An Overview Of The Industrial Disputes Act

Industrial Disputes Act

The emerge of Industrial law was taken place after independence, the development of industrial sector makes more changes in the industrial laws as well. Growth of law makes more cases in front of the Supreme court on industrial matters. A large section of people is affected by industrial laws. Not only industrialists but also the workman.  In every country economic growth depends on industrial development. So, industrial laws play a crucial role in the economy of any country. The Act applies to the whole India as it came in force in April 1947 all these acts are for the fair justice to the labour disputes also care for the production which plays an important role. Both the central government and State governments involved were deal with the appropriate government to settle disputes.

Objectives of the Act

  • The Act is intended to ensure social justice both to the Employers and Employees and advice to the progress of industry.
  • To harmonise the relationship between employers and Employees and thereby to restore and maintain industrial peace.
  • To provide effective machinery for settlement of industrial disputes also production plays a very important backbone to the industrial sector where the harmonise to function without interruptions.
  • To prohibit and restrict strikes and lockouts
  • In case of retrenchment and layoff, provide compensation to the restricted workman and to take care of laid-off employees.

What actually mean by industry is a systematic activity which is organised by the cooperation of employer and employee for the production and the distribution of goods and services calculated to satisfy human wants and wished( not spiritual or religious) but inclusive growth f material things or services geared to celestial bliss there is an industry in that enterprise with the absence of profit motive or gainful objective is irrelevant if the organisation is a trade or business, it doesn’t cease to be one because of philanthropy animating the undertaking.

A restricted category of professions clubs Gurukuls little research labs, may quantity examples where the substantially no Employees are entertained but in minimal matters if the pious or alternatively mission many employ themselves free or for small honoraria and where the services are supplied free at the nominal cost. Then such institutions is not the industrial sector even if the small number of servants for manual or technical work are employed because of the departments discharging sovereign functions are strictly excluded even in departments discharging sovereign functions if there are units which are industries and that can be severable they can be considered as the industries some of them are Hospital, educational institutions, research institutions, municipal corporations, clubs, co-operative society.

Actually the industrial disputes occur between sec-2(k) any disputes or difference

  1. b) Disputes between employers and employers or between employers and workmen or between workmen and workmen. Always the dispute must be connected with the employment or non-employment or terms of employment with the conditions of labour of any person. A dispute to become an industrial dispute is must fulfil the two conditions they are
  • That the workmen as a body or considerable section of them must support the cause of the individual workman
  • That the dispute was taken up or sponsored by the workmen as a body at a time before the date of reference.

Disputes can be in any form where the expression of their issues by different methods like Strike-2(q), lockout, retrenchment, lay off,  also there are authorities under the act for settlement of disputes are

  1. work committee
  2. Conciliation officer
  3. Board of conciliation
  4. labour court’s
  5. Industrial tribunal
  6. National tribunal
  7. Arbitration are main categories to  resolving the disputes arises.

1. strike2(q) is common method used to say his issue towards the industry. We all know that our independence before Gandhi Ji is used the non-violence method by doing hartal strikes salt Satyagraha many more. But now after the independence, we used to have the strike as the cessation of work by a body of person’s employed in any industry acting in combination or a concerted refusal under a common-law standing of any number of persons who or have been so employed to continue to work or to accept employment. The essentials of the strike are the strikers must be employed in an industry and a concerned refusal in their part to continue to work. As the stoppage of work must be to achieve certain demands relating to their employment. All this have been arisen because of the social justice must be done to the Employees we use to have the labour laws were slowly developed with the industrial laws because of large scale industries were emerging with huge production we can see the facilities must be there for the employed and secure for their lives.

Lockout sec(2) lockout can be described as the authorities of strike just the strike is a weapon in the hands of the workers for enforcing their industrial demands, a lockout is a weapon in the hands of the management to persuade the workers to accept it’s views lockout means temporary closing place of employment or suspension of work or refusal by the employer to continue to employ any non of persons employed by him.

Retrenchment-sec2(oo) Termination by the employer of the service of a workman for any reason whatever, otherwise that as a punishment inflicted by the way of discipline can be the voluntary retirement or esle termination of service either by cause of health and non-renewal of the contract. Usually, terms may apply on the surplus of labour and remove by the unfair practice of the labour. But it must be proper fair reason like economy installation of new labour-saving machinery rationalisation in industry and other trade practices. Also, prior notice to be given one month before to the employer also in some cases they need to pay the compensation also.

Lay-off sec2(KKK) There must be failure refusal and inability of the employer to give employment to a workman. The names of the workman must be on the muster rolls, the failure refusal or inability must be for the following reasons those are

Storage of coal, power, raw materials

Accumulation of stock

Breakdown of machinery or for any other reasons

Authorities under the Act for the settlement of disputes:

The Act makes available the following authorities for investigation and settlement of industrial disputes

1. Works committee: In every industrial established with more than 100members constitutes workman committee. As the committee consistent with the equal no of representatives of employers and employee as the committee should not exceed more than 20, the main job of the committee to resolve the day to day grievances of the workers and promote smooth Cooperation

2. Conciliation offer: The appropriate government is empowered to appoint such no of persons as it thinks fit to be conciliation officers. The main duty of the conciliation officer is to mediate in and to promote settlement of industrial disputes as it must be fair justice. As the report shall be submitted within 14days of the commencement of the conciliation proceedings.

3. Board of conciliation: The appropriate government may by notification consists of a board of conciliation it consists of two to four members to resolve the dispute. As we refer the dispute is to investigate and endeavour to bring about the settlement. The board shall send the report within two months from the sate of reference of the dispute.

4. Labour court’s: The appropriate government is empowered one or more labour court’s for the adjudication of disputes relating to any matter specified in the second schedule. The labour court consist of one person appointed by the govt. He is or has been a judge if the High court, he has been a district judge of 3years service or he has held any judicial office in India for not less than 7years or he has been the presiding officer of a labour court for not less than 5years.

5. Industrial Tribunal: The appropriate government by notification constitute  one or more industrial tribunals for adjudication of disputes relating to By matter as specified in the second schedule or third schedule. As appointed by the government.

6. National Tribunal: The central government consist of one or more national tribunal to adjudicate industrial disputes. Where the opinion of Central govt involves questions of national importance.

Arbitration sec(10A) where the industrial dispute exists bor is apprehensive the employer and workmen may agree to refer the dispute to the labour court, industrial tribunal or national tribunal. As it must be a written agreement clause where there can appoint own arbitrator and place of the suit.

As it the emerging way to resolving the disputes in the industrial revolution.


Industrial dispute Act brings the way to resolve the problem of the labour as well the workers it makes many ways to emerging like the arbitration way and the labour courts were making the function of the industrial in the smooth way.

Also Read – Overview of Employee’s Provident Funds (EPF) And Miscellaneous Provisions Act, 1952

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