🏛️ Industrial Disputes Act, 1947
Citation: Act No. 14 of 1947
Enacted on: 11 March 1947
Came into force on: 1 April 1947
Administered by: Ministry of Labour & Employment, Government of India
🎯 Objective of the Act
The Industrial Disputes Act, 1947 was enacted to:
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Promote industrial peace and harmony by providing a legal framework for the investigation and settlement of industrial disputes.
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Ensure fair terms of employment and protection of workmen.
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Prevent illegal strikes and lock-outs.
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Provide machinery for conciliation, adjudication, and arbitration of disputes between employers and workmen.
⚖️ Key Definitions (Section 2)
Some important terms under the Act:
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Industry (Sec. 2(j)): Any systematic activity carried on by cooperation between employer and workmen for production, supply, or distribution of goods/services.
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Workman (Sec. 2(s)): Any person employed in an industry to do manual, unskilled, skilled, technical, clerical, or supervisory work for hire or reward (with certain exclusions such as managerial staff).
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Industrial Dispute (Sec. 2(k)): Any dispute or difference between employers and workmen, or among workmen themselves, connected with employment, non-employment, or terms of employment.
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Public Utility Service (Sec. 2(n)): Includes transport, postal, telecommunication, electricity, water, and other notified essential services.
🧰 Machinery for Settlement of Industrial Disputes
| Authority | Constituted Under | Function |
|---|---|---|
| Works Committee | Sec. 3 | Promotes amity and good relations between employer and workmen. |
| Conciliation Officer | Sec. 4 | Mediates disputes and promotes settlement. |
| Board of Conciliation | Sec. 5 | Considers and promotes fair settlement. |
| Court of Inquiry | Sec. 6 | Inquires into matters of public importance relating to industrial disputes. |
| Labour Court | Sec. 7 | Adjudicates matters under the Second Schedule (e.g., discharge, wages, reinstatement). |
| Industrial Tribunal | Sec. 7A | Adjudicates matters under the Third Schedule (e.g., wages, hours, retrenchment). |
| National Tribunal | Sec. 7B | Deals with disputes of national importance. |
⚔️ Key Provisions
1. Notice of Change (Section 9A)
Employers must give 21 days’ notice before changing service conditions listed in the Fourth Schedule.
2. Strike and Lock-out (Sections 22–24)
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Section 22: Restricts strikes and lockouts in public utility services—14 days’ prior notice mandatory (Form J for strikes, Form K for lockouts).
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Section 23: Prohibits strikes and lockouts during conciliation/adjudication proceedings.
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Section 24: Defines illegal strikes and lockouts.
3. Lay-off, Retrenchment, and Closure (Ch. V-A & V-B)
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Lay-off (Sec. 25C): Compensation = 50% of basic wages + DA.
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Retrenchment (Sec. 25F): One month’s notice + retrenchment compensation (15 days’ pay for each completed year).
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Closure (Sec. 25FFF): Compensation similar to retrenchment.
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Large establishments (100+ workmen): Prior permission required under Chapter V-B (Sections 25K–25S).
4. Protected Workmen (Sec. 33)
Workmen holding positions in trade unions are protected from dismissal or punishment during pendency of disputes.
5. Penalties (Chapter VI)
Includes penalties for:
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Illegal strikes/lockouts
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Breach of settlement or award
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Discharge or dismissal of workmen during proceedings
📜 Schedules of the Act
| Schedule | Subject |
|---|---|
| First | Matters within the jurisdiction of Labour Courts |
| Second | Matters within the jurisdiction of Industrial Tribunals |
| Third | National Tribunal matters |
| Fourth | Conditions of service for change notice |
| Fifth | Unfair labour practices |
🔍 Recent Developments
The Industrial Disputes Act, 1947 has been subsumed under the Industrial Relations Code, 2020 (yet to be fully implemented).
The new Code consolidates:
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Industrial Disputes Act, 1947
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Trade Unions Act, 1926
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Industrial Employment (Standing Orders) Act, 1946
into a single unified legislation.
📚 Summary
| Aspect | Industrial Disputes Act, 1947 |
|---|---|
| Purpose | Settlement of industrial disputes, ensuring peace & justice |
| Applies To | All industries and workmen except those in armed forces/police |
| Core Principle | Conciliation first → adjudication next |
| Current Status | Will be replaced by Industrial Relations Code, 2020 (once notified) |
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