Industrial Disputes Act, 1947
History of the Industrial Disputes Legislation in India
History- Before the First World War we did not have adequate legislation for the purpose of demarcating proper lines between the employer and the employee for regulating the relations between them, and also for the disputes regarding industries, for the simple reason that there were no properly organised industries and no labour awakening. There was one. Employers and Workmen's Act, 1860, which aimed at the settlement of disputes between the employers and the workmen. In the year 1924 a bill was drafted and circulated which culminated into the Trade Disputes Act of 1929 was a temporary enactment intended to remain in force for a period of five years. Consequently in 1934 another Amending Act was passed which made the atorcaid Act permanent and also amended it by incorporating some suggestions made by the Royal Commission on Labour.
In 1938 another Act was passed which provided for the appointment of Conciliation Officers, as recommended by the Royal Commission. I also extended the scope of the Act so as to cover certain other disputes and some other public utility services The Trade Disputes Act, 1929, did not provide for the amicable nettlement of disputes on the failure of the conciliation with a major disputa, particularly of an all India, character could be declared illegal on the ground of causing hardship to the community. The Bombay Trade Disputes Conciliations Act, 1934, made de Commissioner of Labour ex-officio Chief Conciliator of the Province, and provided for the appointment of Conciliation Officers to look after the interests of labour, to promote closer contacts. hetween employers and workers and to act under certain conditions, as, delegate of workers. The main defect of the Trade Disputes Act was that the proceeding instituted thereum-der where not made conclusive and binditig on the parties. Rule 81-A, of the Defence of India Rules, enacted during the war, sought to remove this defect .This rule empowered the Central Government to refer industrial disputes to adjudicators and to enforce their award. The rule however, ceased to be operative from October, 1946. But the need of permanent legislation on the lines of the said rule was left under the stress of post-war industrial readjustment with the result that the Industrial Disputes Act, 1947 was passed to replace the Trade Disputes Act, 1929. This Act came into force from 1st April, 1947.
The Industrial Disputes Act, 1947, embodies the essential features of Rule 81-A of the Defence of India Rules, retaining for the most part of the provisions of the Trade Disputes Act, 1929. It introduced two new institutions, namely, (1) the Works Committee composed of the representatives of employers and workmen; and (ii) The Industrial Tribunals consisting of one or more members possessing qualifications ordinarily required for appointment as judge of a High Court. The Act gives encourage ment to the voluntary settlement of disputes through the Works Committee and provides for reference of a dispute to the Industrial Tribunal, where the parties to the dispute apply for such reference, or where the parties deem necessary the appropriate Government may institute proceedings.
Since the Indian Independence (Adaptation of Control Acts and Ordinances) Order, 1948, several Amending Acts or Orders have been passed including the aforesaid Indian Independence Order. These Amending Acts have brought considerable changes.
•Object of Passing Industrial Dispute Act1947 --The purpose of the Industrial Dispute Act has been to harmonise the relations between the employer and the employees and thereby to restore and maintain industrial peace. The object of the enactment Industrial Disputes Act as indicated in the object and reasons, provide effective machinery for settlement of industrial dispute, compensation to prohibit and restrict strikes and lock outs, to provide retrenchment compensation to retrenched employees, to provide certain rules regarding lay off. The Industrial Disputes Act is a legislation calculated to ensure social justice to both employers and employees and advance the progress of industry by bringing about the existence of harmony and cordial relationship between the parties.
2.Extend and Scope- The Act extends to the whole of India. The Act has been extended to the State of Jammu and Kashmir. has also been extended to Union Territories of Goa, Daman and Dis by regulation (XII of 1962) Pondicherry by Regulation (VII of 1963) and Lakshadweep, Minicoy and Amandivi Islands, by Regulation (VIII of 1965).
3.Main features of the Act-Some of the distinguishing features of the Industrial Distputes Act, 1947 are as under
1.Any industrial dispute may be referred to an industrial tribunal by an agreement of parties to the dispute or by the State Government if a deems it expedient so to do
2. An award shall be binding on both the parties to the dispute for the specified period not exceeding one year. It shall be normally enforced by the Government.
3. Strike and lock-outs are prohibited -
(i) During the pendency of conciliation and adjudication proceedings.
(ii) During the pendency of settlements reached in the course of conciliation proceedings, and
(iii) During the pendency of awards of Industrial Tribunal declared binding by the appropriate Government.
4. In public interest or emergency the appropriate Government. has power to declare the transport (other than railways), coal, cotton textiles, food stuffs and iron and steel industries to be a public utility service for the purposes of this Act, for a maximum period of six months.
5. In case of lay off or retrenchment of workmen the employer is required to pay compensation to them.
6. Provision has also been made for payment of compensation workmen in case of transfer or closure of an undertaking
7. A number of authorities such as, Works Committee. Conciliation Officers, Board of Conciliation, Courts of Inquiry, Labour Courts, Tribonal and National Tribunal are provided for settlement of industrial disputes. The nature of powers, functions and duties of these authorities differ from each other but each one of them plays an important nile in ensuring industrial disputes. The nature of powers, functions and duties of these authorities differ from each other but each one of them plays an important role in ensuring industrial peace.
Definition of "Industrial Dispute" under Industrial Dispute Act, 1947:
According to S. 2(k), Industrial Dispute' means any dispute or difference between
(a) Employers and employers, or
(b) Employers and workmen, or
(c) Workmen and workmen; which is connected with
(i) The employment or non-employment, or
(ii) The terms of employment, or
(iii) With the condition of labour of any person.
Situation when an industrial Dispute Arise?
An industrial dispute can be said to have arisen and to be in existence only when the demand is made by the workmen and is rejected by the management or vice-versa. If the demand is made by the workmen and is accepted by the employer and if the workmen are satisfied no industrial dispute will ever come into existence. Vide: Star Paper Mills V.s. Industrial tribunal (1977) Lab IC (NOC) 52 (AI). No particular form of demand is necessary to constitute an industrial dispute. It all depends upon the facts and circumstances of each case. Vide: Kajyalaxmi V.s. Authority P. W. Act, 1977 Lab IC 1517 (AP). If the demand is not communicated to the management is industrial dispute arises. Vide: Village Papers Pvt. Ltd. V.s. State of Himachal Pradesh, 1993. Lab IC 99 (Hima Pra) (KB).
The term "dispute" is no where defined in the Act. Thus, it can connote only the ordinary meaning, namely, difference. The difference between the parties must relate to wage, bonus, dearness allowance. Termination of employment or to any matter connected with the terms and conditions of the employment or such general questions affecting the parties. In Western India Automobile Association Vs. Industrial Tribunal. 1949, LIJ 245. the Federal Court observed .... any dispute connected with employment or non-employment would ordinarily cover all matters that required settlements between workmen and employers, whether those matters concerned the causes of their being out of service or any question and it would also include within its scope the relief necessary for bringing about harmonious relations between the employers and workers".
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