1. IDA, 1947 Object, Applicability & Definitions

8/3/2019 1. IDA, 1947 Object, Applicability & Definitions

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Industrial Disputes Act, 1947

Applicability, Object & Definitions

By:Manish Dabas


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Applicability

The Industrial Disputes Act, 1947 cameinto existence in April 1947. The Actapplies to whole of India.


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Objects

The Act has been enacted to makeprovisions for:

(i) Prevention of industrial disputes;

(i) investigation and settlement ofindustrial disputes; &

(ii) providing certain safeguards to

the workers.


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Newspapers Ltd v State IndustrialTribunal, Uttar Pradesh, AIR 1957, SC 32

The Supreme Court in the present caseheld that the machinery of the IDA, hasbeen devised with the object of

preventing industrial strife,maintaining industrial peace andachieving collective amity betweenlabour and capital by means ofconciliation, mediation & adjudication.


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LIC of India v DJ Bahadur (1989) Lab I.C.1218

Held The IDA, 1947 is a benignmeasure which seeks to pre-emptindustrial tensions, provide the

mechanics of dispute resolutions andto set up the necessary infra-structure so that the energies ofpartners in production may not bedissipated in counter productivebattles and assurance of industrialjustice may create a climate of

goodwill.


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Definitions

In 1947 the IDA defined industry asany business, trade, undertaking,manufacture or calling of employers

and includes any calling, service,employment, handicraft, or industrialoccupation or a vocation ofworkmen.


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Supreme Court of India (SC) in the leading case

Bangalore Water Supply vs. A Rajappa (1978)held the term industry under section 2 (j) of theIDA means any systematic activity carried on byco-operation between an employer and his

workmen (whether such workmen are employed bysuch employer directly or by or through any agency,including a contractor) for the production, supplyor distribution of goods or services with a view

to satisfy human wants or wishes (not beingwants or wishes which are merely spiritual orreligious in nature), whether or not-


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(i) any capital has been invested for the purpose

of carrying on such activity; or(ii) such activity is carried on with a motive tomake any gain or profit,and includes

(a) any activity of the Dock Labour Board(b) any activity relating to the promotion of salesor business or bothcarried on by anestablishment, but does not include-

(i) Any agricultural operation except where suchagricultural operation is carried on in an integratedmanner with any other activity (being any suchactivity as is referred to in the foregoing provisionsof this clause) and such other activity is thepredomi-nant one.


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(ii)Hospitals or dispensaries; or(iii) Educational, scientific, research or training

institutions; or(iv) Institutions owned or managed by organisationswholly or substantially engaged in any charitable,social or philanthropic service ; or

(v) Khadi or village industries; or(vi) Any activity of the Government relatable to thesovereign functions of the Government includingall the activities carried on by the departments of the

Central Government dealing with defence, atomicenergy and space; or(vii) Any domestic service; or


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(viii) any activity, being a professionpractised

by an individual or body of individuals, if thenumber of persons employed by the individuals orbody of individuals in relation to such profession is

less than ten ; or

(ix) any activity, being an activity carried on by aCo-operative society or a clubor any other likebody of individuals, if the number of persons

employed by the co-operative society, club orother like body of individuals in relation to

such activity is less than ten ;


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Industrial Dispute [Sec 2 (k)]

Industrial dispute" means any disputeor difference between

(i)Employers and Employers; or(ii)Employers and Workmen; or

(iii)Workmen and Workmen, which isconnected with the

(i) employment or non-employment;or (ii) the terms of employment; or

(iii) with the conditions of labour, of

any person;


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Workman

The Act is applicable in all states ofIndia, to all Industrial and commercialestablishments, employing Technical andNon-Technical workmen, drawing salaryor wages upto Rs. 1600 p.m.

Sec 2(S) of the Act defines workmanas "workman" means any person(including an apprentice) employed in

any industry to do any manual,unskilled, skilled, technical,operational, clerical or supervisorywork for hire or reward, whether the


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terms of employment be express or implied,and for the purposes of any proceedingunder this Act in relation to an industrial

dispute, includes any such person whohas been dismissed, discharged orretrenched in connection with, or as aconsequence of, that dispute, or whose

dismissal, discharge or retrenchment has ledto that dispute, but does not include any


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Such person-(i) who is subject to the Air Force Act, 1950, orthe Army Act,1950 or the Navy Act, 1957; or

(ii) who is employed in the police service, or asan officer or other employee of a prison; or

(iii) who is employed mainly in a managerialor administrative capacity; or


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(iv) who, being employed in a supervisorycapacity, draws wages exceeding Rs 10,000 per

mensem or exercises, either by the nature of theduties attached to the office or by reason of thepowers vested in him, functions mainly ofmanagerial nature.

Case Law: Mathur Aviation v Lt Governor, Delhi,(1977)LLJ225


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According to Sec 2(aaa) "average pay"means the average of the wages payable toa workman

(i) in the case of monthly paid workman, inthe threecomplete calendar months,(ii) in the case of weekly paid workman, inthe four complete weeks,(iii) in the case of daily paid workman, in thetwelve full working days,


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Wages

According to Sec 2 (rr) "wages" meansall remuneration capable of beingexpressed in terms of money, which

would, if the terms of employment,expressed or implied, were fulfilled, bepayable to a workman in respect of hisemployment or of work done in such

employment, and includes-(i)such allowances (including dearnessallowance) as the workman is for thetime being entitled to;


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(ii) the value of any house accommodation, orof supply of light, water, medical attendant

or other amenity or of any service or of anyconcessional supply of food grains or otherarticles;

(iii)any travelling concession;

(iv)any commission payable on the promotion

of sales or business or both;


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but does not include-(i) any bonus;

(ii) any contribution paid or payable by theemployer to any pension fund or provident

fund or for the benefit of the workmanunder any law for the time being in force;

(iii) any gratuity payable on the termination

of his service;

1. IDA, 1947 Object, Applicability & Definitions

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