|
 

|

| 
| | 



 
I. IMPORTANT DEFINITIONS
CERTAIN IMPORTANT TERMS UNDER THE INDUSTRIAL DISPUTES ACT
AND THEIR SIGNIFICANCE.
a) APPROPRIATE GOVERNMENT [Sn.2(a)]

UNDER THE ID ACT SOME INDUSTRIES FALL UNDER THE CENTRAL

LABOUR MACHINERY AND SOME OTHERS FALL UNDER THE STATE LABOUR
MACHINERY.
SN 2(a) HELPS US TO DETERMINE UNDER WHOSE JURISDICTION A
PARTICULAR INDUSTRY FALLS AND WHETHER THE STATE/CENTRAL RULES WILL
APPLY.

b) INDUSTRY [Sn.2(j)]
THE ID ACT IS NOT APPLICABLE TO ALL KINDS OF ESTABLISHMENTS. IT
IS APPLICABLE ONLY TO ESTABLISHMENTS SATISFYING THE DEFINITION OF THE
TERM 'INDUSTRY' (AS DECIDED IN SEVERAL JUDICIAL PRONOUNCEMENTS).

THE 1984 AMENDED DEFINITION NOW APPEARING IN Sn.2(j) IS YET TO

BE BROUGHT INTO FORCE AND THE OLD DEFINITION IS STILL IN VOGUE—
 v) WORKMAN [(Sn.2(s)]

ALL EMPLOYEES IN AN ESTABLISHMENT ARE NOT 'WORKMEN'

UNDER THE ID ACT. ONLY EMPLOYEES DOING ANY MANUAL, UNSKILLED,
SKILLED, TECHNICAL, OPERATIONAL, CLERICAL (IRRESPECTIVE OF
WHETHER THEIR WAGES IS ABOVE Rs.1600/- PER MONTH OR NOT) AND SUCH
OF THE SUPERVISORS DRAWING WAGES BELOW Rs.1600/- PM (SEE
DEFINITION OF WAGES IN Sn.2(rr). IT ALSO INCLUDES DISMISSED WORKMEN
FALLING UNDER THE ABOVE CATEGORIES.

HOWEVER MANAGERIAL STAFF ARE TOTALLY EXCLUDED

IRRESPECTIVE OF THEIR SALARY. [THE TEST OF DETERMINING WHO IS A
'WORKMAN' WAS PRONOUNCED IN A RECENT SUPREME COURT JUDGEMENT
IN SANDOZ LTD CASE REPORTED IN 1994 II LLN 1017)

d) WAGES [Sn.2(rr)]

WAGES WILL INCLUDE BASIC, DA, VALUE OF HOUSE

ACCOMMODATION, OTHER AMENITIES, TRAVELLING CONCESSION,
COMMISSION PAYABLE AND OTHER REMUNERATION PAYABLE UNDER THE
CONTRACT, BUT EXCLUDES THE FOLLOWING : ANY BONUS AND RETIREMENT
BENEFITS LIKE EPF/GRATUITY
II WHAT AMOUNTS TO INDUSTRIAL DISPUTE

EXTENT AND SCOPE OF THE TERM 'INDUSTRIAL DISPUTE' UNDER

THE INDUSTRIAL DISPUTES ACT 1947.
PROVISIONS SECTIONS 2(k),2(ka),2(j),2(s),2(A),2(rr).

a) WHAT ARE THE INGREDIENTS OF AN INDUSTRIAL DISPUTE

[Sn.2(k)] ?

i) DISPUTE MUST BE IN AN ESTABLISHMENT SATISFYING

THE DEFINITION OF 'INDUSTRY' IN SECTIONS 2(ka) & 2 (j).

(NOTE : THE NEW DEFINITION OF 2(j) HAS NOT BEEN

BROUGHT INTO FORCE YET).

ii) DISPUTE MUST BE BETWEEN :

- EMPLOYER ˜ EMPLOYER
- EMPLOYER ˜ WORKMEN
- WORKMEN ˜ WORKMEN
iii THE SUBJECT MATTER OF THE DISPUTE MUST BE :
- CONNECTED WITH EMPLOYMENT OR NON-EMPLOYMENT
- CONNECTED WITH TERMS OF EMPLOYMENT
- CONNECTED WITH CONDITIONS OF LABOUR

iv OF 'ANY PERSON' - PROVIDED THAT PERSON HAS A NEXUS WITH

THE INDUSTRY

v DISPUTE MUST BE RAISED BY WORKMEN : BY UNION, OR A

GROUP OF WORKMEN.

b) CAN ALL EMPLOYEES IN AN INDUSTRY RAISE AN INDUSTRIAL

DISPUTE [Sn.2(s),2(k)]?

ANSWER IS NO.

INDUSTRIAL DISPUTE CAN BE RAISED ONLY BY EMPLOYEES

SATISFYING THE DEFINITION OF 'WORKMAN' IN SECTION 2(s).

THOSE NOT SATISFYING THE DEFINITION OF WORKMAN CANNOT

RAISE A DISPUTE UNDER ID ACT.
v) WHAT CATEGORY OF EMPLOYEES WOULD FALL UNDER THE
DEFINITION OF 'WORKMAN' UNDER SECTION 2(s) ?

ANY PERSON IN AN 'INDUSTRY' (INCLUDING AN APPRENTICE)

EMPLOYED ON MANUAL, UNSKILLED, SKILLED, TECHNICAL, OPERATIONAL
JOBS PLUS THOSE SUPERVISORY STAFF DRAWING 'WAGES' BELOW
Rs.1600 PM AS PER DEFINITION OF WAGES IN Sn.2(rr).
NOTE :

- ALL MANAGERIAL STAFF ARE EXCLUDED IRRESPECTIVE

OF THEIR SALARY

- MEMBERS OF SUPERVISORY STAFF WILL BE EXCLUDED

ONLY IF THEY ARE DRAWING WAGES ABOVE Rs.1600 PM

- WORKMEN WHO WERE TERMINATED COULD CONTINUE TO

CLAIM STATUS OF WORKMEN FOR PURSUING THEIR
DISPUTES

- THE WAGES OF SUPERVISORY STAFF SHOULD BE

COMPUTED AS PER DEFINITION OF 'WAGES' IN SECTION 2(rr).
d) CAN ONLY A MAJORITY OF WORKMEN IN AN INDUSTRY RAISE A
DISPUTE ?

IT IS NOT NECESSARY THAT A MAJORITY OF WORKMEN SHOULD

SUPPORT THE RAISING OF THE DISPUTE. IT IS ENOUGH IF A SUBSTANTIAL
NUMBER BACK THE RAISING OF THE DISPUTE. WHILE A UNION CAN RAISE
A DISPUTE, IT IS NOT NECESSARY THAT ONLY A UNION CAN RAISE A
DISPUTE. A SINGLE WORKMAN CANNOT NORMALLY RAISE DISPUTE.

e) WHEN CAN AN INDIVIDUAL WORKMEN RAISE A DISPUTE (i.e. EVEN

WITHOUT THE SUPPORT OF OTHER WORKMEN) ?

NORMALLY ONLY COLLECTIVE DISPUTES (DISPUTES RAISED BY A

GROUP OF WORKMEN CAN BE TAKEN UP AS INDUSTRIAL DISPUTES). AN
INDIVIDUAL WORKMAN CAN RAISE A DISPUTE IF IT FALLS UNDER THE
EXCEPTIONAL CASES LISTED IN SECTION 2 A: CASES OF DISMISSAL /
DISCHARGE / RETRENCHMENT / TERMINATION ONLY. FOR NON-TERMI-
NATION ISSUES (LIKE PROMOTION / TRANSFER / PUNISHMENTS NOT
AMOUNTING TO TERMINATION) INDIVIDUAL WORKMAN CANNOT RAISE A
DISPUTE IF THERE ARE NO OTHER WORKMEN SUPPORTING HIS CASE.
Š) CAN WORKMEN RAISE AN INDUSTRIAL DISPUTE PERTAINING TO
NON-WORKMEN ?

ANSWER IS 'YES' - THEY CAN AS PER SECTION 2(k) RAISE AN INDUSTRIAL

DISPUTE REGARDING 'ANY PERSON' IF IT CAN BE SHOWN THAT 'THAT
PERSON' HAS A NEXUS WITH THEIR INDUSTRY (THEY COULD THEREFORE
RAISE DISPUTES DEMANDING BENEFITS OR REINSTATEMENT OF
DISMISSED MANAGERS / SUPERVISORS).

g) HOW CAN AN INDIVIDUAL WORKMAN REDRESS HIS DISPUTE ?

HE SHOULD GET OTHER WORKMEN / UNION TO SPONSOR IT TO MAKE IT

AN INDUSTRIAL DISPUTE UNDER Sn.2(k). IF IT IS A TERMINATION CASE HE
CAN RAISE IT HIMSELF UNDER Sn.2(A).
III FUNCTIONING OF DISPUTE SETTLING MACHINERIES

a) ALL ABOUT CONCILIATION

i) WHAT TYPE OF CONCILIATION MACHINERY EXIST UNDER

THE ID ACT ?

CONCILIATION BY AN OFFICER [Sn.4 & 2(d)] AND A BOARD (AN AD-

HOC BOARD CONSISTING OF AN INDEPENDENT CHAIRMAN AND
EQUAL NUMBER OF WORKMEN AND EMPLOYER
REPRESENTATIVES) [Sn.5 & 2(e)].

[THIS IS NOT A PERMANENT BODY, SET UP ONLY FOR A

PARTICULAR DISPUTE AND THE BOARD WILL STAND DISSOLVED
WHEN THE ISSUE IS SETTLED].
ii) WHAT ARE THE DUTIES OF A CONCILIATION OFFICER ?

AS PER Sn.12 (1) AND RULE 9(1) WHEN A STRIKE / LOCKOUT NOTICE IS
ISSUED UNDER RULE 71/72 IN A PUBLIC UTILITY SERVICE, HE IS BOUND TO
IMMEDIATELY CONVENE A CONCILIATION MEETING.

AS PER Sn.12(1) AND RULES 9(2) & 10, IN NON PUBLIC UTILITY SERVICE OR
IN NON-STRIKE DISPUTES IN PUBLIC UTILITY SERVICE HE IS NOT BOUND,
BUT MAY HOLD CONCILIATION MEETINGS. HE WILL HOWEVER HOLD
ORDINARY JOINT MEETINGS WHICH WOULD NOT BE COUNTED AS
CONCILIATION MEETINGS.

HE WILL TRY TO PERSUADE THE PARTIES TO RESOLVE THE DISPUTES AS

PER RULES 10A, 11, 12 AND 13.
IF HE SUCCEEDS IN BRINGING ABOUT AN UNDERSTANDING, HE GETS
THE PARTIES TO SIGN A SETTLEMENT IN FORM-H AS PER Sn.12(3), 18(3) AND
RULE-58. AS PER RULE 75, HE HAS TO MAINTAIN A REGISTER IN FORM-O,
GIVING THE DETAILS OF THE SETTLEMENTS SIGNED BY HIM. IF HE FAILS TO
BRING ABOUT A SETTLEMENT, AS PER Sn.12(4) HE HAS TO INFORM THE
GOVERNMENT AND THIS IS CALLED A FAILURE REPORT. BEFORE SENDING
THE FAILURE REPORT HE SHOULD ASK THE DISPUTING PARTIES WHETHER
THEY WOULD LIKE THE DISPUTE TO BE SENT FOR ARBITRATION. AS PER
SN.12(6) HE IS EXPECTED TO CLOSE THE CONCILIATION PROCEEDINGS
WITHIN 14 DAYS BUT WITH THE CONSENT OF THE PARTIES HE CAN KEEP
THE CONCILIATION PROCESS GOING FOR A LONGER DURATION. WHEN
NOTICE OF CHANGE IS ISSUED UNDER Sn.9A HE IS OBLIGED TO HOLD
MEETINGS TO RESOLVE THE DISPUTE. WHEN APPROVAL/PERMISSION
APPLICATIONS ARE FILED UNDER Sn.33/33A HE IS REQUIRED TO PASS
APPROPRIATE ORDERS.

NOTE : UNLIKE IN ARBITRATION/ADJUDICATION PROCEEDINGS, A

CONCILIATION OFFICER HAS NO POWER TO ENFORCE HIS DECISION ON
THE PARTIES. HE CAN ONLY TRY TO PERSUADE THE PARTIES TO ACCEPT
HIS SUGGESTION.
iii) WHAT ARE THE POWERS OF A CONCILIATION OFFICER ?

AS PER Sn.11(1) AND RULE 23, HE CAN ENTER AND INSPECT

ANY ESTABLISHMENT. AS PER Sn.11(4) AND RULE 17 HE CAN
SUMMON ANY PERSON AS WITNESS OR COMPEL THE
PRODUCTION OF DOCUMENTS HAVING RELEVANCE TO THE
DISPUTE. AS PER Sn.33/33A AND RULES 59, 60, 61 HE CAN
GRANT/REFUSE APPROVAL/PERMISSION TO PETITIONS FILED BY
EMPLOYER ON DISCIPLINARY MATTERS DURING
PENDENCY OF CONCILIATION BEFORE HIM.

iv) SUMMARY OF SECTIONS

SECTIONS 2(d), 2(e), 4, 5, 11, 12, 13, 18(3), 20, 33, 33A
RULES 9, 10, 10A, 11, 12, 13, 17, 23, 58, 59, 60, 61
FORM-H
b) ALL ABOUT ADJUDICATION

i) WHAT IS MEANT BY ADJUDICATION ?

ADJUDICATION IS A JUDICIAL (DECISION MAKING) PROCESS FOR

SETTLEMENT OF INDUSTRIAL DISPUTES [Sn.2(aa)].

ii) WHAT ARE THE ADJUDICATING BODIES UNDER THE ID ACT ?

LABOUR COURTS [Sn.2(kkb), 7, Sv .II]

TRIBUNALS [Sn.2(r), 7A, Sv .III]

NATIONAL TRIBUNALS [Sn.2(11), 7B, Sv .III]

iii) CAN PARTIES (EMPLOYER OR WORKMEN) APPROACH THE
ADJUDICATING BODIES DIRECTLY FOR DISPUTE SETTLEMENT ?

UNLIKE IN THE CIVIL COURTS, PARTIES CANNOT APPROACH THE

LABOUR COURT / TRIBUNAL / NATIONAL TRIBUNAL DIRECTLY.
DISPUTES CAN BE TAKEN UP BY LABOUR COURT / TRIBUNAL /
NATIONAL TRIBUNAL ONLY IF THEY ARE REFERRED TO THEM BY
THE GOVERNMENT. GOVERNMENT CAN REFER THE DISPUTES
AFTER RECEIPT OF THE CONCILIATION FAILURE REPORT OR
WHEN THE PARTIES REQUEST THE GOVERNMENT TO MAKE A
REFERENCE [Sn.10(1), 10(1A), 10(2), 10(6), 12(4), 12(5), 12(6)].

iv WHEN DOES ADJUDICATION COMMENCE AND WHEN DOES IT END ?

ADJUDICATION PROCEEDINGS ARE DEEMED TO HAVE COMMENCED

FROM THE DATE THE GOVERNMENT REFERRED THE DISPUTE TO
LABOUR COURT/TRIBUNAL / NATIONAL TRIBUNAL.

IT IS DEEMED TO HAVE CONCLUDED ON THE DATE THE AWARD

BECOMES ENFORCEABLE AS PER Sn.17A [Sn.20(3)].
v DUTIES OF LABOUR COURT / TRIBUNAL / NATIONAL TRIBUNAL ?

TO HOLD ADJUDICATING PROCEEDINGS EXPEDITIOUSLY AND

SUBMIT THEIR REPORT TO THE GOVERNMENT WITHIN THE
PRESCRIBED TIME LIMIT [Sn.15, 10(2A), 16(2)].

TO CONFINE THE SCOPE OF THEIR JUDGEMENT TO THE POINTS

REFERRED TO THEM FOR DETERMINATION [Sn.10(4)].

vi WHAT ARE THE POWERS OF LABOUR COURT / TRIBUNAL

/NATIONAL TRIBUNAL ?

THEY CAN ENTER ANY ESTABLISHMENT FOR FACT FINDING

[Sn.11(2) AND R.23] CAN ENFORCE ATTENDANCE OF ANY PERSON
AND PRODUCTION OF DOCUMENTS AND MATERIALS HAVING
BEARING ON THE DISPUTE [Sn.11(3), R-10A, 10B]. EMPOWERED TO
ADMINISTER OATHS AND ISSUE SUMMONS TO PARTIES /
WITNESSES [R-16, 17, 18]. CAN APPOINT ASSESSORS TO ASSIST
THEM [Sn.11(5), R-25]. CAN EXERCISE POWERS OF 'PUBLIC
SERVANTS' UNDER Sn.21 OF IPC [Sn.11(6)] CAN PASS ORDERS ON
AWARDING COSTS TO THE AGGTRIEVED PARTY
 [Sn.11(7)] CAN EXERCISE POWERS OF CIVIL COURTS FOR PURPOSES
OFSn.345, 346, 348 OF THE CIVIL PROCEDURE CODE OF 1973 [Sn.11(8)]. HAS
POWERS TO REVIEW DISCIPLINARY PUNISHMENT ORDERS ISSUED BY
MANAGEMENT AND CAN REDUCE/SUBSTITUTE PUNISHMENTS OR ORDER
REINSTATEMENT WITH/WITHOUT BACK WAGES [Sn.11(A)]. HAS POWERS TO
GRANT / REFUSE APPROVAL / PERMISSION PETITIONS FILED UNDER Sn.33
[Sn.33A] CAN PASS ORDERS ON MONEY CLAIM PETITIONS FILED BY
WORKMEN AGAINST EMPLOYERS [Sn.33C(2)].

vii PROCEDURE FOR ENFORCING ADJUDICATION AWARDS

DECISIONS GIVEN BY LABOUR COURT / TRIBUNAL / NATIONAL TRIBUNAL

ARE CALLED AWARDS [Sn.2(b)]. AWARDS ARE NOT ENFORCEABLE
DIRECTLY. THE LABOUR COURT / TRIBUNAL / NATIONAL TRIBUNAL CAN
ONLY SEND THEIR FINDINGS TO THE GOVERNMENT AND CANNOT
ANNOUNCE THEM DIRECTLY. [Sn.15] AFTER RECEIPT OF THE REPORT, THE
APPROPRIATE GOVERNMENT WOULD DECIDE WHETHER TO ACCEPT /
MODIFY / WITH-HOLD THE REPORT - THE GOVERNMENT HAS TO
ANNOUNCE THEIR DECISION THROUGH THE GAZETTE WITHIN 30 DAYS OF
RECEIPT OF THE REPORT [Sn.17, 17A]. THE GOVERNMENT ORDER ON THE
ADJUDICATION DECISION BECOMES ENFORCEABLE ON THE EXPIRY OF 30
DAYS FROM THE DATE OF THE GAZETTE NOTIFICAITON [Sn.17A].
viii FOR WHAT DURATION IS THE ADJUDICATION AWARD VALID ?

AN ADJUDICATION AWARD (AS PUBLISHED BY GOVERNMENT) SHALL BE

IN OPERATION FOR A PERIOD OF ONE YEAR FROM THE DATE IT BECOMES
ENFORCEABLE UNDER 17A [Sn.19(3)]. GOVERNMENT HAS THE POWER TO
REDUCE THE VALIDITY PERIOD OR EVEN EXTEND THE VALIDITY PERIOD
BY ONE YEAR AT A TIME SUBJECT TO THE TOTAL DURATION NOT
EXCEEDING THREE YEARS [Sn.17A,19(3)].

EVEN AFTER THE NORMAL / EXTENDED PERIOD OF OPERATION, THE

TERMS OF THE AWARD SHALL CONTINUE TO BE IN FORCE UNTIL
ONE OF THE PARTIES SERVES A FORMAL NOTICE OF TERMINATION
[Sn.19(5), 19(6), 19(7)].

ix ON WHOM ARE THE AWARDS BINDING ?

IT IS BINDING ON ALL PARTIES TO THE DISPUTE. IT IS ALSO BINDING ON

ALL OTHER PARTIES SUMMONED TO APPEAR IN THE PROCEEDINGS TO
THE DISPUTE. ON THE EMPLOYER, HIS HEIRS,ASSIGNS ANDSUCCESSORS.
ON WORKMEN CURRENTLY EMPLOYED AND WHO SUBSEQUENTLY GET
EMPLOYED IN THE ESTABLISHMENTS [Sn.18(3)].
v) ALL ABOUT ARBITRATION

i) WHAT IS MEANT BY ARBITRATION ?

IT IS A DISPUTE RESOLVING PROCESS THROUGH AN

UMPIRE SELECTED BY THE DISPUTING PARTIES.

ii) HOW DOES ARBITRATION DIFFER FROM ADJUDICATION

AND CONCILIATION ?

WHILE THE PRESIDING OFFICERS OF CONCILIATION AND

ADJUDICATION PROCEEDINGS ARE FULL TIME OFFICERS
APPOINTED BY GOVERNMENT, ARBITRATORS ARE ADHOC
UMPIRES APPOINTED BY THE DISPUTANTS.

WHILE THE CONCILIATION OFFICER HAS NO POWER TO IMPOSE

HIS DECISION ON THE PARTIES, AN ARBITRATOR HAS AUTHORITY
TO GIVE AN ORDER WHICH CANNOT BE CHALLENGED BY THE
PARTIES.ADJUDICATORS GET THEIR POWER FROM STATUTE ,
ARBITRATORS ACQUIRE THEIR POWR FROM THE CONSENT OF THE
PARTIES.
iii) TYPES OF ARBITRATION

ID ACT CONTEMPLATES TWO TYPES OF ARBITRATION, ONE UNDER

SECTION 10(2) TO A LABOUR COURT / TRIBUNAL AND THE SECOND
TYPE UNDER 10A TO ANY OTHER ARBITRATOR INCLUDING TO
LABOUR COURTS OR TRIBUNALS.

iv) HOW IS ARBITRATION PROCESS INITIATED [Sn.10(2)+10A] ?

WHEN CONCILIATION FAILS, BEFORE SENDING THE FAILURE

REPORT, THE CONCILIATION OFFICER ASKS THE PARTIES IF THEY
WISH TO SEND THE DISPUTE FOR ARBITRATION. IF PARTIES
DESIRE SO, THEY MUST SIGN AN ARBITRATION AGREEMENT IN
FORM-C UNDER RULE 7 AND SEND IT TO THE GOVERNMENT.
GOVERNMENT WILL THEN NOTIFY HIM AS AN ARBITRATOR

v) AWARDS OF ARBITRATORS

ARBITRATORS HEAR THE PLEADINGS OF BOTH PARTIES AND

SUBMIT THEIR ORDERS TO THE GOVERNMENT WHO PROCESSES IT
LIKE AN ADJUDICATION AWARD AND IT IS IMPLEMENTED LIKE AN
ADJUDICATION AWARD.
IV PENDENCY OF PROCEEDINGS AND ITS IMPLICATIONS
a) WHAT IS MEANT BY PENDENCY OF PROCEEDINGS [Sn.20] ?

i) THE PERIOD FROM WHICH CONCILIATION / ADJUDICATION / ARBITRATION

PROCEEDINGS COMMENCES AND CONCLUDES UNDER Sn.20 IS CALLED
PERIOD OF PENDENCY.
ii) WHEN IS CONCILIATION DEEMED TO BE PENDING -
COMMENCEMENT AND CONCLUSION [Sn.20(1)(2)(a,b)] ?

COMMENCEMENT :

WHEN NOTICE OF STRIKE/LOCKOUT IN PUBLIC UTILITY INDUSTRIES UNDER

Sn.22 IS RECEIVED BY THE CONCILIATION OFFICER OR ON THE DATE THE
DISPUTE IS REFERRED TO THE CONCILIATION BOARD AND IN OTHER CASES
WHEN THE CONCILIATION OFFICER ISSUES NOTICE OF CONCILIATION.

CONCLUSION :

IT CONCLUDES WHEN A SETTLEMENT IS SIGNED BY THE PARTIES. IF THERE

IS NO SETTLEMENT WHEN THE FAILURE REPORT OF THE CONCILIATION
OFFICER IS RECEIVED BY THE GOVERNMENT.
iii) WHEN IS ADJUDICATION /ARBITRATION DEEMED TO BE PENDING
[Sn.20(2)(C)20(3) & 17] ?

COMMENCEMENT :

ADJUDICATION / ARBITRATION PROCEEDINGS ARE DEEMED TO

COMMENCE ON THE DATE WHEN THE GOVERNMENT REFERS
THE DISPUTE TO LABOUR COURT / TRIBUNAL / NATIONAL
TRIBUNAL OR ARBITRATOR UNDER |
  OR   AS THE
CASE MAY BE.

CONCLUSION :

ADJUDICATION / ARBITRATION PROCEEDINGS ARE DEEMED TO

HAVE CONCLUDED ON THE DATE ON WHICH THEIR AWARDS
BECOME ENFORCEABLE UNDER SECTION 17 A, i.e. AFTER 30 DAYS
OF THE PUBLICATION OF THE AWARD IN THE OFFICIAL GAZETTE.
b) IMPACT OF PENDENCY ON STRIKES / LOCKOUTS

i) WHY IS IT IMPORTANT TO KNOW THE PERIOD OF PENDENCY OF

PROCEEDINGS ?

AS PER SECTION 22(d) ANY STRIKE / LOCKOUT IN A PUBLIC

UTILITY INDUSTRY DURING THE PENDENCY OF CONCILIATION AND
SEVEN DAYS THEREAFTER WOULD BE ILLEGAL [(Sn.22(d)].

ANY STRIKE / LOCKOUT IN A NON-PUBLIC UTILITY AS WELL AS

PUBLIC UTILITY DURING PENDENCY OF CONCILIATION BEFORE A
BOARD AND SEVEN DAYS THEREAFTER WOULD BE ILLEGAL
[Sn.23(a)].

ANY STRIKE/LOCK OUT DURING THE PENDENCY OFADJUDICATION

/ARBITRATION PROCEEDING AND TWO MONTHS THEREAFTER
WOULD BE ILLEGAL IN BOTH PUBLIC AND NON- PUBLIC UTILITY
INDUSTRIES [Sn.23(b), 23(bb)].
v) IMPACT OF PENDENCY ON EMPLOYER'S RIGHT TO ALTER SERVICE
CONDITIONS

i) WHILE EMPLOYERS ARE ENTITLED TO ALTER THE SERVICE

CONDITIONS / TAKE DISCIPLINARY ACTION IN TERMS OF THEIR
STANDING ORDERS DURING NORMAL TIMES; SOME RESTRICTIONS
ARE PLACED ON THESE RIGHTS DURING PENDENCY OF
PROCEEDINGS LIKE CONCILIATION, ARBITRATION AND
ADJUDICATION.

ii) AS PER Sn.33(1)(a) DURING PENDENCY OF PROCEEDINS, ANY

ALTERATION OF ANY MATTER CONNECTED WITH THE DISPUTE CAN
BE MADE ONLY WITH EXPRESS WRITTEN PERMISSION OF THE
AUTHORITY BEFORE WHOM THE DISPUTE IS PENDING [APPLY IN
FORM-J UNDER RULE 60(1)[Sn.33(1)(a), R-60(1),F-J]

iii) AS PER Sn.33(2)(a), EVEN DURING PENDENCY OF PROCEEDINGS NO

PERMISSION IS REQUIRED FOR ALTERING ANY MATTER NOT
CONNECTED WITH THE DISPUTE IF THE STANDING ORDERS OR
CONTRACT OF EMPLOYMENT OF THE CONCERNED WORKMEN
ALLOW THE EMPLOYER TO MAKE SUCH ALTERATION [Sn.33(2)(a)].
d) IMPACT OF PENDENCY ON EMPLOYER'S RIGHT TO TAKE
DISCIPLINARY ACTION

i) AS PER Sn.33(1)(b) DURING PENDENCY OF PROCEEDINGS

ANY DISCIPLINARY PUNISHMENT FOR A MISCONDUCT
CONNECTED WITH THE DISPUTE CAN BE TAKEN ONLY AFTER
OBTAINING EXPRESS WRITTEN PERMISSION OF THE AUTHORITY
BEFORE WHOM THE DISPUTE IS PENDING [APPLY IN FORM-J
UNDER RULE 60(1)].

ii) AS PER Sn.33(2)(b) IF THE MISCONDUCT IS NOT CONNECTED

WITH THE PENDING DISPUTE NO PRIOR PERMISSION FOR
DISMISSING OR DISCHARGING IS REQUIRED BUT RATIFICATION OR
APPROVAL IS TO BE TAKEN FROM THE AUTHORITY AFTER THE
TERMINATION ORDER IS ISSUED.

iii) WHILE ISSUING THE TERMINATION ORDER ONE FULL MONTH'S

WAGES (WITHOUT ANY DEDUCTIONS) SHOULD ALSO BE PAID
AND AN APPLICATION FOR APPROVAL IN FORM-K UNDER RULE
60(2) SHOULD ALSO BE SUBMITTED TO THE AUTHORITY ON THE
VERY SAME DAY OF ISSUE OF THE TERMINATION ORDER
[Sn.33(2)(b), R-60(2),F-K].
NOTE : IF APPROVAL IS REFUSED THE WORKMAN WILL HAVE
TO BE REINSTATED WITH BACK WAGES.

e) IMPACT OF PENDENCY ON TAKING ACTION AGAINST

'PROTECTED WORKMEN'

AS PER Sn.33(3) DURING PENDENCY OF PROCEEDINGS, TRADE

UNION OFFICE BEARERS WHO QUALIFY FOR THE STATUS OF
'PROTECTED WORKMEN' UNDER RULE 61 SHOULD NOT BE
PUNISHED OR TERMINATED WITHOUT THE PRIOR WRITTEN
PERMISSION FROM THE AUTHORITY CONCERNED [AN
APPLICATION FOR PERMISSION UNDER RULE 60(1) IS TO BE MADE
IN FORM-J] [Sn.33(3), R-60(1),F-J].
Š) WORKMEN'S MODE OF SEEKING RELIEF FOR EMPLOYERS
VIOLATION OF SECTION-33

i) IF DURING THE PENDENCY OF PROCEEDINGS THE EMPLOYER HAS

ALTERTED THE SERVICE CONDITIONS VIOLATING Sn.33(1)(a) OR
33(2)(a) OR PUNISHED A WORKMAN IN VIOLATION OF Sn.33(1)(b) OR
33(2)(b) OR PUNISHED A PROTECTED WORKMAN (OFFICE BEARER)
IN VIOLATION OF SECTION 33(3), THE AGGRIEVED WORKMAN CAN
FILE A COMPLAINT TO THE AUTHORITY IN FORM-I UNDER RULE 59
AND Sn.33A [Sn.33(A), R-59,F-I].

ii) THE AUTHORITY CONCERNED WILL MAKE AN ENQUIRY AND

AFTER HEARING THE PARTIES WILL PASS APPROPRIATE
ORDERS GRANTING OR REFUSING APPROVAL OR
PERMISSION AS THE CASE MAY BE [Sn.33A].
 NOTE :

1 IF APPROVAL IS REFUSED WORKMAN HAS TO BE

REINSTATED

2 WHEN PERMISSION IS REQUIRED, ACTION BY EMPLOYER CAN BE

ONLY AFTER GETTING WRITTEN PERMISSION

3 EVEN IF APPROVAL/PERMISSION IS GRANTED UNDER Sn.33A, THE

WORKMAN IS NOT BARRED FROM CHALLEGING THE ACTION AND
RAISING A DISPUTE FOR REINSTATEMENT UNDER SECTION 2(K) OR
2(A).
SIGNIFICANCE OF SECTION 33 OF THE I.D.ACT 1947

? ?
??
?   ?  
 ?  ?
 ?    ?   
  ??     ?  
 ?
 ? ? ? 
  
  
 ?   ?  ? 
 ? ?    
    
??    
     
  ??   ?? ? 
  ?
?
?  ?
   !"
??? ## #
?#? ##
???
#  ?
## ?#
$??
?# ###
 ? ?#
####
?
#  #  !"
 ?


? #? ##
???#? #####
# ?## ##?
? #?#?#
# ?#%& !#%&%!# # ? ?

?? #$??#'# ? ?  #
###'###
?
? #?#?# ?#%& !#? #
? ?

()* #? ?
# ?#? ###

 ?##
 WHAT IS THE NATURE OF RESTRICTIONS IMPOSED
?
 # ? # ?# # #  
 ? ?

ALTERATION OF SERVICE CONDITIONS

 # # # ?## #
# ## #
?
# ? #
 ?#??#?#  ?# ? ?
? ## $# ## 
 # ?
#? 

 #  ?#?? # # ? ?# #

## # ###  #? # ,? #?#
#?##  #?#? # # #
?
#? #  # ?# ?
#
# ##?# ##   # ? ? # #
  # #?#  ??
#  ?#
#? # # %!+!"  #
 PROTECTED WORKMEN

? ?
# # #?## ?### #

  ? ##   ?#
 #  !-#
.%"  #  #??#
   ## # #

?## #  ??#  !
?
##

?
# ?#
 ? ?

?  ##?#  ? ?# # #?? ###

 # ? ?# ?# ##? #?
#
??  ?
?#? #?
# # ###
 ?#/  ## ##
##
?? ? # ## ??# ##?# #  #
  ?# ##?# #'# # # #
 

?
 # ?# #

 # ? ?# .  !#'# !#0!#'# $
?? 1!

 # # . %!# !#0!#'#1! 

??
??? ### #  # # ?# !## #.&# !#%!# !#0!###
## # ?##?### ?# ##
 ###?#  ?
#? #?

?#
?2  , ## # # ### ? #?#  ?##
  ##?
#
?#####? # # !"


2
  #?#  ? ?#? #
?# # ?#
-# ## ? ##  #? #

?
#? #? ? # 
%!#'# "

#?##?# # ? ? #? #

-#? ? ? ?? #?#?###? #
 ?
## ## ?#$ ?#? #
?## # ## # # 

#?# ? ?#  ## ##?##

 ? ?#??## ###
 # #   ?#?
#,? #
 ?##? #?##?#  ? #
#?## ? ?#??#? #
?  #
V LEGALITY AND ILLEGALITIES

a) PROVISIONS ON 'STRIKE & LOCKOUT'

PROVISIONS SECTIONS 2(q), 2(l), 2(n), 22, 23, 24, 25, 26, 27,28
RULES 71, 72, 73, 74
FORMS L, M, N AND SCHEDULE I

i) INGREDIENTS OF STRIKE & LOCKOUTS

STRIKE [2(q)] BY WORKMEN

REFUSAL TO WORK OR ACCEPT EMPLOYMENT BY A BODY OF
PERSONS IN 'INDUSTRY' [2(j)] IF UNDER A COMMON UNDERSTANDING
OR ACTING IN CONCERT
LOCKOUT [2(l)] BY EMPLOYER TEMPORARY CLOSING OF PLACE
OF EMPLOYMENT, OR REFUSAL TO CONTINUE TO EMPLOY PERSONS
EMPLOYED BY AN EMPLOYER
ii) IS NOTICE OF STRIKE/LOCKOUT MANDATORY

MANDATORY [2(n), SCH-I, 22(1), 22(2), 23(1)]:

IF INDUSTRY FALLS UNDER DEFINITION OF 'PUBLIC UTILITY

SERVICE' AS PER SECTION 2(n), SCH-I OR IF THE TERMS OF
EMPLOYMENT (APPOINTMENT LETTER) OR STANDING ORDER
REQUIRES GIVING OF NOTICE.

NON MANDATORY [22(3), 23(1)] :

IN NON-PUBLIC UTILITY SERVICE, UNLESS STANDING ORDERS

OR APPOINTMENT ORDERS STIPULATES GIVING OF NOTICE,
OR IT IS IN RETALIATION FOR A STRIKE OR LOCKOUT.
iii) WHEN WOULD STRIKES OR LOCKOUTS BE ILLEGAL

IN 'PUBLIC UTILITY SERVICE' [22(1)& (2), 23, 30, 19] WHEN

STRIKE / LOCKOUT IS COMMENCED :

O
 
 ˜  |  | 


 
    |  

  
  

 
  

|  



| ˜ |   
 
   
  
|   



  
  |  
  |
   
 
   
  |     
 | 
    |
˜  
IN NON-PUBLIC UTILITY SERVICE [23, 20, 19] WHEN STRIKE / LOCKOUT IS
COMMENCED :

O   



 
   
 

     
| ˜  |    
 
   
 

   



  
    
  |
   
 
      |
˜  
 
|     
 |   

NOTE :

A STRIKE/LOCK OUT LEGALLY COMMENCED WOULD BECOME ILLEGAL IF

CONTINUED AFTER GOVERNMENT BANS IT UNDER SECTION 10(4A) AND 24
iv) MANNER OF GIVING STRIKE/LOCKOUT NOTICE

STRIKE [22(4)]
NOTICE SHALL BE GIVEN IN FORM-L.
AS PRESCRIBED UNDER RULE 71 OF CENTRAL RULE OR
CORRESPONDING STATE RULE

LOCKOUT [22(5)].
NOTICE SHALL BE GIVEN IN FORM-M
AS PRESCRIBED UNDER RULE 72 OF CENTRAL RULE OR
CORRESPONDING STATE RULE.

v) DUTY OF EMPLOYER ON RECEIVING / GIVING NOTICE

ON RECEIVING STRIKE NOTICE / OR GIVING LOCKOUT NOTICE. [RULES 71,

72, 73, 74 AND Sn.22(3), 22(6)]. SHOULD INFORM THE APPROPRIATE
GOVERNMENT WITHIN FIVE DAYS OF RECEIPT OF NOTICE [22(6)] AND ALSO
FORTHWITH INFORM THE CONCILIATION OFFICER [RULE-71(2)]. LOCKOUT
NOTICE MUST BE DISPLAYED ON NOTICE BOARD AT THE ENTRANCE [RULE-
72]. A REPORT ON STRIKE / LOCKOUT SHOLD BE SENT IN FORM-N AS PER
SECTION 22(3), RULES 73, 74.
vi) CONSEQUENCES OF ILLEGAL STRIKES / LOCKOUTS

ON WORKMEN

- ALL WORKMEN NO WAGES

- INSTIGATORS COULD BE PUNISHED/IMPRISONED UNDER
SECTIONS 26, 27, 28.

ON EMPLOYER

- WILL HAVE TO PAY WAGES AND CAN BE PUNISHED/IMPRISONED

UNDER SECTIONS 26, 27, 28.

ON ANY PERSON

- ANY PERSON EXTENDING FINANCIAL ASSISTANCE TO FURTHER AN

ILLEGAL STRIKE OR LOCKOUT WOULD BE VIOLATING
SECTION 25.
vii) ROLE OF CONCILIATION OFFICER WHEN STRIKE NOTICE IS
ISSUED [Sn.12(1)]

- HE MAY HOLD CONCILIATION MEETINGS IF NOTICE IS IN NON-

PUBLIC UTILITY SERVICE.

- HE MUST HOLD CONCILIATION MEETINGS IF NOTICE IS IN

PUBLIC UTILITY INDUSTRY.

NOTE :

  |
 
|    !"#$ |

 


  
   |

   


 |     ||     |
|  

|   
|    
 
| % 

 | |  
 WHAT IS PUBLIC UTILITY SERVICE & ITS SIGNIFICANCE

I SIGNIFICANCE

a) UNDER SECTION 2(n) OF THE ID ACT 1947 CERTAIN CATEGORY OF

INDUSTRIES HAVE BEEN DECLARED AS PUBLIC UTILITY SERVICES.

b) AS PER SECTIONS 22 TO 24 MORE STRINGENT PROVISONS HAVE

BEEN PRESCRIBED FOR DECLARING LOCK OUTS (BY EMPLOYERS)
OR FOR ORGANISING STRIKES (BY WORKMEN) IN SUCH
INDUSTRIES.

II CONSEQUENCE

a) NON-OBSERVANCE BY EMPLOYERS WOULD MAKE THE LOCK OUT

ILLEGAL AND MAKE THE WORKMEN ELIGIBLE FOR WAGES FOR
THE PERIOD OF ILLEGAL LOCK OUT.

b) NON-OBSERVANCE BY WORKMEN WOULD MAKE THE STRIKE

ILLEGAL AND MAKE THEM DISENTITLED FOR WAGES FOR THE
STRIKE PERIOD.
III CATEGORIES OF INDUSTRIES FALLING UNDER 'PUBLIC
UTILITY SERVICE'

SECTION 2(n) DECLARES CERTAIN TYPES OF DINDUSTRIES TO BE

PERMANENTLY PUBLIC UTILITY SERVICES AND SOME OTHERS
WHICH COULD BE DELCARED AS PUBLIC UTILITIES FOR
TEMPORARY PERIODS OF SIX MONTHS AT A TIME.

a) PERMANENT PUBLIC UTILITY SERVICES [Sn.2(n)(I TO v)]

i) ANY RAIL/TRANSPORT/AIR SERVICES/SERVICES IN MAJOR PORTS

OR DOCKS

ii) ANY SECTION OF AN INDUSTRY THE WORKING OF WHICH IS

ESSENTIAL FOR ENSURING SAFETY OF WORKMEN EMPLOYED.
iii) POST/TELEGRAPH/TELEPHONE SERVICES

iv) INDUSTRIES SUPPLYING POWER/LIGHT OR WATER TO PUBLIC

v) ANY SYSTEM OF PUBLIC CONSERVANCY SANITATION.

b) TEMPORARY PUBLIC UTILITY SERVICES

i) SECTION 2n(vi) EMPOWERS THE CENTRAL/STATE GOVERNMENTS

TO DECLARE ANY INDUSTRY LISTED IN SCHEDULE -I OF THE ID
ACT AS PUBLIC UTILITY SERVICES
ii) SUCH DECLARATIONS BY THE APPROPRIATE GOVERNMENT IS
VALID FOR SIX MONTHS FROMDATE OF NOTIFICATION IN GAZETTE.

iii) GOVERNMENT CAN EXTEND THE VALIDITY BY RENEWING THE

DECLARATION AT THE END OF EACH SIX MONTH.

iv) IF THE DECLARATIONS ARE NOT RENEWED SUCH NOTIFIED

INDUSTRIES WOULD COME OUT OF THE DEFINITION OF PUBLIC
UTILITY.

v) AS PER SCHEDULE-I, THE FOLLOWING CATEGORIES OF

INDUSTRIES COULD BE CLARED AS PUBLIC UTILITY FOR SIX
MONTHLY SPELLS THROUGH A GAZETTE NOTIFICATIONS:


   #  ? % ?

 á 
1 #2? # 
3 ? #'# 
# ? 
4  ? #'#?   ?  ? # ?


 #?  ??#  ?#  

 #??
á ? # #??

1 #??
 5?#??

3  ?#?##?#? 
 ?#?# ?#?  
4  ? #??
#?     ?# #-#?-# 

%  ? #?##    ?#??

% 
 ?#??
á  ## 

%1  ??5 #?     ?
-# ?
#'#
?  ??## # 
b) PROVISIONS IN LAYOFF

i) WHAT SECTIONS AND CHAPTERS OF ID ACT REGULATE LAY OFF ?

SECTIONS 2(kkk), 25A, 25B, 25C, 25D, 25E OF CHAPTER VA AND
SECTIONS 25K, 25L, 25M, 25Q, AND 25S OF CHAPTER VB.

ii) WHAT IS LAY OFF' ?

AS PER SECTION 2(kkk) LAY OFF IS THE INABILITY / FAILURE /

REFUSAL OF THE EMPLOYER TO GIVE EMPLOYMENT TO WORKMEN
ON HIS MUSTER ROLLS (EXCLUDES BADLIS AND CASUALS) ON
ACCOUNT OF :

- SHORTAGE OF COAL / POWER / RAW MATERIALS

- ACCUMULATION OF STOCKS
- BREAKDOWN OF MACHINERY
- NATURAL CALAMITY (LIKE FLOODS / EARTHQUAKE /
FIRE / LIGHTNING, ETC) OR
- ANY OTHER CONNECTED REASON
iii) IS THE LAY OFF PROVISIONS APPLICABLE TO ALL
INDUSTRIES FALLING UNDER Sn 2(j) ?
NO - LAY OFF PROVISIONS ARE APPLICABLE ONLY TO A LIMITED
CATEGORY OF INDUSTRIES LIKE FACTORES, MINES AND PLANTATIONS,
THAT TOO IF THEY ARE EMPLOYING MORE THAN 50 WORKMEN ON THE
AVERAGE [25A(b) & 25 (k)]. IF THE ESTABLISHMENT IS OF SEASONAL
CHARACTER OR IS OPERATING ONLY INTERMITTENTLY ALSO LAY OFF
PROVISIONS WILL NOT APPLY [SEE SECTIONS 25A(b) & 25(k)].

iv) ARE WORKMEN REQUIRED TO PUT IN A MINIMUM

QUALIFYING SERVICE FOR BEING ELIGIBLE FOR LAY OFF
COMPENSATION ?
AS PER SECTION 25(B) ONLY WORKMEN WHO HAVE PUT IN ONE YEAR
'CONTINUOUS SERVICE' (RECKONED FROM THE DATE OF LAY OFF) ARE
ELIGIBLE TO LAY OFF COMPENSATION.

ONE YEAR CONTINUOUS SERVICE MEANS PERMANENT EMPLOYMENT OR

WORKING FOR 240 DAYS IN A PERIOD OF 12 MONTHS. 240 DAYS WILL
INCLUDE DAYS OF SICKNESS/EARNED LEAVE AVAILED/ACCIDENT
LEAVE/MATERNITY LEAVE/STRIKE WHICH IS NOT ILLEGAL/LOCK OUT
DAYS/AND CESSATION OF WORK NOT DUE TO FAULT OF WORKMAN.
v) ARE ANY CATEGORY OF WORKMEN EXCLUDED FROM LAY
OFF BENEFITS ?

AS PER SECTION 25(C) AND 25(M) BADLIS AND CASUALS ARE

INELIGIBLE UNLESS THEY HAVE PUT IN 240 DAYS ATTENDANCE IN
12 MONTHS PRIOR TO DATE OF LAY OFF.

vi) IS PRIOR GOVERNMENT APPROVAL REQUIRED FOR LAYING

OFF WORKMEN ?

ESTABLISHSMENTS EMPLOYING AVERAGE OF 50 WORKMEN OR

MORE DURING THE MONTH PRIOR TO LAY OFF AND EMPLOYING
LESS THAN 100 WORKMEN ON AN AVERAGE ARE REGULATED BY
PROVISIONS OF CHAPTER ˜ AND NEED NOT TAKE ANY
PERMISSION.

ESTABLISHMENTS WHICH EMPLOYED AVERAGE OF 100 OR MORE

WORKMEN DURING THE 12 MONTHS PRIOR TO LAY OFF ARE
REGULATED BY CHAPTER ˜ AND MUST OBTAIN PRIOR
PERMISSION FROM APPROPRIATE GOVERNMENT.
 NOTE

FOR ESTABLISHMENTS HAVING MORE THAN 51% CENTRAL

GOVERNMENT SHARE CAPITAL THE APPROPRIATE GOVERNMENT
FOR LAY OFF WILL BE ONLY THE CENTRAL GOVERNMENT AND NOT
THE STATE GOVERNMENT [SEE Sn.25(L)(b)].

vii) WHAT HAPPENS IF PERMISSION IS NOT APPLIED FOR OR

PERMISSION IS DENIED BY GOVERNMENT ?

WORKMEN WILL BE ELIGIBLE TO RECEIVE FULL WAGES FOR THE

ENTIRE LAY OFF PERIOD.

viii) WHAT IS THE NORMAL RATE OF LAY OFF COMPENSATION ?

NORMAL RATE OF COMPENSATION PAYABLE IS 50% OF BASIC + DA

[25(C) IF PERMISSION IS REFUSED OR NOT OBTAINED MUST PAY
FULL WAGES [25 (M)(8)].
ix) WHAT IS THE PROCEDURE FOR APPLYING FOR PERMISSION ?

ESTABLISHMENTS ATTRACTED BY CHAPTER ˜ MUST SUBMIT

APPLICATION TO APPROPRIATE GOVERNMENT IN FORM-03. MUST
ALSO NOTIFY REGIONAL LABOUR COMMISSIONER THE
COMMENCEMENT AND CONCLUSION OF LAY OFF IN FORMS 01 AND
02 WITHIN 7 DAYS [SECTIONS 25(M) AND R 75A]. GOVERNMENT MAY
GRANT / REFUSE PERMISSION WITHIN 60 DAYS OF SUBMISSION OF
APPLICATION. IF NO REPLY FROM GOVERNMENT - AFTER 60 DAYS
PERMISSION CAN BE ASSUMED [SECTION 25(M)(5)].

x) CAN EMPLOYER DENY LAY OFF PAYMENT IN ANY

CIRCUMSTANCES ?

UNDER CERTAIN CONTINGENCIES MENTIONED IN SECTION 25(E)

ESTABLISHMENTS ATTRACTED BY CHAPTER VA CAN REFUSE TO
PAY LAY OFF COMPENSATION. IF WORKMEN REFUSE TO ACCEPT
ALTERNATE EMPLOYMENT UNDER SAME EMPLOYER WITHIN RADIUS
OF 5 MILES [25(E)(1)]. IF HE DOES NOT REPORT FOR GIVING
ATTENDANCE [25(E)(2)]. IF LAY OFF IS DUE TO STRIKE OR GO SLOW
BY ANOTHER SECTION OF WORKMEN [25(E)(3)].
 NOTE

THIS DENIAL OF COMPENSATION IS NOT APPLICABLE TO ESTABLISHMENTS

FALLING UNDER CHAPTER VB.

xi) CAN AN EMPLOYER RESORT TO RETRENCHMENT AFTER CERTAIN

DURATION OF LAY OFF ?

AS PER SECTION 25 C AN EMPLOYER GOVERNED BY CHAPTER VA (NOT

APPLICABLE TO CHAPTER V B) CAN AFTER 45 DAYS LAY OFF IN 12 MONTHS
RETRENCH HIS WORKMEN OR SIGN A SETTLEMENT WITH THE WORKMEN TO
RETAIN THEM ON THE MUSTER ROLLS WITHOUT PAYMENT OF LAY OFF
COMPENSATION. IF HE RESORTS TO RETRENCHMENT HE MUST FOLLOW
THE PROCEDURE AND PROVISIONS OF RETRENCHMENT STIPULATED IN
SECTION 25F. WHILE PAYING RETRENCHMENT COMPENSATION HE CAN
REDUCE THE AMOUNT OF ALY OFF COMPENSATION PAID DURING THE
PREVIOUS 12 MONTHS [25(C )].

xii) WHAT ARE THE EMPLOYERS OBLIGATIONS ?

TO MAINTAIN MUSTER ROLL OF WORKMEN [Sn.25(D)]

APPLY FOR PERMISSION IN FORM 03 [Sn.25(M)(2)]
SUBMIT RETURN IN FORMS 0-1 AND 02 [Sn.25(M)(2)]
PAY HALF/FULL WAGES AS COMPENSATION [Sn.25© & 25(M)]
C PROVISIONS ON 'RETRENCHMENT'

i) WHAT AMOUNTS TO RETRENCHMENT [DEFINITION SECTION 2(00)] ?

AS PER SECTION 2(00) ALL TYPES OF TERMINATION OF A

WORKMAN BY AN EMPLOYER WOULD BE RETRENCHMENT, UNLESS
IT IS A TERMINATION BY WAY OF DISCIPLINARY ACTION OR IT
FALLS UNDER ANY ONE OF THE FOLLOWING FOUR EXCEPTIONS :

1) VOLUNTARY RETIREMENT

2) RETIREMENT ON REACHING THE AGE OF SUPERANNUATION (IF

THERE IS A STIPULATION IN THE CONTRACT OF EMPLOYMENT)

3) TERMINATION RESULTING OUT OF NON-RENEWAL OF A FIXED

TERM CONTRACT EMPLOYMENT.

4) TERMINATION ON ACCOUNT OF CONTINUED ILL- HEALTH.

ii) IS PRIOR PERMISSION REQUIRED FROM THE APPROPRIATE
GOVERNMENT FOR RESORTING TO RETRENCHMENT ?

NO PERMISSION REQUIRED IF ESTABLISHMENT EMPLOYED LESS THAN 100 WORKMEN

(AVERAGE FOR THE PREVIOUS 12 MONTHS) -Sn.25K. MAKING OF APPLICATION AND
OBTAINING PRIOR PERMISSION FROM APPROPRIATE GOVERNMENT (OR NOTIFIED
AUTHORITY) IS REQUIRED IN ESTABLISHMENTS (LIKE 'FACTORIES', 'MINES' AND
'PLANTATIONS' ONLY) WHICH EMPLOYED MORE THAN 100 WORKMEN (AVERAGE FOR
PREVIOUS 12 MONTHS) Sn.25N(1)(b), 25L(a), 25L(b), AND 2(a)]. SUCH APPLICATION FOR
PRIOR PERMISSION SHOULD BE MADE IN ADVANCE AND IF NOT TURNED DOWN, AFTER
60 DAYS IT CAN BE PRESUMED THAT PERMISSION IS GIVEN - Sn.25N(4).

NOTE
1) WHILE GIVING OF NOTICE AND PAYMENT OF COMPENSATION TO WORKMEN IS
APPLICABLE TO ALL TYPES OF INDUSTRIAL ESTABLISHMENTS, THE REQUIREMENT
OF APPLYING AND OBTAINING PRIOR GOVERNMENT PERMISSION IS APPLICABLE
ONLY TO THREE CATEGORIES OF INDUSTRIAL ESTABLISHMENTS, VIZ FACTORIES,
MINES AND PLANTATIONS [25L(a)].

2) PUBLIC SECTOR UNDERTAKINGS IN WHICH CENTRAL GOVERNMENT HAS AT LEAST

51% SHARE CAPITAL SHOULD APPLY AND OBTAIN PERMISSION FROM THE CENTRAL
GOVERNMENT AND NOT THE STATE GOVERNMENT EVEN IF THE APPROPRIATE
GOVERNMENT FOR THEM UNDER SECTION 2(a) IS THE STATE GOVERNMENT [SEE
Sn.25L(b)].
iii) POWER OF GOVERNMENT TO GRANT/REFUSE/REVIEW
PERMISSION [25 N(1) TO (9)]

UNDER Sn.25N(3) GOVERNMENT CAN GRANT/REFUSE PERMISSION,

BUT MUST GIVE REASON FOR THIS TO EMPLOYER AND WORKMEN.
UNDER Sn.25N(6) GOVERNMENT CAN REVERSE ITS EARLIER ORDER
GRANTING OR REFUSING PERMISSION AND ISSUE FRESH ORDERS.

GOVERNMENT CAN ALTERNATIVELY UNDER Sn.25N(6) REFER THE

ISSUE OF PERMISSION TO TRIBUNAL FOR GRANTING OR REFUSING
PERMISSION AND SUCH TRIBUNAL SHOULD PASS AN ORDER IN 30
DAYS. ANY ORDER PASSED BY GOVERNMENT/APPROPRIATE
AUTHORITY SHALL AS PER Sn.25N(5) BE BINDING FOR A PERIOD OF
ONE YEAR.

NOTE
IF WORKMEN HAVE BEEN RETRENCHED WITHOUT PERMISSION (IN
ABOVE 100 WORKMEN CASE) OR PERMISSION HAS BEEN REFUSED
THE AFFECTED WORKMEN WILL GET ALL BENEFITS AS IF THEY
WERE NEVER TERMINATED [Sn.25N(7)].
iv) NOTICE, IF ANY, REQUIRED TO BE GIVEN TO WORKMEN TO
BE RETRENCHED

IN SMALLER ESTABLISHMENTS (AVERAGE LESS THAN 100

WORKMEN) MINIMUM ONE MONTH¶S NOTICE OR ONE MONTH¶S PAY IN LIEU
OF NOTICE MUST BE GIVEN [Sn. 25F(a)] IN LARGER ESTABLISHMENTS(
AVERAGE MORE THAN 100 WORKMEN) MINIMUM THREE MONTHS NOTICE
OR THREE MONTH¶S PAY IN LIEU OF NOTICE MUST BE GIVEN [Sn. 25 N(1)(a)].

v) EXTENT OF COMPENSATION PAYABLE TO RETRENCHED

WORKMEN

ELIGIBLE FOR 15 DAYS AVERAGE PAY FOR EVERY COMPLETED

YEAR OF CONTIINUOUS SERVICE OR PART IN EXCESS OF SIX
MONTHS IF THE WORKMEN SATISFIES THE REQUIREMENT OF
ATTENDANCE UNDER Sn. 25B(1) & (2) [Sn.25N(9), 25F(b), AND 25B(1)
& (2)]. IF UNDER ANY OTHER LAW OR STANDING ORDERS
WORKMEN ARE ELIGIBLE TO A HIGHER QUANTUM OF
COMPENSATION, THAT HIGHER QUANTUM WILL PREVAIL
[Sn.25J(1)].
 NOTE

IN ESTABLISHMENTS EMPLOYING LESS THAN 100 WORKMEN

(AVERAGE OF THE PREVIOUS 12 MONTHS) IF LAY OFF HAS
EXCEEDED 45 DAYS DURING THE IMMEDIATE PRECEDING 12
MONTHS, THE LAY OFF COMPENSATION PAID CAN BE OFFSET
FROM THE RETRENCHMENT COMPENSATION PAYABLE TO THE
WORKMEN [25C (PROVISO)].

vi) PROCEDURE FOR RESORTING TO RETRENCHMENT

NOTICE MUST BE SENT TO THE APPROPRIATE GOVERNMENT

/NOTIFIED AUTHORITY IN FORM P UNDER RULE 76. APPLICATION
FOR PERMISSION MUST BE MADE IN FORM PA UNDER RULE 76-A(1)
OR FORM PB UNDER RULE 76-A(2) AS THE CASE MAY BE. A
CATEGORY WISE WORKMEN SENIORITY LIST MUST BE PREPARED
AND IN EACH CATEGORY THE LEAST SENIOR, MUST GO OUT FIRST -
EXCEPTIONS CAN BE MADE WITH PROPER REASONS RECORDED
AND THE SENIORITY LIST SHOLD BE DISPLAYED AS PER RULE 77
[Sn.25G].
vii) HAVE RETRENCHED WORKMEN THE RIGHT TO RE-
EMPLOYMENT ?

IF AT ANY LATER DATE THE PLANT OR PROCESS IS RESTARTED,

RETRENCHED WORKMEN SHOULD BE GIVEN PREFERENCE FO RE-
EMPLOYMENT AND THE INTIMATION GIVEN TO THE CONCERNED
WORKMEN AND UNION AND NOTICE DISPLAYED AT LEAST 10 DAYS
BEFORE FILLING UP THE VACANCY. [Sn.25H, R-78].

viii) IMPACT OF OTHER LAWS

ANY PROVISION ON RETRENCHMENT IN ANY OTHER LAW OR

STANDING ORDERS INCONSISTENT WITH THE PROVISIONS IN THE
ID ACT SHALL BE NULL AND VOID. HOWEVER, IF MORE BENEFICIAL
TERMS EXIST THOSE WILL PREVAIL [Sn.25J].

Ix) CONSEQUENCES OF VIOLATING THE PROVISIONS ON

RETRENCHMENT

AS PER Sn.25Q IMPRISONMENT UPTO ONE MONTH OR Rs.1000/-

FINE OR BOTH.
x) SUMMARY OF SECTIONS ON RETRENCHMENT

SECTIONS 2(00), 25B, 25C, 25F, 25G, 25H, 25J, 25K, 25L, 25Q, 25S
RULES : 76, 76A, 77, 78
FORMS:P, PA, PB

d) PROVISIONS ON 'CLOSURE'

i) WHAT AMOUNTS TO CLOSURE [2n.2(vv)] ?

A PERMANENT CLOSURE OF (a) A PLACE OF EMPLOYMENT, OR (b)

A PART OF THE ESTABLISHMENT.
ii) IS PRIOR PERMISSION REQUIRED FROM THE APPROPRIATE
GOVERNMENT FOR CLOSING DOWN AN ESTABLISHMENT ?
NO PERMISSION REQUIRED IF ESTABLISHMENT EMPLOYED LESS THAN 100
WORKMEN (AVERAGE FOR PREVIOUS 12 MONTHS) [Sn.25 K] MAKING OF
APPLICATION AND OBTAINING PRIOR PERMISSION FROM APPROPRIATE
GOVERNMENT (OR NOTIFIED AUTHORITY) IS REQUIRED IF THE
ESTABLISHMENT IS A 'FACTORY', 'MINE' OR 'PLANTATION' WHICH
EMPLOYED MORE THAN 100 WORKMEN (AVERAGE OF PREVIOUS 12
MONTHS) [Sn.25-O(I), 25L(a), 25L(b), 2(a)]. SUCH APPLICATION FOR PRIOR
PERMISSION SHOLD BE SUBMITTED AT LEAST 90 DAYS IN ADVANCE OF
PROPOSED DATE OF CLOSURE - COPY OF APPLICATION TO BE SENT TO
UNION/WORKMEN REPRESENTATIVES [25(O)(1)] IF NO REPLY IS RECEIVED
FROM GOVERNMENT WITHIN 60 DAYS, APPROVAL CAN BE PRESUMED
[25(O)(3)].
NOTE

1) PRIOR PERMISSION REQUIRED ONLY FOR 'FACTORIES', 'MINES' AND

'PLANTATIONS'.
2) PUBLIC SECTOR UNDERTAKINGS IN WHICH CENTRAL GOVERNMENT HAS AT
LEAST 51% SHARE CAPITAL SHOLD APPLY AND OBTAIN PERMISSION FROM
CENTRAL GOVERNMENT AND NOT THE STATE GOVERNMENT EVEN IF THE
APPROPRIATE GOVERNMENT FOR THEM UNDER SECTION 2(a) IS THE STATE
GOVERNMENT [Sn.25L(b), 2(a)].
iii) POWER OF GOVERNMENT TO GRANT/REFUSE/REVIEW
PERMISSION

UNDER Sn.25(O)(2) GOVERNMENT CAN GRANT/REFUSE

PERMISSION, BUT MUST GIVE REASON FOR THIS TO EMPLOYER
AND WORKMEN. UNDER Sn.25(O)(5) GOVERNMENT CAN REVERSE
ITS EARLIER ORDER GRANTING OR REFUSING PERMISSION
AND ISSUE FRESH ORDERS.

GOVERNMENT CAN ALTERNATIVELY UNDER Sn.25(O)(5) REFER THE

ISSUE OF PERMISSION TO A TRIBUNAL FOR GRANTING OR
REFUSING PERMISSION AND SUCH TRIBUNAL SHOULD PASS AN
ORDER IN 30 DAYS. ANY ORDER PASSED BY
GOVERNMENT/APPROPRIATE AUTHORITY SHALL AS PER
Sn.25(O)(4) BE BINDING FOR A PERIOD OF ONE YEAR. IF NO ORDER
IS PASSED WITHIN 60 DAYS OF MAKING APPLICATION AS PER
Sn.25(O)(3) IT CAN BE PRESUMED THAT PERMISSION HAS BEEN
GIVEN.
 NOTE :

1) WHERE THE ESTABLISHSMENT HAS BEEN CLOSED WITHOUT

MAKING AN APPLICATION OR WITHOUT OBTAINING PERMISSION
FROM THE GOVERNMENT OR WHEN THE PERMISSION HAS BEEN
REFUSED AS PER Sn.25(O)(6), AFFECTED WORKMEN WILL BE
ENTITLED TO ALL BENEFITS AND BE TREATED AS IF THE
UNDERTAKING WAS NOT CLOSED DOWN.

2) IN CASES LIKE CLOUSURE DUE TO DEATH OF AN EMPLOYER OR

DUE TO ACCIDENT IN THE ESTABLISHMENT AS PER Sn. 25(O)(7)
GOVERNMENT CAN GRANT RELAXATION OR EXEMPTION FROM
THE VARIOUS PROVISIONS ON CLOSURE.
Iv) NOTICE, IF ANY, REQUIRED TO BE GIVEN BEFORE CLOSURE
OF UNDERTAKING
AS PER Sn.25FFA AND RULE 76B IN SMALLER ESTABLISHMENTS
(EMPLOYING LESS THAN 100 WORKMEN BUT ABOVE 50 WORKMEN)
NOTICE OF CLOSURE IN FORM 'Q' MUST BE GIVEN BY REGISTERED
POST TO :

a) APPROPRIATE GOVERNMENT
b) REGIONAL LABOUR COMMISSIONER
v) EMPLOYMENT EXCHANGE CONCERNED

IN LARGER ESTABLISHMENT (EMPLOYING MORE THAN 100 WORKMEN ON

AN AVERAGE FOR PREVIOUS 12 MONTHS) AS PER Sn.25(O)(1) AND RULE 76
C NOTICE OF CLOSURE MUST BE GIVEN IN FORM 'QA' TO THE APPROPRIATE
GOVERNMENT BY REGISTEREDPOST. IN ADDITION TO NOTICE UNDER S
n.25(O)(3) AND RULE 76C IN FORM 'QB' (IN TRIPLICATE) MUST BE SENT BY
REGISTERED POST TO THE APPROPRIATE GOVERNMENT. AS PER RULE
76C(3) THE EMPLOYER IS BOUND TO SUPPLY ADDITIONAL INFORMATION, IF
ANY, CALLED FOR BY GOVERNMENT. AS PER RULE 76C(2) THE DATE ON
WHICH THE REGISTERED POST IS RECEIVED BY GOVERNMENT SHALL BE
TREATED AS THE DATE OF FILING THE APPLICATION FOR PERMISSION.
v) EXTENT OF COMPENSATION PAYABLE TO AFFECTED
WORKMEN

AS PER Sn.25FFF IN SMALLER ESTABLISHMENTS (AVERAGE LESS

THAN 100 WORKMEN) WORKMEN SATISFYING THE ATTENDANCE
REQUIREMENT OF Sn.25B ARE ENTITLED TO COMPENSATION AS IF
THEY WERE RETRENCHED (15 DAYS WAGES PER YEAR OF SERVICE).
HOWEVER, IF THE ESTABLISHMENT CAN JUSTIFY THAT IT HAD TO BE
CLOSED DOWN DUE TO CIRCUMSTANCES BEYOND THE EMPLOYERS
CONTROL (PLEASE SEE EXPLANATION TO 25FFF AS TO WHAT WOULD
NOT BE TREATED AS FACTORS BEYOND THE CONTROL) THE MAXIMUM
COMPENSATION PAYABLE WOULD BE LIMITED TO THREE MONTHS
WAGES [PLEASE ALSO SEE Sn.25FFF(1A) ON CLOSURE OF MINING
ESTABLISHMENT AND Sn.25FFF(2) ON CONSTRUCTION
ESTABLISHMENT].

IN LARGER ESTABLISHMENTS (EMPLOYING MORE THAN 100

WORKMEN ON AN AVERAGE DURING THE PREVIOUS 12 MONTHS) AS
PER Sn.25(O)(8) COMPENSATION AT THE RATE OF 15 DAYS WAGES PER
YEAR OF SERVICE IS PAYABLE AND AS PER Sn.25J IF UNDER ANY
OTHER LAW OR CONTRACT/STANDING ORDER THEY ARE ELIGIBLE
FOR BETTER RATE OF COMPENSATION THE HIGHER OR BETTER RATE
WILL PREVAIL.
vi) CONSEQUENCIES OF VIOLATING THE PROVISIONS ON CLOSURE

AS PER Sn.25R ANY EMPLOYER WHO CLOSES DOWN AN

ESTABLISHMENT WITHOUT COMPLYING WITH THE PROVISIONS OF
Sn.25(O)(1) SHALL BE PUNISHABLE WITH IMPRISONMENT FOR 6
MONTHS OR WITH FINE UPTO Rs.5,000/- OR BOTH.

vii) SUMMARY OF SECTIONS

2(vv), 25B, 25FA, 25FFF, 25J, 25K, 25L, 25O, 25R, 25S.

e) PROVISIONS FOR ALTERATION OF SERVICE CONDITIONS /

ISSUE OF 'NOTICE OF CHANGE'

i) CAN AN EMPLOYER UNILATERALLY ALTER THE CONDITIONS OF

SERVICE APPLICABLE TO WORKMEN ?

ON ANY ITEMS LISTED IN SCHEDULE IV OF THE ID ACT, HE CANNOT

ALTER, UNLESS HE GIVES A NOTICE OF CHANGE AS
CONTEMPLATED IN SECTION 9A OF THE ACT.
ii) WHAT KIND OF NOTICE MUST BE GIVEN ?

AS PER Sn.9A(b) HE SHOULD GIVE AT LEAST 21 DAYS ADVANCE

NOTICE. IF THE CHANGE IS MADE AS A RESULT OF AN
AGREEMENT, NO NOTICE IS REQUIRED [Sn.9A, PROVISO (a)] OR
THE WORKMEN BELONG TO THE CATEGORIES LISTED IN PART(b)
OF THE PROVISO TO 9A. THE NOTICE MUST BE GIVEN IN FORM-E
AS PER RULE 34.

Iii) EFFECT OF GIVING NOTICE

IF WORKMEN/UNIONS DO NOT OBJECT TO THE CHANGE, THE

CHANGE CAN BE EFFECTED AFTER 21 DAYS [Sn.9A(1)]. IF
WORKMEN OPPOSE THE CHANGE, THE ISSUE WILL BE TAKEN UP
IN CONCILIATION AND THE EMPLOYER WILL HAVE TO AWAIT THE
OUTCOME OF THE CONCILIATION MEETING/ADJUDICATION
PROCESS [Sn.33(1)].
iv) WHAT ARE THE 11 ITEMS LISTED IN SCHEDULE IV FOR
WHICH NOTICE OF CHANGE NEEDS TO BE GIVEN ?

WAGES, INCLUDING THE PERIOD AND MODE OF PAYMENT;

CONTRIBUTION PAID, OR PAYABLE, BY THE EMPLOYER TO ANY
PROVIDENT FUND OR PENSION FUND OR FOR THE BENEFIT OF THE
WORKMEN UNDER ANY LAW FOR THE TIME BEING IN FORCE;
COMPENSATORY AND OTHER ALLOWANCE; STARTING
ALTERATION OR DISCONTINUANCE OF SHIFT WORKING
OTHERWISE THAN IN ACCORDANCE WITH STANDING ORDERS;
CLASSIFICATION BY GRADES; WITHDRAWAL OF ANY CUSTOMARY
CONCESSION OR PRIVILEGE OR CHANGE IN USAGE;
INTRODUCTION OF NEW RULES OF DISCIPLINE, OR ALTERATION OF
EXISTING RULES, EXCEPT IN SO FAR AS THEY ARE PROVIDED IN
STANDING ORDERS; RATIONALISATION, STANDARDISATION OR
IMPROVEMENT OF PLANT OR TECHNIQUE WHICH IS LIKELY TO
LEAD TO RETRENCHMENT OF WORKMEN; ANY INCREASE OR
REDUCTION (OTHER THAN CASUAL IN THE NUMBER OF PERSONS
EMPLOYED OR TO BE EMPLOYED IN ANY OCCUPATION OR
PROCESS OR DEPARTMENT OR SHIFT(NOT OCCASIONAED BY
CIRCUMSTANCES OVER WHICH THE EMPLOYER HAS NO CONTROL).
v) POWER TO EXEMPT

UNDER Sn.9B THE GOVERNMENT HAS POWER TO EXEMPT ANY

ESTAB LISHSMENT FROM THE REQUIREMENT OF GIVING NOTICE OF
CHANGE UNDER Sn.9A.

VI PROVISIONS FOR 'RECOVERY OF MONEY DUE FROM AN

EMPLOYER' UNDER THE INDUSTRIAL DISPUTES ACT 1947.

a) WHO AND WHEN CAN MONEY CLAIMS BE PUT UP ?

i) WHAT KIND OF MONEY CLAIMS CAN BE PUT UP UNDER SECTION 33 ?

ANY MONIES DUE TO A WORKMAN/WORKMEN UNDER A
SETTLEMENT OR AWARD AND ANY COMPENSATION PAYABLE TO
A WORKMAN FOR LAY OFF/ RETRENCHMENT/ CLOSURE [Sn.33C].

ii) WHO CAN FILE THE MONEY CLAIMS ?

WORKMAN HIMSELF ANY OTHER PERSON AUTHORISED AFTER
DEATH OF WORKMAN HIS ASSIGNS/LEGAL HEIRS [Sn.33C, R-62(1),
62(2)].
 NOTE

IF MORE THAN ONE WORKMAN HAVE SIMILAR CLAIMS, THEY CAN

ALL JOINTLY FILE A COMMON CLAIM AS PER Sn.33C(5).

iii) TIME LIMIT FOR FILING THE CLAIMS

AS PER FIRST PROVISO TO 33C(1), MUST BE FILED WITHIN ONE

YEAR OF THE AMOUNT BECOMING DUE FOR PAYMENT. AS PER
THE SECOND PROVISO TO 33(C )(2), GOVERNMENT CAN CONDONE
THE DELAYED SUBMISSION OF CLAIMS IF PROPER REASON IS
PUT UP.

b) TYPES OF CLAIMS

WHERE ONLY THE RIGHT TO CLAIM IS ESTABLISHED BUT THE

EXTENT OF THE CLAIM OR ITS EXACT MONEY VALUE IS NOT
KNOWN A CLAIM ;PETITION IS TO BE FILED UNDER Sn.33C(1), RULE
62(1) IN FORM K-1 OR K-2. IF THE ACTUAL MONEY VALUE IS PRE-
DETERMINABLE A CLAIM PETITON IS TO BE FILED UNDER Sn.33C(2)
RULE 62(2) IN FORMS K- 3 OR K- 4.
v) ENFORCEMENT OF CLAIMS

i) GOVERNMENT WILL REFER THE CLAIM PETITION TO THE LABOUR

COURT FOR DETERMINATION

THE COURT WILL PASS NECESSARY AWARD (ORDER) AND SEND IT TO

THE GOVERNMENT [Sn. 33(4)].

THE GOVERNMENT WILL THEN FORWARD THE ORDER TO THE

COLLECTOR TO EXCEUTE THE ORDER BY ATTACHING THE
EMPLOYER¶S PROPERTY AND RECOVERING THE MONEY AND
PAYING IT TO THE WORKMAN / WORKMEN [Sn. 33(C)(1),33(C)(4)].

WHAT ARE THE PROVISIONS ON µWORKS COMMITTEE¶ UNDER THE

INDUSTRIAL DISPUTES ACT 1947?WHAT IS A WORKS COMMITTEE?
IT IS A COMMITTEE CONSISTING OF EQUAL NUMBER OF
MANAGEMENT AND WORKMEN REPRESENTATIVES SET UP FOR
PROMOTING AMITY AND GOOD RELATIONS AND EMPOWERED TO
COMMENT ON MATTERS OF COMMON INTEREST AND TO
ENDEAVOUR TOWARDS REDUCING DIFFERENCES IN THE VIEW
POINTS BETWEENTHEM [Sn.3(2)].
ii) WHEN DOES IT BECOME OBLIGATORY TO SET UP A WORKS
COMMITTEE ?

IN ESTABLISHSMENTS WHICH EMPLOY MORE THAN 100 WORKMEN

OR HAD EMPLOYED MORE THAN 100 WORKMEN ON ANY DAY IN THE
PREVIOUS 12 MONTHS, OBLIGATION ACTUALLY ARISES ONLY WHEN
THE GOVERNMMENT THROUGH A GENERAL/SPECIAL ORDER
REQUIRES SETTING UP OF A WORKS COMMITTEE [Sn.3(1)].

iii) MANNER OF CONSTITUTING A WORKS COMMITTEE

THE WORKMEN REPRESENTATIVES SHALL BE ELECTED AND

MANAGEMENT REPRESENTATIVES CAN BE NOMINATED [R-40]
DIVISION OF CONSTIUTENCIES WITHIN THE ESTABLISHMENT SHALL
BE MADE IN CONSULTATION WITH THE UNIONS AFTER COMPLYING
WITH PROCEDURE OUTLINED IN RULES 41 TO 43. CANDIDATES
CONTESTING SHALL BE AT LEAST 19 YEARS OF AGE AND HAVE AT
LEAST ONE YEAR SERVICE. WORKMEN WHO HAVE AT LEAST SIX
MONTHS SERVICE AND ABNOVE THE AGE OF 18 COULD VOTE IN THE
ELECTIONS. ELECTIONS SHALL BE CONDUCTED IN COMPLIANCE
WITH THE PROCEDURE LAID DOWN IN RULES 46 TO 50.
iv) OFFICE BEARERS

COMMITTEE SHALL HAVE A CHAIRMAN, VICE CHAIRMAN,

SECRETARY AND JOINT SECRETARY [R-52]

v) TERM OF OFFICE

THE COMMITTEE ONCE SET UP WILL HAVE A TWO YEAR TERM OF

OFFICE. MID TERM VACANCIES SHOLD BE FILLED AS PER RULE 52.

vi) MEETINGS

COMMITTEE SHALL MEET AT LEAST ONCE IN A QUARTER [R-55]

EMPLOYER SHOULD PROVIDE NECESSARY FACILITIES FOR
HOLDING THE MEETINGS [R-56]

vii) DISSOLUTION

THE CENTRAL GOVERNMENT OR OTHER AUTHORISED AUTHORITY

COULD DISSOLVE A WORKS COMMITTEE AS PER RULE 57.
viii) SUBMISSION OF RETURNS
THE EMPLOYER IS REQUIRED TO SUBMIT HALF YEARLY RETURN IN
FORM G-1 IN TRIPLICATE [R-56-A]

ix) SUBJECTS THAT COULD BE DISCUSSED IN THE WORKS

COMMITTEE
THIS IS NOT SPECIFICALLY LISTED IN THE INDUSTRIAL DISPUTES
ACT OR RULES. HOWEVER THE TRIPARTITE LABOUR
CONFERENCE HELD IN 1959 HAS DRAWN UP A LIST OF DOS AND
DON'TS FOR THE WORKS COMMITTEE.

x) MATTERS THAT COULD BE DISCUSSED AT THE WORKS

COMMITTEE
CONDITIONS OF WORK SUCH AS VENTILATION, LIGHTING,
TEMPERATURE AND SANITATION, INCLUDING LATRINES AND
URINALS. AMENITIES SUCH AS DRINKING WATER, CANTEEN REST
ROOMS, MEDICAL AND HEALTH SERVICES. SAFETY AND
ACCIDENT PREVENTION, OCCUPATIONAL DISEASES AND
PROTECTIVE EQUIPMENTS. ADJUSTMENT OF NATIONAL AND
FESTIVAL HOLIDAYS. PROMOTION OF THIRFT AND SAVINGS.
xi) MATTERS WHICH CANNOT BE DISCUSSED AT THE WORKS
COMMITTEE
WAGES AND ALLOWANCES
BONUS AND PROFIT SHARING BONUS
RATIONALISATION AND MATTERS CONNECTED WITH THE FIXATION OF
WORKLOAD
MATTERS CONNECTED WITH THE FIXATION OF A STANDARD LABOUR
FORCE
PROGRAMMES OF PLANNING AND DEVELOPMENT
MATTERS CONNECTED WITHRETRENCHMENT AND LAYOFF
VICTOMISATION FOR TRADE UNION ACTIVITIES
PROVIDENT FUND, GRATUITY SCHEME AND RETIREMENT BENEFITS
QUANTUM OF LEAVE AND NATIONAL AND FESTIVAL HOLIDAYS
INCENTIVE SCHEME
HOUSING AND TRANSPORT SERVICE.

b) PROVISIONS ON 'UNFAIR LABOUR PRACTICE'

i) PROHIBITION ON EMPLOYER/UNIONS/WORKMEN

SECTION 25 T OF THE ID ACT PROHIBITS EMPLOYERS/WORKMEN/UNIONS

INDULGING IN ACTS LISTED AS UNFAIR LABOUR PRACTICES UNDER
SCHEDULE-V TO THE ID ACT [Sn.2(ra), 25T, Sv .V]
ii) WHAT ARE THE UNFAIR LABOUR PRACTICES LISTED AGAINST
EMPLOYERS ?

THE FOLLOWING ARE THE IMPORTANT UNFAIR LABOUR PRACTICES

LISTED AGAINST EMPLOYERS :

1) THREATENING WORKMEN WITH DISCHARGE/DISMISSAL/LOCKOUT

FOR PREVENTIONG TRADE UNION FORMATION.

2) GRANTING WAGE INCREASE AIMED AT PREVENTING TRADE UNION

FORMATION

3) FINANCING OR ASSISTING IN FORMATION OF EMPLOYER

SPONSORED UNIONS

4) TAMPERING WITH SENIORITY/PROMOTION OF WORKMEN WITH A

VIEW TO OBSTRUCT THE GROWTH OF PARTICULAR UNION

5) VICTIMISING WORKMEN FOR TRADE UNION ACTIVITIES

6) REPLACING REGULAR JOBS WITH CONTRACT WORKMEN WITH A
VIEW TO BREAK A STRIKE

7) MALAFIDE TRANSFER OF WORKMEN

8) FORCING WORKMEN ON A LEGAL STRIKE TO GIVE GOOD CONDUCT

BONDS

9) EXPLOITING WORKERS BY KEEPING THEM AS CASUALS/

TEMPORARIES/BADLIS FOR LONG YEARS

10) REFUSE TO IMPLEMENT SETTLEMENTS/AWARDS

11) FAILURE TO IMPLEMENT SETTLEMENTS/AWARDS

12) CONTINUIGN WITH ILLEGAL LOCKOUTS

13) INDULGE IN ACTS OF FORCE/VIOLENCE [Sv .V(1)]

iii) UNFAIR LABOUR PRACTICES LISTED AGAINST UNIONS/
WORKMEN

1) SUPPORTING/INSTIGATING ILLEGAL STRIKES

2) FORCING WORKMEN TO JOIN A UNION

3) PICKETING / OBSTRUCTING / THREATENING NON-STRIKING

WORKMEN

4) REFUSING TO PARTICIPATE IN COLLECTIVE BARGAINING

5) INDULGING IN GO-SLOW/SQUATTING

6) DEMONSTRATION AT RESIDENCE OF EMPLOYER

7) WILFUL DAMAGE OF EMPLOYERS PROPERTY [Sv V(II)]

iv) CONSEQUENCES OF INDULGING IN UNFAIR LABOUR PRACTICES

AS PER Sn 25U ANY PERSON INDULGING IN UNFAIR LABOUR PRACTICE

SHALL BE PUNISHABLE `BY IMPRISONMENT UPTO SIX MONTHS OR FINE OF
UPTO Rs.1000/- OR BOTH [Sn.25U].

v) PROVISIONS ON GRIEVANCE SETTLEMENT

AS PART OF THE 1982 AMENDMENT A GRIEVANCE SETTLEMENT

MACHINERY WAS INCORPORATED IN THE INDUSTRIAL DISPUTES
ACT. ACCORDINGLY SECTION 9C WAS INCORPORATED IN THE ACT. THIS
SECTION HAS HOWEVER NOT BEEN NOTIFIED FOR IMPLEMENTATION SO
FAR. SECTION 9C(4) CONTEMPLATES THAT NO DISPUTES SHOULD BE
REFERRED FOR ADJUDICATION UNTIL THE GRIEVANCE SETTLEMENT
PROCEDURE IS EXHAUSED.

d) PROVISIONS ON REPRESENTAITION OF PARTIES

i) BAN ON APPEARANCE OF LEGAL PRACTICTIONERS [Sn.36]

SECTION 36(3) OF THE ACT PROHIBITS APPEARANCE OF ADVOCATES.

HOWEVER, SECTION 36(4) PERMITS APPEARANCE OF LEGAL
PRACTITIONERS WITH THE CONSENT OF THE OTHER PARTY AND LEAVE OF
THE PRESIDING OFFICERS.
ii) WHO CAN REPRESENT THE WORKMEN [Sn.36(1),(a),(b),(v)] ?

ANY EXECUTIVE MEMBER OR OFFICE BEARER OF A REGISTERED

TRADE UNION. ANY EXECUTIVE MEMBER OF FEDERATION TO
WHICH THE TRADE UNION IS AFFILIATED. IF A WORKMAN IS NOT A
MEMEBR OF ANY UNION HE CAN AUTHORITIRSE ANY CO-WORKER
OR ANY UNION LEADER TO REPRESENT HIM.

iii) WHO CAN REPRESENT AN EMPLOYER [Sn.36(2)(a),(b),(v)] ?

AN OFFICER OF AN ASSOCIATION OF EMPLOYERS. AN OFFICER OF

A FEDERATION TO WHICH THE EMPLOYERS ASSOCIATION IS
AFFILIATED. IF NOT BELONGING TO ANY ASSOCIATION CAN
AUTHORISE ANY OTHER EMPLOYER IN THE INDUSTRY OR ANY
OFFICE BEARER OF AN ASSOCIATION OF EMPLOYERS.
e) PROVISIONS ON 'SETTLEMENT'

i) WHAT IS MEANT BY A SETTLEMENT [Sn.2(p)] ?

AN AGREEMENT ARRIVED AT BETWEEN THE EMPLOYER AND WORKMEN.

ii) TYPES OF SETTLEMENTS [Sn.12(3), 18(1), 18(30]

TRIPARTITE SETTLEMENTS UNDER SECTION 12(3) ARRIVED AT WITH HELP

OF CONCILITION OFFICER/BOARD. BIPARTITE SETTLEMENT ARRIVED AT
WITHOUT CONCILIATION ASSISTANCE BUT SENT JOINTLY TO CONCILIATION
OFFICER FOR REGISTRATION AS A SETTLEMENT UNDER SECTION 18(3).
BIPARTITE SETTLEMENTS ARRIVED AT BETWEEN THE PARTIES UNDER
SECTION 18(1) WITH NO NOTICE TO OR ASSISTANCE FROM CONCILIATION
OFFICER.

iii) ON WHOM ARE SETTLEMENTS BINDING [Sn.18(1), 18(3)] ?

BIPARTITE SETTLEMENTS UNDER 18(1) OR 18(3) ARE BINDING ONLY ON THE

PARTIES THAT SIGNED THE SETTLEMENT (IT CANNOT BE ENFORCED ON
OTHER UNIONS OR WORKERS WHO ARE NOT PARTIES TO THE
SETTLEMENT)
 A TRIPARTITE SETTLEMENT THROUGH CONCILIATION
UNDER 12(3) IS ENFORCEABLE AGAINST :

- ALL PARTIES TO THE DISPUTES

- ALL OTHER PARTIES SUMMONED TO THE CONCILIATION
PROCEEDINGS
- IN THE CASE OF EMPLOYER ON HIS HEIRS/SUCCESSORS/ASSIGNS
- IN THE CASE OF WORKMENON ALL WORKMEN ON THE ROLLS ON
DATE OF SETTLEMENT AND ALL FUTURE EMPLOYEES OF THAT
ESTABLISHMENT

iv) WHEN DOES A SETTLEMENT COME INTO OPERATION [Sn.19(1)] ?

FROM THE DATE AGREED TO AND INDICATED IN THE SETTLEMENT. IF

DATE IS SILENT, FROM THE DATE OF SIGNING SETTLEMENT.

v) HOW LONG WILL IT BE BINDING OR PERIOD OF ITS VALIDITY [Sn.19(1)] ?

FOR A MINIMUM PERIOD OF SIX MONTHS IF NO PERIOD IS INDICATED, OR

FOR THE LONGER PERIOD INDICATED IN THE SETTLEMENT.
vi) WILL THE OBLIGATIONS ON THE PARTIES CEASE ON THE EXPIRY
OF VALIDITY PERIOD [Sn.19(2), 19(6)] ?

OBLGATIONS CONTINUE EVEN BEYOND THE AGREED PERIOD AND WILL

CONTINUE TILL PROPER NOTICE OF TERMINATION IS GIVEN UNDER
SECTION 19(2) AND TWO MONTHS HAVE EXPIRED AFTER ISSUE OF NOTICE
OFTERMINATION. AS PER JUDICIAL DECISIONS THE TERMS OF
SETTLEMENT WILL CONTINUE TO BE IN FORCE EVEN AFTER TERMINATION
TILL ANOTHER AGREEMENT IS REACHED REPLACING THE CORRESPONDING
TERMS IN THE OLD AGREEMENT.

vii) WHO IS COMPETENT TO ISSUE NOTICE OF TERMINATION [Sn.19(7)] ?

ONLY A PARTY REPRESENTING THE MAJORITY OF THE PERSONS BOUND BY

THE SETTLEMENT CAN ISSUE A VALID NOTICE OF TERMINATION.

viii) WHO IS COMPETENT TO SIGN A SETTLEMENT [RULE 58(2)] ?

IN CASE OF EMPLOYER, HIMSELF/HIS AUTHORISED AGENT/MANAGER OR

PRINCIPAL OFFICER. IN CASE OF WORKMEN BY A TRADE UNION OFFICE
BEARER (PRESIDENT/VICE PRESIDENT/ SECRETARY OR GENERAL
SECRETARY/JOINT SECRETARY OR ANY OTHER AUTHORISED OFFICE
BEARER). IN CASE OF AN INDIVIDUAL DISPUTE UNDER 2(A) BY WORKMAN
HIMSELF.
ix ROLE OF CONCILIATION OFFICER [Sn. 12(3), Rules 58(1), (3) & 75]
TO RECORD THE SETTLEMENT IN FORM H UNDER Rule 58 (1).
TO MAINTAIN A REGISTER OF ALL SETTLEMENTS UNDER Rule 75.
TO SEND A COPY OF SETTLEMENT TO THE APPROPRIATE
GOVERNMENT.
NOTE:
WHERE THERE IS MULTIPLICITY OF UNIONS AND INTER UNION
RIVALRY, IT IS PRUDENT TO SIGN ONLY TRIPARTITE CONCILIATION
SETTLEMENTS UNDER Sev
ion 12 (3) RATHER THAN GO IN FOR
BIPARTITE AGREEMENTS UNDER Sev
ion 18 (3) OR 18 (1). WHILE A
TRIPARTITE SETTLEMENT IS ENFORCEABLE AGAINST ALL, A
BIPARTITE AGREEMENT BINDS ONLY ON THE PARTIES TO THE
SETTLEMENT.
Š) PROVISIONS ON AWARDS
WHAT IS MEANT BY AN µAWARD¶ [Sn. 2 (b)]?
AN AWARD IS AN INTERIM OR FINAL ORDER PASSED BY THE
FOLLOWING DISPUTE SETTLING AUTHORITIES UNDER THE I.D. ACT.
- LABOUR COURT UNDER Sn. 7
- INDUSTRIAL TRIBUNAL OR NATIONAL TRIBUNAL UNDER SECTION
7(A) OR 7(B)
- AN ARBITRATOR UNDER SECTION 10 (A)
ii) TYPES OF AWARDS [Sn.7, 7A, 7B]
LABOUR COURTS GIVE AWARDS ON ITEMS LISTED IN SCHEDULE-II
OF THE ID ACT TRIBUNALS/ NATIIONAL TRIBUNALS GIVE AWARDS
ON ITEMS LISTED IN SCHEDULE-III OF THE ID ACT. ARBITRATORS
GIVE AWARD ON SUBJECT REFERRED TO THEM UNDER THE
ARBITRATION AGREEMENT.

iii) PUBLICATION OF AWARDS ANDA THEIR FINALITY Sn.17(1)(2), 15,

17(B)]
UNLIKE THE CIVIL/CRIMINAL COURTS, LABOUCOURTS/ TRIBUNALS/
ADJUDICATORS UNDER THE ID AC CANNOT PRONOUNCE THEIR
DECISIONS/ORDERS IN COURTS. THEIR DECISIONS/ORDERS ARE TO
BE SENT TO THE APPROPRIATE GOVERNKENT. THE APPROPRIATE
GOVERNMENT IS TO THEN PUBLISH IT WITHIN 30 DAYS OF RECEIPT
OF THE ORDER. SUBJECT TO PROVISION OF SECTION 17A, THE
AWARDS ARE FINAL AND CANNOT BE CHALLENGED IN ANY COURT.
HOWEVER AWARDS PERTAINING TO REINSTATEMENT OF
DISMISSED WORKMEN CAN BE CHJALLENGED IN SUPREME COURT/
HIGH COURT. SECTON 17 B STIPULATES THAT IN SUCH CASES THE
EMPLOYER MUST PAY FULL LAST DRAWNWAGES TILL THE SIT IS
DISPOSED OFF BY THE HIGH COURT/ SUPREME COURT.
IV ON WHOM ARE AWARDS BINDING [Sn.18(3)] ?

AS PER SECTION 18(3) AWARDS ARE BINDING ON THE OLLOWING :

ALL PARTIES TO THE DISPUTE

ALL OTHER PARTIES SUMMONED TO APPEAR IN THE PROCEEDINGS
INCASE OF EMPLOYER ON HIS HEIRS/SUCCESSORS/ASSIGNS
IN CASE OF WORKMEN,ON ALL WORKMEN ON THE ROLLS ON THE
DATE THE DISPUTE AROSE AND ALL FUTURE EMPLOYEES OF THAT
ESTABLISHMENT.

V WHEN DOES AN AWARD COME INTO OPERATION OR BECOME

ENFORCEABLE ?

[Sn.17 (A), 17(1),(2), (3), (4)] IT BECOMES ENFORCEABLE ON THE

EXPIRY OF 30 DAYS FROM THE DATE OF ITS PUBLICATION BY THE
GOVERNMENT UNDER Sn.17.
 NOTE :

UNDER THE PROVISO TO Sn.17, GOVERNMENT EMPOWERED TO

HOLD UP THE ENFORCEMENT OF THE AWARD IN PART OR FULL IN
PUBLIC INTEREST BUT MUST THEN PUT UP THE AWARD BEFORE
THE LEGISLATURE FOR A FINAL DECISION ON ITS ENFORCEMNE.T

VI WHAT IS THE PERIOD OF VALIDITY OF AN AWARD ?

[Sn.19(3),(4),(5)] AS PER SECTION 19(3) IT SHALL BE IN FORCE

FOR ONE YEAR FROM THE DATE IT BECOMES ENFORCEABLE
UNDER SECTION 17(A) STATEGOVERNMENT CANE XTEND THIS
PERIOD FOR ONE YEAR AT A TIME SUBJECT TO THE TOTAL
VALIDITY PERIOD NOT EXCEEDING THREE YEARS. UNDER
SECTION 19(4) GOVERNMENT EMPOWERED TO SEEK REDUCTION
OF THE NORMAL PERIOD BY REFERRING IT TO THE
ADJUDICATING AUTHORITY.
VII) WILL THE OBLIGATIONS ON THE PARTIES CEASE ON EXPIRY OF
THE VALIDITY PERIOD [Sn.19(2), (3), (6)] ?

OBLIGATIONS CONTINUE EVEN AFTER THE VALIDTY PERIOD

TILL PROPER NOTICE OF TERMINATION IS GIVEN UNDER
Sn.19(6) AND TWO MONTHS HAVE ELAPSED FROM DATE OF
NOTICE.

VIII) WHO IS COMPETENT TO ISSUE NOTICE OF TERMINATION ?

ONLY A PARTY REPRESENTING THE MAJORITY OF THE PERSONS

BOUND BY THE AWARD CAN ISSUE A VALID NOTICE OF
TERMINATION.