Settlement of Industrial Disputes

8/3/2019 Settlement of Industrial Disputes

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Presented By :

Ankita Sharma

Pranay Bhowmick

Legislation Concerning Settlement

Of Industrial Disputes


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Some Important Definitions Industrial Disputes

Any Dispute or difference between employers and employers orbetween employers and workmen, or between workmen andworkmen, which is connected with the employment or non-employment or the terms of employment or with the conditions oflabour of any person.

StrikeA cessation of work by a body of persons employed in any industryacting in combination, or a concerted refusal, or a refusal under acommon understanding, of any number of persons who are or havebeen so employed to continue to work or to accept employment.

Lock-out

The closing of a place of employment, or the suspension of work, orthe refusal by an employer to continue to employ any number ofpersons employed by him.


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WorkmanAny person employed in any industry to do any manual,unskilled, skilled, technical, operational, clerical or

supervisory work for hire or reward, whether the terms ofemployment be express or implied, and for the purposes of

any proceeding under the Act in relation to an industrialdispute, includes any such person who has beendismissed, 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 doesnot include any such person:-


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i. Who is subject to the Army Act,1950, or the Air ForceAct,1950 or the Navy Act,1957; or

ii. Who is employed in police service as an officer orother employee of a prison; or

iii.

Who is employed mainly in a managerial oradministrative capacity; or

iv. Who, being employed in a supervisory capacity, drawswages exceeding one thousand and six hundredrupees or exercises either by the nature of the dutiesattached to the office or by reason of the powersvested in him, functions mainly of a managerial nature.


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Lay-off

The failure,refusal, or inability of an employeron account of shortage of coal,power or raw

materials or the accumulation of stocks or thebreakdown of machinery or natural calamityor any other connected reason to give

employment to a workman whose name isborne on the muster rolls of his establishmentand who has not been retrenched.


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Retrenchment

The termination by the employer of the service of a

workman for any reason whatsoever, otherwise thanas 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 ofsuperannuation if the contract of employment between

the employer and the workman concerned contains astipulation in that behalf;


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c) Termination of the service of the workman as a resultof the non-renewal of the contract of employmentbetween the employer and the workman concerned onits expiry or of such contract being terminated under astipulation in that behalf contained therein; or

d) Termination of the service of a workman on the groundof continued ill health.


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Settlement

A settlement, arrived at in the course of a conciliation

proceeding and includes a written agreement between

the employer and workmen arrived at otherwise than inthe course of conciliation proceeding where suchagreement has been signed by the parties in theprescribed manner and a copy of the same has been

sent to an officer authorized in this behalf by theappropriate government and the Conciliation Officer.


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Appropriate governmenta) Central Government-

in relation to any industrial dispute concerning any industrycarried on by or under the authority of the centralgovernment or in relation to an industrial disputeconcerning a Dock Labour Board or Industrial FinanceCorporation of India,etc. or any other industry under theauthority of the central government.

b) State Government-

in relation to any other industrial dispute which is under theauthority of other than central government i.e stategovernment or any local governing body.


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Public Utility Service Any railway/transport service carrying passengers or

goods

Working of any major port or dock

Industrial establishment

Postal, telegraph or telephone

Power,light or water supply to public

Public conservancy or sanitation

Other 27 industries only if specifically declared bygovernment as a public utility service(usually for 6months but may be extended)


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IndustryAny systematic activity carried on by co-

operation between an employer and his

workmen for the production, supply ordistribution of goods or services with a viewto satisfy human wants or wishes, whetheror not (a) any capital has been invested for

the purpose of carrying on such activity; or(b) Such activity is carried on with a motiveto make any gain or profit and includes


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(i) any activity of the Dock Labour Board establishedunder the Dock Workers Act,1948 and (ii) any activityrelating to the promotion of sales or business or bothcarried on by an establishment; but does not include

the following:

1. Hospitals or dispensaries

2. Any agricultural operation except where suchagricultural operation is carried on in an integrated

manner with any other activity and such other activityis the predominant one.


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3. Educational, scientific, research or training institutions;

4. Institutions owned or managed by organizations wholly orsubstantially engaged in any charitable, social orphilanthropic service;

5. Khadi or village industries;

6. Any activity of the government relatable to the sovereignfunctions of the government including all the activities

carried on by the departments of the central governmentdealing with defence research, atomic energy and space;


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7. Any domestic service;

8. Any activity, being a profession practised by anindividual or body of individuals, if the number ofpersons employed by the individual or body ofindividuals in relation to such profession is less thanten;

9. Any activity, being an activity carried on by a co-opeartive society or a club or any other like body of

individuals, if the number of persons employed inrelation to such activity is less than ten


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Authorities And Reference OfDisputes

The authorities for prevention or settlement of disputesunder the Act include:-

1. Grievance Settlement Authority

2. Works Committee

3. Conciliation Officer

4. Board of Conciliation

5. Court of Inquiry

6. Labour Court7. Tribunal

8. National tribunal

9. Arbitrator


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Grievance Settlement Authority intended to deal mainly with individual disputes

connected with an individual workman.

In industrial establishment in which fifty or more workmenare employed or have been employed on any day in the

preceeding twelve months,the employer is required toconstitute, in accordance with the rules framed in thisregard

Workman or the trade union of which he is a

member,may refer the dispute in the prescribed mannerto the Grievance Settlement Authority for settlement.

Follow prescribed procedure and to complete theproceedings within specified time.


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No reference of any dispute is to be made toconciliation and adjudication authorities orarbitrator unless the dispute has been

referred to the Grievance SettlementAuthority and its decision is not acceptable toany of the parties to the dispute.


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Works Committee

Its a machinery for the prevention of industrial

disputes.

Works Committee is formed in any industrial

establishment in which one hundred or moreworkmen are employed or have been employed onany day in the preceeding twelve months.

It consists representatives of employers and

workmen engaged in the establishment, so numberof workers representatives is not less thanemployers representatives.


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The representatives of the workmen are to be chosen from

amongst the workmen engaged in the establishment inconsultation with their registered trade union, if any.

The Functions of Works committee are:

to promote measures for securing and preserving amityand good relations between the employers and workmen

To achieve the end, to comment upon matters of their

common interest or concern and

Endeavour to compose any material difference of opinion inrespect of such matters.


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Conciliation Officer

The appropriate government is empowered to appoint

Conciliation Officers by notification in the official gazette formediating in and promoting the settlement of industrialdisputes.

The number of Conciliation Officers to be appointed is to bedetermined by the appropriate government.

A conciliation officer may be appointed for a specified areaor for specified industries in a specified area or for one or

more specified industries either premanently or for a limitedperiod.


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The Duties of conciliation officers are: Where any industrial dispute exists or is

apprehended, or where the dispute is relatedto public utility service and a notice of strikeor lockout must hold proceedings in theprescribed manner.

He is required to investigate the dispute and

all matters and

Take appropriate steps for inducing theparties to a fair and amicable settlement of

the dispute.


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If Settlement is arrived:

then he must send a copy of the report andthe memorandum of settlement signed by theparties to the appropriate government or an

officer authorized by it. If no Settlement is arrived:

he has to send a full report to the appropriate

government stating the steps taken by himand facts and circumstances relating to thedispute and the reasons of which settlementcould not be arrived at.


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The officer is required to submit his reportwithin fourteen days of the commencement ofthe conciliation proceedings, but the time for

the submission may be extended further onwritten request of the parties to the dispute.

When a settlement is not reached, theappropriate government, after considering thereport may refer the dispute to a Board ofConciliation,Labour Court,Tribunal orNational Tribunal.


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Powers of Conciliation Officers:

1. Is empowered, after giving a reasonablenotice,to enter the premises occupied by

any establishment for the purpose of inquiryinto any existing dispute related to theestablishment.

2. He may also enforce the attendance of anyperson for the purpose of examining himand call for inspection any documentrelevant to the dispute or for verifying theimplementation of any award.


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He enjoys the same powers as are vested ina Civil Court under the Code of CivilProcedure,1908 in respect of enforcing the

attendance of any person and examining himand compelling the production of documents,and is deemed to be a public servant underthe Indian Penal Code.


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Board of Conciliation

Independent chairman

2 or 4 members appointed in equal number representing theparties

Government will appoint representatives if the parties fail todo so.

May function in the absence of chairman or members unlessgovt makes appropriate notification

Reference of disputes to the board:

Govt may Order in writing to refer the dispute to theboard

Parties can make application, jointly or separatelyand if the govt is satisfied reference is made


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Duties and powers Investigate all matters and endeavor settlement Take steps for a fair settlement Send report and memorandum to the govt. if settlement is arrived

at. (within 2 months, or as determined) If not, then send report to the govt. with reasons and

recommendations. (within 2 months, or as determined)

Commencement of proceedings On the date of notice of strike/lock-out (Sec 22)

Conclusion of proceedings Memorandum of settlement signed by parties

Report received by government Reference made to Court of inquiry,Labour court,Tribunal or

national tribunal


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Period of operation of settlement Date agreed upon by parties or 6 months from date of

memorandum Binding till expiry of 2months from a written notice by one of

parties stating intention to terminate the settlement.

Persons on whom settlements are binding All parties to the dispute Other parties summoned to appear in the proceedings

In case of employers,his heirs or successors , or in respect ofthe establishment In case of workmen, all persons employed in the establishment

or a part of it.


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Court of Inquiry

Purpose

Inquiring into any matter appearing to be connected with orrelevant to an industrial dispute

Composition

1 independent person

In case of 2 or more persons, 1 is to be appointed as thechairman.

All members are deemed to be public servants.

COI may appoint person(s) with special knowledge of the matter

Can function even if chairman/members are absent but not ifservice of the chairman has ceased to be available


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Court of Inquiry

Inquiry and reporting to the govt must be done within6months from commencement

Report is to be in writing and signed by all its members Any member can state his dissent from the

recommendations Report to be published by govt within 30days of

receipt of the report

Powers of COI = powers of Civil Court under Code of

Civil Procedure,1908 Inquiries and investigations deemed as a judicial

proceeding within meaning of Indian Penal Code,1860


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Labour Court

Appropriate govt may constitute one or more LabourCourts for the adjudicaiton of industrial disputesrelating to matter provided in 2nd schedule of the act.

It includes: Propriety or legality of an order passed by employer under

standing orders Application and interpretation of standing orders Discharge or dismissal of workmen

Withdrawal of customary concession Illegality, strike, lock-out All matters except those mentioned in 3rd schedule


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Labour Court

Consists of 1 person only. He should be or have been a judge of High Court

Or should have been a District Judge or Add.

District Judge for atleast 3 years Or should have held any judicial office in India for

atleast 7 years

Or should have been the presiding officer of alabour court constituted under any province/stateact for atleast 5 years


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Tribunal

For adjudication of disputes mentioned in 2nd

schedule or in the3rd schedule.

3rd schedule includes:

Wages, including period and mode of payment

Compensatory and other allowances Hours of work and intervals

Leave with wages and holidays

Bonus, profit-sharing, PF and gratuity

Shift working otherwise than in standing order

Classification by grades Rules of discipline

Retrenchment of workmen

Closure of establishment


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Tribunal

Consists of one person only

Appointed by appropriate govt.

Qualified only when:

He is or has been a High Court Judge or

He has been District or Add. District judge foratleast 3 years

Two assessors to advise the Tribunal mayalso be appointed


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National Tribunal

Adjudication of Disputes involving nationalimportance or for industrial establishments in morethan 1 state.

Consists of 1 person only

Appointed by Central govt.

He should be/have been a High Court Judge

Two assessors to advice him maybe appointed


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Prohibition of Strikes in Public Utility

Services A person employed in public utility service must not

go on strike in breach of contract Without giving notice to employer before 6 weeks of striking Within 14 days of giving such notice

Before the expiry of date specified in notice During pendency of concilliation and 7 days after

conclusion of such proceedings

Notice should in the prescribed manner

If employer receives many notices on any day,heshould report to the govt. or an authority within 5days.


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Illegal strikes and lock-outs

Commenced in contraventions of theprovisions relating to general prohibition ofstrikes/lock-outs or public services

Continued in contravention of an order underSub-section (3) of Sec 10

Continued in contravention of an order insub-section 4A of Sec 10


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Lay-off

Do not apply to to an industrial establishment:

With


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Lay off : Cases in which workmen are

not entitled to lay-off compensation:

If he refuses to accept alternative employment inthe same establishment or other in the sametown/village within a radius of 5 miles.

If he does not present himself for work at theappointed time during normal hours atleast once aday

If such lay-off is due to strike or slowing down ofproduction on the part of workmen in another partof establishment


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Retrenchment

Conditions: Act prohibits from retrenching a workman who has

been in continuous service for one year EXCEPT if:

He has been given 1 months notice in writing indicatingreasons and the period of notice expired

He has been paid compensation (= 15days average pay forevery completed year of service or any part of it in excessof 6 months)

Notice has been served on govt/authority specified by it bynotification in the official gazette


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Closure

Notice of intention to close down:

Employer required to serve a notice atleast 60 days beforeclosure

Not necessary for:

Undertaking with


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Bombay Industrial Relations Act , 1946

Objective: To regulate industrial relations Speedier settlement of industrial disputes

Objective to be achieved through provisions of :

1.Joint Committees :

Employers required to form JC to serve as a direct link betweenemployers and employees

2.Labour officers :

They are required to promote harmonious relations betweenemployers and employees, to report to govt about disputes andappear in proceedings


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3. Conciliators :

They are required to make an endeavor for speedy settlement.

Agreement reached is binding. If no agreement takes place,he is required to send a complete

report to the Chief Conciliator.

4.Adjudication authorities

Labour Court : Disputes relating to standing orders , changes inspecified matters and disputes being referred to by the govt.

Wage Board : Functions under the supervision of Industrial court

Industrial Court It is the appellate authority

The act further provides classification of trade unions into 4categories : representative , qualified , primary and approved.


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Documents

Settlement of Industrial Disputes