Business Laws Notes: Industrial Dispute Act, 1947

Unit – 4: Industrial Dispute Act
Meaning of Industry and Industrial disputes
Industry: “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; the term ‘industry’ does not include:
(i) Agricultural operations (ii) Hospitals / dispensaries (iii) Educational, scientific, research or training institutions (iv) Organisations engaged in charitable, social or philanthropic work (v) Khadi/Village industries (vi) Any activity of Government relatable to sovereign functions of Govt. (vii) Domestic service (viii) Any professional activity, provided the number of persons employed is less than ten.
Industrial Dispute: An industrial dispute may be defined as a conflict or difference of opinion between management and workers on the terms of employment. It is a disagreement between an employer and employees' representative; usually a trade union, over pay and other working conditions and can result in industrial actions. When an industrial dispute occurs, both the parties, that is the management and the workmen, try to pressurize each other. The management may resort to lockouts while the workers may resort to strikes, picketing or gheraos.
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, of any person.
Causes of Industrial Disputes
1. Low income: As prices and living expenses are rising in India, employees also expect their income to rise. Unfortunately, that rarely happens. To make things worse, there is only one earning member in the household and this person alone supports everyone financially. Many times, the income is not enough to keep everyone content and pay all the bills. Thus, if the earning member loses his/her job, the entire family suffers in poverty. Low wages cause discontent in employees.
2. Prices in India are rising constantly, hence, it is also expected that the income of industrial labourers increase, but that never happens.
3. Dearness Allowance associated with labourers has no corresponding increase with rising prices.
4. Most industries have unhygienic and unsafe working conditions. This puts pressure on workers' health.
5. Employees find it extremely difficult to get leave with pay.
6. Employees are becoming more and more conscious about self-respect. Tempers flare when they are insulted or instigated by their superiors.
7. Most of the time, extra bonus is not paid, or not paid on time. This causes industrial conflicts.
8. Sometimes, employees are unfairly relieved from their jobs. Nevertheless, their colleagues unite and fight for the rehiring of their relieved colleagues.
9. Sometimes, trade unions are not recognized by industries resulting in strained relations and stress.
10. Replacement of workers by machinery is causing discontent. Workers are getting laid off and replaced by cheaper machines that do the same work.
11. Many industrial disputes are being caused by political parties. Political involvement in trade unions causes divisions and unnecessary tensions.
12. Disputes may also arise due to dishonest mid-level management. This management prevents labourers from contacting senior management, and act as middle-men. Lack of communication causes distrust.
Impact/Effect/Consequences of Industrial Disputes
The consequences of Industrial disputes are many. A brief description is given
1.       Disturb the economic, social and political life of a country: When labour and equipment in the whole or any part of an industry are rendered idle by strike or lockout, national dividend suffers in a way that injures economic welfare.
2.       Loss of Output : Loss of output in an industry which is directly affected by a dispute, but other industries are also affected adversely, as stoppage of work in one industry checks activity in other industries too.
3.       Decline in the demand for goods and services: Strikes reduces the demand for the goods that other industries make, if the industry in which stoppage has occurred is one that furnishes raw materials semi-finished goods or service largely used in the products of other industries.
4.       Lasting loss to the workers: There is a lasting injury to the workers in the form of work being interrupted due to the strikes which involves a loss of time which cannot be replaced. The wages are lost and the workers can least afford to lose them especially when the average earning of a worker is not very high.
5.       Increase in indebtedness: This increases the indebtedness among the workers and not only the old debts become heavier but fresh debts may also be incurred.
6.       Loss of health of family members: The workers and their family members also suffer from loss of health due to mental worries resulting from loss of wages.
7.       Problem to consumers: Strikes and lockouts create problem to consumers also. Articles of their requirements are not available in time, and the prices of such articles reach high due to black marketing activities. ..
8.       Loss to the management/employer: When workers stop working, the plant and machinery remain idle. The fixed express are to borne by the employer even when the production stops. This way the employer suffers from great loss.
9.       Bad effect on labour relations: Strikes and lockouts bring bad effects on industrial relations. With the result the workmen and the employer always are in mental tension.
10.   Obstruction to economic growth: Strikes creates many kinds of violence which obstruct the growth of economy.
Objectives and Features of Industrial Dispute Act:
The Industrial Disputes Act, 1947 was enacted to promote industrial peace by providing appropriate machinery for amicable settlement of disputes arising between employers and employees.
Objectives of the Act:
1.       The Act provides machinery for the settlement of disputes by arbitration or adjudication.
2.       It attempts to ensure social justice and economic progress by fostering industrial harmony.
3.       It enables workers to achieve their demands by means of legitimate weapon of strike and thus facilitates collective bargaining.
4.       It prohibits illegal strikes and lockouts.
5.       It provides relief to the workman in the event of layoff or retrenchment.
6.       The act relates to all the relevant aspects of industrial relations machinery namely—collective bargaining, mediation and conciliation, arbitration, adjudication and matters incidental thereto.
Main Features or Characteristics of the Act:
Some of the important features of the Act may be summarized as below:
1. Any industrial dispute may be referred to an industrial tribunal by mutual consent of parties to dispute or by the State Government, if it deems expedient to do so.
2. An award shall be binding on both the parties to the dispute for the operated period, not exceeding one year;
3. Strike and lockouts are prohibited during: (a) The pendency of conciliation and adjudication proceedings; (b) the pendency of settlements reached in the course of conciliation proceedings, and (c) the pendency of awards of Industrial Tribunal declared binding by the appropriate Government.
4. In public interest or emergency, the appropriate Government has power to declare the transport (other than railways), coal, cotton textiles, food stuffs and iron and steel industries to be public utility services for the purpose of the Act, for a maximum period of six months.
5. In case of lay-off or retrenchment of workmen, the employer is requested to pay compensation to them. This provision stands in the case of transfer or closure of an undertaking.
6. A number of authorities (Works Committees, Conciliation Officers, and Board of conciliation, Courts of Inquiry, Labour Courts, Tribunal and National Tribunal) are provided for settlement of Industrial disputes. Although the nature of powers, functions and duties of these authorities differ from each other, everyone plays important role in ensuring industrial peace.
Strike and Lockout
Strike: A strike is a very powerful weapon used by trade unions and other labor associations to get their demands accepted. It generally involves quitting of work by a group of workers for the purpose of bringing the pressure on their employer so that their demands get accepted. When workers collectively cease to work in a particular industry, they are said to be on strike.
According to Industrial Disputes Act 1947, a strike is “a cessation of work by a body of persons employed in an industry acting in combination; or a concerted refusal of any number of persons who are or have been so employed to continue to work or to accept employment; or a refusal under a common understanding of any number of such persons to continue to work or to accept employment”. This definition throws light on a few aspects of a strike. Firstly, a strike is a referred to as stoppage of work by a group of workers employed in a particular industry. Secondly, it also includes the refusal of a number of employees to continue work under their employer.
The analysis of the definition would show that there are the following essential elements or requirements for the existence of a strike:
1)      There must be cessation of work.
2)      The cessation of work must be by a body of persons employed in any industry; 
3)      The strikers must have been acting in combination;
4)      The strikers must be working in any establishment which can be called industry within the meaning of Section 2(j); or
5)      There must be a concerted refusal; or
6)      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;
7)      They must stop work for some demands relating to employment, non-employment or the terms of employment or the conditions of labour of the workmen.
Ingredients of Strike
Cessation of Work: This is most significant characteristic of the concept of strike. It has been variedly expressed as ’abandonment’, stoppage’, ‘omission of performance of duties of their posts’, ‘hampering or reducing normal works’, ‘hindrance to the working or suspension of work, discontinuing the employment or breaking their contract of service or refusing or failing to return to or resume employment or refusing or failing to accept engagement for any work which they are usually employed for. Thus what required for strike is that there must be stoppage of work or there must be refusal to continue to work or to accept employment by any number of persons employed for the work but the refusal must be concerted or under a common understanding. The cessation of work may take any form. It must, however, be temporary and not for ever and it must be voluntary. No duration can be fixed for this. If the cessation of work is as a result of renunciation of work or relinquishment of the strikers’ status or relationship, it is not strike. Permanent cessation of work would result in termination of the contract of work which is alien to the underlying sanction of strike retaining contractual relationship during the strike periods. Cessation of work is not a cessation of contract of employment.
Concerted action: Another important ingredient of the strike is a concerted action. The workers must act under a common understanding. The cessation of work by a body of persons employed in any industry in combination is a strike. Thus in a strike it must be proved that there was cessation of work or stoppage of work under a common understanding or it was a concerted action of the workers or there was cessation of work by workers acting in combination. Stoppage of work by workers individually does not amount to strike. The concerted refusal or refusal under a common understanding to continue to work or to accept employment or to resume work by any number of persons is a strike. One thing must be kept in mind that the refusal of work means refusal to perform duties which the workers are required to perform. If the workers are at liberty to do a particular work or not to do a work their refusal to work does not amount to strike. For example, over-time work, if it is the duty or workers to do overtime work necessarily because it is the practice of that establishment to take overtime work from the workers in that case refusal to work overtime would amount to strike otherwise not. Thus the test to determine whether refusal to do overtime work constitutes a strike or not would depend upon whether overtime was habitually worked in that industry.
Lockout: A lockout is a work stoppage in which an employer prevents employees from working. It is declared by employers to put pressure on their workers. This is different from a strike, in which employees refuse to work. Thus, a lockout is employers’ weapon while a strike is raised on part of employees. Acc to Industrial Disputes Act 1947, lock-out means the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him.
A lockout may happen for several reasons. When only part of a trade union votes to strike, the purpose of a lockout is to put pressure on a union by reducing the number of members who are able to work.
(1) A strike or a lock-out shall be illegal if:
(i) It is commenced or declared in contravention of section 22 or section 23; or
(ii) It is continued in contravention of an order made under sub-section (3) of section 10 or sub-section (4A) of section 10A.
(2) Where a strike or lock-out in pursuance of an industrial dispute has already commenced and is in existence at the time of the reference of the dispute to a Board, an arbitrator, a Labour Court, Tribunal or National Tribunal, the continuance of such strike or lock-out shall not be deemed to be illegal, provided that such strike or lock-out was not at its commencement in contravention of the provisions of this Act or the continuance thereof was not prohibited under sub-section (3) of section 10 or subsection (4A) of section 10A.
(3) A lock-out declared in consequence of an illegal strike or a strike declared in consequence of an illegal lock-out shall not be deemed to be illegal.
Section 22: Prohibition of Strikes and Lock outs:
1.       No person employed in a public utility service shall go on strike, (a) without giving to the employer notice of strike within six weeks before striking or (b) within fourteen days of giving such notice or (c) before the expiry of the date of strike specified in any such notice as aforesaid or (d) during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.
2.       No employer carrying on any public utility service shall lock-out any of his workman (a) without giving them notice of lock-out within six weeks before locking-out; or (b) within fourteen days of giving such notice; or (c) before the expiry of the date of lock-out specified in any such notice as aforesaid; or (d) during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.
3.       The notice of lock-out or strike under this section shall not be necessary where there is already in existence a strike or, as the case may be, lock-out in the public utility service, but the employer shall send intimation of such lock-out or strike on the day on which it is declared, to such Authority as may be specified by the appropriate Government either generally or for a particular area or for a particular class of public utility services.
4.        The notice of strike referred to in sub-section (1) shall be given by such number of persons to such person or persons and in such manner as may be prescribed.
5.       The notice of lock-out referred to in sub-section (2) shall be given in such manner as may be prescribed.
If on any day an employer receives from any person employed by him any such notices as are referred to in sub-section (1) or gives to any persons employed by him any such notices as are referred to in sub-section (2), he shall within five days, thereof report to the appropriate Government or to such authority as that Government may prescribe the number of such notices received or given on that day.
Section 23: General Prohibition of Strikes and Lock-outs:
No workman who is employed in any industrial establishment shall go on strike and no employer of any such workman shall declare a lock-out
1.       during the pendency of conciliation proceedings before a Board and seven days after the conclusion of such proceedings;
2.       during the pendency of proceedings before a Labour Court, Tribunal or National Tribunal and two months after the conclusion of such proceedings
3.       during any period in which a settlement is in operation,
Kinds of strike
These are three kinds of strikes, namely: (1) General strike, (2) Stay-in-strike, and (3) Go slow strike.
(1) General strike: A general strike is one, where the workmen join together     for common cause and stay away from work, depriving the employer of their labour needed to run the factory.
(2) Stay-in-strike: A stay-in-strike is also known as "total-dawn-strike" or 'pen-dawn-strike". It is the form of strike where the workmen report to their duties, occupy the premises, but do not work. The employer is thus prevented from employing other labour to carryon his business.
(3) Go-slow strike: In a 'Go Slow' strike, the .workmen do not stay away from work, they do come to their work and work also, but with a slow speed in order to lower down production, and thereby cause loss to the employer.
In addition to these three forms of strike a few more may be cited, although some of them are not strike within the meaning of Sub-Section 2(q). Such forms are:
(i) Sympathetic strike: A sympathetic strike is resorted to in sympathy of other striking workmen. Its aim is to encourage or to extend moral support to or indirectly to aid the striking workmen. The sympathisers resorting to such strike have no demand of grievance of their own.
(ii) Hunger strike: In hunger strike, a group of workmen resort to fasting on or near the place of work or the residence of the employer with a view to coerce the employer to accept their demands.
(iii) Work to rule: The employers in this case of "work to rule" strictly adhere to rules while performing their duties which ordinarily they do not observe. This causes the slowing down the tempo of work. It is not a strike because there is no stoppage of work at all.
Various Authorities under the Industrial Dispute Act:
Sections 3 to 9 of the Industrial Disputes Act deals with the authorities under the Act;
(a) Works committee.
(b) Conciliation officer
(c) Boards of conciliation
(d) Courts of inquiry.
(e) Labour courts.
(f) Tribunals
(g) National Tribunals.
(a) Works Committee: The appropriate government may require the institution, in the prescribed manner, of a works committee in the case of any industrial establishment in which 100 or more workmen are employed. Such works committee consists of representatives of employers and workmen employed in the establishment. The workmen representatives are to be chosen in the prescribed manner from among the workman engaged in the Industry and in consulting with registered trade unions if any.
(b) Conciliation Officer: The Act provides for conciliation as a method of settlement of disputes. The appropriate government by gazette notification appoints -Conciliation officers. The duties of conciliation officer include (i) to mediate in the settlement of industrial disputes. (ii) To promote the settlement of disputes.
The conciliation officer has to mediate on a particular case within 14 days and send a report to the government giving details of the steps taken to settle the disputes listing reasons for success or failure in reaching an agreement.
(c) Board of Conciliation: The appropriate government may, as occasion arises by gazette notification, constitute a board of conciliation for promoting the settlement of industrial disputes. Such board consists of a chairman and two or four other members. The board’s main duty is to promote the settlement of industrial disputes.
(d) Courts of Inquiry: The appropriate governmental may as occasion arises, by gazette notification constitute a court of inquiry for inquiring into industrial dispute. A court of inquiry may consist of one or more independent person or persons. Court of inquiry is expected to inquire into matters referred to it and report there on the appropriate government, ordinarily within a period of 6 months from the commencement of the inquiry.
(e) Labour Court: The appropriate government may constitute by notification one or more Labour Courts consists of one person only appointed by appropriate government. Person should be or must have been a judge of a high court or he should have been a district judge for not less than 3 years.
Where an industrial dispute has been referred to a labour court for adjudication it is bound to hold its proceedings expeditiously and thereafter as soon as possible as it is practicable on the conclusion thereof to submit its award to the appropriate government.
(f) Industrial Tribunal: An appropriate government may, by notification in the official gazette, constitute one or more Industrial tribunals for the adjudication of industrial disputes. The tribunal consists of one person only appointed by the Government. The Industrial Tribunals have wider jurisdiction than labour courts.
(g) National Tribunal: National tribunals are constituted by appropriate Government for adjudication of industrial disputes which in the opinion of the Central Governmental (a) involve questions of national importance, or (b) are of such nature that industrial-establishments, situated in more than one state are likely to be interested in or affected by such dispute. A National Tribunal consists of one person only to be appointed by the central government.
Short Notes
1. Continuous Service: A workman shall be said to be in continuous service for a period if he is, for that period, in uninterrupted service, including service which may be interrupted on account of sickness or authorized leave or accident or strike which is not illegal, or a lock-out or a cessation of work which is not due to any fault on the part of worker.
Where a workman is not in continuous service within the meaning of clause (1) above for a period of one year of six months, he shall be deemed to be in continuous service under an employer
(a)    for a period of one year, if the workman, during a period of twelve calendar months preceding the date with reference to which the calculation is made, has actually worked under the employer for not less than (i) one hundred and ninety days if employed below ground or in a mine and (ii) two hundred and forty days in any other case;
(b)   for a period of six months, if the workman, during a period of six calendar months preceding the date with reference to which the calculation is made, has actually worked under the employer for not less than (i) ninety five days if employed below ground or in a mine and (ii) one hundred and twenty days in any other case.
2. Lay Off:  Means putting aside workmen temporarily. The duration of lay off should not be for a period longer than the period of emergency. The employer-employee relationship does not come to an end during the period of lay-off but is merely suspended during the period of emergency.
Any such refusal or failure to employ a workman may be on account of:
(i) Shortage of coal, power or raw materials or
(ii) The accumulation of stock; or
(iii) The breakdown of machinery; or
(iv) Natural calamity; or
(i)     any other connected reasons.
3. “Employer” means: (i) in relation to any industry carried on by or under the Authority of any department of the Central Government or a State Government, the Authority prescribed in this behalf, or where no Authority 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. Workman: '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 purpose of any proceeding under this Act.
"Workman" does not include any such person - (i) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 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 Rs. 1600/- per mensem, or exercises functions mainly of management nature.
5. Wages: It means all remuneration capable of being expressed in terms of money, which would, if the terms of payment, expressed or implied were fulfilled, be payable to a workman in respect of his employment or of work done in such employment. Wages also includes(i) dearness allowance as the workmen is for the time being entitled to; (ii) the value of any house accommodation, or of the supply of light, water, medical benefits or any concessional, supply of food grains or other articles; (iii) any travelling concession; (iv) any commission payable on sales promotion or business, or both.
However, the following are not wages:- (a) any bonus; (b) any contribution paid or payable by the employer to any pension fund or provident fund., (c) any gratuity payable on the termination of service of workman.
6. "Public utility service" means: (i) any railway service or any transport service for the carriage of passengers or goods by air; (ii) any service in, or in connection with the working 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 First Schedule which the appropriate Government may, if satisfied that public emergency or public interest so requires, by notification in the Official Gazette, declare to be a public utility service for the purposes of this Act, for such period as may be specified in the notification 
7. Closure of an Undertaking: An employer who intends to close down an undertaking shall serve, at least 60 days before the date on which the intended closure. A notice is required to give to the appropriate Government stating clearly the reasons for the intended closure of the undertaking.
Provided that nothing in this section shall apply to - An undertaking in which less than 50 workmen are employed or less than 50 workmen were employed on an average per working day in the preceding twelve months. An undertaking set up for the construction of buildings, bridges, roads, canals, dams or for other construction work or project. 
Difference Between:
Lockout and Lay-off
1. Section 2(l) defines “Lock-out”.
2. Lock-out means the temporary closing of a place of employment.

3. In Lock-out, the establishment is completely closed.
4. Generally, the causes of lock-out lay political, disturbances with trade union leaders, rigid policies of management, etc., besides economic problems.

5. Payment of compensation to workers depends upon various factors viz. legal or illegal lock-outs justified or unjustified.
6. Generally, lock-out is declared by employer in answer to strike.
7. Lock-out is applicable to entire industry or to entire department of that industry.
1. Sec. 2 (kkk) defines “Lay-off”.
2. Lay-off means the failure, refusal or inability of an employer on account of shortage of raw materials, shortage of power, excess of finished goods, no market demand for finished products etc.
3. Lay-off occurs while the establishment is continuing operation.
4. In lay-off, the employer is unable to provide employment to one or more workmen due to several reasons generally genuine and owe to economic factors, viz. shortage of coal, raw materials, excess production, shortage of electricity, break-down of machinery, Government policy, no-demand of the finished products in the market, shortage of finance, shortage of space in the storage, etc.
5. Compensation shall be paid to the workers laid-off.
6. Generally, employer declares lay-off under certain genuine circumstances.
7. Lay-off may be applicable to a group of workers or to entire workers, or to the workers to one shift, or some shifts, under certain circumstances.
Lockout and Closure
1. Section 2 (I) defines ‘Lock-out’.
2. Lock-out means the temporary closing of a place of employment.
3. It is a weapon in-the hands of employer against his employees. He uses it as a threat.
4. A bona fide lock-out can be illegal, if it is violated the provisions of Sec. 24.
5. Lock-out signifies the closure of the place of business, and not the closure of business.
6. In the lock-out the relationship of employer and employees does not come to an end.
7. The causes for the lock-out in an industry are temporary and can be cured.
8. Generally, the causes of lock-out arise from political, disturbances with trade union leaders, rigid policies of the State, and particularly the economic factors too, etc.
9. A lock-out may turn into closure of an industry.
10. Generally lock-out is declared as answer to a Strike.
1. Section 2 (cc) defines ‘Closure’.
2. Closure means the permanent closing down of a place of employment or part thereof.
3. Closure is not a weapon in the hands of employer. It equally effects on both the employer and employees.
4. But a bona fide closure can never be illegal.
5. Closure signifies the final and irrevocable termination of the business itself.
6. In the Closure, the relationship between them comes to an end.
7. The causes for the Closure of an industry are permanent or lasting and cannot be cured.
8. Generally, the cause of closure is economical, poor quality of maintenance, poor management, non ­availability of raw material, Government policies, etc.
9. A closure cannot be turned into a lock­out.
10. Closure of an industry is a last resort. It may be due to economic reasons

Machinery for prevention of disputes in India: The frequency with which the strikes took place and the serious industrial and social dislocation which they cause has underlined the importance of preserving industrial peace. The methods for prevention of industrial disputes include broadly all such measures which directly or indirectly contribute towards improvement of Industrial relations. The prevention methods therefore cover the entire field of relations between industry and labour which are described below:
(1) Strong Trade Union
(2) Profit Sharing and Co-partnership
(3) Joint Consultation
(4) Industrial Employment Standing Orders
(5) Code of Discipline
(6) Collective Bargaining
(7) Works Committees
(8) Workers Participation in Management
(9) Tripartite Bodies/ Machinery
(10) Labour Welfare Officer
(11) Wage Board
1. Strong Trade Union: A strong trade union responsible to the welfare of workers must work to protect and promote the interests of workers and the condition of their employment. It must provide advice and information to management on personnel policies and practices. Unions also impress upon workers the need to exercise restraint in the use of their rights. Unions assist employers in maintaining discipline and in increasing productivity. Unions should act as a link between employers and workers so as to develop mutual understanding and co-operation between the two sides.
2. Profit Sharing and Co-partnership: (a) Profit-Sharing: This method helps for maintenance of good industrial relations. Profit sharing means that the employer gives to the workers a portion of profit of the business, in addition to wages. It is usually based on an agreement between the employer and the workers.
(b) Co-partnership: Co-partnership has come to be applied to schemes which include a system of profit sharing as well as control in the management. It is necessary that in order to acquire control of business, the workers may other acquire share-capital gaining thereby the rights and responsibility of share-holders or may form a co-partnership committee having a voice in internal management of the business. So far as India is concerned, acquiring of share capital or joining in a co-partnership committee by workers seems difficult because of their law earnings and backward in education. Therefore, in the context of Indian conditions, it is proper to lay emphasis on workers participation in management.
(3) Joint consultation: The industrial democracy necessitates joint consultation in industry between employer and workers to eliminate most of the problems faced by them. Joint consultation involves a regular and continuous relationship between workers and management, and therefore, pre-supposes the willing acceptance by management of the participation of workers representatives in discussing Common problems of interest to the enterprise. Thus, there is tremendous scope of reducing industrial tension and improving productivity through joint consultation in industry.
The functions of Joint Consultative Machinery in India have been the prevention of disputes, reduction in mutual differences and friction, and creation of a proper work climate in industry.
4. Industrial Employment Standing Orders: This is another constructive step towards the prevention of industrial disputes which determine the terms and conditions of industrial employment. Every worker should have the knowledge about the terms and conditions in which he has been employed. He is also expected to know the rules of discipline that is supposed to be followed by him. This problem is solved by 'Standing Orders' in which terms and conditions for employers and employees are prescribed.
5. Code of Discipline: The Indian Labour Conference at its 15th Session in 1957 evolved a 'Code of Industrial Discipline'. The Code voluntarily binds the employers and workers to settle all grievances and disputes by mutual negotiations, conciliation and voluntary arbitration.
6. Collective Bargaining: It is a form of joint consultation, and a process in which the representative of the employer and of the employees meets and attempts to negotiate a contract governing the employer-employees union relationship. It involves discussion and negotiation between the two groups as to the terms and conditions of employment. The main object of collective bargaining is to protect the interests of workers through collective action and by preventing unilateral action on the part of the employer. It promotes industrial democracy.
7. Works committees: Works committees are the most suitable agency for prevention of industrial disputes. In most of the countries like India, works committees are required to the established through legislation.
The duties of the Works Committee are to promote measures for securing and preserving amity and good relations between the employer and workmen and to comment upon matters of their interest, and to endeavor to compose any material difference of opinion in respect of such matters.
8. Workers participation in management: These councils aim at enabling the workers to participate in management, help them to understand the problems and difficulties of the industry concerned and bring about better relationship between the management and labour.
9. Tripartite Bodies/Machinery: Several tripartite bodies have been constituted at Central and State levels. The Indian Labour Conference, Standing Labour Committees, Wage Bounds and Industrial Committees operate at the Centre. At the State Level, State Labour Advisory Bounds have been set up. All these bodies play important role in reaching at agreements on various labour matters.
(1) No workman (other than a badli workman or a casual workman) whose name is borne on the muster rolls of an industrial establishment to which this Chapter applies shall be laid-off by his employer except with the prior permission of the appropriate Government or such authority as may be specified by that Government by notification in the Official Gazette (hereafter in this section referred to as the specified authority), obtained on an application made in this behalf, unless such lay-off is due to shortage of power or to natural calamity, and in the case of a mine, such lay-off is due also to fire, flood, excess of inflammable gas or explosion.
(2) An application for permission under sub-section (1) shall be made by the employer in the prescribed manner stating clearly the reasons for the intended lay-off and a copy of such application shall also be served simultaneously on the workmen concerned in the prescribed manner.
(3) Where the workmen (other than badli workmen or casual workmen) of an industrial establishment, being a mine, have been laid-off under sub-section (1) for reasons of fire, flood or excess of inflammable gas or explosion, the employer, in relation to such establishment, shall, within a period of thirty days from the date of commencement of such lay-off, apply, in the prescribed manner, to the appropriate Government or the specified authority for permission to continue the lay-off.
(4) Where an application for permission under sub-section (1) or sub-section (3) has been made, the appropriate Government or the specified authority, after making such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer, the workmen concerned and the persons interested in such lay-off, may, having regard to the genuineness and adequacy of the reasons for such lay-off, the interests of the workmen and all other relevant factors, by order and for reasons to be recorded in writing, grant or refuse to grant such permission and a copy of such order shall be communicated to the employer and the workmen.
(5) Where an application for permission under sub-section (1) or sub-section (3) has been made and the appropriate Government or the specified Authority does not communicate the order granting or refusing to grant permission to the employer within a period of sixty days from the date on which such application is made, the permission applied for shall be deemed to have been granted on the expiration of the said period of sixty days.
(6) An order of the appropriate Government or the specified authority granting or refusing to grant permission shall, subject to the provisions of sub-section (7), be final and binding on all the parties concerned and shall remain in force for one year from the date of such order.
(7) The appropriate Government or the specified authority may, either on its own motion or on the application made by the employer or any workman, review its order granting or refusing to grant permission under sub-section (4) or refer the matter or, as the case may be, cause it to be referred, to a Tribunal for adjudication :Provided that where a reference has been made to a Tribunal under this sub-section, it shall pass an award within a period of thirty days from the date of such reference.
(8) Where no application for permission under sub-section (1) is made, or where no application for permission under sub-section (3) is made within the period specified therein, or where the permission for any lay-off has been refused, such lay-off shall be deemed to be illegal from the date on which the workmen had been laid-off and the workmen shall be entitled to all the benefits under any law for the time being in force as if they had not been laid-off.
(9) Notwithstanding anything contained in the foregoing provisions of this section, the appropriate Government may, if it is satisfied that owing to such exceptional circumstances as accident in the establishment or death of the employer or the like, it is necessary so to do, by order, direct that the provisions of sub-section (1), or, as the case may be, sub-section (3) shall not apply in relation to such establishment for such period as may be specified in the order.
(10) The provisions of section 25C (other than the second proviso thereto) shall apply to cases of lay-off referred to in this section.

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