Industrial Disputes Act, 1947 – Summary Table

Basic Information

Short Title: Industrial Disputes Act, 1947 (Act No. 14 of 1947)

Enforced On: 1 April 1947

Objective: To secure industrial peace by investigation and settlement of industrial disputes between employers and workmen.

Extent: Whole of India

Administered By: Ministry of Labour & Employment, Government of India

Key Definitions (Section 2)

Industry [2(j)]: Systematic activity between employer & workmen for production/supply of goods or services.

Workman [2(s)]: Person employed for manual, skilled, unskilled, technical, clerical work for hire (excludes managerial/supervisory).

Industrial Dispute [2(k)]: Dispute between employers and workmen relating to employment, non-employment or conditions of labour.

Public Utility Service [2(n)]: Essential services like transport, postal, electricity, water, etc., notified by Govt.

Machinery for Settlement

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

Strikes and Lockouts (Sections 22–24)

Sec. 22: 14 days’ notice mandatory for strike/lockout in public utility service (Form J/K).

Sec. 23: Prohibition during conciliation/adjudication proceedings.

Sec. 24: Defines illegal strike or lockout (without notice or during proceedings).

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

Lay-off (Sec. 25C): 50% of wages + DA to be paid.

Retrenchment (Sec. 25F): 1 month notice + 15 days’ pay for each completed year.

Closure (Sec. 25FFF): Compensation same as retrenchment.

Large Establishments (Sec. 25K–25S): Prior permission required for lay-off, retrenchment, or closure (100+ workmen).

Other Important Provisions

Section 9A: 21 days’ notice before altering service conditions mentioned in Fourth Schedule.

Section 33: Protection of workmen during pendency of dispute—no punishment or change without permission.

Penalties (Chapter VI)

Illegal strike/lockout: Fine or imprisonment

Breach of settlement/award: Fine up to ₹5,000

Victimisation of protected workman: Fine/imprisonment

Schedules

Schedule I: Matters for Labour Courts

Schedule II: Matters for Industrial Tribunals

Schedule III: Matters for National Tribunal

Schedule IV: Conditions requiring notice under Sec. 9A

Schedule V: Unfair Labour Practices

Significance

• Ensures industrial harmony

• Protects workers’ rights

• Encourages conciliation & adjudication over confrontation

• Balances management control and labour welfare

Current Status

Will be replaced by Industrial Relations Code, 2020, consolidating:

1. Industrial Disputes Act, 1947

2. Trade Unions Act, 1926

3. Industrial Employment (Standing Orders) Act, 1946