B.com Sem-VI ( Business Law)

Industrial dispute 
Meaning 

1). An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment.


2). As per Section 2(k) of Industrial Disputes Act,1947, an industrial dispute in defined as any dispute or difference between employers and employers, or between employers and workmen, or between workmen and which is connected with the employment or non-employment or the terms of employment or with the conditions of labor.

Q.1 Salient features of Industrial dispute act , 1947 


  1. This act extends to the whole of India including the state of Jammu and Kashmir 
  2. It encourages arbitration over the disputes between employers and employees 
  3. It provides for setting up of works committees as machinery for mutual consultation between employers and employees to promote cordial relation
  4. This Act paved the way for setting up permanent conciliation machinery at various stages having definite time limits for conciliation and arbitration 
  5. This Act emphasis on compulsory adjudication besides conciliation and voluntary arbitration of Industrial Disputes
  6. The Act empower the Government to make reference of the dispute to an appropriate authority ie, Labour court, Industrial tribunal and National tribunal depending upon the nature of the dispute either on its own or on the request of the parties 
  7. The right to strike by the workers and lock–out by the employees has been subjected to the restriction as laid down in the Act 
  8. The act prohibits strikes and lock–outs during the pendening of conciliation and arbitration proceedings and in public utility service and it empowers government to take adequate action
Q.2 Industrial Disputes: Settlement Machinery
Authorities for settlement of disputes 
1. Grievance settlement Authority 
2. Works Committee 
3. Conciliation Officer 
4. Board of Conciliation 
5. Court of inquiry 
6. Labour Court 
7. Tribunal 8. National Tribunal 
9. Arbitrator

1.Grievance settlement Authority 
  •  Deals with mainly Individual Disputes 
  •  50 or more workers are employed or have been employed in preceding 12 months 
  •  Indivual / TU may refer the dispute for settlement 
  •  Prescribed procedure in specified time 
  •  If decision is not acceptable than only dispute may be referred to other bodies.
  •  Grievance procedure( Complaint to section Head to Complaint to Union)

2.Works Committee 
• Government is empowered to make Order to form Woks committee 
• 100 or more workers are employed or have been employed in preceding 12 months 
• Constitution 
• Consist representatives of employers and workmen 
• Worker’s representatives should not be less than employer’s representatives
 • Representatives of workers should be engaged in establishment 
• Functions •
 To promote measures for securing good relation between employer and workmen and to work towards resolving any material differences 

3.Conciliation Officer 
• Government is empowered to appoint 
• Duties 
• Investigate the dispute to promote right settlement 
• May take appropriate steps to induce parties for fair settlement 
• After settlement copy of report and memorandum of settlement to appropriate government 
• Required to submit report within 14 days which may be extended 
• Powers 
• Same powers as vested in a civil court in respect of attendance, examination, production of documents . 
• Deemed to be a public servant (IPC) 

4. Board of Conciliation 
• Appropriate Govt, On Occasion , for promoting settlement of dispute may constitute 
• Composition 
• An independent Chairman and two or four members in equal numbers representing the parties 
• References of dispute to board of conciliation At any time by order in writing dispute may be referred to board for settlement When dispute is referred to board Government may prohibit continuance of any strike or lock out 
• Duties and Powers 
• Investigate the dispute to promote right settlement 
• May take appropriate steps to induce parties for fair settlement
 • After settlement copy of report and memorandum of settlement to appropriate government 
• If settlement not done Required to submit report within 2 months days which may be extended 
• Same powers as vested in a civil court in respect of attendance, examination, production of documents etc. 
• All members are deemed to be a public servant (IPC) and board inquiry as judicial inquiry 
• Commencement and conclusion of proceedings
 • Commencement on date on which notice of strike or lockout is received 
• Concluded when memorandum of settlement signed , report received by government and when a reference is made to other settlement bodies. 
• Period of Operation of Settlement
• Agreed upon by parties to the dispute if not decided than six months from the date on which memorandum of settlement is signed. 
• Persons on whom settlements are binding 

5. Court of inquiry 
• For the purpose of inquiring any matter connected with the industrial dispute. 
• Either One or more , one of them to be appointed as the chairman 
• Within 6 months court of inquiry needs report to the appropriate government 
• Report should be in written and signed by its members 
•Report needs to be published within 30 days 
• Same powers as vested in a civil court in respect of attendance, examination, production of documents . • Deemed to be a public servant (IPC) 

6. Labour Court 
• One or more Labour court may be constituted for adjudication of Industrial dispute 
• Consist of one person only ( Age not more than 65 years ) 
• who is or has been a judge of a high court 
• Has been a district judge or additional district judge for not less than three years 
• Held judicial office in India not less than 7 years 
• Has been the presiding officer of a labour court for not less than five years 
• Performs functions as listed in second schedule of Act 
• All matters other than mentioned in 3rd schedule within jurisdiction of industrial Tribunals 

7. Tribunal
 • One or more Labour court may be constituted for adjudication of Industrial dispute 
• Consist of one person only ( Age not more than 65 years ) 
• who is or has been a judge of a high court 
• Has been a district judge or additional district judge for not less than three years • Government may also appoint two assessors to advise the tribunal in the proceeding.
 • Mainly performs functions as listed in 3rd schedule of the Act 

8. National Tribunal 
• Central Government is empowered to constitute one or more NT. 
• Consist one person to be appointed by central government who is or has been a judge of high court( Age not more than 65 years )
 • Central government may appoint two assessors to advise 
9. Arbitrators 
• By mutual agreement dispute might be referred to arbitrator before it is referred to adjudication authority. 
• Presiding officers may be appointed 
• If even no of arbitrators exist an appointment of umpire should be done 
• Duty of arbitrator to investigate dispute and do submission to appropriate government 
• Within one month of receipt of agreement copy it should be published by govt.


Q.3 Short Note 
  1. Lay-off 
  2. Retrenchment
1. Lay-off
Lay Off 
• Provisions related to Lay off do not apply to establishment a) In which less than 50 workmen on avg per working day in preceding month b) A seasonal unit working intermittently 
• Compensation of laid off workmen a) A workman other than badly worker , name on muster roll , completed 1 yr- 50 % of basic wages+ DA( not for weekly holidays) b) If During any 12 months worker laid off for more than 45 days – no compensation in respect of any period of lay off after 45 days 
• Cases when workmen not entitled for compensation
 a) When worker refuses to accept any alternative employment by employer within 5 miles from establishment and for same wages 
b) If he does not present himself for work at the establishment at appointed time during working hrs at least once a day 
c) If lay off is due to strike or slow down in another part of establishment 

Special Provisions
• Lay off 
a) No workman except badli worker can be laid off except prior permission of government 
b) Permission for lay off, 30 days to continue same 
c) Appropriate Govt may approve or disapprove 
d) If order granted needs to be communicated to both parties , if not it is deemed to have been granted for 60 days 
• If application for continuance or permission is not granted lay off is illegal 
• In exceptional circumstances as accident or death of the employer if government approve permission is not required.

2. Retrenchment 
• Act prohibits to retrench any workman employed in industry for not less than 1 year except following : 
a) Workman is given notice in written for reason of retrenchment 
b) Workman is paid compensation equivalent to 15 days average pay for completed yr or any part of it in excess of 6 months 
c) A notice served by government or appropriate authority notification is passed in official gazette. • 

Compensation for Retrenchment in case of Transfer Of undertaking 

A workman is not entitled for compensation unless: 
1. There has been interruption in the services due to transfer 
2.Terms and condition of services after transfer applicable are less favorable 
3. The new employer not liable to pay on ground that his services has been interrupted by the transfer.

Special Provisions
• Retrenchment 
1. 3 months notice in written or wages for the period of notice 
2. Prior permission of appropriate Government If permission is granted, workmen are entitled to receive 15 day’s Avg pay for every completed year of service Or any part in excess of 6 months Other provisions remain same as lay off.

Q.4 What is the difference between Strike and Lockout?

Point
Strike
Lock-out

Definition:


A strike is a refusal to work, organised by a body of employees as a form of protest, typically in an attempt to gain a concession or concessions from their employer.
A lockout is the exclusion of employees by their employer from their place of work until certain terms are agreed to.

Initiators:

 

Strikes are initiated by the employees.
Lockouts are initiated by the employers.

Aim:

 

Strikes are conducted with the aim of gaining concessions from the employer.
Lockouts are used to enforce terms of employment upon a group of employees during a dispute.

Methods:

 

Strikes may involve employees refusing to attend work, employees standing outside the workplace as a form of protest (picket) or employees occupying the workplace but refusing to work (sit down strike).
Lockouts involve refusing to admit workers onto company premises.
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