This article focuses on Industrial Disputes act for resolving illegal strikes, lockouts, etc. and bringing peace. This blog is meant for administrative officers or factory managers and clearly explains the given topic.
Overview
The Industrial Disputes Act dates back to the year 1947. However, the act applies unanimously to all parts of the country and has been included in the Indian labour Law.
The readers need to understand that such laws have absolute governance, focusing on trade unions. Similarly, it can be applied to individuals working within a given context. The law was enacted on 11 March 1947, as reported through authentic sources. However, the date of implementation remains to be 1 April 1947.
There are various disputes that might happen between workers and employers. The rate of disagreements was so high that there was no harmony. To bring back this harmony and peace, the Industry Dispute Act of 1947 was introduced. Let us see the key points you must remember when it comes to the Act.
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Latest Update According to the High Court of Karnataka, if an employer wishes to vary the terms of service while a dispute is pending between the employer and a worker or between the employer and a union, permission from the Labour Court or Tribunal is required under Section 33 (2)(b) of the Industrial Disputes Act, 1947. |
Industrial disputes Act
Policies governing dispute settlement are a crucial component of each country’s labour law framework, irrespective of its economic development. This is because complaints and disagreements will inevitably arise in any working environment, and the policy’s goal is to establish procedures for quickly and effectively resolving these problems.
The employment of voluntary processes like arbitration, conciliation, and mediation has lately taken centre stage in dispute resolution legislation. They have successfully preserved relationships during the dispute settlement process because they lack the adversarial component that distinguishes regular litigation proceedings.
India’s primary legislation controlling dispute settlement is the Industrial Disputes Act of 1947. It was passed to make provisions for the investigation and resolution of labour disputes, to stop unlawful strikes and lockouts, and to give workers relief during layoffs, following reduction, or after being wrongfully fired.
Additionally, it provides for using conciliation, arbitration, and adjudication processes to advance policies that foster positive working relationships between employers and employees.
Key Points of the Industry Dispute Act 1947
| History: |
The Industrial Disputes Act was enacted in 1947 in India.
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| Scope: |
It applies to all workers in industrial establishments.
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| Objective: |
To resolve disputes and promote harmony in the workplace.
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| Coverage: |
Covers disputes related to wages, working conditions, etc.
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| Authorities: |
Establishes authorities to handle and adjudicate disputes.
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| Procedure: |
Defines the framework for conducting dispute resolution proceedings.
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| Negotiation: |
Provides provisions for negotiation, conciliation, and arbitration.
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| Powers: |
Grants authorities the power to summon witnesses and order document production.
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| Duties: |
Outlines the duties of authorities, including facilitating negotiations and conducting fair hearings.
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| Penalties: |
Imposes penalties for non-compliance with the Act’s provisions.
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| Regularisation: |
Includes provisions for the regularisation of daily wages.
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Scope and Object of the Industry Dispute Act:
- The scope and goal of resolving disputes in the industrial sector are outlined in the Industry Dispute Act.
- Seeks to create a legal framework for resolving conflicts between employers and employees.
- Offers rules and procedures for the amicable settlement of disputes in order to preserve a pleasant working environment.
- Ensures equality, protects employees’ rights, and fosters industrial peace and stability.
Main features of the Act
In order to advance measures for future good working relations and understanding between the workmen and the businesses, this Act provides us with specific guidelines and guidelines regarding the works committee. To that end, it also promises to resolve any significant difference in views on such issues.
- Clear definition of industrial disputes and parties involved.
- Establishment of authorities to handle and adjudicate disputes.
- Provision for negotiation, conciliation, and arbitration processes.
- Guidelines for filing and processing appeals in a timely manner.
- Penalties for non-compliance with the Act’s provisions.
- Mechanisms for the regularisation of daily wages.
Definition of Industrial Dispute
- A disagreement or conflict between management and labour unions. Could also be between companies and employees is referred to as an industrial dispute.
- It may concern a variety of topics. This includes pay, working conditions, employment agreements, or other workplace rights and benefits.
- To promote accuracy and consistency in recognising and resolving workplace dispute.
Authorities Under the Act:
- The Act establishes authorities to facilitate the resolution of industrial disputes.
- These authorities may include labour departments, labour courts, industrial tribunals, or arbitration boards.
- Their role is to provide a platform for discussions, negotiations, and settlements between the conflicting parties.
- They have the power to issue rulings, make decisions, and enforce compliance with their judgments.
Delay in Filing Appeal
- The Act recognises that there may be circumstances where appeals are filed after the specified timeframe.
- It may allow for a certain period of grace or provide provisions for condoning the delay in filing appeals.
- However, the Act may also specify limitations on the extent of delay that can be excused.
- Each case is evaluated individually, considering the reasons for the delay and the merits of the appeal.
Application And Purpose Of The Act: What Do You Need to Know?
Understanding the definitions of “industrial dispute” and “industry” used in the statute is crucial to comprehend the reach of the Industrial Disputes Act of 1947. According to Section 2(k) of the Act, the former refers to any disagreement or dispute between employers and employees, between employers and workers, or between workers themselves, that has to do with a person’s employment or lack thereof, employment terms, or working circumstances.
According to Section 2(j) of the Act, the latter comprises any calling, service, employment, handicraft, or industrial activity or area of interest of workers. It also includes any business, trade, undertaking, manufacture, or calling of employers.
As a result, for a dispute to be covered by the Act, it must take place in a setting that fits the definition of an industry and includes one or more of the parties listed in the description of industrial disputes. In other situations, there is no room for state intervention; the only options are to go to court or use alternative conflict resolution procedures.
Dispute Resolution Institutions: What is the role played by such institutions?
Interest disputes and rights disputes are two basic categories of industrial disputes. Interest disagreements typically centre on determining a revised wage level and other employment requirements.
Contrarily, rights conflicts concern the interpretation and execution of current employment rules and typically involve a single worker or group of workers. The development of internal and external channels to resolve industrial disputes is allowed by the Industrial Disputes Act of 1947.
Two examples of internal processes are the works committee and the complaint handling committee. Depending on the complaints registered, a dispute resolution mechanism needs to be put in place concerning the related norms mentioned within the Industrial Disputes Act.
What is a works’ committee, and what is the role played by such a committee?
All industrial establishments with 100 or more employees are required by law to have a Works Committee, as defined in Section 3 of the Act. It is made up of representatives of an establishment’s workers and employees. The works committee’s goal is to offer an internal platform for dispute settlement as a prelude to litigation or other external dispute resolution methods.
Section 11: Procedure, Powers and Duties of Authorities
- Section 11 of the Act outlines the procedure, powers, and duties of the authorities established under the Act.
- The Act defines proceedings, evidence submission, and witness examination.
- Authorities have the power to summon witnesses, request documents, and issue directives.
- Their duties include facilitating negotiations, conducting fair hearings, and making timely judgments.
Penalties
- The Act includes provisions for penalties to deter non-compliance with its provisions.
- Penalties may be imposed on employers or workers who violate the Act or fail to comply with the authorities’ decisions.
- The nature and extent of penalties may vary depending on the severity of the violation.
- Penalties serve as a means to enforce the Act’s provisions, discourage misconduct, and promote compliance.
Miscellaneous
- The Act may include miscellaneous provisions covering various aspects not explicitly addressed in other sections.
- These provisions may address matters such as the interpretation of terms, the applicability of the Act to different industries, or transitional arrangements.
- The miscellaneous provisions aim to ensure comprehensive coverage of potential scenarios and promote effective implementation of the Act.
Regularisation of daily wages
The Act may contain provisions for the regularisation of daily wages or casual workers.
- Regularisation converts daily wage or casual employment into permanent employment.
- It grants workers benefits and protections associated with permanent employment.
- The Act may specify criteria, conditions, and procedures for regularisation to enhance workforce stability and security.
Here are a few concluding points:
- The Industrial Disputes Act was enacted by the Indian government in 1947.
- The Industrial Disputes Act aims to ensure harmony and peace in industrial establishments.
- The Act provides provisions for resolving disputes in a methodical manner.
- The goal is to satisfy all parties involved and ensure justice and fairness in decision-making.
- The Act serves as a guarantee for maintaining a peaceful and cooperative work environment in industrial establishments.
Committee For Redressing Grievances: Certain major considerations
According to Section 9(c) of the Act, every industrial enterprise with fifty or more workers must have a grievance resolution authority. Every industrial facility with 20 or more employees must have one or more grievance redressal committees made up equally of members of management and labour.
The committee must have a maximum of six members, one of whom must be a woman, if practical. After receiving a written complaint from a party that feels wronged, the Grievance Redressal Committee must finish its investigation in forty-five days.
Any employee who is unhappy with the committee’s decision may choose to challenge it. Then, within one month of the date it was instituted, the employer must evaluate the appeal, resolve the issue, and deliver a copy of the decision to the injured employee.
The following external methods are provided by the Industrial Disputes Act of 1947 to settle industrial disputes: However, industry experts state that getting a conflict resolved takes a lot of work, as it requires a specific redressal mechanism at the end of the day.
On the whole, the involvement of concerned authorities is recommended, although a one-sided approach is not recommended. Mutual considerations must be made so disputes can be easily resolved at the industrial level. Legal tribunals can be set up internally, while experts state that there should be a detailed involvement of the legal personnel in such matters.
Board Of Conciliation And Conciliation Officers
Conciliation is mentioned as a method for resolving labour disputes in Sections 4 and 5 of the Act. Conciliation Officers are chosen by the government and announced in the official gazette. They are seen as functioning in an administrative position and may be allocated to a particular area or industry for a set amount of time.
They serve as a conduit for communication between the parties, assisting them in coming to an accord. After an issue or dispute has started to be resolved through conciliation, the officer has 14 days to produce a report. Accordingly, the government can either write to the parties or pursue litigation.
Tribunal Of Inquiry
Using a notification, the government establishes this court of civil character under Section 6 of the Act to investigate issues related to or pertinent to labour disputes.
Labor Tribunal
They were established by Section 7 of the Act and are composed of just one official responsible for supervising court proceedings. Such a person must have served in a judicial capacity in India for at least seven years and at least three years as a High Court judge, district judge, or additional district judge. They have authority over the things listed in the Act’s Second Schedule.
Conclusion
Although the Act establishes internal and external authorities for dispute settlement, illegal strike and lockout prevention, and reducing the use of unfair labour practices, from the perspective of compliance, it is crucial to have robust internal processes that address conflicts.
In case you are a practising factory manager, or an administrative officer, having faced such issues in the past, we recommend that you get the employees to develop awareness to avoid such contexts within the factory premises. You are requested to get in touch with Vakilsearch for genuine guidance.
FAQs
What is the purpose of the Industrial Disputes Act?
To promote harmony and peace in the workplace by resolving disputes between employers and workers.
What types of disputes are covered under the Act?
Disputes related to wages, working conditions, employment terms, and workplace rights and privileges.
What is the scope of the Act?
The Act applies to all workers and individuals employed on the Indian mainland.
What is the effective date of the Act?
April 1, 1947.
Why was the Act passed?
To address issues between workers and employers and resolve them peacefully.
