Industrial Dispute Act, 1947

December 23, 201958 Views

During the initial stages of industrialisation in UK, industrial relations between the employer and his workmen were governed by mutual consent between the parties, but during the disputes between employer and his workmen the service contracts were induced to resolve the disputes, its always the service contracts which prevails over workmen as because the employers use to dictate their own terms and conditions, taking advantage of workers weaker economic status to earn their livelihood, they had to accept their contracts, in this connection the government were no where involved. Hence england relied on concept called collective bargaining and negotiation to resolve their disputes.

when such disputes were settlement on the grounds of inequality, the law has to interfere which gave rise to state’s interference to settle the disputes, keeping eye on interest of national economy and public.

Australia was considered as first nation to settle the dispute through common wealth conciliation and arbitration act of 1904, But in india, a board constituted ‘Trade disputes act of 1929’ but still stood ‘laissez faire’.

Definition

Industry – section 2(j)

Industry means carrying a business, trade or profession and association of people together involved in production or making of goods.

within the meaning of sec.2(j) – hospitals, municipal corporations, solicitor’s firm, research institutions, house of destitute animals, clubs, all india radio & doordarshan and telecommunication departments are considered as industry.

To determine an industry within in the meaning of sec.2(j), supreme court in the landmark judgement ‘Bangalore water supply & sewerage Board Vs. Rajappa, AIR 1978’ laid down ‘Triple Test’ principal which widens the meaning of industry

(i) systematic activity, (ii) organised by co-operation between employer and employee and (iii) production or distribution of goods and services (not spiritual or religious) upon setting these triple tests, supreme court classified that in absense of profit motive or gainful objective is irrelevant, being venture in public, private or other sector.

Industrial Dispute – section 2(k)

Industrial dispute means dispute arising between the employer and workmen, or between employers and employers, or between workmen and workmen in connected with employment or non-employment or terms of employment or conditions of labour, of any person.

Industrial dispute can be defined in 3 ways – (i) dispute or difference; (ii) between employer and workmen, or between employers and employers and between workmen or workmen; (iii) connected with employment, non-employment, terms of employment or conditions of labour of any person, hence, in simpler terms, industrial dispute is a fear of stoppage of work.

Individual dispute – section 2A

when employers discharges, dismisses, retrenches or otherwise terminates the services of an individual workman or dispute arising in connection with such as mentioned shall be deemed to be an industrial dispute. Thus, in simple terms

(i) an individual dispute if falls within the meaning of sec.2A is an industrial dispute

(ii) individual dispute outside of sec.2A is not an Industrial dispute

industrial dispute can not be individual dispute, perhaps the individual dispute may give rise to industrial dispute where upon certain situations –

1. support from group of workmen – individual dispute to become industrial dispute, if it is supported by group of workmen, which can affect the work flow of industry at an larger extent and invokes the fear of stoppage of work at larger scale. hence the support from group of workmen can constitute a industrial dispute.

2. support or espousal from trade union – If a trade union extends their support or raise a hands in support to individual dispute, then it results in industrial dispute, supreme court stated that trade union may not be register to support a individual dispute.

3. espousal from outside trade union – to extend support to individual dispute, a trade union from outside can support the individual dispute to become industrial dispute, if the industry does not have their own trade union, then sec.36 of Industrial disputes act, a trade union can be represented from outside.

4. no need of majority support – while speaking in respect to individual dispute to become I.D, there is no need for majority support, but whereas a considerable member are required.

5. community interest – workmen supposed to have community interest in all issues dealing with and they belong to same community as related interest.

6. withdrawal of support – withdrawal of support by workmen will have no effect on industrial dispute unless it is referred by sec.10 of industrial disputes act.

Workman

workman means person employed in an industry in order to perform manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward whether the terms of such contract be expressed or implied and for any procedure relating to industrial dispute, includes any person who has been dismissed, discharged or retrenched in connection with dispute or excludes persons of –

(i) who is subject to air force act, 1950;

(ii) employed in police service or relating to employee of a prison;

(iii) employed in manager or admin cadre;

(iv) or employed in supervisor position, wages exceeding 10k per month or per exercise, either by nature of duties or by reason powers vested with him, supporting as managerial nature

Strike

strike means cessation of work by workmen or body of persons employed in any industry with an collective idea acting together which results in refusal, to act in accordance with their demands.

Retrenchment

retrenchment refers to termination by employer for any reason or punishment inflicted under disciplinary action, but does relates to –

(a) voluntary retirement of the workman;

(b) or retirement of workman who reaches the age of retirement or completion of contract between employer and workman; or when terms of contract are non-renewal;

Lay-off

lay-off means failure, refusal or inability of an employer either by shortage of coal, power or raw materials or accumulation of stocks or by breakdown of machinery to provide employment, whose name is borne on the muster rolls of the industrial establishment and not been retrenched.

Lock out

lock out means the temporary closing or suspension of work or refusal by employer or group of employers employed.

Award

award means interim or final determination of industrial dispute by labour court, industrial tribunal or national tribunal.

Closure

closure means the permanent shutting down or place of employment.