Dr.M.Latha Natarajan. The main objects of the act 1,to secure industrial peace a) by preventing and...

Dr.M.Latha Natarajan

The main objects of the act1,to secure industrial peace a) by preventing and settling industrial disputes

between the employers and workmen. b) by securing and preserving amity and good

relations ,through an internal works committee, c) by promoting good relations, through an

external 2,to ameliorate the condition of workmen in

industry a) by redressal of grievances of workmen b) by providing job security


Any systematic activity organized or arranged in a manner in which trade or business was generally organized or arranged would be an industry even if it proceeded from charitable motives. it was the nature of the activity that had to be considered and it was upon the application of that test that even the states inalienable functions fell within the definition of industry.

Included in term industrya) Any activity of the dock labour board established

under sec.5-Aof the dock workers Act,1948;b) Any activity relating to the promotion of sales or

business or both carried on by an establishment.


Not included in term industrya) Any agricultural operation except where such

agricultural operation is carried on in an integrated manner with any other systematic activity.

b) Hospitals or dispensaries.c) Educational scientific, research or training

institutions.d) Institutions owned or managed by organizations.e) Khadi or village industries.f) Any domestic service.


“Industry means any business, trade, undertaking, manufacture or calling of employees and includes any callings,service, employment, handicraft or

industrial occupation or avocation of workmen.


Industrial dispute means any dispute or difference between –

Employers and employers Employers and workmen Workmen and workmen. Three ingredients are: There should be real and substantial dispute or

difference. The disputes or difference should be between

employer and his workmen. The disputes or difference must be connected

with the employment or non- employment or terms of employment, or with the conditions of labour of any person.


1) Appropriate government [sec. 2 (a)]2) Average pay [sec.2 (aaa)]3) Award [sec.2(b)]4) Board [sec.2 (c)]5) Closure [sec.2.(cc)]6) Conciliation officer [sec.2. (d)]7) Conciliation proceeding [sec.2 .(e)]8) Controlled industry [sec.2 (ee)]9) Court [sec.2 (f)]10) Employer [sec.2 (g)]11) Executive and office bearer in relation to a trade union [sec.2(gg)] and sec.2(iii)].12) Independent person [sec.2(i)]13) Industrial establishment or undertaking [sec.2(ka)]


14) Labour court [sec.2.(kkb)].15) Lay-off [sec.2(kkk)]16) Lock –out [sec.2 (l)]17) National tribunal [sec.2(ll)] 18) public utility service [sec.2 (n)]19) Retrenchment [sec.2.(oo)]20) Settlement [sec.2.(p)]21) Strike [sec.2.(g)]22) Trade union [sec.2(qq)]23) Tribunal [sec.2.(r)]24) Unfair labour practices [sec.2.(ra)]


I.- on the part of employers trade unions of employers

1. to interfere with workmen in the exercise of their right to organize or to engage in concerted activities for the purpose of collective bargaining or other mutual aid

A) threatening workmen with discharge of dismissal

B) threatening a lock-out or closure 2. to dominate any trade union, A ) an employer taking active interest in

organizing a trade union B ) an employer showing partiality or granting

favour to one of several trade unions attempting to organize his workmen

3.to establish employer- sponsored trade unions of workmen.


4.to encourage or discourage membership in any trade union by discriminating any workman

A) punishing a workman because he urged other workmen to join or organize a trade union

B) discharging a workman for taking part in any strike

C) changing seniority rating of workman D) refusing to promote workman to higher posts 5. to discharge or dismiss workmen A) by way of victimization B) not in good faith but in colourable exercise of

the employer’s right C) for patently false reasons D) on untrue allegations of absence without leave E) disregarding the principles of natural justice


6. to abolish the work of regular nature being done by workmen, and to give such works to contractors as a measure of breaking a strike

7. to transfer a workman from one place to another

8. to show favoritism to one set of workers regardless of merit.

9. to employ workmen as temporaries and to continue them as such for years.

10. to discharge workman with filing charges or testifying against an employer

11. to recruit workmen during strike which is not an illegal strike

12. failure to implement award , settlement or agreement

To indulge in acts of force or violence


1. to be actively support or instigate any strike deemed to be illegal under this act.

2. to coerce workmen in the exercise of their right to self organization or to join a trade union

3. to refuse to bargain collectively in good faith with the employer

4. to indulge in coercive activities against certification of bargaining representative

5. to encourage or instigate such forms of coercive actions willful, squatting on the work premises after working hours

6. demonstrations at the residences of the employers or the managerial staff members.

7. to indulge in willful damage to employer’s property connected with the industry.

8. to indulge in acts of force or violence or to hold out threats of intimidation against any workman


‘wages’ means all remuneration capable of being expressed in terms of money, which would ,if the terms of employment express or implied, were fulfilled be payable to a workman in respect of his employment.

It includes : i) allowances ii) house accommodation, supply of

water,light,medical facility or any other services iii) traveling concessions iv) commissions payable on sales or business ‘wage’ does not include : i) bonus ii) contribution paid by the employer to any pension

fund or PF fund iii) gratuity payable on the termination of his service.


‘ workman’ means any person employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward. His terms of employment may be express or implied.

‘workman’ does not include any person –• Who is subject to the Air force act,1950, or the

Army act,1950, or the Navy act,1957• Who is employed in police service or as an officer

or other employee of a prison;• Who is in managerial or administrative capacity• Who being employed in supervisory capacity,

draws wages exceeding Rs. 1600


1. Works committees (sec.3)2. Conciliation officers (sec.4)3. Boards of conciliation (sec.5)4. Courts of inquiry (sec.6)5. Labour court (sec.7)6. Industrial tribunals (sec.7-a)7. National tribunals (sec.7-b)The act provides for the following settlement ofdisputes under the act :i) Voluntary settlement and conciliationii) Adjudication, andiii) Arbitration


1. works committees (sec.3) It consists of representatives of employers

and workmen's engaged in the establishment.

Powers and duties : To promote measures for securing and

preserving goodwill and good relations between employers and workmen

Comment upon matters of their common interest or concern

Endeavour to compose any material difference of opinion in respect of such matters.


2. Conciliation officers (sec.4) Duties : To hold conciliation proceedings. To investigate the dispute To send a report and memorandum of

settlement to appropriate government To send a full report Powers : Power to enter premises Power to call for and inspect documents.3. Board of conciliation (sec.5) Duties : To bring about a settlement of dispute To send a report and memorandum of

settlement to the appropriate govt.


To communicate reasons to the parties if no further references made

To submit reports within 2 months Power : Power to enter premises Power to civil court4. Courts of inquiry (sec,6) Duties : To inquire into the matters referred to it and

report thereon To stand by the principles of fairplay and

justicePowers : Power to enter premises Power of civil court


Secs. 7 to 9 pertain to the constitution of adjudication authorities under the Act.

These authorities are:1. Labour courts (sec. 7) Appointment and

constitution. The appropriate government may, by notification in the official Gazette, constitute one or more Labour courts for adjudication of industrial disputes relating to any matters specified in the second schedule


* The property or legality of an order passed by an employer under the standing orders.

* The application and interpretation of standing orders.

* Discharge or dismissal of workmen * Withdrawal of any customary concession or

privilege.* Illegally or otherwise of a strike or lock-out* All matters other than those specified in third

schedule.DUTIES:* To adjudicate upon industrial disputes relating

to matters specified in second schedule.* To give award within the specified period.


Powers:* Power to enter premises.* Powers of civil court.

Matters relating with jurisdiction of industrial Tribunal

Wages, including the period and mode of payment.

Compensatory and other allowances. Hours of work and rest intervals. Leave with wages and holidays. Bonus, profit sharing, provident fund and gratuity. Shift working otherwise than in accordance with

standing orders; Classification by grades.


Rules of discipline Rationalization. Retrenchment of workmen and closure of

establishment. Any other matter that may be prescribed. POWERS: Power to enter premises. Powers of civil court. Power to appoint assessors. Power to award costs.DUTIES: where an industrial dispute has been referred

to a tribunal for adjudication, it shall hold its proceedings expeditiously and shall, within the period specified in the order preferring.


Appointments and constitution: The central government may, by notificationIn the official gazette, constitute one or more nationalindustrial tribunals for the adjudication of industrialdisputes which, in the opinion of central govt., involvequestions of national importance or are of such anature that industrial establishments situated in morethan one state are likely to be interested in, or affectedby, such disputes.[sec7-B)1].DUTIES: * Where an industrial dispute has been referred to national tribunal

for adjudication, * It shall hold its proceedings expeditiously .* Within the period specified in the order referring such industrial

disputes, submit its award to the appropriate govt. [sec 15]


POWERS: 1. power to enter premises 2. powers of civil court 3. power to appoint assessors 4. power to award costs NOTICE OF CHANGE IN CONDITIONS OF SERVICE According to sec 9-A,no employer who

proposes to effect any change in the conditions of service applicable to any workmen in respect of any matter specified in the fourth schedule shall effect such change.

(a) Without giving to workmen likely to be affected by such change a notice in the prescribed manner of the nature of the change proposed to be effected.

(b) Within 21 days of giving such notice sec(9)Dr.M.Latha Natarajan

Reference to national tribunalWhere the central govt., is of opinion that –1. Any industrial dispute exists2. Is apprehended 3. The dispute involves any question of

national importance4. Is of such a nature that industrial

establishment situated in more than one state are likely to be interested in ,or affected by , such dispute

5. That the dispute should be adjudicated by national tribunal

Publication of reports and awards sec 17(1) Every report of a board of conciliation or

court of inquiry together with any minute of dissent recorded therewith.


(2) Every arbitration award(3) Every award of a labour court, industrial or

national tribunalPeriod of operation of settlement :1.On such date as is agreed upon by parties to

dispute2. If no date is agreed upon , on the date on

which the memorandum of settlement is signed by parties to dispute

Period of operation of award: An award shall subject to prov: of sec 19

remain in operation for a period of 1 year from the date on which the award becomes enforceable


Prohibition of strikes and lock outs (sec 22 & 23)1. Strike in a public utility service [sec 22(1)] No person employed in a public utility service

shall go on strike in breach of a contract-a) Without giving to employer notice of strike,

within six weeks before striking.b) Within 14 days of giving such notice c) Before the expiry of the date of strike

specified in the notice.d) During pendancy of any conciliation

proceedings.


2. lock out in a public utility service sec 22(2) No employer carrying on any public utility service

shall lock out any of his workmen-* Without giving them notice of lock out, within 6

weeks before locking out* Within 14 days of giving such notice.* Before the expiry of date of lock-out specified* During the pendency of any conciliation

proceedings.3.Strike and lock outs in an industrial

establishments sec23 No workmen shall go for or no employer shall

declare a lock out-* During pendency of conciliation proceedings

before a board of conciliation* During pendency of proceedings before a labour

court, industrial tribunal or national tribunal and 2 months after proceedings


Illegal strikes and lock outs:(sec.24) A strike is illegal if – (a) it is commenced in contravention of sec 22

or 23 (b) it is continued in contravention of an order

made under sec10 (3)LAY OFF AND RETRENCHMENT APPLICATION OF sec 25-c to sec 25E The provisions as to lay off and retrenchment

of workmen as in person in secs. 25-C to 25-E.

UNDER THE sec25-B A workmanship shall be said to be in

continuous service for a period if he is, for that period , in uninterrupted services.

services including: Sickness Authorized leave


An accident A strike which is not illegal A lock-out or a cessation of work which is not

due to any fault on the part of the workman.LAY –OFF Right of workmen laid-off for compensation's 25-c)1,The work men must not be a badli workman or a

casual workman if he is to be entitled to compensation.

2,His name must be borne on the master rolls of the industrial establishment,

3,He must have completed not less than one year of continuous services.

4,If the above conditions are fulfilled the workman whether laid-off continuously or intermittently shall be paid compensation by the employer for all days during which he is laid off, except for such weekly holidays as may intervene.Dr.M.Latha Natarajan

5,The rate of compensation shall be equal to 50% of the total basis of wages and dearness allowance that would have been payable to him had he not been laid off (sec 25-c).

6,If during any period of 12 months, a workman is so laid off for more than 45 days.

RETRECHMENTConditions precedent to retrenchment of

workmen(sec.25-F) No workman employed in any industry who has

been in continuous service for not less than 1year under an employer shall be retrenched by that employer.

PRODUCE FOR RETRENCHMENT where an workmen in an industrial

establishment , who is a citizen of India, is to be retrenched and he belongs to a particular category of workmen in that establishment.


TRANSFER AND CLOSING DOWN OF UNDERTAKING A workman shall not be entitled to notice and

compensation where there has been the change of employers by reason of the transfer.

A .The service of workman has not been interrupted by such transfers.

B .The terms and conditions of service applicable to the workman after such transfer are not in any way less favorable to the workmen than those applicable to him immediately.

C .The new employer is under the terms of such transfer.

60 days notice to be given of intention to close down any undertaking (sec 25- FFA).

An undertaking in which-less than 50 workman are employed, less than 50 workman were employed on an avg per working day in the preceding 12 months.

Accident in the undertaking or death of the employer (sec-FFA[2]). Dr.M.Latha Natarajan

COMPENSATION TO WORKMEN IN CASE OF CLOSING DOWN OF UNDERTAKINGS.

where an undertaking is closed for any reason whatsoever, every workman who has been in continuous service for less than 1 year

Financial difficulties( including losses) Accumulation of indisposed of stocks. The expiry of the period of the lease or the

lien granted to it. closing down of an undertaking set up

for construction of buildings, bridges ,canals ,roads, dams.


PROHIBITION OF LAYOFF1,Lay off to be with permission from appropriate

government or specified authority.2,Application to be made by the employer or permission.3,Application for permission to continue lay-off in a

mine.4,Order granting or refusing permission for lay-off to be

communicated to employer and workmen.5,Presumption of permission if no order communicated

with in 60 days.6,Order binding for all parties for 1 year.7,Review of order.8,Lay-off illegal in certain cases.9,Exemption. penalty for illegal lay-off. The penalty for illegal lay-off

is imprisonment up to 1 month or fine up to Rs. 1,000 or both(sec.25-n).


1,3 months notice and prior permission of the appropriate Government or the specified authority required before retrenchment.

2,Application to be made for permission.3,Order granting or refusing permission for retrenchment

to be communicated to employer and workmen.4,Presumption of permission if no order communicated

within 60 days.5,Order binding on all parties for 1 year.6,Review of order.7,Consequences of illegal retrenchment.8,Exemption.9,Compensation in case of permission for retrenchment-

15 days wages for every completed year of service. penalty for illegal retrenchment is imprisonment up to 1

month or fine up to Rs.1000 (or) both.


Application for permission to close to be made at least 90 days before the intended date of closure.

Sec. 25- shall not, however, apply to an undertaking set up for the construction of buildings, bridges, roads, canals, dams or for other construction work.

Order granting or refusing permission to be communicated to employer and workmen.

› the genuineness and adequacy of the reasons stated by the employer;

› the interests of the general public, and› all other relevant factors.

The compensation shall be equivalent to 15 days’ average pay for every completed year of continuous service or any part thereof in excess of 6 months [sec.25-O(8)].


Presumption of permission if no order communicated within 60 days. Under [sec.25-O 94)].

Order granting or refusing permission final and binding on all parties for 1 year. [sec.25-O(4)].

Review of order.› review its order granting or refusing to

grant permission, or› refer the matter to an Industrial Tribunal

for adjudication [Sec.25-O (5)] Consequences of illegal closure. Exemption: Penalty for closure (Sec.25-R) Shall be punishable with imprisonment for a

term which may extend to 6 months, or with fine which may extend to Rs.500, or with both [Sec.25-R(1)].


The Amendment Act of 1982 has introduced a new Chapter V-C containing two Secs. 25-T and 25-U.

Prohibition of unfair labour practice (Sec. 25-T) Penalty for committing unfair labour practice (sec. 25-

U)PENALTIES: Penalty for general offences [sec.31(2)], if no other be

punishable with fine which may extend to Rs.100.MISCELLANEOUS: Offences by companies, etc. (Sec.32), where a person

committing an offence under this Act is a company or other body corporate or an association of persons, every director, manager, secretary, agent or other officer or person concerned with the management thereof shall be deemed to be guilty of such offence.


Conditions of service to remain unchanged during pendency of proceedings (sec.33)

Employer not to alter conditions of service or punish for misconduct during pendency of proceedings [sec.33(1)].

in regard to any matter connected with the dispute , alter, to the prejudice of the workmen concerned in such dispute, the conditions of service applicable to them immediately before the commencement of such proceeding

[Sec.33(1) (a)]; for any misconduct connected with the dispute,

discharge or punish, whether by dismissal or otherwise any workmen connected in such dispute [sec.33(1)(b)].


Shall be punishable for a term which may extend to 6 months, or with fine which may extend to Rs.100 or with both.

Recovery of money due from an employer (Sec.33-C)

Cognizance of offences (Sec.34) No court inferior to that of a Metropolitan

Magistrate or a Judicial Magistrate of the First Class shall try any offence punishable under this Act [sec.3492)]

Protection of persons (Sec.35) expulsion from any trade union or society, or any fine or penalty, or deprivation of any right or benefit to which he or his

legal representatives would otherwise be entitled, orDr.M.Latha Natarajan

any disability either directly or indirectly or any disadvantage as compared with other members of the union or society {sec.35(1)]

› Representation of parties (sec.36) any member of the executive or other office-

bearer of a registered trade union of which he is a member;

where the worker is not a member of any trade union, by any member of the executive or other office-bearer of any trade union connected with, or by any other workman employed in, the industry .

› Representation of employers. an officer of an association of employers of

which he is a member; an officer of a federation of association of

employers of which the association referred to in clause (a) is affiliated;


Power to remove difficulties (sec.36-A) Power to exempt (sec.36-B) Protection of action taken under the Act (sec.37) Power to make rules (sec.38)


Dr.M.Latha Natarajan. The main objects of the act 1,to secure industrial peace a) by preventing and...

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