ACADEMIC NOTE ON THE INDUSTRIAL DISPUTES ACT, 1947

 

ACADEMIC NOTE ON THE INDUSTRIAL DISPUTES ACT, 1947

1. Short Title, Extent & Commencement

• Name: Industrial Disputes Act, 1947 (Act No. 14 of 1947)

• Extent: Whole of India

• Commencement: 1st April 1947

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2. Objective

To make provision for the investigation and settlement of industrial disputes, and to ensure industrial peace, fair employment conditions, and social justice between employers and workmen.

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3. Key Definitions (Section 2)

Term	Meaning
Industry [Sec. 2(j)]	Systematic activity between employer and workmen for production/supply of goods or services.
Workman [Sec. 2(s)]	Any person employed to do manual, clerical, skilled, or technical work for hire, excluding managerial/supervisory roles.
Industrial Dispute [Sec. 2(k)]	Dispute between employers and workmen relating to employment, non-employment, or terms of employment.
Public Utility Service [Sec. 2(n)]	Essential services like transport, postal, electricity, water, etc., notified by government.

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4. Authorities under the Act

Authority	Section	Function
Works Committee	Sec. 3	Promotes amity and good relations between employer and workmen.
Conciliation Officer	Sec. 4	Mediates and promotes settlement of disputes.
Board of Conciliation	Sec. 5	Considers and promotes fair settlement.
Court of Inquiry	Sec. 6	Inquires into matters connected with industrial disputes.
Labour Court	Sec. 7	Adjudicates disputes on matters in Second Schedule (discharge, wages, etc.).
Industrial Tribunal	Sec. 7A	Adjudicates disputes on matters in Third Schedule (retrenchment, hours, etc.).
National Tribunal	Sec. 7B	Adjudicates disputes of national importance.

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5. Settlement Machinery

1. Conciliation → by Conciliation Officer or Board

2. Adjudication → by Labour Court/Tribunal/National Tribunal

3. Voluntary Arbitration → under Section 10A

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6. Strikes and Lock-outs (Sections 22–24)

Type	Requirement
Strike in Public Utility Service	14 days’ prior notice mandatory (Form J)
Lock-out in Public Utility Service	14 days’ prior notice mandatory (Form K)
Illegal Strike/Lock-out [Sec. 24]	Without notice, during conciliation/adjudication proceedings, or in violation of settlement/award

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7. Lay-off, Retrenchment, and Closure (Ch. V-A & V-B)

Concept	Provision	Key Requirement
Lay-off	Sec. 25C	50% wages + DA during lay-off period
Retrenchment	Sec. 25F	1 month’s notice + 15 days’ pay per completed year of service
Closure	Sec. 25FFF	Similar compensation as retrenchment
Large establishments (100+ workers)	Sec. 25K–25S	Prior permission for lay-off, retrenchment, or closure

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8. Protection of Workmen (Sec. 33)

Employers cannot alter service conditions or punish workmen for misconduct during the pendency of any dispute without permission of the authority.

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9. Penalties (Chapter VI)

• Illegal strike/lockout → fine/imprisonment

• Breach of settlement or award → fine up to ₹5,000

• Discharge of protected workman during proceedings → fine/imprisonment

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10. Schedules

Schedule	Subject
I	Matters for Labour Courts
II	Matters for Industrial Tribunals
III	National Tribunal matters
IV	Conditions of service requiring notice (Sec. 9A)
V	Unfair Labour Practices

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11. Significance

• Promotes industrial democracy and collective bargaining

• Prevents illegal and sudden strikes or lockouts

• Provides statutory machinery for dispute resolution

• Balances management prerogatives and worker rights

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12. Current Status

The Act will be repealed and replaced by the Industrial Relations Code, 2020 (yet to be enforced), which consolidates:

1. Industrial Disputes Act, 1947

2. Trade Unions Act, 1926

3. Industrial Employment (Standing Orders) Act, 1946