An Overview of Industrial Dispute Act, 1947

Vijaya Malik| Lloyd Law College| 5th June 2020

Introduction

When there are differences among the people working in an industry is known as Industrial Dispute. Industrial Dispute may arise between ‘employer and employee’ ‘employee and employee’ or ‘employer and employer’. And common reasons which arise dispute are wage, working hours, working conditions, and compensation. All these disputes lead to hampering the relation of employers and employees and this could arise the problems like retrench, lay-off, lockout the employee from the work area, also, strikes, damage to property of the employer, agitation and when the dispute is not solved, it can even lead to the closing of the business. This effect the employer as well as employee and directly or indirectly it affects the nation as a whole because every industry or business contributes to the nation’s income.

To solve this problem The Industrial Disputes Act was enacted on 11th March 1947, but it came into force on 1st April 1947. It applies to the whole of India and covers all types of industries. It also regulates labor laws.

Objective

1. This act was enacted to establish peace and harmony by mediating all the differences. It lays down the principles and measures which should be taken for smooth functioning.
2. To support the employees who have been wrongfully terminated or laid-out.
3. To empower employees and promote collective bargaining.
4. It provides machinery and proper procedures for investigation and settlement of disputes.
5. To promote a healthy working relationship between employee and employer.
6. To prevent unauthorize strikes of laborers and lockouts and unfair labor practice.
7. Provide a grievance procedure so that the employees can seek help.

Important provisions of the Act

1. Works Committee (section 3):- Those industries in which 100 or more employees have been employed within 12 months need to establish a works committee by the government’s order. This committee contains representative of employers as well as employees and the representatives from both the sides of employer and employee should be equal in number.  The representative of employees should be chosen in a prescribed manner among the workmen who are engaged in the establishment and consultation with their trade union. This committee works in the direction of solving day to day issues of employees and assist their grievances. The works committee must secure and establish a healthy working relationship between employer and employee.

The representative of employees should be chosen in a prescribed manner among the workmen who are engaged in the establishment and consultation with their trade union. This committee works in the direction of solving day to day issues of employees and assist their grievances. The works committee must secure and establish a healthy working relationship between employer and employee.

2. Conciliation Officers (Section-4):-. In this, a conciliation officer is appointed through to solve the dispute by mediating issues between parties. He may be appointed for a specific area or industry and maybe for more than one specific industry for either a permanent or temporary basis.

1. Boards of Conciliation (Section-5):- To solve a dispute, the Board of Conciliation is established. This board includes an independent and impartial chairperson and two of four other members who represent both the parties to dispute. The representative of both parties should be consist of equal members. These parties with their respective representative sit together to mediate their issues in front of the chairperson. Representatives of each party are selected on their recommendation and if one party is not able to recommend their representative then the appropriate government selects representation for them.
2. Courts of Inquiry (Section-6):- This section talks about establishment of a court of inquiry to look into the cause of dispute and take all the essential steps in solving it. This court is consists of one or more independent persons and in case if there are two or more independent persons then one of them is selected as the chairperson. The court shall not proceed without a chairperson.
3. The Labour Court (Section-7):- According to this section, one or more labor court is established for the solving disputes of mattes which are laid down in 2nd schedule. This court contains one member who is appointed by the Government. For an appointment, that person must qualify the given conditions i.e. He has to be a High Court Judge (at present or former);He has to be a District Court Judge or an Additional District Court Judge for at least three years;He must have a judicial office in India for at least seven years; and He has to be the present officer of the Labour Court for a period of five years.
4. Tribunals (Section-7A):- If the dispute is at a lower level than small tribunals are formed. One or more Tribunals formed for the adjudication of disputes related to the matters, which are laid down in the Second Schedule and Third Schedule. This tribunal contains one member who is appointed by the appropriate Government. For an appointment, that person must qualify the following conditions;            

(a) he has to be a judge of High Court (at present or former).                  

(b) he has been a District Court Judge or an Additional District Judge for at least three years. Besides the chairperson, two more members are appointed to advise the respected Tribunal in the proceeding.

•  National Tribunals (section 7B):– When the dispute is at a higher level and it becomes the matter of national importance, it may not be limited to only one state than a National Tribunal is formed. One or more National Tribunals are formed for the adjudication of disputes by the central government.