LexThe Industrial Disputes Act, 1947
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The Industrial Disputes Act, 1947
INDEX
THE INDUSTRIAL DISPUTES ACT, 1947
Sec. Particulars
Introduction
CHAPTER I : PRELIMINARY
1. Short title, extent and commencement
2. Definitions
2A. Dismissal, etc., of an individual workman to be dee med to be an
industrial dispute
CHAPTER II: AUTHORITIES UNDER THIS ACT
3. Works Committee
4. Conciliation officers
5. Boards of Conciliation
6. Courts of Inquiry
7. Labour Courts
7A. Tribunals
7B. National Tribunals
7C. Disqualifications for the presiding officers of Labour Courts,
Tribunals and National Tribunals
8. Filling of vacancies
9. Finality of orders constituting Boards, etc.
CHAPTER II A: NOTICE OF CHANGE
9A. Notice of change
9B. Power of Government to exempt
The Industrial Disputes Act, 1947
CHAPTER III: REFERENCE OF DISPUTES TO BOARDS,
COURTS OR TRIBUNALS
10. Reference of disputes to Boards, Courts or Trib unals
10A. Voluntary reference of disputes to arbitration
CHAPTER IV : PROCEDURE, POWERS AND DUTIES OF
AUTHORITIES
11. Procedure and power of conciliation officers. B oards, Courts a nd
Tribunals
11A. Powers of Labour Courts, Tribunals and National Tri bunals to
give appropriate relief in case of discharge or dis missal of
workmen
12. Duties of conciliation officers
13. Duties of Board
14. Duties of Courts
15. Duties of Labour Courts, Tribunals and National Tribunals.
16. Form of report or award
17. Publication of reports and awards
17A. Commencement of the award
17B. Payment of full wages to workman pending proceedin gs in
higher courts
18. Persons on whom settlements and awards are bind ing
19. Period of operation of settlements and awards
20. Commencement and conclusion of proceedings
21. Certain matters to be kept confidential
CHAPTER V: STRIKES AND LOCK-OUTS
22. Prohibition of strikes and lock-outs
23. General prohibition of strikes and lock-outs
24. Illegal strikes and lock-outs
The Industrial Disputes Act, 1947
25. Prohibition of financial aid to illegal strikes and lock-outs
CHAPTER VA: LAY-OFF AND RETRENCHMENT
25A. Application of sections 25C to 25E
25B. Definition of continuous service
25C. Right of workmen laid-off for compensation
25D. Duty of an employer to maintain muster rolls o f workmen
25E. Workmen not entitled to compensation in certai n cases
25F. Conditions precedent to retrenchment of workme n
25FF. Compensation to workmen in case of transfer o f undertakings
25FFA. Sixty days’ notice to be given of intention to clos e down any
undertaking
25FFF. Compensation to workmen in case of closing down of
undertakings
25G. Procedure for retrenchment
25H. Re-employment of retrenched workmen
25-I. [Repealed]
25J. Effect of Laws inconsistent with this Chapter
CHAPTER VB: SPECIAL PROVISIONS RELATING TO
LAY-OFF, RETRENCHMENT AND
CLOSURE IN CERTAIN ESTABLISHMENTS
25K. Application of Chapter VB
25L. Definitions
25-M. Prohibition of lay-off
25-N. Conditions precedent to retrenchment of workm en
25-O. Procedure for closing down an undertaking
25P. Special provision as to restarting undertakings clo sed down
before commencement of the Industrial Disputes (Ame ndment)
Act, 1976
25Q. Penalty for lay-off and retrenchment without p revious permission
The Industrial Disputes Act, 1947
25R. Penalty for closure
25S. Certain provisions of Chapter VA to apply to indust rial
establishment to which this Chapter applies
CHAPTER VC: UNFAIR LABOUR PRACTICES
25T. Prohibition of unfair labour practice
25U. Penalty for committing unfair labour practices
CHAPTER VI: PENALTIES
26. Penalty for illegal strikes and lock-outs
27. Penalty for instigation, etc.
28. Penalty for giving financial aid to illegal str ikes and lock-outs
29. Penalty for breach of settlement or award
30. Penalty for disclosing confidential information
30A. Penalty for closure without notice
31. Penalty for other offences
CHAPTER VII: MISCELLANEOUS
32. Offence by companies, etc.
33. Conditions of service, etc., to remain unchanged un der certain
circumstances during pendency of proceedings
33A. Special provision for adjudication as to whether co nditions of
service, etc., changed during pendency of proceeding
33B. Power to transfer certain proceedings
33C. Recovery of money due from an employer
34. Cognizance of offences
35. Protection of persons
36. Representation of parties
36A. Power to remove difficulties
36B. Power to exempt
37. Protection of action taken under the Act
38. Power to make rules
The Industrial Disputes Act, 1947
39. Delegation of powers
40. Power to amend
SCHEDULES
THE FIRST
SCHEDULE
Industries which may be declared to be Public Utili ty
Services under sub-clause (vi) of clause (n) of Section 2
THE
SECOND
SCHEDULE
Matters within the Jurisdiction of Labour Courts
THE THIRD
SCHEDULE
Matters within the jurisdiction of Industrial Tribunals
THE
FOURTH
SCHEDULE
Conditions of Service for change of which Notice is to be
given
THE FIFTH
SCHEDULE
Unfair Labour Practices
APPENDIX
8 (1) Extracts from the Industrial Disputes (Amendment) A ct,
1982
8 (2) The Industrial Tribunal (Procedure) Rules, 19 49
8 (3) The Industrial Tribunal (Central Procedure) R ules, 1954
The Industrial Disputes Act, 1947
THE INDUSTRIAL DISPUTES ACT, 1947
INTRODUCTION
Prior to the year 1947, industrial disputes were b eing settled under the
provisions of the Trade Disputes Act, 1929. Experie nce of the working of the
1929 Act revealed various defects which needed to b e overcome by a fresh
legislation. Accordingly the Industrial Disputes Bi ll was introduced in the
Legislature. The Bill was referred to the Select Co mmittee. On the
recommendations of the Select Committee amendments were made in the
original Bill.
STATEMENT OF OBJECTS AND REASONS
Experience of the working of the Trade Disputes Ac t, 1929, has revealed that
its main defect is that while restraints have been imposed on the rights of strike
and lock-out in public utility services no provisio n has been made to render the
proceedings institutable under the Act for the sett lement of an industrial dispute,
either by reference to a Board of Conciliation or t o a Court of Inquiry, conclusive
and binding on the parties to the dispute. This def ect was overcome during the
war by empowering under Rule 81A of the Defence of India Rules, the Central
Government to refer industrial disputes to adjudica tors and to enforce their
awards. Rule 81A, which was to lapse on the 1st Oct ober, 1946, is being kept in
force by the Emergency Powers (Continuance) Ordinan ce, 1946, for a further
period of six months; and as industrial unrest in c hecking which this rule has
proved useful, is gaining momentum due to the stres s of post industrial
re-adjustment, the need of permanent legislation in replacement of this rule is
self-evident. This Bill embodies the essential prin ciples of Rule 81A, which have
proved generally acceptable to both employers and w orkmen, retaining intact, for
the most part, the provisions of the Trade Disputes Act, 1929.
The two institutions for the prevention and settle ment of industrial disputes
provided for in the Bill are the Works Committees c onsisting of representatives of
employers and workmen, Industrial Tribunal consisti ng of one or more members
possessing qualifications ordinarily required for a ppointment as Judge of a High
Court. Power has been given to appropriate Governme nt to require Works
Committees to be constituted in every industrial es tablishment employing 100
8(1) The Industrial Disputes Act, 1947
workmen, or more and their duties will be to remove causes of friction between
the employer and workmen in the day-to-day working of the establishment and to
promote measures for securing amity and good relati ons between them.
Industrial peace will be most enduring where it is founded on voluntary
settlement, and it is hoped that the Works Committe es will render recourse to the
remaining machinery provided for in the Bill for th e settlements of disputes
infrequent. A reference to an Industrial Tribunal w ill lie where both the parties to
an industrial dispute apply for such reference and also where the appropriate
Government considers it expedient so to do. An awar d of a Tribunal may be
enforced either wholly or in part by the appropriat e Government for a period not
exceeding one year. The power to refer disputes to Industrial Tribunals and
enforce their awards is an essential corollary to t he obligation that lies on the
Government to secure conclusive determination of th e disputes with a view to
redressing the legitimate grievances of the parties thereto, such obligation arising
from the imposition of restraints on the rights of strike and lock-out, which must
remain inviolate, except where considerations of pu blic interest override such
rights.
The Bill also seeks to re-orient the administratio n of the conciliation
machinery provided in the Trade Disputes Act. Conci liation will be compulsory in
all disputes in public utility services and optiona l in the case of other industrial
establishments. With a view to expedite conciliatio n proceedings time limits have
been prescribed for conclusion thereof—14 days in th e case of conciliation
officers and two months in the case of Board of Con ciliation from the date of
notice of strike. A settlement arrived at in the co urse of conciliation proceedings
will be binding for such period as may be agreed up on by the parties and where
no period has been agreed upon, for a period of one year, and will continue to be
binding until revoked by a 3 months’ notice by either party to the dispute.
Another important new feature of the Bill relates to the prohibition of strikes
and lock-outs during the pendency of conciliation a nd adjudication proceedings
of settlements reached in the course of conciliation proceedings and of awards of
Industrial Tribunals declared binding by the approp riate Government. The
underlying argument is that where a dispute has bee n referred to conciliation for
adjudication a strike or lock-out, in furtherance t hereof, is both unnecessary and
inexpedient. Where, on the date of reference to con ciliation or adjudication a
strike or lock-out is already in existence, power i s given to the appropriate
The Industrial Disputes Act, 1947
Government to prohibit its continuance lest the cha nces of settlement or speedy
determination of the dispute should be jeopardized.
The Bill also empowers the appropriate Government to declare, if public
interest or emergency so requires, by notification in the Official Gazette, any
industry to be a public utility service, for such p eriod, if any, as may be specified
in the notification.
ACT 14 OF 1947
The Industrial Disputes Bill having been passed by the Legislature received
its assent on 11th March, 1947. It came into force on first day of April, 1947 as
THE INDUSTRIAL DISPUTES ACT, 1947 (14 of 1947).
LIST OF AMENDING ACTS AND ADAPTATION ORDERS
1. The Indian Independence (Adaptation of Central Acts and Ordinances) Order,
1948.
2. The Industrial Disputes (Banking and Insurance Companies) Act, 1949 (54 of
1949).
3. The Adaptation of Laws Order, 1950.
4. The Repealing and Amending Act, 1950 (35 of 1950 ).
5. The Industrial Disputes (Appellate Tribunal) Act , 1950 (48 of 1950).
6. The Industrial Disputes (Amendment and Temporar y Provisions) Act, 1951
(40 of 1951).
7. The Industrial (Development and Regulation) Act , 1951 (65 of 1951).
8. The Industrial Disputes (Amendment) Act, 1952 ( 18 of 1952).
9. The Industrial Disputes (Amendment) Act, 1953 ( 43 of 1953).
10. The Industrial Disputes (Amendment) Act, 1954 (48 of 1954).
11. The Industrial Disputes (Amendment and Miscella neous Provisions) Act,
1956 (36 of 1956).
12. The Industrial Disputes (Amendment) Act, 1956 (41 of 1956).
13. The Industrial Disputes (Amendment) Act, 1957 (18 of 1957).
14. The State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959).
15. The Deposit Insurance Corporation Act, 1961 (47 of 1961).
16. The Agricultural Refinance Corporation Act, 1963 (10 of 1963).
8(1) The Industrial Disputes Act, 1947
17. The Unit Trust of India Act, 1963 (52 of 1963).
18. The Industrial Development Bank of India Act, 1964 (18 of 1964),
19. The Industrial Disputes (Amendment) Act, 1964 (36 of 1964).
20. The Industrial Disputes (Amendment) Act, 1965 (35 of 1965).
21. The Food Corporations (Amendment) Act, 1968 (57 of 1968).
22. The Banking Companies (Acquisition and Transfer of Undertakings) Act,
1970 (5 of 1970).
23. The Central Labour Laws (Extension to Jammu and Kashmir) Act, 1970 (51
of 1970).
24. The Industrial Disputes (Amendment) Act, 1971 (45 of 1971).
25. The Industrial Disputes (Amendment) Act, 1972 (32 of 1972).
26. The Banking Service Commission Act, 1975 (42 of 1975).
27. The Industrial Disputes (Amendment) Act, 1976 (32 of 1976).
28. The Banking Companies (Acquisition and Transfer of Undertakings) Act,
1980 (40 of 1980).
29. The Export-Import Bank of India Act, 1981 (28 of 1981).
30. The National Bank for Agriculture and Rural Dev elopment Act, 1981 (61 of
1981).
31. The Industrial Disputes (Amendment) Act, 1982 (46 of 1982).
32. The Industrial Disputes (Amendment) Act, 1984 (49 of 1984).
33 The Industrial Reconstruction Bank of India Act, 1984 (62 of 1984).
34. The National Housing Bank Act, 1987 (53 of 1987).
35. The Small Industries Development Bank of India Act, 1989 (39 of 1989).
36. The Industrial Disputes (Amendment) Act, 1996 (24 of 1996).
37. The Industrial Development Bank (Transfer of Un dertaking and Repeal) Act,
2003 (53 of 2003).
The Industrial Disputes Act, 1947
THE INDUSTRIAL DISPUTES ACT, 1947 1
(14 of 1947)
[11 th March, 1947]
An Act to make provision for the investigation and settlement of industrial
disputes, and for certain other purposes.
WHEREAS it is expedient to make provision for the investigation and
settlement of industrial disputes, and for certain other purposes hereinafter
appearing;
It is hereby enacted as follows:—
CHAPTER-I
PRELIMINARY
1. Short title, extent and commencement.- (1) This Act may be called the
Industrial Disputes Act, 1947.
2*[(2) It extends to the whole of India:
3[***]
(3) It shall come into force on the first day of A pril, 1947.
2. Definitions. - In this Act, unless there is anything repugnant in the subject or
context,—
(a) “ Appropriate Government” means—
(i) in relation to any industrial dispute concerni ng
4 [***] any industry
carried on by or under the authority of the Central Government, 5[***]
1 For Statement of Objects and Reasons see Gazette of I ndia, 1946, Pt. V., pp. 239-240, for
Report of Select Committee, see Gazette of India 1947, Pt. V. pp. 33-35. This Act has been
extended to Goa, Daman and Diu by Reg. 12 of 1962, Section 3 and Schedule, to Pondicherry
by Reg. 7 of 1963, Section 3 and Schedule 1 and Lacca dive, Minicoy and Amindivi Islands by
Reg. 8 of 1965, Section 3 and Schedule
2 Subs. by Act 36 of 1956, Section 2, for sub-section ( 2) (w.e.f. 29.8.1956).
3 Proviso omitted by Act 51 of 1970, Section 2, 2 nd Schedule (w.e.f. 1.9.1971).
4 Certain words and figures inserted by Act 10 of 196 3, Section 47 and Schedule II, Pt. II and
omitted by Act 36 of 1964, Section 2 (w.e.f. 19.12.1964).
5 The words “by the Federal Railway Authority” omit ted by the A.O. 1948.
The Industrial Disputes Act, 1947
or by a railway company 1*[or concerning any such controlled industry
as may be specified in this behalf by the Central G overnment] 2[***] or
in relation to an industrial dispute concerning 3[4[5[6[a Dock Labour
Board established under section 5A of the Dock Work ers (Regulation
of Employment) Act, 1948 (9 of 1948), or 7[the Industrial Finance
Corporation of India Limited formed and registered under the
Companies Act, 1956 (1 of 1956)] or the Employees’ State Insurance
Corporation established under section 3 of the Empl oyees’ State
Insurance Act, 1948 (34 of 1948), or the Board of Trustees constituted
under section 3A of the Coal Mines Provident Fund a nd
Miscellaneous Provisions Act, 1948 (46 of 1948), or the Central Board
of Trustees and the State Boards of Trustees consti tuted under
section 5A and section 5B, respectively, of the Emp loyees’ Provident
Fund and Miscellaneous Provisions Act, 1952 (19 of 1952), 8[***] or
the Life Insurance Corporation of India established under section 3 of
the Life Insurance Corporation Act, 1956 (31 of 195 6), or 9[the Oil and
and Natural Gas Corporation Limited registered unde r the Companies
Act, 1956 (1 of 1956)], or the Deposit Insurance an d Credit Guarantee
Corporation established under section 3 of the Depo sit Insurance and
Credit Guarantee Corporation Act, 1961 (47 of 1961) , or the Central
Warehousing Corporation established under section 3 of the
Warehousing Corporations Act, 1962 (58 of 1962), or the Unit Trust of
India established under section 3 of the Unit Trust of India Act, 1963
(52 of 1963), or the Food Corporation of India esta blished under
section 3, or a Board of Management established for two or more
contiguous States under section 16, of the Food Cor porations Act,
1964 (37 of 1964), or 2[the Airports Authority of I ndia constituted
1 Ins. by Act 65 of 1951, Section 32.
2 The words “operating a Federal Railway” omitted b y the A.O. 1950.
3 Ins. by Act 47 of 1961, Section 51 and Schedule II, Pt. III (i.e. 1.1.1962).
4 Subs. by Act 36 of 1964, Section 2, (w.e.f. 19.12.1 964).
5 Subs. by Act 45 of 1971, Section 2 (w.e.f. 15.12.1 971).
6 Subs. by Act 46 of 1982, Section 2 (w.e.f. 21.8.19 84).
7 Subs. by Act 24 of 1996, Section 2 (w.r.e.f. 11.10 .1995).
8 Certain words omitted by Act 21 of 1996, see. 2 (w. r.e.f. 11.10.1995).
9 Subs. by Act 24 of 1996, Section 2 for certain word s (w.r.e.f. 11.10.1995).
The Industrial Disputes Act, 1947
under section 3 of the Airports Authority of India Act, 1994 (55 of
1994)], or 1[a Regional Rural Bank established under section 3 of the
Regional Rural Banks Act, 1976 (21 of 1976), or] th e Export Credit
and Guarantee Corporation Limited or the Industrial Reconstruction
Bank of India Limited], 2[the National Housing Bank established under
under section 3 of the National Housing Bank Act, 1987 (53 of 1987)],
or 3[4[an air transport service, or a banking or an insur ance company,]
company,] a mine, an oil field,] 5[a Cantonment Board,] or a major
port, the Central Government, and]
(ii) in relation to any other industrial dispute, t he State Government;
6[(aa) “arbitrator” includes an umpire;]
7[8[(aaa)] “average pay” means the average of the wages payable to a
workman-
(i) in the case of monthly paid workman, in the th ree complete calendar
months,
(ii) in the case of weekly paid workman, in the four complete weeks,
(iii) in the case of daily paid workman, in the twelve full working days,
preceding the date on which the average pay becomes payable if the
workman had worked for three complete calendar mont hs or four complete
weeks or twelve full working days, as the case may be, and where such
calculation cannot be made, the average pay shall b e calculated as the
average of the wages payable to a workman during th e period he actually
worked;]
9[(b) “award ” means an interim or a final determination of any industrial
dispute or of any question relating thereto by any Labour Court, Industrial
1 Ins. by Act 21 of 1976, Section 33 (w.r.e.f. 26.9. 1975).
2 Ins. by Act 53 of 1987, Section 56 and Second Schedu le , Pt. III (w.e.f. 9.7.1988).
3 Subs. by Act 54 of 1949, Section 3, for “a mine, o il-field”.
4 Subs. by Act 24 of 1996, Section 2 for certain word s (w.r.e.f. 11.10.1995).
5 Ins. by Act 36 of 1964, Section 2 (w.e.f. 19.12.19 64).
6 Ins. by Act 36 of 1964, Section 2 (w.e.f. 19.12.19 64).
7 Ins. by Act 43 of 1953, Section 2 (w.e.f. 24.10.19 53).
8 Clause (aa) re-lettered as “(aaa)” by Act 36 of 19 64, Section 2 (w.e.f. 19.12.1964).
9 Subs. by Act 36 of 1956, Section 3, for clause (b) (w.e.f. 10.3.1957).
The Industrial Disputes Act, 1947
Tribunal or National Industrial Tribunal and includ es an arbitration award
made under section 10A;]
1[(bb) “banking company” means a banking company as defined in section
5 of the 2Banking Companies Act, 1949 (ID of 1949), having br anches or
other establishments in more than one State, and in cludes 3[the Export-
Import Bank of India) 4[the Industrial Reconstruction Bank of India,] 5[***],
5[***], 6[the Small Industries Development Bank of India est ablished under
under section 3 of the Small Industries Development Bank of India Act,
1989], the Reserve Bank of India, the State Bank of India, 7 [a
corresponding new bank constituted under section 3 of the Banking
Companies (Acquisition and Transfer of Undertakings ) Act, 1970 (5 of
1970) 8[a corresponding new bank constituted under section 3 of the
Banking Companies {Acquisition and Transfer of Unde rtakings) Act, 1980
(40 of 1980), and any subsidiary bank], as defined in the State Bank of
India (Subsidiary Banks) Act/1959 (38 of 1959);]
(c) “Board” means a Board of Conciliation constituted under this Act;
9(cc) “closure ” means the permanent closing down of a place of em ployment
employment or part thereof;]
(d)“conciliation officer” means a conciliation offi cer appointed under this Act;
(e) “conciliation proceeding” means any proceeding held by a conciliation
officer or Board under this Act;
1[(ee) “controlled industry” means any industry the control of which by the
Union has been declared by any Central Act to be ex pedient in the public
interest;]
1 Ins. by Act 54 of 1949, Section 3 and Subs. by Act 38 of 1959, Section 64 and Schedule III,
Pt. II.
2 Now “the Banking Regulation Act, 1949”.
3 Ins. by Act 28 of 1981, Section 40 and Schedule II, Pt II. (w.e.f. 1.1.1982).
4 Ins. by Act 62 of 1984, Section 71 and Schedule III, Pt II (w.e.f. 20.3.1985).
5 The words “the Industrial Development Bank of Indi a,” ins. by Act 18 of 1964, Section 38 and
Schedule II, Pt. II (w.e.f. 1.7.1964) and omitted by Act 53 of 2003, Section 12 & Schedule, Pt.
Ill (w.e.f. 2.7.2004).
6 Ins. by Act 39 of 19S9, Section 53 and 2nd Schedule .
7 Subs. by Act 5 of 1970, sec, 20, for “and any subsidia ry bank” (w.r.e.f. 19.7.1969).
8 Subs. by Act 40 of 1980, Section 20, for certain wo rds (w.e.f. 15.4.1980).
9 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.1984).
The Industrial Disputes Act, 1947
2[***]
(f) “Court” means a Court of Inquiry constituted under this Act;
(g) “employer” means—
(i) in relation to any industry carried on by or un der the authority of any
department of 3[the Central Government or a State Government, the
authority prescribed in this behalf, or where no au thority is prescribed, the
head of the department;
(ii) in relation to an industry carried on by or on behalf of a local authority, the
chief executive officer of that authority;
4[(gg) “executive” , in relation to a trade union, means the body, by whatever
name called, to which the management of the affairs of the trade union is
entrusted;]
5[***]
(i) a person shall be deemed to be “independent” for the purpose of his
appointment as the Chairman or other member of a Bo ard, Court or
Tribunal, if he is unconnected with the industrial dispute referred to such
Board, Court or Tribunal or with any industry direc tly affected by such
dispute:
6[Provided that no person shall cease to be independent by reason only of
the fact that he is a shareholder of an incorporate d company which is
connected with, or likely to be affected by, such i ndustrial dispute; but in such
a case, he shall disclose to the appropriate Govern ment the nature and
extent of the shares held by him in such company;]
7 (j) “industry” means any business, trade, undertaking, manufactur e or
calling of employers and includes any calling, serv ice, employment,
handicraft, or industrial occupation or avocation of workmen;
1 Ins. by Act 65 of 1951, Section 32.
2 Clause (eee) ins. by Act 43 of 1953, Section 2 and omitted by Act 36 of 1964, Section 2
(w.e.f. 19.12.1964).
3 Subs. by the A.O. 1948, for “a Government in Briti sh India”.
4 Ins. by Act 45 of 1971, Section 2 (w.e.f. 15.12.19 71).
5 Clause (h) omitted by the A.O. 1950.
6 Ins. by Act 18 of 1952, Section 2.
7 On the enforcement of clause (c) of section 2 of Act 46 of 1982, clause (j) of section 2 shall
stand substituted as directed in clause (c) of Act 46 of 1982. For the text of clause (j) of section
2 see Appendix.
The Industrial Disputes Act, 1947
(k) “industrial dispute” means any dispute or difference between employers
and employers, or between employers and workmen, or between
workmen and workmen, which is connected with the em ployment or non-
employment or the terms of employment or with the c onditions of labour,
of any persons;
1[(ka)“Industrial establishment or undertaking” mean s an establishment or
undertaking in which any industry is carried on:
Provided that where several activities are carried on in an establishment
or undertaking and only one or some of such activit ies is or are an industry or
industries, then,—
(a) if any unit of such establishment or undertakin g carrying on any activity,
being an industry, is severable from the other unit or units of such
establishment or undertaking, such unit shall be de emed to be a separate
industrial establishment or undertaking;
(b) if the predominant activity or each of the pred ominant activities carried on
in such establishment or undertaking or any unit th ereof is an industry
and the other activity or each of the other activit ies carried on in such
establishment, or undertaking or unit thereof is no t severable from and is,
for the purpose of carrying on, or aiding the carry ing on of, such
predominant activity or activities, the entire esta blishment or undertaking
or, as the case may be, unit thereof shall be deeme d to be an industrial
establishment or undertaking;]
2[(kk) “insurance company” means an insurance company as defined in
section 2 of the Insurance Act, 1938 (4 of 1938), h aving branches or
other establishments in more than one State;]
3[(kka) “khadi” has the meaning assigned to it in clause (d) of sec tion 2 of
the Khadi and Village Industries Commission Act, 1956 (61 of 1956);]
4[(kkb) “Labour Court” means a Labour Court constituted under section 7;]
7;]
1 Ins. by Act 46 of 1982, sec, 2 (w.e.f. 21.8.1984).
2 Ins. by Act 54 of 1949, Section 3.
3 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.198 4).
4 Clause (kka) ins. by Act 36 of 1956, Section 3 (w.e. f. 10.3.1957) and re-lettered as clause
(kkb) by Act 46 of 1982, Section 2 (w.e.f. 21.8.1984).
The Industrial Disputes Act, 1947
1(kkk) “lay-off” (with its grammatical variations and cognate expre ssions)
means the failure, refusal or inability of an emplo yer on account of
shortage of coal, power or raw materials or the accumulation of stocks
or the breakdown of machinery 2[or natural calamity or for any other
connected reason] to give employment to a workman w hose name is
borne on the muster rolls of his industrial establi shment and who has
not been retrenched.
Explanation.— Every workman whose name is borne on the muster rol ls
of the industrial establishment and who presents hi mself for work at the
establishment at the time appointed for the purpose during normal
working hours on any day and is not given employmen t by the employer
within two hours of his so presenting himself shall be deemed to have
been laid-off for that day within the meaning of this clause:
Provided that if the workman, instead of being gi ven employment at
the commencement of any shift for any day is asked to present himself for
the purpose during the second half of the shift for the day and is given
employment then, he shall be deemed to have been la id-off only for one-
half of that day:
Provided further that if he is not given any such employment even
after so presenting himself, he shall not be deemed to have been laid-off
for the second half of the shift for the day and shall be entitled to full basic
wages and dearness allowance for that part of the day;]
(l) “lock-out” means the 3[temporary closing of a place of employment], or
the suspension of work, or the refusal by an employ er to continue to
employ any number of persons employed by him;
4[(la) “major port” means a major port as defined in clause (8) of sec tion 3
of the Indian Ports Act, 1908 (15 of 1908);
(lb) “mine” means a mine as defined in clause (j) of sub-secti on (1) of
section 2 of the Mines Act, 1952 (35 of 1952);]
1 Ins. by Act 43 of 1953, Section 2 (w.e.f. 24.10.19 53).
2 Subs . by Act 46 of 1982 , Section 2, for “or for any other reason” (w.e.f. 21.8.1984).
3 Subs. by Act 46 of 1982, Section 2, for “closing of a place of employment’ (w.e.f. 21.8.1984).
4 Ins. by Act 36 of 1964, Section 2 (w.e.f. 19.12.19 64).
The Industrial Disputes Act, 1947
1[(ll) “National Tribunal” means a National Industrial Tribunal constituted
under section 7B;]
2[(lll) “office bearer”, in relation to a trade union, includes any member of
the executive thereof, but does not include an auditor;]
(m) “prescribed” means prescribed by rules made under this Act;
(n) “public utility service” means—
(i) any railway service 2[or any transport service for the carriage of
passengers or goods by air];
3[(ia) any service in, or in connection with the wor king of, any major port
or dock;]
(ii) any section of an industrial establishment, on the working of which the
safety of the establishment or the workmen employed therein
depends;
(iii) any postal, telegraph or telephone service;
(iv) any industry which supplies power, light or water to the public;
(v) any system of public conservancy or sanitation;
(vi) any industry specified in the
4[First Schedule] which the appropriate
Government may, if satisfied that public emergency or public interest
so requires, by notification in the Official Gazett e, declared to be a
public utility service for the purposes of this Act , for such period as
may be specified in the notification:
Provided that the period so specified shall not, in the first instance,
exceed six months but may, by a like notification, be extended from time to
time, by any period not exceeding six months, at an y one time if in the
opinion of the appropriate Government public emerge ncy or public interest
requires such extension;
(o) “railway company” means a railway company as defined in section 3 of
the Indian Railways Act, 1890 (9 of 1890);
1 Ins. by Act 36 of 1956, Section 3 (w.e.f. 10.3.195 7).
2 Ins. by Act 45 of 1971, Section 2 (w.e.f. 15.12.19 71).
3 Ins. by Act 45 of 1971, Section 2 (w.e.f. 15.12.19 71).
4 Subs. by Act 36 of 1964, Section 2, for “Schedule” (w.e.f. 19.12.1964).
The Industrial Disputes Act, 1947
1[(oo) “retrenchment” means the termination by the employer of the
service of a workman for any reason whatsoever, oth erwise than as a
punishment inflicted by way of disciplinary action but does not
include—
(a) voluntary retirement of the workman; or
(b) retirement of the workman on reaching the age of superannuation if
the contract of employment between the employer and the workman
concerned contains a stipulation in that behalf; or
2[(bb) termination of the service of the workman as a result of the non-
renewal of the contract of employment between the e mployer and
the workman concerned on its expiry or of such cont ract being
terminated under a stipulation in that behalf contained therein; or]
(c) termination of the service of a workman on th e ground of
continued ill-health;]
3[(p) “settlement” means a settlement arrived at in the course of
conciliation proceeding and includes a written agre ement between the
employer and workmen arrived at otherwise than in t he course of
conciliation proceeding where such agreement has be en signed by
the parties thereto in such manner as may be prescr ibed and a copy
thereof has been sent to 4[an officer authorised in this behalf by] the
appropriate Government and the conciliation officer;]
(q) “strike” means a cessation of work by a body of persons employed in
any industry acting in combination, or a concerted refusal, or a
refusal, under a common understanding of any number of persons
who are or have been so employed to continue to wor k or to accept
employment;
5[(qq) “trade union” means a trade union registered under the Trade
Unions Act, 1926 (16 of 1926);]
1 Ins. by Act 43 of 1953, Section 2 (w.e.f. 24.10.1953).
2 Ins. by Act 49 of 1984, Section 2 {w.e.f. 18.8.198 4).
3 Subs. by Act 36 of 1956, Section 3, for clause (p) (w.e.f. 7.10.1956).
4 Ins. by Act 35 of 1965, Section 2 (w.e.f. 1.12.196 5).
5 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.198 4).
The Industrial Disputes Act, 1947
1[(r) “Tribunal” means an Industrial Tribunal constituted under sec tion 7A
and includes an Industrial Tribunal constituted before the 10th day of
March, 1957, under this Act;]
2[(ra) “unfair labour practice” means any of the practices specified in the
Fifth Schedule;
3(rb) “village industries” has the meaning assigned to it in clause (h) of
section 2 of the Khadi and Village Industries Commi ssion Act, 1956
(61 of 1956);]
4[(rr) “wages” means all remuneration capable of being expressed in
terms of money, which would, if the terms of employ ment, expressed
or implied, were fulfilled, be payable to a workman in respect of his
employment or of work done in such employment, and includes—
(i) such allowances (including dearness allowance) as the workman is
for the time being entitled to;
(ii) the value of any house accommodation, or of s upply of light, water,
medical attendance or other amenity or of any servi ce or of any
concessional supply of foodgrains or other articles;
(iii) any travelling concession;]
5[(iv) any commission payable on the promotion of sa les or business or
both; but does not include—
(a) any bonus;
(b) any contribution paid or payable by the employe r to any pension
fund or provident fund or for the benefit of the wo rkman under any
law for the time being in force;
(c) any gratuity payable on the termination of his service;]
6[(s)“workman” means any person (including an appren tice) employed in any
industry to do any manual, unskilled, skilled, tech nical, operational,
clerical or supervisory work for hire or reward, wh ether the terms of
1 Subs. by Act 18 of 1957, Section 2, for clause (r) (w.r.e.f. 10.3.1957)
2 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.198 4).
3 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.198 4).
4 Ins. by Act 43 of 1953, Section 2 (w.e.f. 24.10.19 53).
5 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.198 4).
6 Subs. by Act 46 of 1982, Section 2, for clause (s) ( w.e.f. 21.8.1984).
The Industrial Disputes Act, 1947
employment be express or implied, and for the purpo ses of any
proceeding under this Act in relation to an industr ial dispute, includes any
such person who has been dismissed, discharged or r etrenched in
connection with, or as a consequence of, that dispu te, or whose
dismissal, discharge or retrenchment has led to tha t dispute, but does not
include any such person—
(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army
Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or
(ii) who is employed in the police service or as a n officer or other
employee of a prison; or
(iii) who is employed mainly in a managerial or administrative capacity; or
(iv) who, being employed in a supervisory capacity, draws wages
exceeding one thousand six hundred rupees per mensem or
exercises, either by the nature of the duties attached to the office or
by reason of the powers vested in him, functions mainly of a
managerial nature.]
Case Law
“Any person” scope thereof
The expression ‘any person’ in section 2(k) of the Act, must be read subject to
limitations and qualifications; the two crucial lim itations are (1) the dispute must be a real
dispute between the parties to the dispute so as to be capable of settlement or
adjudication by one party to the dispute giving nec essary relief to the other; and the
person regarding whom the dispute is raised must be one in whose employment, non-
employment, terms of employment, or conditions of l abour, the parties to the dispute
have a direct or substantial interest; Workmen of Dimakatach Tea Estate v. Management,
AIR 1958 SC 353.
‘Apprentice’—A Workman
An “Apprentice” is a Workman; Uttar Pradesh Awas Evam Vikas Parishad v. Labour
Court II, Kanpur, 2004 LLR 432.
Burden of proof
It is for the claimant-workman claiming retrenchme nt compensation to lead evidence
that he had worked for two hundred forty days in th e year preceding his termination and
filing of affidavit cannot be regarded as sufficient evidence for any court or Tribunal to the
conclusion that a workman had in fact worked for tw o hundred forty days in a year;
Range Forest Officer v. S.T. Hadinani, 2002 LLR 339.
Definition of “appropriate Government”
The Industrial Disputes Act, 1947
The ‘appropriate Government’ as defined in clause (a) of section 2 of the Act in
relation to industrial disputes concerning NALCO is State Government; NALCO v. Union
of India, (2003) II LLJ 995 (Ori).
For whom dispute can be raised
Where the Workmen raise a dispute as against their employer, the person regarding
whose employment, non-employment, terms of employme nt or conditions of labour the
dispute is raised, need not be, strictly speaking, a ‘workman’ within the meaning of the
Act, but
must be one in whose employment, non-employment, t erms of employment or
conditions of labour the workmen as a class have a direct or substantial interest;
Workmen of Dimakatch Tea Estate v. Management of D.T.E. AIR 1958 SC 353.
Held to be worker
According to the Labour Court, the workman could n ot be continued as a trainee for
such a long period and, therefore held that a workm an was a ‘workman’ under section
2(s) of the Act; Mara Thomas Gonsalvies v. Concept Pharmaceuticals (Pvt. Ltd., (2002)
IV LLJ (Supp) Bom 906.
‘Salesman’ is a workman; Management of Roneo Vickers India Ltd, v. Lt. Governor of
Delhi, 1994 LLR 253 (Del).
Held not to be worker
The petitioner who joined as a clerk was later on promoted and at the time of his
termination, he was working in a supervisory capaci ty as senior Personnel Assistant
Officer and drawing salary more than Rs. 500. Held petitioner is not a workman; Vilas
Dumale v. Siporex India Ltd., 1998 LLR 380.
The petitioner was working as a supervisor quality control, drawing a salary
exceeding Rs. 1600 per month. Held, he was not a wo rkman; G.M. Pillai v. A.P.
Lakhmikaf Judge, 3rd Labour Court, 1998 LLR 310.
Irrigation department: Industry or not
It has been held that the irrigation department of the State is an industry; State of
Uttar Pradesh v. Industrial Tribunal IV, Agra, (2002) IV LLJ (Supp) NOC 8.
Projects undertaken by irrigation department would fall within the definition of
‘industry’ as defined in this section; Executive Engineer Yavatmal Medium Project
Division, v. Anant, (1998) II LLJ 77.
“Lock-out” meaning thereof
If an employer shuts down his place of business as a means of reprisal or as an
instrument of coercion or as a mode of exerting pre ssure on the employees, or, generally
speaking, when his act is what may be called an act of belligerency there would be a
lockout. If, on the other hand, he shuts down his work because he cannot for instance get
The Industrial Disputes Act, 1947
the raw materials or the fuel or the power necessar y to carry on his manufacturing or
because he is unable to sell the goods he has made or because his credit is exhausted
or because he is losing money, that would not be a lockout; Sri Ramachandra Spinning
Mills, Pandalapaka v. Province of Madras, AIR 1956 Mad 241.
Relevancy
The designation of an employee is not of much impo rtance and what is important is
the nature of duties being performed by the employe e; S.K. Maini v. Carona Sahu Co.
Ltd., 1994 LLR 321 (SC).
Retrenchment: Definition
If the termination is meant to exploit an employee or to increase the bargaining power
of the employer, then it has to be excluded from th e ambit of sub-clause (bb) of clause
(oo) and the definition of “retrenchment” has to be given full meaning; Chief
Administrator, Haryana Urban Development Authority, Manimajra v. Presiding Officer,
Industrial Tribunal-cum-Labour Court, Rohtak, 1994 LLR 454 (P&H) (DB).
If a person is engaged for a specific period, or f or the execution of a specific work
and a clear stipulation is made in the contract of employment that the services shall be
terminated at the expiry of the work, the workman s hall not be entitled to claim that he
has been retrenched or that the action is violative of the provisions of the Act; Municipal
Committee v. Presiding Officer, Labour Court, 1994 LLR 206 (P&H).
Scope
Where the workers were not project employees and w ere not employed for any
particular project, they would not be governed by s ub-clause (bb) or clause (oo) of
section 2 of the Act; S.M. Nilajkar v. Telecom District Manager, (2003) 4 SCC 27.
Clubs, Educational Institutions, Co-operatives, Re search Institutes, Charitable
projects and other kindred adventures, if they fulf il the triple test of systematic activity.
Co-operation between employer and employee and prod uction of goods and services,
then they cannot be exempted from the scope of sect ion 2(j); Bangalore Water Supply v.
A. Rajappa, AIR 1978 SC 548.
The mere fact that a worker is a piece-rate worker would not necessarily take him out
of the category of a worker within the meaning of s ection 2(1) of the Factories Act, if the
relationship of master and servant or employer and employee existed; Birdhichand v.
First Civil Judge, AIR 1961 SC 644.
In an industrial dispute concerning Insurance Corp oration of India the provisions of
the Industrial Disputes Act, 1947 will apply; Life Insurance Corporation of India v. Rajeev
Kumar Srivastava, 1994 LLR 573 (All) (DB).
Scope of ‘industry’
The definition in clause (ka) of section 2 does no t make any difference between
“industrial establishment” and “undertaking” in whi ch any industry is carried on; Savani
The Industrial Disputes Act, 1947
An establishment can be taken out of the pale of in dustry only if it exercises inalienable
Government functions. Sovereign functions of the St ate cannot be included in “industry”;
Mohan v. State of Kerala, 1994 LLR 169 (Ker).
Substantial nature test
When the Courts have to decide whether an employee was employed on manual
labour or not, then the test of the substantial nature of the employment is to be applied. In
determining which of the employees in the various c ategories are covered by the
definition of “Workman”, the Court has to see what is the main or substantial work which
the employees are engaged to do; Burmah Shell Oil Storage v. Management of Staff, AIR
1971 SC 922.
‘Workman’ scope thereof
If a Workman has consented to give his personal se rvices and not merely to get work
done and if he is bound under his contract to work personally, he is not excluded from the
definition, simply because he has assistance from o thers, who work under him; D.C.
Works Ltd. v. State of Saurashtra.
The persons engaged on job work basis could be wor kers, but only such persons
would be workers who work regularly at the factory and are paid for the work, turned out
during their regular employment on Excerpt shown. Open the full act in Lexace.