Industrial disputes act 1947

Introduction
• The Industrial Disputes Act, 1947 came into existence
in April 1947. It was enacted to make provisions for
investigation and settlement of industrial disputes and
for providing certain safeguards to the workers.

• "INDUSTRIAL DISPUTE" means any dispute between

employers and employers, or between employers and
workmen, or between workmen and workmen, which is
connected with the employment or non-employment or
the terms of employment or with the conditions of
labour, of any person.
 Objectives of industrial disputes1947
1. To provide suitable machinary for the just,
equitable and peaceful settlement of industrial
disputes.
2. To promote measures for securing and
preserving amity and good relations between
employers and employees.
3. To prevent illegal strikes and lockouts.
4. To provide relief to workers against layoffs.
 Retrenchment, wrongful dismissal and
victimisation.
5. To promote collective bargaining.
6. To ameliorate the conditions of workers.
7. To avoid unfair labour practices.
 Reasons/causes of industrial disputes
• Demand for higher wages and allowances.
• Damand for payment of bonus and
determination of its rate thereof.
• Demand for higher social security benefits.
• Demand for good and safer working
conditions, including length of a working day,
the interval and frequency of leisure and
physical work environment.
• Demand for improved labour welfare and other
benefits, for example, adequate
canteen,rest,recreation and accomodation
facility, arrangement for travel to and from
distant places etc.
 Broad features of the act:
• The act extend to whole of India including the state of
Jammu and Kashmir.
• It is applicable to industries and certain categories of
industrial workers.
• It provides for setting up of works committees as a
machinery for mutual consultation between employers
and employees so as to promote cordial relation.
• it is intended to encourage arbitration over the dispute
between employers and employees.
• It lays down time limits for various stages of
conciliation and arbitration so as to eliminate delays.
 Settlement of industrial disputes

Work committee :
 Formed by appropriate government
 For 100 or more workers

Conciliation Officer :
 Appointed by appropriate government
 By notification to official gazette
 For specific area or industry
Duties of conciliation officer (Sec 12)
 Tries to settle the dispute
 Send memorandum of settlement to the appropriate
government
If it fails in settlement he has to send reports within
14days
 Court of enquiry:
 Formed by appropriate government

 Labor court (Sec 7)

 Settles cases covered under schedule 2

 Labor court head – Judge of high court ( min exp 3yrs)

 Industrial tribunal (sec 7A)

 Settlement of cases covered under schedule 2 & 3
 Head – Judge of high court (min exp 3yrs)

 National tribunal (sec 7B)

 Formed by central government
 Covers dispute related to national importance
 Three methods for industrial disputes
1. Conciliation

2. Arbitration

3. Adjudication
• 1. Conciliation:
In simple sense, conciliation means reconciliation
of differences between persons. Conciliation
refers to the process by which representatives of
workers and employers are brought together
before a third party with a view to persuading
them to arrive at an agreement by mutual
discussion between them. The alternative name
which is used for conciliation is mediation. The
third party may be one individual or a group of
people.
• 2. Arbitration:
• Arbitration is a process in which the
conflicting parties agree to refer their dispute
to a neutral third party known as ‘Arbitrator’.
Arbitration differs from conciliation in the
sense that in arbitration the arbitrator gives his
judgment on a dispute while in conciliation,
the conciliator disputing parties to reach at a
decision.
• 3. Adjudication:
• The ultimate legal remedy for the settlement of an
unresolved dispute is its reference to adjudication by
the government. The government can refer the dispute
to adjudication with or without the consent of the
disputing parties. When the dispute is referred to
adjudication with the consent of the disputing parties, it
is called ‘voluntary adjudication.’ When the
government herself refers the dispute to adjudication
without consulting the concerned parties, it is known as
‘compulsory adjudication.
 workmen
• (“workman” sec 2 )means any person (including
an apprentice) employed in any industry to do any
manual, unskilled, skilled, technical, operational,
clerical or supervisory work for hire or reward,
whether the terms of employment be express or
implied, and for the purposes of any proceeding
under this Act in relation to an industrial dispute,
includes any such person who has been dismissed,
discharged or retrenched in connection with, or as
a consequence of, that dispute, or whose
dismissal, discharge or retrenchment has led to
that dispute.
 Definition
• Under sec 2 (s) of the Industrial Disputes Act,
a workman means any person (including an
apprentice) employed in any industry to do any
1.skilled or unskilled
2.manual
3.supervisory
4.technical
5.clerical or operational
1.Skilled or unskilled & Manual
Skilled or unskilled :- when work can be done with some
technique or when some skills is used or before doing it,
training is necessary , then such a work is called as ‘ skilled
work’ .
• Manual :-A manual worker is any worker who performs
physical efforts as distinguished from mental or intellectual
effort. The work may be done with ward staff and hands or
with any part of the body.
Ex :-According durban, jamadar of watch and ward
staff and handling of the pieces of cloth, measuring them
and cutting into peices according to the requirement of
customer have been held to be persons doing manual work
under sec 2(s).
2.Supervisory capacity
Supervisory work:- the essence of supervisory
nature of work under section 2 (s) is the
supervision by one person over others.
In term supervisor means ay individual having
authority of the employer to hire, transfer,
suspend,recall,promote,discharge,assign or
discipline other employees, or responsibility to
direct them or adjudge their grievances, or to
recommend such action connection with the
forgoing.
Tests for determination of supervisory
capacity
1. Designation is not a material but what is
important is the nature of work.
2. Find out the dominant purpose of employment
and not any additional duties the employee may
be performing.
3. Can be bind the company/employer to some kind
of decisions on behalf's of the
company/employer.
4. has the employee the power to direct to oversee
the work and his subordinates.
5 Does he have the power to sanction leave or
recommend it, and
6 Does he has the power to appoint, terminate or
take disciplinary action against workmen
4. Technical work
• An employer must posses technical knowledge
to be included as a technical worker . Once
there is an application of such knowledge the
employee falls within the definition of worker.
For eg:- A pilot with air india ,draftsman ,
engineers etc
5. CLERICAL WORK
• A clerical worker is a person who works in an
office performing routine desk work such as
keeping records, attending to correspondence
or filing of papers etc. such work may be
skilled or unskilled .
6.Hire or Reward
• Hire or reward :- In order to show a person
within scope of definition, he must be shown
to have been working for hire or reward . Hire
imports obligation to pay and reward is used
when there is no obligation to pay .
• The terms of employment can be express or
implied
Who is not a workman (definition)
• 1) who is subject to the army act ,1950 or the
air force act , 1950 or the navy act , 1957
• 2) who is employed in the police service or as
an officer or other employee of a prison
• 3)who is employed mainly in managerial or
administrative capacity
 Conclusion
• To give effect to the objects of this Act, the
courts have followed a purposive approach
while interpreting the term workman‟ and
industrial dispute‟. The emphasis is laid on
the nature of duties and powers conferred
on an employee rather than the designation.
 Reference
• S.C shrivastava (1985) industrial relation
labour Laws
• www.mondaq.com/india/x/434328/employee+r
ights+labour+relations/Workman+Under+Indu
strial+Disputes+Act+1947
Thank you

Presented by
• Ambika.k
• Swapna Patil
• Santosh Chavan