Industrial Disputes Act, 1947

CONTENTS

Sections

Particulars

Preamble

S S

Short title, Extent and Commencement

Definitions

2A
 Dismissal, Etc., of an Individual workmen to be deemed to be an Industrial Dispute

Works Committee

3A

State Amendments

3B

State Amendments

Conciliation officers

Boards of Conciliation

Courts of Inquiry

Labour Courts

7A

Tribunals
7B

National Tribunals

7C

Disqualifications for the presiding officers to labour courts, tribunals and national tribunals

7D

State Amendments

Filling of Vacancies

Finality of orders constituting boards, etc.

9A

Section 9A

9B

Power of Government to exempt

9C

Setting up of Grievance settlement authorities and reference of certain individual disputes to

State Amendments

9E

State Amendments

9F

State Amendments

9G

State Amendments

9H

State Amendments

9-I

State Amendments

9-J

State Amendments

10

Reference of disputes to Boards, Courts or tribunals

10A
 Voluntary reference of disputes to arbitration

10B

State Amendments

10C

Submission when revocable State Amendment for Rajasthan

10D

Proceedings in Arbitration State Amendment for Rajasthan

10E

Special case may be stated to industrial tribunal State Amendment for Rajasthan

10F

Award by Arbitrator State Amendment for Rajasthan

10G

Dispute to be referred to Industrial tribunal if no arbitrator appointed State Amendment for Rajasthan

10H

State Government may refer Industrial dispute to Industrial tribunal for adjudication State
Amendment for Rajasthan
10-I

Notice of Award to Parties State Amendment for Rajasthan

10-J

Completion of Proceeding State Amendment for Rajasthan

10K

State Government may lay down terms and conditions of employment and prohibit strikes, etc.,
State Amendment for Rajasthan

11

Procedure and Powers of conciliation Officers, Boards, Courts and Tribunals and National
Tribunal

11A

Powers of Labour Courts, Tribunals and National Tribunals to give appropriate relief in case of
discharge or dismissal of workmen

11B

State Amendments

11C

State Amendments

11D

State Amendments
12

Duties of Conciliation Officers

13

Duties of Board

14

Duties of Courts

15

Duties of Labour Courts, Tribunals and National Tribunals

16

Form of report or award

17

Publication of reports and awards

17A

Commencement of the Award

17AA

State Amendments

17B
 Payment of full wages to workmen pending proceedings in Higher Courts

18

Persons on whom settlements and Awards are Binding

19

Period of Operation of settlements and awards

20

Commencement and Conclusion of Proceedings

21

Certain matters to be kept confidential

22

Prohibition of Strikes and Lock-Outs

23

General prohibition of Strickes and Lockouts

24

Illegal Strickes and Lock-Outs

25

Prohibition of Financial aid to illegal strickes and lock-outs

Application of Sections 25C to 25E

25B

Defenition of Continuous service

25C

Right of Workmen Laid off for Compensation

25D

Duty of an Employer to maintain muster rolls of workmen

25E

Workmen not entitled to Compensation in certain cases

25F

Conditions precedent to retrenchment of workmen

25FF

Compensation to Workmen in case of transfer of undertakings

25FFA

Sixty Day's notice to be given of intentio to close down any undertaking

Compensation to workmen in case of closing down of undertakings

25G

Procedure for Retrenchment

25H

Re-Employment of Retrenched Workmen

25HH

State Amendments

25-I

Recovery of moneys due from employers under this chapter

25-J

Effect of Laws inconsistent with this chapter

25K

Application of Chapter V-B

25L

Definitions

25M
 Prohibition of Lay-Off

25N

Conditions precedent to retrenchment of workmen

25-O

Procedure for Closing down an undertaking

25P

Special provision as to restarting of undertakings closed down before commencement of The

25Q

Penalty for Lay-Off and retrenchment without previous permission

25R

Penalty for Closure

25S

Certain Provisions of Chapter V-A to apply to an Industrial establishment to which this Chapter
Applies

25SS

State Amendments

25T
 Prohibition of Unfair Labour Practice

25U

Penalty for Committing unfair labour Practices

26

Penalty for Illegal strickes and Lock-Outs

27

Penalty for Instigation, Etc.

28

Penalty for giving Financial Aid to Illegal Strikes and Lock-Outs

29

Penalty for Breach of settlement or award

29A

State Amendments

30

Penalty for Disclosing Confidential Information

30A

Penalty for Closure without notice

Penalty for other offences

32

Offence by Companies, Etc.

33

Conditions of Service, Etc., to remain unchanged under certain circumstances during pendency
of proceedings

33A

Special provision for adjudication as to whether conditions of service, Etc., Changed during
pendency of proceedings

33B

Power to Transfer certain proceedings

33C

Recovery of money due from an employer

34

Cognizance of Offences

35 Protection of Persons

36 Representation of Parties

36A Power to remove difficulties

37 Protection of Action taken under the Act

38 Power to make rules

39 Delegation of Powers

40 Power to amend Schedules

Objectives

The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing
machinery and procedure for the investigation and settlement of industrial disputes by negotiations.

Various studies indicate that Indian labour laws are highly protective of labour, and labour markets are
relatively inflexible. These laws apply only to the organised sector. Consequently, these laws have
restricted labour mobility, have led to capital-intensive methods in the organised sector and adversely
affected the sector’s long-run demand for labour. Labour being a subject in the concurrent list, State-
level labour regulations are also an important determinant of industrial performance. Evidence suggests
that States, which have enacted more pro-worker regulations, have lost out on industrial production in
general. -- (Ministry of Finance, 2006, p. 209

the Industrial Disputes Act (IDA) of 1947. Particular attention has been paid to its Chapter V-B,
introduced by an amendment in 1976, which required firms employing 300 or more workers to obtain
government permission for layoffs, retrenchments and closures. A further amendment in 1982 (which
took effect in 1984) expanded its ambit by reducing the threshold to 100 workers. It is argued that since
permission is difficult to obtain, employers are reluctant to hire workers whom they cannot easily get rid
of. Job security laws thus protect a tiny minority of workers in the organised sector and prevent the
expansion of industrial employment that could benefit the mass of workers

outside. It is also argued that the restriction on retrenchment has adversely affected workplace
discipline, while the threshold set at 100 has discouraged factories from expanding to economic scales
of production, thereby harming productivity. Several other sections of the IDA allegedly have similar
effects, because they increase workers’ bargaining strength and thereby raise labour costs either directly
through wages or indirectly by inhibiting work reorganization in response to changes in demand and
technology. The Act also lays down
 The provision for payment of compensation to the workman on account of closure or lay off or
retrenchment.

The procedure for prior permission of appropriate Government for laying off or retrenching the
workers or closing down industrial establishments

Unfair labour practices on part of an employer or a trade union or workers.

[edit] Applicability

The Industrial Disputes Act extends to whole of India and applies to every industrial establishment
carrying on any business, trade, manufacture or distribution of goods and services irrespective of the
number of workmen employed therein. Every person employed in an establishment for hire or reward
including contract labour, apprentices and part time employees to do any manual, clerical,skilled,
unskilled, technical, operational or supervisory work, is covered by the Act. This Act though does not
apply to persons mainly in managerial or administrative capacity,persons engaged in a supervisory
capacity and drawing > 1600 p.m or executing managerial functions and persons subject to Army Act, Air
Force and Navy Act or those in police service or officer or employee of a prison.

[edit] Applicability of Parent Act (Unknown Act - )

None

[edit] Related Sections Of The Act

Section 1 : Short title, and commencement

Section 9-B: Power of Government to exempt

[edit] Important Definitions

Section 2A : Appropriate Government

Section 2G : Employer

Section 2J : Industry

Section 2K : Industrial dispute

Section 2A : Industrial dispute between individual and employer

Section 2KA: Industrial establishment or undertaking

Section 2KK: Insurance company

Section 2LA: Major port

Section 2LB: Mine

Section 2N : Public utility service

Section 2O : Railway company

Section 2RR: Wages