Industrial Disputes Act, 1947

The Industrial Disputes Act 1947
An Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes.
Citation Act No. 14 of 1947
Enacted by Central Legislative Assembly
Date enacted 11 March 1947
Date assented to 11 March 1947
Date commenced 1 April 1947

The Industrial Disputes Act 1947 extends to the whole of India and regulates Indian labour law so far as that concerns trade unions. It came into force April 1, 1947.

Objectives

The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery and procedure for the investigation and settlement of industrial disputes by negotiations.

The laws apply only to the organised sector. Chapter V-B, introduced by an amendment in 1976, requires firms employing 300 or more workers to obtain government permission for layoffs, retrenchments and closures. A further amendment in 1982 (which took effect in 1984) expanded its ambit by reducing the threshold to 100 workers.

The Act also lays down:

  1. The provision for payment of compensation to the workman on account of closure or lay off or retrenchment.
  2. The procedure for prior permission of appropriate Government for laying off or retrenching the workers or closing down industrial establishments
  3. Unfair labour practices on part of an employer or a trade union or workers.

Applicability

The Industrial Disputes Act extends to whole of India and applies to every industrial establishment carrying on any business, trade, manufacture or distribution of goods and services irrespective of the number of workmen employed therein.

Every person employed in an establishment for hire or reward including contract labour, apprentices and part-time employees to do any manual, clerical, skilled, unskilled, technical, operational or supervisory work, is covered by the Act.

This Act though does not apply to persons mainly in managerial or administrative capacity, persons engaged in a supervisory capacity and drawing > 10,000 p.m or executing managerial functions and persons subject to Army Act, Air Force and Navy Act or those in police service or officer or employee of a prison.

Applicability of Parent Act

Related Sections Of The Act

Important Definitions

Any industry carried on by or under the authority of the Central Govt, or by a railway company or a Dock Labour Board, or the Industrial Finance Corporation of India Ltd, or the ESIC, or the board of trustees of the Coal Mines PF, or FCI, or LIC or in relation to any other industrial dispute, the state Government.

The definition of Industry under the Act is taken from the Supreme Court's judgement in Bangalore water Supply and Sewerage Board v. A. Rajappa.[1]

Triple Test formulae The organisation is Prima Facie an industry if it is

1. A systematic activity;

2. Organised by co-operation between an employer and an employee;

3. for the production of goods and services calculated to satisfy human wants and wishes. ( not spiritual or pious in nature but inclusive of material things or services geared to seek celestal bliss)

Related Schedules

Schedule IV - NOTICE OF CHANGE

Schedule V - UNFAIR LABOUR PRACTICE

See also

Notes

  1. ↑ AIR 1978 SC 548, AIR 1978 SC 548; AIR 1978 SC 548. "AIR 1978 SC 548". AIR 1978 SC 548.

External links

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