Industrial Disputes Act, 1947 - Overview
The Industrial Disputes Act provides the framework for investigation and settlement of industrial disputes between employers and workmen.
Key Features: Works Committee, Conciliation, Arbitration, Adjudication by Labour Courts/Tribunals.
What is an Industrial Dispute?
Any dispute or difference between employers and employers, employers and workmen, or workmen and workmen connected with employment, non-employment, terms of employment, or conditions of labor.
Dispute Resolution Machinery
- Works Committee: For promoting harmony (establishments with 100+ workmen)
- Conciliation Officer: Appointed by government to mediate
- Board of Conciliation: For complex disputes
- Court of Inquiry: To investigate facts of dispute
- Labour Court: Adjudicates disputes regarding legality of strikes, lockouts, etc.
- Industrial Tribunal: For broader disputes like wages, compensation, etc.
- National Tribunal: For disputes of national importance
Strikes and Lockouts
- Strikes prohibited during pendency of proceedings before Tribunal
- Illegal strikes can result in disciplinary action
- Lockouts without proper notice are illegal
Layoff and Retrenchment
- Layoff compensation: 50% of basic wages for up to 45 days
- Retrenchment: 1 month notice or pay + 15 days wages per year of service
- Last-in-first-out principle for retrenchment
- Prior permission required for layoff/retrenchment in establishments with 100+ workmen
Unfair Labour Practices
The Act prohibits unfair labour practices on part of employers and trade unions, including interference in union activities, discrimination, refusal to bargain collectively, etc.
How to File a Dispute
- Workman must first raise dispute with employer
- If unresolved, approach Conciliation Officer
- If conciliation fails, government may refer to Labour Court/Tribunal
- Individual dispute must have nexus to workman (not supervisor)