INDUSTRIAL DISPUTES ACT 1947 - Case Stydy - TATA , Study notes of Business Administration

Download INDUSTRIAL DISPUTES ACT 1947 - Case Stydy - TATA and more Study notes Business Administration in PDF only on Docsity! INDUSTRIAL DISPUTES ACT 1947 Purpose : An Act to make provisions for the investigation and settlement of industrial disputes and for certain other purposes. The Authorities under this act Works Committee : In establishments where more than 100 workmen are employed, the employer is required to constitute works committee with equal number of representatives from the employer and the employees. It shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations between the employer and workmen and, to that end, to comment upon matters of their common interest or concern and endeavour to compose any material difference of opinion in respect of such matters. 4. Conciliation officers. - (1) The appropriate Government may, by notification in the Official Gazette, appoint such number of persons as it thinks fit, to be conciliation officers, charged with the duty of mediating in and promoting the settlement of Industrial disputes. (2) A conciliation officer may be appointed for a specified area or for specified industries in a specified area or for one or more specified industries and either permanently or for a limited period. 5. Boards of Conciliation. - (1) The appropriate Government may as occasion arises by notification in the Official Gazette constitute a Board of Conciliation for promoting the settlement of any industrial dispute. (2) A Board shall consist of a chairman and two or four other members, as the appropriate Government thinks fit. (3) The chairman shall be an independent person and the other members shall be persons appointed in equal numbers to represent the parties to the dispute and any person appointed to represent a party shall be appointed n the recommendation of that party: Provided that, if any party fails to make a recommendation as aforesaid within the prescribed time, the appropriate Government shall appoint such persons as it thinks fit to represent that party. (4) A Board, having the prescribed quorum, may act notwithstanding the absence of the chairman or of any of its members or any vacancy in its number: Provided that if the appropriate Government notifies the Board that the services of the chairman or of any other member have ceased to be available, the Board shall not act until a new chairman or member, as the case may be has been appointed. 6. Courts of Inquiry - (1) The appropriate Government may as occasion arises by notification in the Official Gazette, constitute a Court of Inquiry for inquiring into any matter appearing to be connected with or relevant to an industrial dispute. (2) A Court may consist of one independent person or of such number of independent persons as the appropriate Government may think fit and where a Court consists of two or more members, one of them shall be appointed as the chairman. (3) A Court, having the prescribed quorum, may act notwithstanding the absence of the chairman or any of its members or any vacancy in its number. Provided that, if the appropriate Government notifies the Court that the services of the chairman have ceased to be available, the Court shall not act until a new chairman has been appointed. 7. Labour Courts. - (1) The appropriate Government may, by notification in the Official Gazette, constitute one or more Labour Courts for the adjudication of adjudication of industrial disputes which, in the opinion of the Central Government, involve questions of national importance or are of such a nature that industrial establishments situated in more than one State are likely to be interested in, or affected by, such disputes. (2) A National Tribunal shall consist of one person only to be appointed by the Central Government. (3) A person shall not be qualified for appointment as the Presiding Officer of a National Tribunal {unless he is, or has been, a Judge of a High Court}. (4) The Central Government may, if it so thinks fit, appoint two persons as assessors to advise the National Tribunal in the proceeding before it. 9-C. Grievance Settlement. Setting up of Grievance Settlement Authorities and reference of certain individual disputes to such Authorities. - (1) The employer in relation to every industrial establishment in which fifty or more workmen are employed or have been employed on any day in the preceding twelve months, shall provide for, in accordance with the rules made in that behalf under this Act, a Grievance Settlement Authority for the settlement of industrial disputes connected with an individual workman employed in the establishment. (2) Where an industrial dispute connected with an individual workman arises in an establishment referred to in sub-section (1), a workman or any trade union of workmen of which such workman is a member, refer, in such manner as may be prescribed such dispute to the Grievance Settlement Authority provided for by the employer under that sub-section for settlement. (3) The Grievance Settlement Authority referred to in Sub-section (1) shall follow such procedure and complete its proceedings within such period as may be prescribed. (4) No reference shall be made under Chapter III with respect to any dispute referred to in this section unless such dispute has been referred to the Grievance Settlement Authority concerned and the decision of the Grievance Settlement Authority is not acceptable to any of the parties to the dispute. To understand the process of settlement of Industrial Dispute we must have the knowledge of the following definitions given under the Act : (b) "award" means an interim or a final determination of any Industrial Dispute or any question relating thereto by any Labour Court, Industrial Tribunal or National Industrial Tribunal and includes an arbitration award made under Section 10-A. {(cc)} "closure" means the permanent closing down of a place of employment or part thereof. (j) "industry" means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen. This definition has been amended on the observation made by his Lordship Justice Krishna Iyyer while delivering the judgement Bangalore Water Supply and Sewage Board V Rajappa AIR 1978 SC 548. Amended definition j I. industry means (a) any systematic activity (b) carried on by co-operation between Employer and Employee (c) for production, supply or distribution of goods or services required to satisfy human wants or wishes (not religious or spiritual) II. Whether or not (a) any gain or profit made out (b) any capital invested III. It includes (a) Dock Labour (b) Promotion of sales or business (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 {(bb) termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein ; or (c) termination of the service of a workman on the ground of continued ill- health;} (p) "settlement" means a settlement arrive at in the course of conciliation proceeding and includes a written agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to {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 concerned refusal, or a refusal under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment ; {(s) "workman" means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied,, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection, with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that 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 an 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.} 2-A. Dismissal, etc., of an individual workman to be deemed to be an industrial dispute. - Where any employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman, any dispute or difference between that workman and his employer connected with, or arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute. Other Salient Features of the Act Settlement Procedure Any industrial dispute is presented by the aggrieved party to the Conciliation officer who summons both the parties at dispute. Powers of Conciliation Officer Summoning parties or issuing directions to produce documents or relevant records. The role of the Conciliation Officer It is limited. He can only guide, advise, give solutions and request parties to opt for settlement. He cannot compel the parties to arrive at any particular settlement. The Parties are at liberty to break away from conciliation. If a settlement is arrived, the terms of the settlement are reduced into writing, signed by the parties at dispute. This settlement is sent by the conciliation officer to the government which notifies the settlement in the Gazette. When no settlement is possible the conciliation officer drafts a failure report and sends the report to the Government. The Government through the Labour Commissioner frames issues and refers the dispute to the Labour Court under sec. 10 of the Act. The Labour Court The dispute on being referred to court under sec.10, the Labour Court issues summons to both the parties. The aggrieved party has to file the claim statement and the other party has to file the counter statement. Oral and documentary evidence recorded and arguments heard. Then the Labour Court passes the award which is sent to the Government. This award is published in Gazette. From the date of publications the award has a life for one year during which period the aggrieved party has to approach the Government for the enforcement of the award. Strikes and Lock outs Strike is the weapon in the hands of workmen and Lock out is the weapon in the hands of the Employer. Right to protest is an inherent right and this act has legalised strikes and lock outs. Even in public utility service establishment strike and lock out can be declared by giving prior notice of six weeks. Lay off, Retrenchment and Closure The act prescribes rules, conditions for declaring lay off, retrenchment and closure and any isolation of the rules would invite penal sanction. Unfair Labour Practices Sec.25.T prohibits Unfair Labour Practices that are listed in the fifth schedule Sec.25.U imposes penal sanction on Unfair Labour Practice which may be