UNIT-III Industrial Dispute Act, 1947 (with latest Amendments)

  •       3.1  Procedure, Powers and duties of Authorities
  •       3.2  Strikes and Lock-outs
  •       3.3  Lay-off and retrenchment
  •       3.4  Special provisions relating to lay-off, retrenchment and closure in certain establishment
  •       3.5  Unfair Labour practices
  •       3.6  Penalties
  •       3.7  Miscellaneous
  •       3.8  Schedules I to V

 

3.1 & 3.5 Procedure, Powers, and Unfair Labour Practices

The “Plain English” Intro

The authorities (Courts/Tribunals) have the same powers as a Civil Court to call witnesses and examine documents. To keep the fight fair, the Act lists “Unfair Labour Practices” that neither side is allowed to commit.

Day-to-Day Analogy

Think of a Boxing Match. The referee (Authority) has the power to stop the fight or declare a winner. However, both boxers must follow the rules: no low blows, no hitting after the bell. In labor law, a “low blow” is an Unfair Labour Practice (like an employer firing a worker just for joining a union).

The Legal Backbone (Table)

Aspect

Section/Schedule

What it says in Simple Terms

Powers of Authorities

Sec. 11

Power to enter premises, enforce attendance, and grant costs.

Unfair Labour Practices

5th Schedule

Prohibits acts like victimizing workers or inciting illegal strikes.

Binding Nature

Sec. 18

A settlement or “Award” is binding on all parties involved.

3.2 Strikes and Lock-outs

The “Plain English” Intro

A Strike is a collective refusal by employees to work. A Lock-out is the employer’s refusal to give work. Both are legal tools of pressure, but they become Illegal if done without proper notice in public utility services.

The “Checklist” (When is a Strike Illegal? – Sec. 22 & 23)

  • No Notice: In Public Utilities (Water, Electricity, etc.), you must give 14 days’ notice.
  • During Pendency: You cannot strike while conciliation or tribunal proceedings are ongoing.
  • Breach of Settlement: You cannot strike on issues already covered by an active settlement/award.

3.3 & 3.4 Lay-off, Retrenchment, and Closure

The “Plain English” Intro

These are the three ways work can stop. Lay-off is temporary (e.g., machine broke), Retrenchment is permanent (e.g., surplus staff), and Closure is the total death of the business.

Comparison Table: Lay-off vs. Retrenchment

Feature

Lay-off (Sec. 2-kkk)

Retrenchment (Sec. 2-oo)

Nature

Temporary.

Permanent.

Reason

Shortage of coal, power, or breakdown.

Surplus labor (NOT a disciplinary action).

Relationship

Contract continues; worker returns later.

Contract is terminated.

Compensation

50% of basic wages + DA.

15 days’ average pay for every year of service.

The “Last-Come, First-Go” Rule (Sec. 25G)

When retrenching, the employer must fire the person who was hired last in that category. If they want to fire a senior employee instead, they must record the reason in writing.

3.6 & 3.8 Penalties and Schedules

The “Plain English” Intro

If you break the rules (e.g., an illegal lock-out or an unfair labor practice), you face fines and even jail time. The “Schedules” act as the index for the entire Act.

The Legal Backbone (Schedules)

Schedule

Purpose

1st Schedule

Industries that can be declared “Public Utility Services.”

2nd & 3rd Schedule

Matters within the jurisdiction of Labour Courts and Industrial Tribunals.

4th Schedule

Matters requiring a “Notice of Change” (Wages, Hours).

5th Schedule

List of Unfair Labour Practices.

3.4 Special Provisions (Chapter V-B)

The “Plain English” Intro

For big factories (usually those with 100+ or 300+ workers depending on the state), the employer cannot just lay-off or retrench. They need Prior Permission from the Government.

Visual Flowchart Description

  1. Employer wants to close factory $\rightarrow$ 2. Apply to Govt 90 days in advance $\rightarrow$ 3. Govt holds an inquiry $\rightarrow$ 4. Permission Granted/Refused $\rightarrow$ 5. If refused, the factory must stay open and pay workers.

Exam “Golden Key”

“Retrenchment does not include ‘Voluntary Retirement’ or ‘Retirement on Superannuation’.”

Use this to score extra marks when explaining the definition of retrenchment under Section 2(oo).

 

 

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