This Act is meant for settling disputes, if any, between workers and the industrialists or factory owners. It is the principal central legislation for settlement of industrial disputes.
In addition, the Code of Discipline (1958) and the Industrial Truce Resolution (1962) also help in the promotion and maintenance of good industrial relations.
ADVERTISEMENTS:
Aims and Objects:
The Industrial Disputes Act was enacted with the purpose of providing a permanent machinery for the settlement of industrial disputes which had become a common feature due to industrial unrest in the wake of post-war problems arising out of constant strife between employers and employees.
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The results were industrial unrest and fall in production. An attempt was made to achieve the objective (i) by improving the service conditions of industrial labour so as to provide for them the ordinary amenities of life and (ii) by that process to bring about industrial peace which would in turn increase the pace of productive activities in the country and result in prosperity.
It is a self-contained Act which provides for suitable machinery for deciding the disputes that arise between employer and employees.
ADVERTISEMENTS:
The emphasis is laid by the Act for compulsory education of industrial disputes in the general social interest in order to achieve the goal of socialistic society.
The purpose and aim of the Acts is to minimise the conflict between labour and management and to ensure, as far as possible economic and social justice.
The Act has made provision for settlement of disputes and prevention of disputes in certain industries.
In nutshell the principal objects of the Act are:
ADVERTISEMENTS:
(1) The promotion of measures for securing amity and good relations between the employer and workmen;
(2) An investigation and settlement of industrial disputes between employers and employees, employers and workmen and between workman and workmen, with a right of representation by a registered Trade Union or
Federation, of Trade Unions or association of employees or a federation or association of employers;
(3) The prevention of illegal strikes and lockouts; and
(4) Relief to workers in the matters of layoff and retrenchment.
Some important features of the Act are given hereunder:
What is Industrial Dispute?
The industrial dispute refers to any dispute or difference that may take place out of employment or non-employment of a person including terms and conditions for employment and labour.
An industrial dispute could arise between employees and employers or between employers and workmen or between workmen and workmen.
Scope:
The Act provides for settlement of disputes or differences relating mainly to the issues mentioned hereunder:
1. The legality of any order passed by the employer.
2. Discharge or dismissal of workmen.
3. Withdrawal of customary concessions and privileges.
4. Terms of strikes or lockouts.
5. Wages including period and mode of payment.
6. Allowances.
7. Working hours and rests, leave with wages.
8. Bonus, provident fund and gratuity.
9. Shifting.
10. Grading and classifications.
11. Disciplines.
12. Rationalization, retrenchment and closure of establishment.
Reference of the Dispute:
When any dispute arises in respect of the issues as mentioned above, the same may be brought to the notice of the appropriate Government who could be central or state Governments in their respective jurisdiction.
Once the matter relating to the dispute is brought to the notice of the appropriate Government, and the said Government, on considering the merit and acuteness of the issue on the basis of loss involved to either of the parties associated with the dispute, shall decide on question of its settlement by referring it to the authorities under this Act.
Authorities under the Act:
1. Works Committee:
A works committee shall be constituted by the employer of an industrial establishment where one hundred or more workmen are employed. It shall consist of equal number of representatives of workmen and the employer.
It shall be duty of the Works Committee to promote measures for securing and preserving amity and good relations between the employer and the workmen.
2. Conciliation Officers:
The appropriate Government shall appoint conciliation officers for specified areas or industries who shall be charged with the duty of mediating in and promoting the settlement of industrial disputes.
3. Boards of Conciliation:
On occasions, the appropriate Government shall constitute a Board of conciliation. It shall consist of a chairman.
It shall also consist of two or four members in equal representation of the concerned parties on their respective recommendation.
The Board shall endeavour to bring about a settlement of the dispute by inducing the parties to come to a fair and amicable settlement of the dispute.
It shall then send its report to the appropriate Government within two months of the reference of the dispute. The period of its proceeding may be extended.
4. Courts of Inquiry:
On occasions, the appropriate Government shall constitute a Court of Inquiry for inquiring into any matter appearing to be connected with or relevant to an industrial dispute.
This court may consist of one or more independent persons, one of whom shall be the chairman.
It shall send its report to the appropriate Government ordinarily within a period of six months from the commencement of its inquiry.
4. Labour Courts:
For the adjudication of industrial disputes relating to some specific issues and for performing some other relevant functions, the appropriate Government may constitute one or more Labour courts which shall consist of only one member to be appointed as its presiding officer.
The presiding officer of a labour court is required to be a person having perfect knowledge of Indian jurisprudence.
5. Tribunals:
For adjudication of certain industrial disputes, the appropriate Government may constitute one or more Industrial Tribunals consisting of only one member who shall be its presiding officer.
The presiding officer is required to be a person having perfect knowledge in the field of judiciary. It may also appoint two persons as assessors to advise the tribunal in the proceedings.
6. National Tribunals:
For the adjudication of industrial disputes involving questions of national importance or having likelihood of interest of more than one state as per the situation of the respective industrial establishment, the Central Government may constitute one or more National Industrial Tribunals, which shall consist of only one member to be appointed as its presiding officer.
The presiding officer is required to be a person of perfect knowledge of judiciary. The Central Government may also appoint two persons as assessors to advise the National Tribunal.
The Labour courts, Tribunals and the National Tribunals shall, on reference of any industrial dispute to be inquired into, hold its proceedings expeditiously and submit its award to the appropriate Government.
The award shall be published in the manner as deemed fit by the appropriate Government and it shall be final and shall not be called in question by any court in any manner.
Strikes and Lockouts:
In face of industrial disputes and unrest, the employees as well as the employers often resort to strikes or lock-out, as the case may.
Therefore in the Act certain provisions have been made for the validity of strikes and lockouts.
It provides that striking of work by employees or locking up of the establishment by the employer shall stand invalid if the same has been resorted to:
(a) Without giving appropriate notice within six weeks before the action; or
(b) Within fourteen days of giving such notice; or
(c) Before expiry of the date of the action as mentioned in the notice, or
(d) During the pendency of any conciliation proceedings before a conciliation officer etc. and seven days after the conclusion of such proceedings.
Lay-off and Retrenchment:
(a) The employer of an industrial establishment cannot lay-off any workman who is not a badli or casual workman, and whose name is borne on the muster rolls of the establishment, without the prior permission of the appropriate Government.
(b) The employer of certain industrial establishments cannot retrench an employee who has been in continuous service for not less than one year without giving him a three months’ notice with wages and without prior permission of the appropriate Govt.
However in case of retrenchment, the employee shall be entitled to receive compensation equivalent to fifteen days’ average pay for every completed year of continuous service or any thereof in excess of six months.
Penalties:
An contravention of the provisions of this act relating to any matter relevant to the settlement of industrial disputes and for bringing about a fair and amicable industrial atmosphere shall be punishable by imprisonment and/or fines, as the case may be.