Industrial Disputes Act, 1947 : Objectives, Amendments, Provisions & FAQs

Industrial Disputes Act, 1947

The Industrial Disputes Act, of 1947, stands as a cornerstone in India’s industrial development, embodying the pivotal aim of ensuring fair terms and fostering harmonious relationships among employers, employees, and workmen. This legislation, enacted as Act No. 14 of 1947 by the Central Legislative Assembly, has evolved incorporating amendments to address the dynamic nature of industrial relations.

The act regulates the labor laws since it is concerned with all the workmen or all the people employed on the Indian mainland. The capitalists, workers, and employers had a difference of opinion and eventually, it led to conflicts among and within these groups. The main issues were brought to the attention of the government and this act was passed.

Historical Context and Legislative Framework

Enacted on March 11, 1947, and enforced from April 1, 1947, the Industrial Disputes Act regulates Indian labor law concerning trade unions. Its multifaceted objectives include encouraging good relations, preventing unauthorized actions, and providing mechanisms for dispute settlement.

The objective of the act is to encompass promoting industrial peace, preventing unauthorized strikes and lockouts, addressing unfair labor practices, and extending support to unjustly dismissed labor. It aims to establish committees, encourage collective bargaining, and provide statutory norms for dispute resolution.

Evolution and Amendments

The legislative journey of the Industrial Disputes Act has witnessed amendments to meet contemporary challenges. Chapter V-B, introduced in 1976, mandated government permission for layoffs, retrenchments, and closures for firms employing 300 or more workers. Subsequent amendments in 1982 expanded its ambit by lowering the threshold to 100 workers.

Provisions within the Act

The act outlines provisions such as compensation for workmen on account of closure, layoff or retrenchment, procedures for government permission in specific situations, and identification of unfair labor practices. It applies to every industrial establishment, covering a wide array of employees, excluding those primarily in managerial roles or subject to specific military and police services.

Industrial disputes, as defined under Section 2(k), encompass any disagreement related to employment, non-employment, terms of employment, or conditions of labor affecting individuals or groups. These disputes involve employers and workmen, employers and employers, or workmen and workmen.

Authorities and Their Roles: New Additions

The act establishes a hierarchy of authorities for dispute resolution, including Works Committees, Conciliation Officers, Boards of Conciliation, Courts of Inquiry, Labour Courts, Labour Tribunals, Industrial Tribunals and National Tribunals. Hence, the new additions are as follows:

1. Labour Tribunals (Section 7-A)

The act empowers the appropriate government to constitute Labour Tribunals for adjudicating industrial disputes. Their functions, akin to judicial bodies, involve expeditious proceedings and award submission. The tribunal comprises a single appointed person, and assessors may be appointed to advise.

2. National Tribunals (Section 7-B)

The Central Government can establish National Industrial Tribunals for disputes of national importance or those affecting industrial establishments across multiple states. Comprising a person qualified as a High Court Judge, these tribunals may also have assessors appointed by the Central Government.

Reference of Disputes: Disputes can be referred to Conciliation Boards, Labour Courts, Courts of Inquiry, Industrial Tribunals or National Tribunals based on the nature and context of the dispute. The Appropriate Government holds discretionary power to make references.

3. Voluntary Reference of Disputes To Arbitration (Section 10-A)

Parties can voluntarily refer disputes to arbitration under Section 10-A. This involves a written agreement, arbitration conducted by appointed arbitrators and submission of the award to the appropriate government, prohibiting strikes or lockouts related to the disputes.

4. Procedure And Powers of Authorities (Section 11):

Section 11 grants wide powers to authorities like Conciliation Boards, Labour Courts, Industrial Tribunals, and National Tribunals allowing them to enter premises, enforce attendance, and follow quasi-judicial procedures.

5. Award (Section 33A):

An award, whether interim or final, signifies a determination of industrial disputes. It is binding on parties involved and enforceable after a specified period, subject to government review. Settlements and awards are binding on all parties involved, ensuring compliance with terms to maintain industrial harmony.

Conclusion

The Industrial Disputes Act, 1947, is a robust legal framework that has stood the test of time. Its continuous evolution and adaptation reflect its significance in balancing the interests of employers and employees while upholding principles of fairness and industrial peace. The act’s procedural intricacies and authoritative powers underscore its commitment in resolving disputes and fostering a conducive environment for India’s industrial landscape.

Hence, the act frames specific guidelines in regards to the works committee for good working relations and comprehension among the workmen. In addition, it vows to resolve any material difference in views of opinion in regard to such issues.

Frequently Asked Questions (FAQs)

1. What is the main purpose of the Industrial Disputes Act, 1947?

The primary objective of the Industrial Disputes Act, 1947, is to ensure fair terms between employers and employees, fostering industrial peace and harmony by providing mechanisms for the investigation and settlement of disputes through negotiations.

2. When was the Industrial Disputes Act, 1947, enacted?

The Industrial Disputes Act, 1947, was enacted by the Central Legislative Assembly on March 11, 1947, and came into force on April 1, 1947.

3. What does an industrial dispute entail under Section 2(k) of the Act?

An industrial dispute, as defined in Section 2(k), involves any disagreement between employers and employers, employers and workmen, or workmen and workmen connected with employment, non-employment, terms of employment, or conditions of labor.

4. How has the Act evolved over time?

The Act has seen amendments, with notable additions like Chapter V-B in 1976, requiring government permission for layoffs, retrenchments, and closures. Further amendments in 1982 expanded its applicability by reducing the threshold to 100 workers.

5. What authorities are involved in dispute resolution under the Industrial Disputes Act?

The Act establishes a hierarchy of authorities, including Works Committees, Conciliation Officers, Boards of Conciliation, Courts of Inquiry, Labour Courts, Labour Tribunals, Industrial Tribunals, and National Tribunals.

6. Can disputes be voluntarily referred to arbitration?

Yes, disputes can be voluntarily referred to arbitration under Section 10-A of the Act. Parties can enter into a written agreement, appoint arbitrators, and submit the matter for arbitration, with the award being enforceable after a specified period.

7. What is the significance of Labour Tribunals under Section 7-A?

Labour Tribunals, established under Section 7-A, play a role in adjudicating industrial disputes. Comprising a single appointed person, these tribunals conduct proceedings expeditiously and may have assessors for advice.

8. When are National Tribunals constituted under Section 7-B?

National Tribunals, constituted by the Central Government under Section 7-B, handle disputes of national importance or those affecting industrial establishments across multiple states. They include a person qualified as a High Court Judge.

9. How are settlements and awards enforced under the Act?

Settlements and awards are binding on all parties involved and become enforceable after a specific period, subject to government review. The Act empowers the government to modify or reject awards within 90 days of publication.

10. What are the penalties for breaching settlements or awards?

Breaching terms of settlements or awards can lead to imprisonment for up to 6 months, fines, or both. The Act emphasizes compliance to maintain industrial harmony and uphold the agreements made during dispute resolution.