral Govt. nay by r:,rlilicaiion
in OG conslitulc one oi mof{:
."'i- iiir acljudicaticn of intlus:ir.i*f
di:;putes, x hich in the opinion oi.
{-''.l i;rv.lve questians cf natit,;r.ti
i*.rpor iiir:c: cr rt c iii rLtch ilaiiiri.
iitai
incli:sliitrl rslablishmei.:ts situatrrj jn
ntore th:ln o8grs.ii1.3Ie lil:e!-y_ lo bc
irlitesled !r, or affected by such dispLrres.
.*-U shall rcnr^ist of one per.so!1. onlv tr: tre
aBoointec! h:,,-CG,
J*ee@
Cii nrav aopoint tiyo
$erg;ns as ASSESSORS ro &&jle NT in
pt'Qceedings before it,

4€.gl-imillbl ail : 6s gra!s-lC!!!Ll2g i ndependent

 -21-

!!t.
5r'r . l(l( | ) o[ the I.D.Acl. 19.+7 empowets the appropriatc
(;'r('rrr'rent not only to ref'er lhe industrial disputc . bur ars. chtxrst:
tlrt tlisJrute settlement process. A prc-condition for ntaking an1, referencc

Irr.' the Appropriate govt. to vurious authorities created uuder thc Act is
,h_" apprehension ol'an industrial dispute. The ret'erence
. "l.trnaoj
should be Uy un oro.t it.r ,uiiring. 'fhe app-d;t. ;nuy,
(a) refer the dispute to a Board li)r promoting a se file ment thereof; or
(b) refer any rnatter appearing to be connected with or relevant to the
dispute to a Courr lbr enquiry; or
:-.(c) -,. - -
icler lne dlsputc or arry rnJ cr appeilring to be connected with, or
relevant to the dispute, if it relatcs to auy matter specified in the Second
Schedule to a Labour Court for adjudicarion; or
(d) refeL the tiispute or any rnatrer appearing to be conDected rvith, or
relevant to the dispute, whether it relates to anv miltter in the Second
Schedule or Third Schedule to a Tribunal for adiudication:
(l) If the dispute relates to any matrer specified in the 3.d schedule
\=-
aud is not likely to affect more than 100 workrnen. the
Appro.Govt.may rnake refer.ence to Labour Court under clause (c)
above.
(2) lf dispute relates to public utility service and notice of strike or
lock out u/s.22 has been given, the.ApproGovt. shall rtake a reference
ven if a der this act mav hav rmenced. No
reference to be made if notice has been frivolouslv (ligh theartedelv.
pl ayfu II J'.. nrerrily. indificrentll,) or vexatiously given.
 --) _

\\'lrcrc rhc dispute in relation to which

Appro.Govt. is L.entra
( i''r | . tlrt. ( isnty2l eo,,,1. \vr-tf
tt cornp.-te,'Ir lf,e dispute ro a Labour
( ()l lndustrial Court constituted
''||rr, by the State Govt./
-_.-
U/s. f0 ( l-A )- The Ceniral Covr.
may refer a dispure to ir
*,to,ru, tnbrT, for adjudication _ if ii involves
any questicn ot.
national imporrance, or dispie--i
oT-iuch- a na-ture rhr-r in-dustri.r
establishments situated in more
rhan one State are likely to tre interested
In, or nllccted by such dispute CG
- may or may not De appropliate
uovr. nrit cr specified in second ancl thircl scheclule
lo De rel.erred to
National Trihunal.

Sec. I0(2) - It pr.ovides for compulsory iel.erence of indusrrial

'l;-,'..r^ L-.
^^
:p:,:_"I _r.9*_when an application in thee*p5.scribed
Drescribed manner
ma.,, is nrade
bv
I tne311i1
th to an industrial dispute, wherher made
3oinrly or
separately; and the App.Go.,t. iatriiie-o
ttrai persons applyrng represent
Sa-l9gl
qclc}tParti.
Sec. l0(2-A) The order referring rhe dispute
shall specify the
(Ii"d "lthlt "hl"h "". n" run,rriiE to tt apo**.
I[
dispute is connected with in<il]idual workman, "
sujh periotl
shall not exceed 3 monlhs.
s-_.

Extension of such period can be granted.

(3) Where an industrial dispute is referred to Board/I_abour
Court/Troibunal or National Tribunal under
this Secfion rhe Appropriate
Goutr. n',uy by o.d., p.ohitrhlr*ti,r,,on-n..
Eny strike or rock-out
rn connection with sucb .lispute which;;tEelnlxisteile
on the dare of
reference,.
 - t6-

0) Industrv :- means anl,business. trade. u dertali;ng. rnanLlthctLrLc

or ciilling of cmploy'i:rs andjncludes ant' callirrg. service, r:mployrnent.
hanclicLafr. or inciustrial occupation or vociition ol r.vorkmcrr :

([lndertakinc:- enlernrisc. rrsk. iob )

(Calling means :- vocation. profession. occuDation. busilcss.
mj5lp4pgssion .)
([ Ia nq[! qt_!u:e=i: roduce. make. create. cotrslrucf. ls:;embl InVCnl.
fabricate. rirake uu )
(tracle ineans :- deal, btiv and sell,,do L'usiness, opcraLe, trailic. skill,
jcb. errllkr,lrncrrt .y

(hantlicrat't : hurrdiwork. cr:rit. skill )

(avocation : nrinor occupatit,n, hobb1,)

( Occupation:- livell[6,16, job, profession, work.

cittccr. e nrplovmsn t. )

Industry is ordir,arily sontething which emplo,"-ers creatc or

urrdcfiake. Hower.er. the concept that industry is 'ordinarill. sout€thing
uhir:h cnrplo5,et's ct'eate or undellake' is graduallr, ;ielcling place to the
rnoclerir concept rvhich regards illduslry as a joint veniure undertaken by
ernpir.ryers, aud u,orkmen, an cnterpt ise which belongs equally to borh.

{$ q!'ltnterl. l.S. Instit

l'he definiiion is in trvo paris. 'Ihe fir.st part says that indr.rslr.y
rileans - ''anv llrsiness. 1r.ade, under.takirlg, manul-actul.e or calling of
enrplovcrs antl ihe secorrcl part provides that it includes any calling,
 -t7- :
servtce, employment, handicrali. or industrial
occuparton or avocation
of workmen :

it is not necessary ro view definition of inclustry untler

Further
Section 2() in two parts. The rletinition read
as a whole denotes a
collective enterprise in which employe r.s and employees are associatecl.
It does not consist eirher by employcrs alone or
by employeesalone.
t
t970 sc t407 )

undcrtaking, manufacture or call\ng of employers

and the latrer engagetl
f in calling, service, employme nt, ndicrafr or industrial
\ha occuparrorr orr
avocation. There must, rl -\
emproyers rotow their
""i;:i,,t:JJ':lT: i:JH:,:;
employworkmen.(]&*@
Kuldip Sinsh AIR I970 SC^l{
Thus. a Iequlrernent ()f in ' is that the crnnlor er.s must bc
carryins on any business. trade, underta
manllfuelulg_Ollalline of
enployers.' There.is not much diffic\ty in ascertaining
the meanrng oi
the rvords business, trade, nianufacture\or
calling of employers rn orcler
to determine whether a particular ac\vity carried on with
rhe co_
operation of employer and employee\ is an industry or not. tsut
difflculties have cropped up in defining thJ,word .underlakins,.
"!4ltg$e!g!c_ neans anyrhing undertaken, any business, work
cr
project which one engages in or attempts.
or an enterprise.
 -tE-
It is a tenn of ver,v wide clcnotation. The various decisions of ihc
Suprene Court agreed thal an undertaking to be withirr the cleflnitiou
in Section 2fi) must be read subjcct to a Iimitation. nanely. that it must
be analogous to trade or business. (Worknren. I.S. Institution Vs.
LS.Institution AIR 1976 SC l;15 ).
("analogous" means similar, etluivalent, parallel, corresponding.
comparable, like, related. akin ).

In Bangalore Water Supply Vs. A Ilaiappa ( AIR 1978 SC

548 ) a seven Judges' Bench of the Suprer.ne Court exhaustivell
considered the scope of inciustry arrd laid ciorvn the follorving.test::
Where there is (i) systematic activity (ii) organised b1'

co.operation between empioyer and employee ( the directl and

substantial element is chinrcrical), (ii) ibr the production andior
distribution of goods and services calculated to satisfy human wanls iurtl
wishes, prima f-acie, there is an "indusrrl " in that enterprise. This is

kuorvn as triple test.

The tbllowing points wer. also emphasiscd in this case :

l) Industry does not include spiritual or religious services or servicrs

geared to celestial bliss c.g. making, on a large scale. prasad or
food. It includes material services and things.
2) Absence of profit motive or gainlul objective is irrelevant, be tire
venture in the public, joint, private or other sector.

-3) 'lhe true focus is functional and the decisive test is the nature of
the activity with special emphasis on the employer-emplol,ce
rela tio ns.
 -19-
3) The true fbcus is functional and
the clecisive test is the naf.ure oi
th_e activity r.r,ith special
enrphasis on the employer-emplol,ee
relations.
4) Ifthe organisation is a h.ade or business
it does not cease f0 be one
because of philanthropy animating
rhc undcrtakirrg.
(Philanthropy :- charity, compassion, patronage, humanity.
benevolence, generosity
)
(animating;- living, alive, breathing,
sentient )
Therefore, the consequences of
the decision in this case a,.e {hal
professions, clubs, educational
instirutions, co_operatives. reseitrch
rnstitutes, charitabie projecrs and
other kindred lfamily menibers.
relatives )advenrures, if rhel lirlfil
the tripre srlired above cannol lrc
exempted frQm rhe scope of Scc..2
(i) of the Acr.
DOMINANT NATURE TEST:.
_ WHERE a complex of activities, some of which qualify for
exemption, others not, involve employees
on rhe total uindertaking sonre
of whon are not workmen o!" some departments
are not productive of
goods and services if isolated,
,even then the predominant nature of thc
servlces and the integrated nature
of the departments will befrue resr,
the q4role undertaking will be ,industry,
although those \.,no itre nol
workmen by definition may not
benbfit by status.
Exceptions: A restricted category
of professions, clubs, co-operatlv€s.
and even gurukuls and little research
labs,, may quality for exemptron. if
in sinrple ventures, substantially
and going by the clominant narure
 -2(t-

cntenon sul)stantively. no employees are entertained but in nrininr:rl

matters, ntargiual employees are hired without destroy,ing the norr_
emplol ec character of the unil:'
lf in a pious or altruistic mission, ntany errploy thenrselves. free or.
for sinall honorarium or like return. mainly drawn by sharing in the
purpose or cause, such as lawyers volunteering to run a free legal
servicc'9 clinic, or doclors serving in their spare hours in a free me<lical
/ .),/./
a.
cerrtre ot ashranrykq0i orking the bidding of rhe holiness, diviniry or like
.. '\']
cclrlral' pc rsonilirty,lh D d the services are supplied free or at nominal cOst
It-.:-"-'
aud tho:;e who serve 0f
19l,9$1geC iq r9qru1erlr1i9q o-r or)_rhe l)a:iis of
master and servant relationship then the institution is not an industrl,
even if stray servants, nranual or technical are hired. Such elemerilarv or
.\
like untlertakings alone .aie ercmptTot other gernerosity, conrpassion.
r.
developmental passion or prt-rjcct.
Snygtligl_ furctions, srricrly undersrood ( alone) qLralify firr
exemption, not the welfare activities or economic advenlures undertaken
by the Governmer'!t or statutory bodies. Even in departmehts
discharging sovereign functions, if there are units which are industries
and thel'are substantially severable, tho^rhry can be considerecl to come
within Sec. 2(i)

/'ttl A"C,".i,,: v)-,J; o-

| :ir.;,;,fi -r1 ;")_-.i.-. i,:q.-r:n "-l:-
I
I h". , f,.^*
 -19-

Sec. 2(k) "inrlustrial disuute" means any dispute or difference

between employers and employers, or belween employers and
rvorkrnen, or between rvorkmen and workmen. rvhich rs connec{€d
with the employrnent or non-emoploymenl or thc terrns of
employment or with the conditions of labour, of anv percon.
The main objective of the iD Act is to make provision for the
investigation and settlement of industrial dispute, and thclefore. the
detinition of "industrial dispute" has a special signilicancc. l-he
fcrllowing are the ingredients to constitute an irrdustrial disputc:
(i) a dispure or tliffelence between (a) employers ancl enrploycrs

, or (b) employers lrnd workrnen, or (c) worKnten and

workmen:
ii) 'the dispute
( or difference sho.uld be conrrected and related
with enploymeiii cr non-employment, or (b) ternrs ol'.
enrployment, or (c) conditions of labour of any person ;
(iii) the dispute may tre in relation to alty worknrarr o; workmen
or any other person in whom they are intercsted as a body
The existence of a dispute ( disagreement, quarrel. diffcrencc of
opinion,gfie) or difference is ihe key to expression..inclLrstr.ial disputc.
The expression dispute or difference connotes a real ancl substantial
diflerence having some element of persistency and continuity till
resolved, and likely, if not adjusted, to endanger the iudustrjal peace
of
the undertaking or the commulity. ( ( Sambhu Nath
Uatfi Goyal V,
Bankof Bar.oda (t975)2 S.C.C.3S3 )
When the parties are a1 variance and the dispute or difference is
connected $,ith lhe emplo,v-'mcnt or non-emplovment or the terms of
 ('rllplo\ nrcril or with the conditions of labour, there conles into
exislcrnce
:rr irrtlLrstrial clispute.
For a dispute to be industrial dispute, it is necessary that a cl€manrl
must be llrsr raiscd on managemenr and Lcjcctcrl try rn"nri'lriniii g uit '
such a demand to Conciliation Officr'r and irs contnr unicrLtion by him to

rnanagemeiit who reject the samc is not sufficient to constjtute industrial

dispute.. ( Fedders Llovd Corporation Ltd.. Vs. Lt. Goveinor. Ddhi.

AIR 1970 Delhi 60. )

_ Non-employment includ retrenchment as well as refusal to

r(instrte. (( Fedders Lloyd C<r oration Ltd. \/s. Lt. Govern{lr
Delhi. AIR r970 Dethi 60 )

In lVestery Indian Automo ile.Associ ion Vs.In rustlial

tribunal. the Federal Court held
'- Kctnstttentcnt is
cotl)eclc(l rvith non-e nr ploylnen t and i:i..thclcli,r e-
within the words of this definiiion. It would be curious result if the vierv
is taken that though a person is clischar$ed during a djspute is rvithin thc
definition of the rvord " wortnran" yet
f\e raises a dispure aoour
dismissal and re-instatenent it would be\outside the worcls of the
definition in connection vzith enrploymen\ or non_eniplol nreut. ..

o:n"llll:","'"!Fl ll1"ol_t{1,.ry!sdr
il _Y ":]'*l
in this wide
,T
u'orld. The expression accordir\g to Justice S.K.Das of
lJ
Supreme Court, who wrote lhe majoriry jufu.n,.n, in Assam
I' Chah
Karmacirari Sangha Vs. Dirngkuchi Tea *tate ( AIR 195g. SC 3S3
Means :

".... a person in utose emplol,nrenr, or. non-e ploynreur, of ierms of

emplo),menl or conditions of laboul. the workm n as a
class have a direct

)
 -2t-
sul)stillrlial intorest- with whom they have under the scheme of the Act.
cr)n[l|unit) of ir)terest."

CASE:- Assam Chah Karmachar.i Saneha Vs. Dimakuchi Tea

Estate t AIR 1958. SC J53j
One Banerjee was appointed by Tea Estate as an

Asstt.Medical Officer on three nronths probation. After 3 months. his

services were terrninated by the management after paying hrm one

nronths srlary irr lieu of lotjce. Thc legality of the tcrnrination rras

challenged.rind the cause of the AMO rvas raken up hr the Workers,

Union of the Tea Estate. The Govt. of Assarn referred the dispute to the
Industrial Tribunal about his reinstatement. T'he rnanagemerrt of tlre Tca
Estate raised an objection stating that AMO rvas not a "wor.kman ..and

hence the Industrial tribunai has no jurisdiction ro adjudicate thc

question of reinstatement. The Tribunal upheld the rnanagelnerrt's plea.

On appeal the findings of the Tribunal were upheld. Thereupon a Special

Leave Lo Appeal was filed in thc Suprcme Court. A qucstiorr ar.ost
whethei. the worknen of the Tea Estate can raise an industrial dispute
regarding the termination of the service of AMO ( who was not a

workman of the Tea Estate. ).lustice S.K. Das who wrote the rnajority
I
judgement while explaining'lhe expression .. anv person .. in defition
clause held that :

"AnyTerson in the definition cannot mean anybody and everybodv in

this wide world. The expression according ro his Lordship rneans ".,.. a

person in whose employmcnt, or non-employment , oB- terms of

employment or conditions of labour the \l'orkmen a-s e class have a direct
 -22_
t)
substantial interest- r.vith whom they have uncler the scheme of the Act, a

colnmunity of interest. Our reason for so holding is not merell that the
Act makes a distinction bctween workmen and non-workmen . but
because a d;spute to be a real dispute must be one in ivhich tlre parties to

the dispute have direct or substantial interest. "

. ;,[
lhe detlnltlon "any person" must be read to two crucial limitations
and qualifications. namely:-
(a) The dispuie must be a real dispute between rhe parties to the
dispute ( as indicated jn rhe first two parts of the definition
clause ) so as to be capable of settlement or. adjuclication by one
pJrty to the dispute giving necessary relief to thc ttrhci, and
(b) The persons regarding whom the.disputc is raised must pe one
in whose employmenl, nbn-employment, ten.rlr, oi eriiploynrent,
or conditions of laDour' ( as the case may be ) the parties to thc
dispute have direct or iubstanrial intercsl.
(c) In the absence of such interest the dispure cannot be said to be a

real dispute belween the parties. Where the wor.knren raise a

dispute as against their employer, the persou regarding rvhose
employnlent, nou-eniployme n t, lerms of ernployment or
conditions of
labour the dispute is raised need not be the
"workmen" but he rtrav be some one in whoie elnplovment .
terms of emnlovment. or conditions of labour. the worlanen

a,

r lt4
Qr^4' ..ffi\ Inaivftuat d;sou-rcjnd__t4dC$Igl_gi$Ue_j Refbrc
i/nsertibn of Sec,)-A of the Act, an indjvidual dispute could nol per se hc
an industrial dispute, but it could become one if takcn up by rhe I-radc
--
 :l
Union or a number of workmen. The dispute should have general
characteristics of an industrial dispute i.e. the u,orkmen as a borJy
or a
considerable sectior ol thenr make common cause with the i.di'irlual
workmrn.
In Bombay Unlon of .Iou alists Vs. The Hindu, where _ the cause of a
working journalist was t by a Trade Union of his profession, but not
by other journalists under the mploy of that particular branch
ofllce of
the Hindu, in which he was e loi'ed, the Supreme Court dernonstrale{i
I ,l!.^;s+-
hou, ihe test of direct and subs p nti:rI g9rnlrofcould be Ipplie<|.

Justice Shah observed:-

" The dispute. in rhe ir.csctrt c se, being prirna facie, an " individual
dispute" in order that it nray Lreconr an industlial disputc, it had to irc
established that it had been taken up y tlle UIll()n (Jl th( e!t)pi'))
cc\ r)l'
the Hindu ,Bombay, or by ari i,Pprecia le number of crnplolecs 'l'hc ol
Hindu, Bombay,
: The principle that the pcrsons who ek to support the cause o[ a
workman must themselves be <iirectly ancl ubstantially intercsted in thr
dispute in our view applies to this class of s also; persons lvho are
not employees of the same emplover cannot regarded as so in terested
that by their support the), rnay convert an indiJ ual dispute
into an
industrial dispure. "
tiowever. rh e_.Supteee.!,-qurt in Workmen Dharampai Prem
Chand Vs. M/s;- D_hata:lpal prenr Chand relaxetl&_1eqrryqqrenllhat
onlv Union of the -9lldOlgelCf rhe sanre e rnplo)qr_]ibiu!_f! -{,h
ell
derrands are m+!g,qz!tr!qi!q 4rlt_!_du!!lLal drspgle-;rn\ tiierebv the
ur&y distin suishin s.Ltmpliglllv overrulerl thA decision in
 2J-
Ihe Bombav Union of Journalistt Vt ,1,
Cases ro be reaa:. "tOul
l) Workmen of Indian Expross l-td. Vs. Nlanagement of lndian
-'-J
Exuress{P) Ltd. 1970 )2 L.L..|.132 (S.C)AIII 1970 SC 737
A
.. t-rr\t"_+ 1.b.,--,Ji_,4-
dispute relating to 2 workm#of Indian Express Newspapers
Ltd. was espoused by Delhi Union of JournalistsTr{, which was an
outside union. About 25c/o of the rvorking journalisrs of the Indian
Express were members of that Union. But there ,,vas no union of
journalists of Indian Expres-s. lt was held that the Delhi Urrion of
Journalisls could be said to have a representative charactels QUA
the working journalists employed in lrrdia*express and lhe clispute
was thus transformed irrto an itrdustrial dispute.

lVestern India l.(atch Co.Ltd. V. lVcsltern India'Match

jj
es'nr4IJJSlte.s Uden 1970) 2 L.L..I. 256 (S.C.)
The following tests haye been applied by the Courts in
determining as to when an individual dispute rvould be converted
into and industrial dispute:-
(1) If the cause of aggrieved workmqn is. taken up by appreciable
number of workmen or the union of workrnen ( either
registered or not ol whether recognized or unrecognized or
whether nrajority or minority union )or in ihe absence of an1,
union of workmen [-,y union of similar or allied trade and there
is a concerted demand by the workman tbr ledrcss.

@ If the rvorkmen espor,rsing it have a conmunitl' o1 interest anci

are directly or subst:rntially intercst-lir the ernpir),ment, non-
 employment, terms of ernployment or conditions of labour of
the concernedworkman/workmen..
(3) If such an interest on the part of workmen or substantial
number of workmen exist on the date of rel'erence antl need nor
necessarily exist on the date on which the cause occurs.
(4) A dispute would not be ceased to be an industrial dispute on
.
subsequent
/ ---- -nl;i-'withdrawal./ol
.. .-. i a cluse of
,
individual
Qgpor4ot
dispute previously espoused ( take up, support, charnpion.
back, promote )by a workman cr union-
-I
he net efl'ect of the aforesaid' ciecisions is that an

individual worker if unsupported by appreciable number of rvorkmen

or the union, has no remedy under the Industrial Disputes Act
dsp-r.:itt-is-pe$di*g-bcfsre-tru+h€ri+i,es-+n der+'h c

(ka) Industrial establishment or undertakins:-

 jl r1 liie si:ri rre ,,i
-lgg9nl!1nqj:j-i: melrr,s :erniniiijirt:
::.,i..'r .r

r'11l.j.ti; 1,..!"_j,"tl9lj{ -
ij.l lt ni:rv lr ibr I'ly t'cit;in rvh:risoel'i'i.
(ii; Siil lerlllinatiori shoulti not be as:,. ne*silie of pur:isiitl]ent hv
ri'av ci iiiscipiinary.a{rtir)o.
Folltrrv-i4g are excluded and rre not retr-enchment:-
(i) voluntary retireneni of a workman or
(ii) tcrliiiJlil.-ni on ;r-iiclting the :;gr oi:,i;;;eia;:niaii.',1: if iir::
contraci has stipularion in that behaif
(ii') telr,rination of service as a resuii ol non-rcncwal of
d()illreui knd crt crpir3 r.)f\(l"viccs le l]intl,ji-i
't()llaclt
(ivi on ground of continued ill health of r',,orkrnar
r
F oR .q!iY IiEA gfN-Wru jj{i_E'r EIt
li tneans ,-lischarse cf surl:i:ls sratT which ma.,, be due ro r,/ariolr!;

re1lsons such as econoi.ll),, iaiil,,tlisaiicit in indusl|r. ,'istaiiatio;r o1 a ne.r.,,

lul)1ltffyilg 4jeli"e.Dr, etc. iivery rerinination is I r: irenclrnrent.

( In Baisi i-ight iaihvay Co. Vs. Jogalkar K-.N. ( 1957) SCR 121 and
f{anprasaC Siiivs}rankar -chukla V. A.D.l)ivalkar ( 1957 I I L,l_,1 252 SC
lhr SC cbseneC th:rt statutory clefi;tiiicn cr the rvcrd fetrenarhulent
rneielv hii e npira-sis ripon ec.or,.,lnii conccpt (!t the rcr,# ;rnd ior any
rciisGt] wiratsoever mcant for arry econOnlir_- re:t_cill) rl i,at.:ccvet anil jt
L____
jlr:i! -'(r rl iXpl?ineil I distlrrrsr, .rl surplus j;ibcur frlrce in :, (.(tijlinr!int' Or'

, \i..li::i: :unr,rDg indusir,,. ;

rjjg.)-drE!-g.elg:e&-{€g9ds!-1il€.it-t:_?l::9.lojgEff*_c-{:q.a-hE:e.-tr99l:
i'' i : i in! c! r e,-cJ.j_!I!.:UllL!ri

A
 -21 -

;,i jii. ii, it,:ti]:i.t.rt ::,il:,ja ijlciuic tafmlt.:iit)ji :ri st : ices li:t
i;ill:,-i.)i:i\ r'.riiu:i stivitnt O1t 0te illo ilt'! lo'i;ae.
l;'I ::inllriiiii ir o1' sr : i'ice Jbr ioss'of cliriicicitcr.
3j T.:inir:rtirrn ol ser' i.J,.: or1 glounri lhrt iin liitplovee falied to
pass the prescribeC rc:;l for thg purpose r>i coniirmatiitn 0f
SCf\ l!c.
4) 'l ermination r';f ser',,ice for unauthorised xbsence from duty.
!i Siiikire i)lf ii.ie larii(. ii.,n lr;uslei roji.
eAsIE-SA3_SIlqUNrrr{!i-ra.lBErREryeutltt\r.
'feiinrnation of service
i ) i,.1, accepting the res!g:nirtion.
l) D'-:c iu frLll in cr c-sighi.

-t) i,:f il all(rn ol servjr-eof thc bcnkempj()\Fu |\ !,J.(:riin.: lc

ciii;iharlte urt ricr Sitasli! irward.,i
Ii is discretic,r ill llrc rliinrger. inl ro reilenclj irur .lrli iol prc-pcrr

fda q(\ I1S.

RE()UIREIVJEF{TS O!:I4\t,{D RETRINCHMEFi t -. Sec. 25F

(r-loliDiTiolis pttECD El.{] I rt RETRENCHIyIENT Of
\4;Oll"Kl\'{EN. who harve bcen iri corrtinuous set.vice for noi less than rxe
\ea r: -

(i ) Writren noricc of one nicnth inrlicating ihe l.eason tbr r-esorting

io relrancl'rinenl
(l) 'fhe retrenchment sha,;ld rot ire cffecteri ireftrri- il'r.: e:pirv of

said notit:e perioci.

{-.) ir :he allcr;riiiivc. ll'!e .,i1,rri{-nran shorii-l i.,- rri,.i r lges in iieu of
suclr i.r.iiiac.
 '.1.r-

i .l , i: r:1 ti,,'i, ri:tl| ! ,-..1lij..lliui) i\ )l-,:.:- 1. r"):l(rlitu iS

nee [].tii.

ii ) ('rr'r'rp.rrisirtio ir shall i:': t:qtiivalctll io 1-i C:ils

cvcr.) J'ri|l of colltitttt,;Lrs scrvice oi anf i]iifi /-) !

{) ita)ll lit.i.

(6) Notice should be sen ecl on the AppropfiuLe (lolt. in the

plescriiretl manner'!( Rule 7(.l of lnd.Dis.Cen:ral Ftulcs. i957.)

rRalClEBLil!: FOR RUt'RIllr'-lHltllNT { sec. 25'-{i-}

It is Lras,:tl i;r: tlre principr!i"'Last come tirst Co" to he iqllorved

!1-e-:CU.in4!!v er', Ccrlai Ii,:...l ncl t or: s t o bc I ir i t:t i''
i i I III

(i) the,'ro:krlan nlust b( a\\orkiltan rvithirt tlrv tl:!. 'rf Se:.2(s).

rlj Fie ltusi irc a ciiizcn ('l india.
i3) [mployeii iri irr irrci',i' i' a; <iefincti in Sct:.2(.ii
i,:) Fi.: silould bolollg 1o it I/rrlie ulxr ratcgorl'ol r',rrtlihan.
(5) Therc shc-rultl not be attl' agreement contrar)' lo ihc Principle of
lirst colgl-lgglp. In case of del'iation -. Lhert sirolld be

reliablc evideirce pref':rabiy recorded historS of i'rolkrnen

5ft1v,,iug his inef li.cienlj,, r.,t,t"LlfrEu*iii iiairiil.t! irlegulalrty ttr

ju.ti11,thc ckprrture l'o:ir rlii principlc 0t her\i rse rL'trenchm€r]t

i
v,otild bc iuvalid.
&!i EM P LQ!_l4Ellr_o F R It. w
An opirrlltunity:,lit;uld irc given to thosc r"''ito hai,,: bccir
iclrcl,:iled io: r'e- er.'rpio1'men t. ln Cillvtrpore T:tnntt.l' Ll<1.. \'s.5.
(j tii.r:r l9iili r 2 L"i.,.J.l r0 S.al.
 ll
!r't..l_!i-1 _i-.,, c.f;i_11!_; rn r u n.,

(i) ihe lcmpollrv closing of a placc of e:npirir ntent o:.

iii) iiie suspcnsion oi rvor.k. or
(iii) rciLisirl by iin ernplcller.io con{iirLrc io enrpJt.;11 lrny
nunrber of pcrsons employerl by hinr.

ercploy"=es to rrccrat Ur denrtnds.

Invovles element of rnalice or ill.nill, a motle trr etert pressur.e on
thc cntplo-t ces, econornic coerrion.
Suprerne Crrrrrt described lock ouf as tuldlgd!-l
tlirect opposile.
eyact opposite, converse, r.eeerse of strike.
)

tleleb pre.lenr
themsetves lbr rvork.
Whether lock-out justified, payment of wages during the period of
is

lock out and - would be an industrial dispute.

lYhether employer using the crosrrle to terminate tlre
services of the
workrnen or it was bonafide and for reasons beyond the
control of
the employer.lluration ofclosure is significant lo
tleternrine the
intention anct bonafides of the employer.

IsJ:uur
involves merely lhe closinq nlace of business and
not the busir€$
llQqF,

Sec.22 (2) An j", empl:i-cr ;.'arrl ing public irtilitr, sii,,,ice shall not
resrit 1,--. l{r,,.ii
 {i) \\,lthi)lit e-iving io cDlpio);ees ii llotice ()i l(ick out }.,,iihtn six
\vi.cks bcli)rf such luck out
(ii) ri,'iihirr l4 days of giving such nolice
(iii) bclbre lhe expiry oi rhe darc of lock ()ur spec-iiie(i in iiny such
r).) I t(c
(iv) ciuLrng the pendencl'of any conciliation proccerlings uind
r.vithin 7 dal's after conclusion ol such itroceetlings

General Prohibition of lock out - Sec. ?3

Any emp.loyer engagged in public utility service shall not resort to lock
out;-
(i) duling the conciliaiion procecclings b:forc tltc i-roartl rrrtd 7
clavs after conclusion of such proceetlings.
(ii) During rhe pendency ofproceedings before Liibour
Courr,l ndustrial Cor-rrt, or Tribbunal. Nliional Tritrunal and
lwo months afler the conclusion of such nroccedings.
(iii) During the pendency.of arbirration proccdings betbre ani
Arbitrator and two uronths after the conclusir,n oj'such
proeeeding.
(iu) During any period in which settlemenr ol award is in
operatioD in respecr under it.
"f ""y T3*r_::vered

Sec.2 (q) Strike : means

n of work tion. cl too )b cif
pe_$At6_ employed in any industry acting in combinarion, or
a concerted ( concentrated, combined, intensive, deiermjned
, resolute )refusal. or
Sr) a refusal under a common understandins.

of any number of persons rvho are br'have been so employed ,-

ntinue t

It rneans sloppage of u,ork tr1, a trottl of worknen acting collecfivel3,

to bring pl'cssul'e on employer to concede to their dcnrantls during
an industrial dispute.
 such ccssati.n r.rf rvork oi'.atuaoil,tu-r""r,, wrs
al concer.tcrr *ction for
the eniorr:ernent oi their denrands.

Duraticn of cessltion ol rvolk is intmitterial. Cessation

oi.,pcrk frrr
Eren.h,-rli e{hou t..anlr,irnls io strikc. ( patitla
Cerueirt Co,l_td., Vs.
celtain rrorl<ers ( l gSS) Z LLJ 57 LA.f

Standard Vaccum Oil Co. Nladras V. Cunaseelam,

r\1.G> ( t954) 2
LLJ I956 (LAT)
of the Cornprny wanrect ro celcbnre tSl- Av AS j\1tav
I1:.t::,ll.tr
rray. I irey rr_rlrresred ernplo.ver
to dcclare that a holida,v and reerll, 1s
coi]ipensate the' loss of rvork by working on 'livcn
a Suriday. :iier
prolracted neqotiario;is, rlrc Co. <.iiti not;ccept rhe
rL,man<l ro cieclure
l!,u ltav. as hoJiday. t', ir4ay was a half u,oiking clr.. ;,l; u,orkers
enbloc applieil lbr lea*e. A question arose rvhether
tire absence ot
\!orKmen en masse amounted to strike. It vras
held thai tltcre w.ls no
cessation of tvork or concerred refusirl ro worl(
_aldL jle_ jtlltal_ellbe
&
Kinds of stri ke: -
tliGenelal strike : All join together for ccntmon cause
the workrrten
stay awayt from work. Token striL" i, ,l"rn a kintl
1nd of general strike.
GS is for a longer period, and when employees
fai! to achleve their
objecl b], other means. rhey resort to general srrike.

-,__
rr:porr lor duries. occupy lhe premises. but clo nc]r \ /ork,
:Tft:{":.
SC held that refusal under common undeistanding
to continue to work is
a strike, and if in pursuance of such conrmon
und-erstanding the
empl,'ryees entered the premises of the Bank and refused
to'tate their
g.llt,'i lh."i'-|"*: tlaiyoll{ no doubr be a srrike.(!unis[Ns!!sna!
nk l-td.. Vs. Tlreir Wor.km AIR 1960 SC 160. )
ne Sab l3&SS.crelafy_Otudqn of pNB emnl
SfSied_
r7 days leave - leaved n.,rl.,,reo
Sabban'al abserire tl fiom clurr - chargJsheeted
uffiffi.-fi'-
acceoted show cause notice..isent by RpAD
- SoLrrr.i.iu..,l ,o
and pending enqurry
suspended him - Union insrructed enrployees
to itick tritneir sez!ts and
refusc. ir) lvork urrtil poliec:lr.:rvened
ind tjireateneii ,ures: _ crorvC
gaihcicd ouis jile oank slloutrd slo;1aris in
sLippor i oi.clt-ri_-.Joyee '(_ 60
efilpli-;\'ee:, !i::c .tri ii,\eu j.icii iltis led ro
- induitr.., irrrli. :.lr.ikc rn lli:lhr
 -Iir-

ariri UP. lliriil,. gai'r-. r,oi:iui u.l.riass strikcer:-r resllriir riuij,by speoiiiecl
d:ite, ll:e1 wo,-i1cl be irerieu ts hariing voliiirtarill'ceiised lo br cmpioyi:e.;
aad faiiL c Io leport ternrjn:ited srrvices rrf l5t) r'rrrOit;., r:s i:ficr giving
anothci aharic.t to iesitnli duti
Ilank saiil th,:y cliC lot vacate rheir seiiitr inspir: of iiii<c;i r,.\. )upeii(rr
oflicers.. ancl it ani-runied togrirninal rresspirss - SC hdd-fl4i thel:e
rvas no inteniicn ro insult or iii-olsu-p::ffiffr.." t Uu-, rc n,.Gi,*ll.
bank lo ccnce(ie t0 their demancs.
Reiusirl LinCer cojrmo unclerstancling to coi)tinue to u:crl: irnd ir)
pulsr-ltljrce oi ii ihcr en.]pl,iyeus entered lhe premises nld rrfused io iake
tlgr pcns il rir.ir ltand:. ir ln:ountsh
fuur'.'ettlit''rI.,,.,rj.t':j(l|:t.jllii:jg
loss Loeroplovri.li is ltot a strike \i,ithin the ritciiliilg (,1 thf tcrro uudcr
the Aci. but is scrious mis-conduct, r.vhich is in:;triiiius jii i:s natr.rr.,i and
can:roi beAc0nlena Led. ( Sasa l4usa Sugar Works rFvt.) Li;.i,-r/
Shobraii lKhan and otkers rtIR 1959 SC 923.)
L t-4^:l. d\ce-pj-aA& (qao*1 l"**4q
(1-1'-"-*r lu^+,{4)
(1) Sru-pg$elilililIe -1iisi611 slnrp:,rh\ rvi:h riii .:: lr;1,,:.,: ,voLkrrzzl
/{.(}rrot ialiing r.r,iihin rhe ciefinition - essentiai eicnlllr rc ute it agaiiist
nllrllilgenlenl is .rbsc nt.. NIa u:rgi lerll can tirke ,ti..jniii:r,) 3cti,; fCr
ab_sence on the grountl 01'bfeach of service conCi:iuiis.

(5) Hunger Str"ike:- Resorting to fasting on or near thi piitc. cl r.rlork or

the residence of rhe empiol,er. In Piparaich s sal_ltijlg_lll_Js.
Tbcu-I4/orkmen ( AIR I960 SC 1258 ) - certaiA. employees holding
liev positions resorted to hunger slrike at the resr,,lenic of fulanaging
Directoi. u,irh the resuii that e'/en those r,vorkmen rl ix-r reportetl ibr tlutv
could nor ce giverr rvork. l{elJ thal cnncerled riiion li the u.orkmeir
who went on hunger srrike amounted to strike vvithin ihc meaning of this
sub-secli0n.

K ) ll'ollh tc rcle -Thev str:ictlv adhere to ih. ru!elj ,.r,hilc oerlbrr..rins

their Llutics r"-iich oriiir::rrilr'iheir do nr,t ol;ser.;,,. ii:ijsLLlis inlo sltr..^. jni
dor,v:', ll,, i..,.tii:- aau:e iri.:jonv,rI iel]ae tit pulriic t1r-r.t er1:ll:1:.1r:itci.li iil
empit\'Cr. lr;s riCri Slrir.'.:, bilcl,Lr.'sc tilera iS nC!:jtai,irtiige lt ti,trr.k.
 Sti'ike has, irorvever, :r.r-l adyerse eft'ei:i apon Dlcrriuctiol il*ri upor:
tlie inriustr,r:. Il, is, tlrerefbr.e, riesir.ahie that ii sirsul,J i:e iiseri as a
lasi re5or'l ryhe* all olhe. avenues i.or sltllen*nt ll int!csti:ia!
tlispules hilye x lr erl titlil:.
,t-I*JThe SC in {--handranalai Estatc. 1r'. Their Work-rnen { 1960 2
)
2,t3 SC. )r.ecognisecl ihat sirike is a legitinrate and sonretimes
unavoidable wraRo/tha hangof tlie labour.

fiel11ldltggf st{ikes ( Sec, 2

Anl,.persol einployed in a public utility s.:rvice shall not go on suike jn

.
btiich ol c0rl ial-'t;-
(j) without giving to tlic errployer a nori.e of ilrikc rvirhin six
' ',vecks befoie striking; or
(ii) u,ithin 1.1 days of giving such rorice: oi
(iii) Lreibrc the expiry of the clare of strike speci lit:d in irnl' such
nctice :

1r\,, ulUrr! Ine pendencv of anl conciliirt;(rn f.io|J.rrli,lgs ircfcrc :,

conciliation officer and seven days aiicr ih.j corclusion ,of
such proccedings.

Sec. 23 - General prohitrition ofstrikes

. .,}ry u'orkman who is is employed in any industrial esta_blishment

slr:ilygo irrl strike itr breach ol conlracr - ;_
(a) during the penclency of conciliation proceedings before thr:
Board and 7 days after conclusion of sucir proceedings.
_.
O, Duling the pendency of proceeding.s betbre Labour
Court,lirdustrial Court, or Tribbunal. National Tribunal and
lwo morths after the conclusion of such proceedings.
(bb) During the pendency of arlritrarion procedings before an
Arbitrator and two months after the conclusion of such
proceeding.
(c) iluring ani' preriod in which sertlemenr oi,-iu,:ir-ci is rn operatri_,n
tn respeci of any matier covercd unddr ii.
 -18-

9qq.-!i-:11..:g:t!-c!4!ss-aryllas!_suts

( l)4 stlike or lock shall bc- illega! it"'_

(i) it is comnencecl or tlcclarecl in contraveiltion ol
Sec. l2 or 2.1 o,.
(in public urilir) service _ Ser.22
. )( in anv industria?
est..including both public uiiliry antl non_pr.rblic urili.ty service.)
....
(ii) it is continued in contravention of an,v orrler made under sub-
section (3) of Sec. l0 or sub_secrion 4-A of Sec. I0_A. by
the
Arpropriate Coverrrnrent.

Sub-sec.(2) provides rhat whcre a strike or lock_oui has alreacly

cottrurenced and is in existence at the tinie of reference to
lhe dispute to
a Ro;ilrl. .in Arbitrator, a Labour court, Tribunal or Nalional Tribunal,
the continuance of such strikc or lock-out shall not be deerned
to be
i.llegzrl - provided such strike .r lock out was npt ai its comrnencernenr
in contravention of provisions this Act or the cotrtinuance rhereof
rvas
not prohibited u/s. l0(3) or sub-section (4-A) of Sec. 10_A.

If a lock our is declared in consequence of an illegal strike or

strike
declared in consequence of an illegal lock-out shall not be
deemecl to be
illegal.

eaceful strikers should not be subjected to extrreme penalty

of
tiisnissal as it would lead to mas$- dismissal cf workers.
The SC observed that participation in an illegal strike may
not be
rtecessarily punishetl ivith disnrissal, but u,hen
an encluirv has been
p;operly held and the er:rplover has itnposed the punislimcrtr
of tiismi_r_cai
or thc emplo,vee rvho has; bcen guilty of mis_co|duct of jciining rhe
 -2t-
substantial intelest- with whom they have under the scheme of the Acl, a
community of interest."
In Bombav Union of Journalists Vs. The Hindu, rvhere - 1he cause
of a working joumalist was taken by a Trade Union of his prolession,
but not by otherjoumalists under the employ ofthat particular branch
office of the Hindu, in which he was employed, the Supreme Court
demonstrated how the test of direct and substantial control could be

applied. Justice Shah observed:-

: The principle that the persons who seel< 10 support the cause ofa
workman must themselves be dircctly and substantially interested in the
dispute in our view applies to this ilass ofcases alsoi persons who ate
not employees ofthe same employer cannot be regarded as so interested
that by their support they may convert an individual dispute into an
industrial dispute. "
Individual dispute and industrial disDutc :- Before insertion of
Scc,2-A of the Act, an individual dispute could not per se be att
industrial dispute, but it could become one iftaken up try the Trade
Union or a number of workmen. The dispute should have general
characteristics ofan industrial dispute ii.e. the worknren as a body or a
considerable section of them make common cause with the individual
u,orkman.

I
 l1

ii t.. t:. it,:lci tirai ihe retrenchl:d irclkmen rnust bq grvra ar opportu iii' iri
il -?mp:.J]'ni,": ni wh3r the etll:,-lo1,er has ro ernpioy zin acitjiiional hirnd c!
orhei ne*' recruit.
ilu shoulti have been rerrdnr.hed bcrbre appiy ing ror reffi&h#il
t
Hc.hculd be a cirizrn of lrrriia.

He should apply for re-ernployment in response to the notice by

the cnlDlcyer. fbr the sante catcgorj/ from which he has been reir"enched.

gsd!-Ii
undertalins.
_ The Act siates that cornperrsatiou to thc workmen is to be given in

ci.:e of ciosing dor',,n of the urdertaking ibr any reason. If the l

lundertaking is closing down d'.re to unavoidable circumstances, tlie

v"or'*:m:rn iS entitled to comper;s,,ttioD not more ihan his ar.erasd pay lbi 3
lllonths.
If an un<lertaking engaged irr mining is closcd because completion
of mining op€rations on account of exhaustion of minerais ill utiil irrea.
workurelr are not eligible for notice or compensation if alternative
ernpiol'nreni is given protectinq r*:ages. Fmployer is bound to pav
compensation under the terms ol alternative emplcyment.
If undertaking engaged in construction of buildings, roads. bt.idges.
canals, dams, etc. is closed dut: to conrpletion of work within rrvo years.
\\,orkcrs not eligihie lbr noticc/c()tnpensation. If w-ork is incomplete
\i,'1il)li, t\,t'o ye:irs, tirei'are elig;i;le f+r rlc,tice anri comirriisaticn.
 l8
Sub-sec.(2) provides that wh,-'re a strike or lock-out has already
ctxrmenced and is in existence at the time of relerence to the dispute to
a Roard, an Arbitrator, a Lahour court, Tribunal or National Triburtal.

the continuance of such strike or lock-out shall not be deemed to bc

illegal - provided such strike or lock out was not at its commencement
in contravention of provisions this Act or the continunance thereof was
not prohibited u/s. 10(3) or sub-section (4-A) of Sec. 10-A.
If a lock out is declared in consequence of an illegal strike or strike

declared in consequence of an illegal lock-out shall not be deened to be

i lle ga l.

Bata Shoe Co. Vsw. D.M.Ganguly 196f I Lu 303

The SC observed that participation in an illegal strike may not be

necessarily punished with dismissal, but when an enquiry has been
properly held and the employer has imposed the punishmettt ol disnrissal
on the employee who has been guilty of mis-conduct ofjoining the
illegal strike, the Tribunal should not interfere unless it finds unfair
laLrour practice or victimisation against the employee.

Puniatr National Bank V. Their Workmen 1952 II LLJ 838

for participation in an illegal strike would be iustified. if the
-Dismissal
workman be guilty of any act of violence, intimidzition or any other
subversive act.
India General Naviqation and Railwav Co.Ltd.. and another Vs.
Their Workmen

The question is whetlrer deduction of wages for the strike period can be
made or not. In .riew of rhe decision of the SC , if the strike was illegal,
workmen are not entitled to wa€les or compensation and lhey are also
liable to punishment by way of discharge or dismissal.
 ')'.)-
.illcgoi iirike. ihe Tribilt:rl
shoujtl not inteifere unless it fi;tcis Lr nliiir
i,.irr.rur pi:;. ii;e or licrrniisari,-;rr
against the emplol ee.
Puniab i,{a
lig.nal Bank V. l.h-qir lvorknren t952 II Lt_,i E.}fJ
_l)rsntisiiil for- p,rliiip:rtitrn itr ;rri iliegal strikli bc.justilied, if thr
"luid
rrillktttan [-e sLriitr r)f,ant ir,., ,.)l violence. intimidarion
....., .._.
or iu.ly other
su hversive act. \
ll*';1$i"r',Tl:,'ter'rd other.Vs.

I
!iori..or wases fr-,r ihe srrike u:rjoci
,1,,.1:,j,::.j::l," l.:I l.Ih.:,i..,tI.f
of ihe rrccisiciilq
cail D{:
:]li:1:.:',::,,'1" "ierv ,li-d;,,ii; ,u., illcgal, tfe sC
;::J,Yii:::.11i
enr; tre d to was(,s o r
liairie ro punishme nr bi rvay orir;s.r,u.ge
;; ;,; ;;r
,
l;:: also;;\;.,
JHJk;;;;i.'
t: :3 + :j. +;j: * * :;::tx* ,::

(n) Public Utllitv Service:_

Anr. railu lv
service. c r jllii.-1l.r,rspjlr sgrygeJor_qhe
ran.iarlc ol
i)ass('ngers or gof'(ls h| air. arrv servi'.., ruirh \,,^rr.;-^ ^....
rloc!. any sectio.r ot?r
---:- 'l!!l!,i:,.! .ltl,tl:
9fl yo_rkll_q ,oi.ty o!!,tr, or-
:rj ryj$ *.rtIgl ,Tplgrgq_rh9lg,-tlqg99nds, u"y
!g_sral.
telegrap.h, or relep!glC
lg,.jll"..l1_ildu.,ry rrpptytoq!91,9r., tight or
-
_I11J1!:1i 1I illgT olpirblic conservTgy
Anv i nd u
"1ra,i",ir,
s.Liy' speci fied,Ilil!!]S!.!let!ge. which Appro. Govr.
rnay ,r pu-b.ric emcrgency or puirlic interest by notification in official
gazetiee declare to be a pLlb.Uc_ir rili11, tglyjgg Jbr a perio.J of six months
at a rirnTwilich can be exrendetl fr.onr rime to
tinre arli,.ne;;;;a
inonihs-
 1')
(c) Board : Board means a Board of Conciliation constituted under rhis
Act. Instead of using a large expression a single word denoting rhc sanre
meaning as " Board of Conciliation', has been used.
(cc) Closure :- Closure means the permanent closing down of a place of
employment or part thereof.
(d) Conciliation Officer :- Conciliation Officer means a conciliation

officer appointed under this Act.

(e) Conciliation Proceedings:- Conciliation proceedings means any
proceedings held by a Conciliation Officer or Bcard under the Act.
(conciliation means :- pacification. appeasemen t. reconcil iatio rrJ,e_:

urol. settlement. ccm )

(ee) Controlled industry : Controlled Industry means any industry rhc

control of which by the Union ias been declared by any Central Act ro
be expedient in the public interest. Therefore, a controlled industlv

implies an industry which is controlled by the Union Govt. But that is

not enough. Any industry in order to be controlled industry must not
only be controlled by the Central Govt. but must also be declarecl by the
CG to be controlled by the Union and that such control by the Central
Govt. be expedient in the public interest.
Two requisites necessary:
a) Any industry which is actually under the control of the Central
Government.
b) It should have been declared b1' a Central Act to be an industry rhe
control of which by the CG is expedienr in public interest.
Expedient means : convenient. practical . useful

':

./
 l2

(f) Coun:- Court nrean: ii Courl of Inquiry consfituted under this Aci.

(C Emplover:- (i) The employer means in relation to an industry,

carried on by or under the authority of any department of the Central

Government or State Government the authority prescribed in this
trehalf , or where no such authoritv is prescribed the head of tirc
department.
(ii) So also the employer r.neans, in relation to an industry carried
on by or on behalf of'a local authority, the Chicf Executive
Officer of that authority.
Therefore, the ernployel lneans the Central Goverrunent, or State
Government or the local authr.irity in relation to industries carrietl on b1,

or under their authority respectively. The definition is ,neither

il does uot inrply that under rhis Acr
exhaustive nor inclusive.
employer only means CG or SG or LA, and where the industry is
carried on by any other authority such authority shall not be the
employer. This question u'as argued before the Federal Court in
Western India Automobiles Association V. The State of Bontbav{
1"11). Th. Federal Court rvas of the opinion thai the
,r
definition i6 neither exhaustive nor kclusive. The definitiorr of the
term employer in relation to industries carried on by CG/ST/LAS has
expressly been given because it is not easy to discover in such cases
with certainty the authority or individual of that description. The
industries run or orvned bv the authorities other than CG/SG/LA
rvere also covered bv this expression under the Act,
 -l+-
Where a worker or group of rvorkers labour to produce lloods or
seivices and these goods or services are for the business of anothcr.

that other is in fact the employer. ( Hussainbhai Vs. Alqth Factorv

Tezhilali Union (AIR 1978 SC l4l0 )

(ss) Executive:- Executive in relation to a Trade Union means the

body by whatever name called, to which the management crf the affairs
of the f'rade Union is entrusted.
llf Independent : Section 2(i) of the Act gives meanrng of the

( || u ord " independent" &.r th e-.U rpp!g!-g!' atrDointmertt of a

oerson as the Chairman or other meulfier -of a Board. Coult

or Tribunal. In order that a person may be eligible tbr his
. appointment to these bodies he must possess two.
q ua lificat ion s: -
(I)He musl be unconnected with the inclustrial dispute in questiott;'ttr

(2) He must be unconnected with any industry directly affected by such

dispute.
The proviso attached to this sub-section says that no person shall
cease to be independent merely because he is a share holder of an

incorporated Company which is connected rvith, or is likely to be

affected by irrdustrial dispute in question. But a person, who is a sltare

holder of an incorporated company shall disclose to App.Govt.
the natule and extent of the share held by him in such Company. These
precautions have been taken so that any person having special interests
in a Company may not be appointed. Where the nature and extenl ol lhc

A
 - 15-

shares held by a person is so large that he nay not remain in<lepeneknt.

the Government probably will not appoint such person.
 Scc.2 (kkk) - Lav-Off:-

_ l.av- olT nt ca ns:

Thc firilure # r.efusal or inabilitv of an rnlplo5,er.
-9:Laeea!-ql_a!
o shortage of coal, potver, ratv material or

ci) lhe accumulalion of slocks, or

cii) the break down of machinery or

Lo r" u-e c,l e .l
'^;I;P'J) U'l .
!9 ror any other reason
:Io give cnrploymenf to a rvorkman .rvlrose natne is on thc nruster
lollof his industrial esttblishnten t
(.)r rvho has not bbcu relreuched,

l'lrl ( iug ;tsidc rvorkmcn telnpor.arill,_

In r:rnergencl, pcriod it can be done but no longer than po.iod of
erncrgency.

llnr plol,er-em ployce relationship is suspcnded for that period btrt

does nc't conlc to end.

T'he unernplo5lntul is on account of cause independenf of any action

or inaction on the pat't of fhc rvorkmen tlrer4selves - it is concerned
r'r'ith employer.

l'hc l'olknren are laid off for thc reflsous bcl,ond control of tfic
enrploycr.

tt is temporary stoppage and cmployer cxpects that the within a

teasonable tinre the busincss or industry u'ould continue and all thc
cmlllopyces u,ho havc been laid offrvill be restcr.cd.

No indication fs to the period ol tirnc of lay-offl

 (l) itl er.v- r@ nruster roll and rvho presents
himself for rvork at the appointed tinre durins nornral rvorkitrg hours on
a!]fdAy anC is not given el
- he sltall be deemed to have been laid-otTfor that da

(2) Despite rcmaining prcsent, if a u'orkman is not gi\,cll \\'ork a1 the

comrnencenlent ofany shift for an1'day. but he is asked to report in the
second halfofthe shift, and given work in the second half, then he is
deenrcd to be laid off onlv for one half of that dav.

(3) Ifpresent but asked to report in second half, and not given rvork in
second halfalso. He is deenred to have been laid off for the second hall
ofthe shift. and he is entitled to firll basic rvaees and DA I'or that
na rt of thc dtv.

Itiglrt ol'rvorkman laid olT for. conrnensallM

A n'or'hcr cnn qct lavoff comocnsation subiect to follorvinq

.
- coudifions:

7' i) his nanre must be on the muster roll ptl 0rC.ry[S!=egb,

,, ii) he nrust have cornpleted one )-eau's continuous service'
.-,
!]])he nust not be ba lyorkman,

!)U/s.25-C - entitled for compensation for all the period ollalr 6ff
except for such rveekly holidays intervening. Compeusation @ lnV, of
tbe total of the basic wages and dearness allowancc.

2) If laid off for nrore than 45 days in any period of 12 rnonths - not
eligible for compensatiou aftel cxpiry offirst 45 days ,ifthere is such
asreernent.

3) Iflaid offfor more than 45 days during the period of 12 months -

the cmplol'er has right to retreuch such rvolkman u/s.25 F after thc
cxpir5'of45 days oflay off and lay-off compensation rnal,be set off
agairrst tlre retrenchment compensatiorl payable.

,d
 -:l "\: ':-- 1''t:=-),,-- | -.:L:' "1-''
!) lf lre refirses to accept alternative employn{ent off.reA Uy-Q{€_ .
emploer.
!/ Such employment is offered in the same estb. or any otherest.of
same employer, situated in sanle town. Village
or rvithin a radius
of 5 miles from his prevrous est.
l/ In the opinion of employer such allernative ernployrnent
does nof
requrre any special skill, or previous experience
' by workman, and wages paid are protecied or sarne
and can be done/
,uug", ur"
offered in subsequent employmeni.
t) It not present for work /at the est. at the appointed
day during
n-ormal rvorking hours at least once a day.
_
l/ Ifsuch lay off is due to strike or srowinj dorvu of production
o'
the part of workjnen in another part of tj-re est.
i-3
Sec, 2(l) Lock-out - means

( l.) the temporary closing of a place of employntent or

(ii) the suspension of work, or
(iii) lefusal by an enrployer to continue to etnplol, any
number of persons employed by him.

Coercieve process - A weapon used bv emplover to persuade the

enrplovees to accent his dentands.
Invovles element of malice or ill-will, a mode to exert pressulre on
th,: trnployees. cconomic coercion.
Supreure Court desclibed loclt out as an,tithesis ( direct opposite,
exact opposite, converse, reYersc ) of strike.
Workmen are asked bv the erltplover to keep arvav from rvcrk. anr[
therelirre. rvorknren are not uttder anv obligation to nrcsertt
thdmselves for work.
Whether lock-out is justified, payment of wages duling thc period of
lock out and - would be an industrial dispute.
lVhether employer using the closure to terminate the services of the
workmen or it rvas bonafide and for reasons beyond the control of
the employer.Duration of closnre is significant to determine the
intention and bonafides of the employer.

In Express Newspapers Vs. Their workmen - SC held that lockout

involves merclv the closine olace of business and not the business
itself,

Sec.22 (2) - Any employer carr,ving public utilitl' servicc shall not
resorl to lock out :-
 .:lil

COLLECTIVE BARGAINING

In the of laissez faire ( non-interference )employers enjoyed unfcttered ( frcc _

era

ultregulated ) right ro hire and fire, and they had vast

superio, bargarnrng lxrwcr, and
therefore, lhey were in a position to dorninaie over
workmen in ever), Ixrssltrlc 1\a\,.
They naturally prefeffed to settre the terms and
conditions of emprolmenr of rvorkrnerr
and disliked statutory regulations thereof unlqss
it was to thei. advanlagc. Hou,evcr.
this tendency broughr to the surlace the potentialities
of collecrive bargaining. Thc ruly
\\'il)/ to curb this tendency is to do away with
lhe domination of arl-y rrnc class o,.,er
another. The entergence of combinarion and legal
recognition of unitcd power is brscd
ul)on rile strong bargaining powcr of management
as against. \^.eak rnd unorganiscri
workmen. collective bargaining is the foundation
of ihis movement and ir is irr tlr.-
intcrests of labour that statutory recognition
has been iiccorded to trade unions. arrtr trrcir
capacity t' rcpresent workrncn, who are rnenrbers ol
such bodies/ Bur ol coursc, thcrr
are certain limits to this doctrine,
oiheiwise it may stifle ( suppress/srrangle,/repress rhc
)
lrecdorl of an individual worknian. The representative
powers of organisation ol. latr)ur .
with regard to enactments, such as the Industrial
Disputes Act, rvill havc to be ioterprclcd
in thc lighr of inclividual freedoms guaranteed
in the Consriturion.
The system of collective bargaining as a method
of settlemenr of indusrrial disDutc
has bcen adopted in industrialry advance
counrries rike rhe Unired States of Anrcrica antl
'United Kingdom, and has
also recently been adopled in some Asran und A,iici{r
'cornlries.
lndia which has adopted compirlsory adjudication
syslem has also acccptcd in
inciple the system of collective bargaining
but has hardly raken any step, tesisla{ivc or
otherwise, to apply il in practice.
Collective bargaining has developcrt ro strntc cxterrr irr
India since Independence.

...2
 \

llAItCr\lNlNG
IL CONCEPT AND MEANING OF COLLECIIVE
" Collective bargaining " was coined b1' Sydne'v ttnd Bcatlic€ (
The expression
97 ). This was widely accepted in thc
I Jrtitcd Strttcs

I Amenca.
Harbison ( F.H.Harbison. Goals and Stratepy
in Collective Barsainillg' tlS4lqr!!.!!
under:-
Bros. 1951 ) defines collective bargaining as
haYe both common
" a process ofaccommodation between two institutiotrs which
and conflicting int€rests. "
Ottce Gen*.a' Collectir c
In 1960. Manual published bv the International Labour
hargaining has been defined as:-
of emplgymeut betwcen a4f
".negotiationsll'about working couditions and terms
organisatioo' on the one
enlployer,.egronFofJmployers or o9!.oI.r,n9!9.e-Ftployers'
representqtiyi Jvorkers the other' with g
hand, and,p-ne,.O!['mor-e -oJgqlfsations"op
r ic'," tc reaglrirrggglceir:eu i'r'
as:-
gUgL [leqts sAllective-bargaining
benefits derived from induslry amone ell
" ,1s..,q,,{*Frgtrfuf; $jslribute Jnu,ilirpl)1 th€
th'
,n" orli,1, ffi.g h, 9PP]oyqe+ $q unionql"thq maEagement' lhe customers'
"
suppliers and

National Planning Association' 1949'

the authors rcglrtling thc
From the above, We find that there is no unanimity among
nrcaning of
cs and conditions ,.rf cmPloymen' are resolve(l
by.&bicLproblemE'of wag
.ts. a .methgd,
menl. ln cflecl il is
amicab-ly,_ rn4 yolunt?Fly Pgtweoq l.abqur. and the
a Pusittessrde{ &tbi$hil ,,!hp,i"price ot:labour ,serviges 'and the tetms and
is the technlt {":
cond.itions of labour's emPloyment iCollrctive bar8ainin8 l:!Ti
regulation of industdal relations. " -1

/
 -\

'J,

A. T:PART} ESX'ocoLLEcTIvE BARGAINING

Collective bargaining involves two pa ies, namely, pllr4tiagement
(ftnDloyerhbpresenred eitheBalgrne,ixithrough,EriiproyefsB.sscibiation
of..F.ederation:of
Ernployers on the one.hand and ,Workers.(employees) represented either
through a
Union or Worken'f0'deration, on the other hand. It has, however, been debated time
and
again that affipresriatative bf the public should also be included
ro represenr rhe inleresl
of public at bargaining table, but has not bcen used much.4*ts0rtram F. Willoox.
A
Skctch of the Federal l:,,v of l:bour in the Llnired States, )

its.,. .
Thr: Inrernationar r:bour organisation has dil.ided rhe subjell matters of co ecrir'c
I
bargaining into two categorics:_
(i) Those which set standards of employnena rvhich arc
directl'y applicable
{o t'clations bctn €enFn,indii'idua.l
-e;nplcyef an<! :,:,oi!i,-,i. li inr:,-i.:!:. ,)
fryages, f9_rking&QlrSililuding:overrjmd, holidays, wjth pay, and period of
trotice for tetmination of contractr:'

fhose which regutate the relations between th€ parti€s to th€ agreement
themselves and have no bearing on individual relations
belrvccn
r employers and workers.
It includes (i)'rr:rovisironsf,or.enforeementfcoltective'bargaining
(ii)nelirodsot:setlling
individual dispures. (iii) co'ective aisput"s irctu,ing
;;;"r" ;;;;;::
lo conciliation and arbitration (iv) regog ti6 ",";";""
of a union as bargaining agent for lhc
t workers (v) giving
of preference in recruitnjent to union members seeking employment
i.(vi ) duration of the agreement (vii) undertaking nor to resorr
to strike or lock our during
Ile period and (viii) procedure for negotiation of new agreement.

....4
 1

Bargaining
The.Internaiional Cofederation of Free Trade Union called Collective
'A Workerls Bill of Rights" lt enumerated the ufollowing objects
of tlre Union in

Collective Bargaining.
' 1. To esiablish and build up union recognition as an authoritv in the
srtrk

place;

To raise worker's' standard of living and win a better share in companl

s
2.
profits;
3. To express in practical terms the workers' desire to be tr€ated flith -due

Jglggt ae!-.!q4bEy9-d9qr-ograt!9 parricipatiorl in d-ccisicn aflccring thcir

working conditions.
4. To establish orderly practices for sharing in lhese decisions and t0 sc(tic
disputes which may arise in day-to-day life oi thc company'

5. To achievc broud general objectives such as dcieniling and Ffornoting thc

workers' interests thoughout the country'
(Ref. Mary Sur - Collcctive Bargaining , 1965 ).
The ILO also states that:-

In collective bargaining the &gbjgpt is,..to ,reach . agreement or,-wlgll jo{l-otlr,:r

?.condirions,of..,e.leplwa"nt uu9u119191 q13.111"14_"q1,'s!h o{:iq:11 -"-|"MIG 9y
!--,:i-4figlqe-r"'1'l' _ t-r----:4
pul
il-o rqacir^qrqgpElqrqise. When a bargain is reached the terms of the agrecnletrt-are
into effect.

Thus it is evident that thepEne,I,.bj*1.o.-fJ'.th9'S.!.-!b91irp @;gaining is to resolve the

no. p3rmployment' terms ol
differenp$*Fj-iwg$I.Ihe parti,ggln-p5pJtl-pi enplqyqfent,.

The duration of collective bargaining agrecments vary from agteemenl 1()

.,'5
 ----

agreement. There is a general tendency on the part of the Union to have lhe ontract ol
duratloni but rhe {nanagement on the other hand prefen..agirfone.qls o{ long
f----------------hort

duration.

optrons to renew.
in LIK "open end'contracts, which can be renegotiated on ooticc at
,iany time, are tbe rule.
PRE.REOUISITES IIOR COLLECTIVE BARGAINIIIG
g{"'-Fiiedom of Associatiori :- ln order_ lo achieve collecrive bargaining it is
cssential to ensure that lhe work3rs and ernploycrs must haYe
freedorir to fr:rm unions or associations. Ihe dcnial of such frecdom negatcs
collective bargaining. Arricle l9(l )(c) of lhe Constirution guarantees rhc riglrr to
iorm Associations of Unions.

For thc success of rhc Cr:llcctiv:e

tSargairring, rr is also es:'cnttal that there should 0c lstmng, rudependcnt.
femocratic; and we|l itrganised rrade unions. The {iiorganised Jaborlr is rhc
{utdle in its suc@ss. fn India, however, rtre unions are generally weak, and
rrvalry on the basis of caste, creed,
Comc in the rvay of successful Collectiyc ljargainine. Furthcr;.tivision of union
pn the basis of political ideologies furher retards Lhe growth of trade uruons.

:; Recognition ol Trade Unions as

barga iling agent is the back-bone of collective bargaining.

D. lVillinsness to pive and trke LThe mutual trust and appreciation of
the viewpoints of the management and uni<ln is also essential. The

diflercncr.:s between lwo parrie s can tre adjus;ted.!y compromjse and concessitln
lr lhc el:pectation that agreeme0l can bc reaclrcd.

...6
 -t,-

f. , Regulation of unfair labour nractice or victimisation:;

requisite of collective bargaining.

ANTAGES]

(I ) It is-a svstem based on, bipa ite agreemgnts, and as such Supreig{ to any ar.angemenl

i{rvoivir-rg tbtri pgly intervention in &9t!-..n.*tti"h .essentially concem employers and

(2) It is a gg!91t.{nllefficient methg+gf,Se.l!13,{u-9-4t.qt.industria! dispuqes antl avoids dclar

arld. unnecpssary-iili gation.

(3) lt is 3 dgnoj:&l[g method of se[lemenL of industrial disputes.

(4) Ir produces l4gJg,,Sl;noru_ocs ielatiolsiiip between employer and $'orkmen. rvhich
benefits both.
DISADV
(t) Wneni[iii#ir[inC failsintolerableipld!9glpg.tpjune.r,crc'rt anc.j there arc situations in
which a serious strit<e and gU-O-bnBedrilril95ipply*9.gunot.be tolented.
(2) d$n,F:Pfinchlip.,;epteaentetisl, gl,UftFnrgginipg table, mav causc ltann to public
;interest. Li:rions and Companies are in a position to agree on wage increase thal will

J1 Collectivc $argaining sctdeqents-(lo. y..{qgre fto{n.power polirics'than from rationirl

{r}pJ3l lhough!'l
BARGAININ
Collective bargaining can be conducted at threc levcls, i.ej plant,lndustry and
ln Unired States it takes Dlace at all thesc ievels in the various industrics.
dustry.wide.biagz.ining both ag regigp$ aq{ ngli9nal levei is comnon in ,Scandinaviqn
lries, J.ganqe, Qermany. I1ely, SWi_tz9tl*0, the lJnited Kingdom aud other,Europeau
tries. ll the scope ol industfy is limited to small unils for l(rcal consunplion, planl -
 \

-1-

g$y.ql Sargaining would normally be the most lruirful. 857a of the agreements signed in

dg,S.--6
toqgh POf+veie negotiated at the. plant level. [f many enterprises$ilhA same

, i&_d_rlsj1y,.Xflde bargaining would bEgco-ngplg grld- use{ul.

*extile industry{nt"lunbai and Ahmedabad. If the indusrry is spread over a region

e.g.

and the ynion,is quite.strong, the bargaining may be conducted fcr the whole of rhr
n. An example of this is the contract between the United Planter's Association oll
Ego.
South lndia. ind the Tea workers union. If rhe acrivities of an induslry are sprcad
$U-o. -Ugiout lhe counhy, the nation-wide.bargaining may be indicated. Examples are rhe
contracts bctween lhet-?ilways, post and telegraph, defence industries and their workdrs
in the public sector, between petroleum companies and Ilata Shoe Co. antl their workers
!n the private sector

Collcctivr bargaining as a method of settlemenl of inclustrial disourcs is

comparativclya tec€nt development. Thc Planncrs in India paid c(,usid('ratrlc allc|lri(xr t(,
the adoplion of the system of collective bargaining to solve labour djsDulcs in India anri
qecognised t}Ie worker's right of association, organisation p-nd collective bargaining as ir

fundamental basis of peaceful industrial relations. The entleavour o{ rhe Slale harl bccn
[o encourage collective bargaining and mutual settlement of iodustrial disputes in order kl
minimise the govemmental intervention in labour managemeni relations.;[ Brearcr
emphasis should be placcd on collective trargaining and on slrengthcning thc tradc union

movemenl for securing better labour management relations, supp,rrtc'd by recoursc irr
largc mearurer{o rioluntary arbitratiolf
The Natioinat Clommission on Labour was appointed by the Govt. of tndia in t 9(rtr
and it rnade a series of reconmcndation to pronrote thc collcctive bargaining.pc havc l( )

evolve salisfactory arrangemenls for union recognition by statute as also tO crc lc

r.

conclitions in which such arrangcments have a chance,n rr..".;[Coll"ctive blrgainin.:

canror e\ist without the right to strike/lock-out. Coltcctivc htrqliriing as it hns rieveloltc.i
 "l
-o-
appropriat€ly co-exist with thc
in the West may not be quite sultable for India, it cannot
national policy make it imperattvc
concepl of a planned economy. The requirements of
Therc is a case [.'t
rhar slSE(#rigulalbq wil} hav9Js.,99.'9{rsi$0s s-u9*iyg.bqFlnig!
reliance on collective bargainirrg
shift in emphaqis and increasingly greater scope for and
q!Jre.!f,'!+x*rr'rdsr:i-612i @tle4ive bargai nin g rvoul d
diibinge
BSdATAICCAtr.gary
r.ePlacing qf
rpPlavur6 li
{iUCiigtip+$f:omf"fpggt "
has ltr
not practicable, The process has to be gradual A beginning
n"tO*f;fig6-41#t
that it will acquire
be made in the move towards €-Upptiveliherydglos.,,^by...4q!!1l148
settling industrial dispules'
prim'qfyi. $g,procpdure for
[
under Sccticn lti ol thc
ln lndia the collcctive blrgaining contracts can be enforccd
the workers and thc
Industrial Disputes Act, 19'17 as a settlement arrived between
over a breacil of c('nlri{cl
employers. The Appropriate Government may refer the dispute
to a labour court or to an industrial tribunal'
i
a