Kristu Jyoti College of Management and Technology

Department of Management studies

Intellectual Property Rights and Industrial Laws

STUDY MATERIAL

Module III | BBA | 5th Semester

Christin Mathew

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 Intellectual Property Rights and Industrial Laws
Module III
The Industrial Dispute Act, 1947
Industry
An industry is a group of manufacturers or businesses that produce a particular kind of goods or
services. An industry is a group of companies that are related based on their primary business
activities. In modern economies, there are dozens of industry classifications, which are typically
grouped into larger categories called sectors.
Industrial dispute means any dispute of difference between employees and employers or
between employers and workmen or between workmen and workmen, which is connected with
the employment or non-employment of the terms of employment or the conditions of work of
any person (The industrial Disputes Act 1947)

Objectives of the Industrial Disputes Act, 1947

The act was drafted to make provision for the investigation and settlement of industrial disputes
and to secure industrial peace and harmony by providing mechanism and procedure for the
investigation and settlement of industrial disputes by conciliation, arbitration and adjudication
which is provided under the statute. The main and ultimate objective of this act is “Maintenance
of Peaceful work culture in the Industry in India” which is clearly provided under the Statement
of Objects & Reasons of the statute.
The Act also lays down:

1. The provision for payment of compensation to the workman on account of closure or lay
off or retrenchment.
2. The procedure for prior permission of appropriate Government for laying off or
retrenching the workers or closing down industrial establishments
3. The actions to be taken against unfair labour practices on part of an employer or a trade
union or workers.

Types of industrial dispute:

1. Interest dispute: Interest dispute arise out of deadlocks in negotiation for collective
bargaining.
2. Grievance dispute: Grievance dispute pertains to discipline, wages, working time,
promotion, rights of supervisors etc. It is also called as interpretation disputes.
3. Unfair labor practices: Unfair labor practices are those arising out of right to organize,
acts of violence, failure to implement an award, discriminatory treatment, illegal strikes
and lockouts.

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 4. Recognition disputes: Recognition disputes are disputes over the rights of a Trade Union
to represent class or category of workers.

The following is the machinery for prevention and settlement of industrial

disputes:
1. Works committees:
This committee represents workers and employers. Under the Industrial Disputes Act 1947,
works committees exist in industrial establishments in which one hundred or more workmen are
employed during the previous year.

It is the duty of the works Committee to promote measures for securing and preserving amity and
good relations between the employers and workers. It also deals with certain matters viz.
Condition of work, amenities, safety and accident prevention, educational and recreational
facilities.

2. Conciliation officers:

Conciliation Officers are appointed by the government under the Industrial Disputes Act, 1947.

The duties of conciliation officer are given below:

(i) He has to evolve a fair and amicable settlement of the dispute. In case of public utility service,
he must hold conciliation proceedings in the prescribed manner.

(ii) He shall send a report to the government if a dispute is settled in the course of conciliation
proceedings along with the charter of the settlement signed by the parties.

(iii) Where no settlement is reached, conciliation officer sends a report to the government
indicating the steps taken by him for ascertaining the facts, circumstances relating to dispute and
the reasons on account of which settlement within 14 days of the commencement of the
conciliation proceedings.

3. Boards of conciliation:
The government can also appoint a Board of Conciliation for promoting settlement of Industrial
Disputes. The chairman of the board is an independent person and other members (may be two
or four) are to be equally represented by the parties to the disputes.

The duties of the board include:

(a) To investigate the dispute and all matters affecting the merits and do everything fit for the
purpose of inducing the parties to reach a fair and amicable settlement.

(b) A report has to be sent to the government by the board if a dispute has been settled or not
within two months of the date on which the disputes were referred to it.

4. Court of enquiry:

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The government may appoint a Court of enquiry for enquiring into any industrial dispute. A
court may consist of one person or more that one person and in that case one of the persons will
be the chairman. The Court shall be required to enquire into the matter and submit its report to
the government within a period of six months.

5. Labour courts:
As per the second schedule of the Industrial Dispute Act 1947.

The government sets up Labour Courts to deal with matters such as:
(i) The propriety or legality of an order passed by an employer under the standing orders.

(ii) The application and interpretation of standing orders passed.

(iii Discharge or dismissal of workmen including reinstatement, grant of relief to workers who
are wrongfully dismissed.

(iv) Withdrawal of any customary concession of privilege

(v) Illegality or otherwise of a strike or lockout, and all other matters not specified in the third
schedule.

6. Industrial Tribunals:
A Tribunal is appointed by the government for the adjudication of Industrial disputes.

7. National Tribunal:
A National tribunals is constituted by the Central government for Industrial Disputes involving
question of national importance.

8. Arbitration:
The employer and employees may agree to settle the dispute by appointing an independent and
impartial person called Arbitrator. Arbitration provides justice at minimum cost.

Definition of Lay off (Section 2(kkk))-

Lay off) means the failure, refusal or inability of an employer on account of shortage of coal,
power or raw materials or the accumulation of stocks or the breakdown of machinery [or natural
calamity or for any other connected reason] to give employment to a workman whose name is
borne on the muster rolls of his industrial establishment and who has not been retrenched.

Definition of Retrenchment -Section 2

Retrenchment means the termination by the employer of the service of a workman for any reason
whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not
include-
(a) Voluntary retirement of the workman; or
(b) Retirement of the workman on reaching the age of superannuation if the contract of
employment between the employer and the workman concerned contains a stipulation in that
behalf; or [(bb) termination of the service of the workman as a result of the on-renewal of the

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contract of employment between the employer and the workman concerned on its expiry or of
such contract being terminated under a stipulation in that behalf contained therein; or]
(c) Termination of the service of a workman on the ground of continued ill-health;]

Definition of Closure (Section 2(cc))-

Closure means the permanent closing down of a place of employment or part thereof;
Strike
Strike is a very powerful weapon used by trade unions and other labor associations to get their
demands accepted. It generally involves quitting of work by a group of workers for the purpose
of bringing the pressure on their employer so that their demands get accepted. When workers
collectively cease to work in a particular industry, they are said to be on strike.
Causes of strikes:

 Strikes can occur because of the following reasons:

 Dissatisfaction with company policy
 Salary and incentive problems
 Increment not up to the mark
 Wrongful discharge or dismissal of workmen
 Withdrawal of any concession or privilege
 Hours of work and rest intervals
 Leaves with wages and holidays
 Bonus, profit sharing, Provident fund and gratuity
 Retrenchment of workmen and closure of establishment
 Dispute connected with minimum wages

Lockout

A lockout is a work stoppage or denial of employment initiated by the management of a

company during a labor dispute.[1] In contrast to a strike, in which employees refuse to work, a
lockout is initiated by employers or industry owners. Lockouts are usually implemented by
simply refusing to admit employees onto company premises, and may include changing locks or
hiring security guards for the premises.
What is the difference between Strike and Lockout?
Definition:
Strike: A strike is a refusal to work, organised by a body of employees as a form of protest,
typically in an attempt to gain a concession or concessions from their employer.
Lockout: A lockout is the exclusion of employees by their employer from their place of work
until certain terms are agreed to.
Initiators:
Strikes are initiated by the employees.
Lockouts are initiated by the employers.
Aim:
Strikes are conducted with the aim of gaining concessions from the employer.

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Lockouts are used to enforce terms of employment upon a group of employees during a dispute.
Methods:
Strikes may involve employees refusing to attend work, employees standing outside the workplace
as a form of protest (picket) or employees occupying the workplace but refusing to work (sit down
strike).
Lockouts involve refusing to admit workers onto company premises.

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Unfair Labour Practices
I. ON THE PART OF EMPLOYERS

(a) Threatening workmen with discharge or dismissal, if they join a trade union;

(b) Threatening a lock-out or closure, if a trade union is organized;

(c) Granting wage increase to workmen at crucial periods of trade union organization, with a view
to undermining the efforts of the trade union at organization.

(d) Refusing to promote workmen of higher posts on account of their trade union activities;

(e) Giving unmerited promotions to certain workmen with a view to creating discord amongst
other workmen, or to undermine the strength of their trade union;

f) Discharging office-bearers or active members of the trade union on account of their trade union
activities.

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

h) To transfer a workman mala fide from one place to another, under the guise of following
management policy.

i) Proposing or continuing a lock-out deemed to be illegal under this Act.

II. ON THE PART OF WORKMEN AND TRADE UNIONS OF WORKMEN

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(1) To advise or actively support or instigate any strike deemed to be illegal under this Act.

(2) To indulge in acts of force or violence or to hold out threats of intimidation against any
workman with a view to prevent him from attending work.]

(3) For a recognized union to refuse to bargain collectively in good faith with the employer.

(4) To indulge in coercive activities against certification of a bargaining representative.

(5) To incite or indulge in willful damage to employer’s property connected with the industry.

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