ID ACT , 1947

Presented by,
Sisira.S.Sasi
Preamble
The ID ACT,1947 has been enacted to make
provisions for the investigation and
settlement of industrial disputes.
To ensure fair terms to the workmen and to
prevent disputes between the employers and
the employees so that production might not
be adversely affected and the larger interests
of the public might not suffer.
Applicability

The act extent to the whole of
India and is in force from the 1st
day of April 1947.
What is an industry ?

INDUSTRY means any business, trade,
undertaking, manufacture or calling of
employers and includes any calling, service,
employment, handicraft, or industrial
occupation or avocation of workmen (Sec 2(j))
Who is an employer ?
An employer means every person having in
his, her or its service under a contract of
service or apprenticeship another person
engaged in work in or about an industry and
includes,
(1)a trustee, receiver, liquidator, executor or

administrator who carries on an industry,

(2)a person who authorizes or permits a learner

to be in or about an industry for the purpose of

undergoing training or probationary work, or
(3)a deemed employer.


Factors to be considered as
an industry
A number of disputes arose as to whether a
particular activity comes within the purview of
this definiton.
Case : Bangalore water supply & sewerage board
Vs Rajappa.
The Supreme Court held as follows :
 “ Where there is systematic activity organised by
co-operation between employer and workmen for
production and / or distribution of goods and
services calculated to satisfy human wants and
wishes, prima facie there is an industry in that
enterprise regardless of profit motive or gainful
objective.The decisive test is the nature of activity
with special emphasis on employer-employee
Is Cooperative housing
society an industry?

If the bye-laws of the Cooperative housing
society shows that the object of the society is
to carry on trade of buying, selling buildings,
there is no doubt that the society is an
industry.
Is the Irrigation department
an industry?

If there is a systematic and organized activity
by the govt. and its employees are satisfying
the need of irrigation, supply of electricity,
etc and such activities are satisfying the
human needs then it is an industry.
If a doctor or an engineer employs
one person as an assistant will that
establishment be an industry?
There is only one person employed in that
establishment.Hence it is not an industry
although there may be a systematic activity
being carried on to provide services to satisfy
human wants.
Is hospital an industry?

Hospitals are carrying out systematic activities
organized in co-operation between employer
and employees, producing and distributing
services that satisfy human wants. Hence it is
an industry.
Do charitable institutions and non-profit org.
come within the definition of industry?
OR ?
Whether free legal services provided by the
lawyers are defined as industry?
Absence of profit motive or gainful objective is
irrelevant, be the venture in the public, joint,
private or other sector. If the organization
carries on the trade or business it does not
cease to be an industry because of
Philanthropic act animating the undertaking.
Are schools, colleges,
universities, industries
covered under the industrial
disputes act ?
The three factors :-


üSystematic activity
üOrganised by the co-operation of employer and
employees
üFor the production and distribution of services
that satisfy human wants.
ü
Contd…
All the above are present in schools,colleges
and universities hence they are industries as
per the definition.
A bill called hospitals and other institutions bill
was introduced in Parliament two decades
ago.That has not been passed yet.
Whether clubs, insurance
companies, charitable projects are
industries as per the definition ?

These institutions come under the definition of
industry because of the type of activity and
master-servant relationship.
Who is a ‘workman’ under this
Act ?
Under the ID ACT, a workman is any person
(including an apprentice) employed in any
industry to do any manual, unskilled, technical,
operational clerical or supervisory work for hire or
the terms of employment be express or
implied,and for the purposes of any proceeding
under this act in relation to an industrial dispute,
includes any such person who has been dismissed ,
discharged or retrenched in connection with, or
as a consequence of, that dispute, or whose
dismissal,discharge or retrenchment has led to
that dispute.
Who is not a workman in
this act ?
Any person
(1)Who is subject to the Air Force Act,1950 or the
Army Act,1950 or the Navy Act,1957.
(2)Who is employed in Police service or as an officer
or other employer of a prison.
(3)A person employed mainly in the managerial or
administrative capacity.
(4)A person employed in a supervisory capacity
drawing wages exceeding Rs.1600/- per month,
or employed as administrators/managers or
employed as supervisors but performing mainly
managerial works are not termed as workmen
under this Act.
What do you mean by a
supervisor ?

An employee whose nature of duties and
functions are planning, direction and control
of human beings is a supervisor. Overseeing
work, recommending / sanctioning leave and
appraising the performance of subordinates
have been held as important elements of
supervison.
Mr.X was designated as
‘Supervisor’ but his nature of work
is clerical. Is he a workman?

Mr.X is a workman since he is performing only
clerical work but not doing any supervisory
work.Whatever the designation may be, the
main criterion is the nature of work only.
Mr.Y earns Rs.1650/- per month and
designated as a supervisor. Is he a
workman ?


Mr.Y is not a workman since he earns more
than Rs. 1600 /- and he is performing the
duties of a supervisor.
Mr.Z earns Rs 1700/- per
month as a clerk,is he a
workman ?

Mr.Z is a workman since he is doing only the
clerical work and not the supervisory
work.The ceiling of Rs. 1600 /- is
applicable only to supervisors.
Mr. A as an aircraft engineer earns
Rs.3000/- per month. He does not have
any supervisory responsibilities. Is he a
workman ?

Mr. A is a workman since he is performing only
technical work and not any supervisory
work.Even a pilot of an Indian Airlines or an
engineer in the board operation of a Thermal
Power Station is also a workman.
Mr.B was designated as a clerk. His
work was actually directing,
planning and initiating new
projects. Is he a workman ?


Mr.B is not a workman since he is performing

mainly managerial functions and as already
stated designation is not the only criteria for
the test to decide whether the employee is a
workman or not.
Mr.C is a watchman in the Director’s
Bungalow employed by the company. Is
he a workman ?


Mr.C is a workman since he is employed by the
company to work in Director’s Bungalow and
as he is a non- supervisor.
Mr.D is engaged as a driver by the Bank
Manager. The car is maintained by the bank.
The manager gets allowance for the salary of
the driver. Mr. D is a personal driver. Is the
driver a workman of the bank ?

Mr.D is not a workman since he is not directly

employed by the bank. He is employed by the
Bank Manager and his salary is paid by the
Bank Manager directly from out of the
allowance he gets.
Mr. E dismissed technician raised a
dispute with the conciliation officer.
Is Mr. a workman ?

Mr.E a terminated workman raising dispute
under this act with the conciliation officer for
dismissal is also a workman.
What is a dispute ?
A controversy or difference of opinion is a
dispute.
A dispute being referred to as trade dispute
under the Industrial Relations Act 1967
means any disagreement between the
employer and workman or employee which is
connected with the employment or non-
employment or the terms of employment or
the conditions of work of such workman or
employee leading to industrial action.
What is an Industrial
Dispute ? Sec 2(k)
An industrial dispute may be defined as a
conflict or difference of opinion between
management and workers on the terms of
employment.
It is a disagreement between an employer and
employees' representative; usually a trade
union, over pay and other working conditions
and can result in industrial actions.
Whether the term ‘any person’
in the definition of ‘industrial
dispute’ covers every person ??

‘Any person’ need not necessarily be a
workman, but he must be a person in whose
conditions of employment etc. the workers
are directly or substantially interested or with
whom they have a community of interest.
Whether a dispute has to be
collective?
Generally the dispute has to be a collective
one and it doesnot mean there must be a
majority.
Even a minority union or minority group of
workmen can raise an Industrial Dispute.
However, liberty for an individual workmen to
raise an Industrial Dispute has been given
under section 2 (A) in the event of dismissal,
discharge or termination otherwise.
Whether the dispute should
be raised by a union ?

The dispute need not be raised only by an
union. Even a group of workmen can raise an
Industrial Dispute.
Whether the dispute should be
taken up by registered union or
recognized

union of a company ?

An unregistered union or an unrecognized
union in the company may also raise an
industrial dispute.
Whether an individual
dispute becomes an
industrial dispute ?
All individual disputes under sec 2 (A) are
industrial disputes, but all industrial disputes
under sec 2(k) may not be individual
disputes.
(1) Under sec 2 (k) , the difference or dispute

may be between employers and employers; or

employers and workmen; or workmen and
workmen; whereas the difference or dispute,
under sec 2(A) is between the employer and an
individual workman only.
Contd….
Subject matter of the dispute or difference,
under sec 2(k) , may be connected with the
employment or non- employment or the
terms of employment or with the conditions
of labour of any person;
whereas, under sec 2(A) it should be
connected with, or arising out of an individual
workman’s discharge, dismissal,
retrenchment or otherwise termination of
service only.
Contd…
The union of workmen can raise a dispute
under sec 2 (k) with regard to employment,
non employment, terms of the employment
or conditions of the labor of ‘any person’ in
respect of whom the union/ workmen have
direct or substantial interest; whereas an
individual workman cannot raise an industrial
dispute under sec 2 (A) for other workmen.
How can a discharged
workman raise an industrial
dispute ?
If a workman feels that he has been
unjustifiably dismissed/retrenched/discharged
he can send his objections to his employer
and request for reinstatement and he can
send a copy of the same to the conciliation
officer who will take up the case if it is a fit
one.In certain states, a workman aggrieved
on his dismissal, discharge or termination can
straight away raise a dispute in a labour
court.
What are the bodies or authorities
constituted by the act for
settlement of disputes ?
Works committee
Conciliation officers
Boards of Conciliation
Courts of inquiry
Voluntary arbitration
Labor courts
Industrial tribunals
National tribunals
Who appoints the work
committee ?
The act provides for setting up of works
committee in every industrial establishment
employing 100 or more workmen.
The composition of works committee is
bipartite consisting of equal number of
workmen’s representatives as well as the
employers’ representatives.
Elected from the various groups, categories
and classes of workmen in consultation with
their registered union/unions.


What is the purpose of a
works committee ?
 The works committee will promote measures
for
securing and preserving amity and good
relations between employers and workmen
to comment upon matters of their common
interest or concern
to endeavor to compose any material
difference of opinion in respect of such
matters.
Who is the appropriate
government ?
It is the Central Govt. in relation to any
industrial dispute concerning any industry
carried on by or under the authority of the
Central Govt. and any such controlled
industry as may be specified in this behalf by
the Central govt.
In relation to any other industrial dispute in
establishments the State Govt.
Contd……

The govt. having jurisdiction over the area
where the dispute has arisen or apprehended
would be competent to make a reference in
respect of the industries specified for Central
govt.
The govt. may refuse to make a reference on a
consideration of various factors in bonafide
exercise of its powers.
There is no time limit to make reference.
Who appoints the Court of
Inquiry ?

The appropriate govt. appoints the Court of
Inquiry.

Purpose of Court of
Inquiry
Fact finding and the report to the govt. has to
be sent within 6 months from the start of
enquiry.
The court of inquiry cannot decide upon
anything.
Its duty is only to enquire into any matter
appearing to be connected with or relevant to
any industrial dispute and enlighten the govt.
about the opinion of the public on the
dispute.
Who appoints the
Conciliation Officer?
The appropriate govt. appoints the
Conciliation Officer to conciliate, mediate and
promote settlement of industrial disputes.
The conciliation officer is appointed for a
specific industry or specific industry in a
specified area.
Normally conciliation officers are officers of
labor department of the app. Govt concerned.
Duties of conciliation
officer ?
 (1) The conciliation officer shall, for the purpose of bringing
about a settlement of the dispute without delay investigate
the dispute and all matters affecting the merits and right
settlement thereof and may do all such things as he thinks
fit for the purpose of inducing the parties to come to a fair
and amicable settlement of the dispute.  
 (2) If a settlement of the dispute or of any of the matters in
dispute is arrived at in the course of the conciliation
proceedings the conciliation officer shall send a report
thereof to the appropriate Government 1[or an officer
authorized in this behalf by the appropriate Government]
together with a memorandum of the settlement signed by
the parties to the dispute.
   (3) If no such settlement is arrived at, the conciliation officer
shall, as soon as practicable after the close of the
investigation, send to the appropriate Government a full
report setting forth the steps taken by him for ascertaining
the facts and circumstances relating to the dispute and for
bringing about a settlement thereof, together with a full
Powers of conciliation
officer ?
The conciliation officer has the power to
compel the employer and the workmen to
present the documents
To enforce attendance of parties for the
conciliation proceedings.
If he feels that the account books, wage bills,
balance sheet are necessary for the dispute
he can insist on production of the same.
Contd…
He has the right to enter the premises, inspect
the location in which the dispute is related
and can also question the persons concerning
the disputes.
The art of the conciliation officer is that he
should be neutral; be fair to both the parties.
What is a board of
conciliation ?
The govt. appoints a board of persons for
promoting the settlement of specific
industrial disputes.

An independent person is appointed as
Chairman and two or four other members
representing the parties to the dispute in
equal numbers are also appointed.
Functions of the board ?
Similar to that of conciliation officer.
If a settlement is not arrived between the
parties the board can send its
recommendations to the govt. for the
determination of the dispute.
Is there a time limit for the
board to submit its report ?
A board should submit its report within 2
months whether a settlement has been
arrived or not.
If the parties to the dispute agree in writing
that a further extension is necessary then
such extension may be made by such period
as may be agreed upon.
Can a board of conciliation
impose an award on parties
to the disputes ?



No, it can only try to bring forth settlement.
Briefly explain the
difference between a
conciliation officer and a
board of conciliation ?
Conciliation officer is an executive of
appropriate govt. where as a Board of
conciliation is constituted.
(1) The CO can start the conciliation

proceedings on his own initiative in respect of

Public Utility Service; where as a board has
jurisdiction only when the govt. refers the
dispute.
Contd…
Board can make recommendations to the govt.
for the determination of the dispute; CO
submits either the report on settlement or
failure report to appropriate govt.
During the pendency of proceedings before a
board strikes are illegal .Strikes are illegal
only when the dispute relates to a PSU and
conciliation proceedings are pending before
the CO.
When does conciliation
proceedings begin ? When
does it end ?
When a strike notice has been given in a PSU ,
the conciliation proceedings begin at the time
when the CO receives the copy of the strike
notice.
In other cases the conciliation proceedings
start when CO informs the parties to the
dispute that the concilation has begun.
Conciliation proceedings should be concluded
within 14 days from the commencement of
such proceeding.
Contd….
If the parties to the dispute with the approval
of the CO agrees that the time limit can be
extended, then it can be done.
Conciliation proceedings are concluded when
the settlement is signed or if a failure report
is received by the govt. from the CO or when
the Board of conciliation is appointed by the
appropriate govt. or when the dispute is
referred for adjudication by a Labour Court or
a Tribunal.
What happens if the CO
delays to send report to
govt ?

Till the report is received by the govt i.e; till
report is received by the Labor secretary, the
proceedings are deemed to be continued by
the CO .But practically speaking delay is a
breach of duty by the CO.