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SOHAIL & CO.: The Industrial Disputes Act, 1947

Object of the Act

Provisions for investigation and settlement of industrial disputes and for certain other purposes.

Important Clarlfications

Industry - has attained wlder meaning than defined except for domestic employmant, covers from barber shops to big steel companies.


Works Committee - joint Committee with equal number of employers and employees representatives for discussion of certain common problems.

Sec. 3

Concillation - is an attempt by a third party in helping to settle the disputes.

Sec. 4

Adjudication - Labour Court, Industrial Tribunal or National Tribunal to hear and decide the dispute.

Sec. 7, 7A & 7B

Power of Labour Court to give Appropriate Relief

Power of Labour

Labour Court/Industrial Tribunal can modify the punishment of dismissal or discharge of workmen and give appropriate relief including reinstatement.

Sec. 11A

Persons Bound By Settlement

  • When in the course of conciliation proceedings etc., all persons working or joining subsequently.
  • Otherwise than in course of settlement upon the parties to the settlement.

Sec. 18

Right of a Workman during Pendency of Proceedings in High Court

Employer to pay last drawn wages to reinstated workman when proceedings challenging the award of his reinstatement are pending in the higher Courts.

Sec. 17B

Period of Operation of Settlements and Awards

Period of Operation
  • A settlement for a period as a greed by the parties, or
  • Period of six months on signing of settlement.
  • An award for one year after its enforcement.

Sec. 19

Lay off and Payment of Compensation - Conditions for Laying off

Failure, refusal or inability of an employer to provide work due to

  • Shortage of coal, power or raw materiel.
  • Accumulation of machinery.
  • Breakdown of machinery.
  • Natural calamity.

Sec. 2(kkk)

Notice of Change

Notice of Change

21 days by an employer to workmen about changing the conditions of service as provided in IV Schedule.

Sec. 9A

Lay off Compensation

Payment of wagen except for Intervening weekly holiday compenaation 50% of total or basic wages and DA for a period of lay off upto maximum 45 days In a year.

Sec. 25-C

Prlor Permission for Lay off

When there are more than 100 workmen during preceding 12 months.

Sec. 25-M

Prohibition of Strikes and Lock Outs

  • Without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking.
  • Within fourteen days of giving such notice.
  • Before the expiry of the date of strike specified in any such notice as aforesaid.
  • During the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.
  • During the pendency of proceedings before a Labour Court, Tribunal or Nationl Tribunal and two months, after the conclusion of such proceedings.
  • During the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such proceedings, where a notification has been issued under sub-section (3A) of section 10A.
  • During any period in which a settlement or award is in operation, in respect of any of the matters covers covered by the settlement or award.

Sec. 2(kkk)

Retrenchment of Workmen Compensation and Conditions

Retrenchment of Workmen
  • Workman must have worked for 240 days.
  • Retrenchment compenaation @ 15 days' wages for every completed at last drawn wages
  • One month's notice or wages in lieu thereof.
  • Reasons for retrenchment
  • Complying with principle of 'last come first go'.
  • Sending Form P to Labour Authorities

Secs. 25F & 25G

Prior Permission by the Government for Retrenchment

  • When there are more than 100 (in UP 300 or more) workmen during preceding 12 months' notice or wages thereto.
  • Form QA
  • Compensation @ 15 days' wages.

Sec. 25-N

Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings

Conditions of service
  • Not to alter to the prejudice of workmen concemed the condition of service.
  • To seek express permission of the concemed authority by paying one month's wages on dismissal, discharge or punish a protected workman connected with the dispute.
  • To seek approval of the authority by paying one month's wages before altering condition of service, dismissing or discharging or punishing a workman.

Sec. 33

Recognition of Protected Workman

One percent of the total number of workmen employed therein subject to a minimum number of five and maximum of 100 workmen.

Sec. 33(4)

Prohibition of unfair labour practice either by employer or workman or a trade union as stipulated in Fifth Schedule Both the employer and the Union can be punished.

Sec. 25-T

Closure of an Undertaking

Closure of an Undertaking
  • 60 days' notice to the labour authorities for intended closure in Form QA.

Sec. 25FFA

Prior permission at least 90 days before in Form O by the Government when there are 100 or more workmen during preceding 12 months (in UP 300 or more workmen)

Sec. 25-O

Penalties Offence Punishment
Sec. 25-U Committing unfair labour practices Imprisonment upto 6 months or with fine upto Rs. 3,000.
Sec. 26 Illegal strike and lock-outs Imprisonment upto one month or with fine upto Rs. 50 (Rs. 1000 for lock-out) or with both.
Sec. 27 Instigation etc. for illegal strike or lock-outs Imprisonment upto 6 months or with fine upto Rs. 1,000
Sec. 28 Giving finencial aid to illegal strikes and lock-outs Imprisonment upto 6 months or with fine upto Rs. 1,000
Sec. 29 Breach of settlement or award Imprisonment upto 6 months or with fine. On continuity of offence fine upto Rs. 200 per day.
Sec. 30 Disclosing confidential information pertaining to Sec. 21 Imprisonment upto 6 months or with fine upto Rs. 1,000
Sec. 31A Closure without 60 days' notice under Sec. 25FFA Imprisonment upto 6 months or with fine upto Rs. 5,000
Sec. 31 Contravention of Sec. 33 pertaining to charge of conditions of service during pendency of dispute etc.
When no penalty is provided for contravention.
Imprisonment upto 6 months or fine upto Rs. 1,000
Fine upto Rs. 100.