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Business Environment and Law-Industrial Disputes Act, 1947

Objects And Scope Of The Act- Industrial Disputes Act, 1947

   Posted On :  15.05.2018 12:53 am

The object of the Industrial Disputes Act is to make provision for the investigation and settlement of industrial disputes.

Objects And Scope Of The Act
 
 
The object of the Industrial Disputes Act is to make provision for the investigation and settlement of industrial disputes. The Act is primarily meant for regulating the relations of employers and workmen, past, present and future. The principal aim of the Act is to encourage collective bargaining and to maintain industrial peace by preventing illegal strikes and lockouts and to provide lay off and retrenchment compensation.

The Act was passed with a view to removing certain shortcomings found in the working of the Trade Disputes Act, 1929. It came into force on the first day of April 1947 [sec. 1(3)].
 
It extends to the whole of India [Sec.1 (2)]. It extends to all industries whether they are carried on by private owners or by the government. The Act has been amended from time to time. The latest amendment was made in 1984.
 
Thus, though the main object of the Act is to provide for investigation and settlement of industrial disputes, the amendment Act seeks to ensure speedier resolution of industrial disputes by removing procedural delays. Besides creating an efficient statutory machinery for the settlement of industrial disputes and thereby promoting industrial harmony, the Act also seeks to achieve certain other objects, referred to as ‘certain other purposes’ in the preamble.
 
The objects are:
 
 
            Promoting measures for securing and preserving amity and good relations between employer and workmen.
 
            Enquiring into any matter connected with or relevant to an industrial dispute.
 
            Promoting the settlement of industrial disputes.
 
            Adjudication of industrial disputes.
 
            Reference of individual disputes to grievance settlement authorities.
 
            Voluntary reference of disputes to arbitration.
 
            Prevention of illegal strikes and lock-outs.
 
            Compensation for lay-off and retrenchment of workmen.
 
            Provision for the payment of wages from the date of the award till the suit pending before courts of law is decided.
 
            Prevention of unfair labour practices.
 
These objects of the Act center round the securing of industrial harmony and social justice.

 
 Defintions
 
 
The following are some of the important definitions:
 
 

Appropriate Government

 
 
It means in relation to any industrial dispute concerning any industry carried on by or under the authority of the Central Government or by a railway company, or any controlled industry as may be specified, or any relation to an industrial dispute concerning banking or an insurance company, a mine, or an oil-field or a major port, the appropriate government would be the Central Government
 
In relation to any industrial dispute other than those specified above, the appropriate government would be the State Government. The general rule is that an industrial dispute arising between an employer and his employees would be referred for adjudication by the State Government except in the cases mentioned above. The definition is exhaustive.
 

Average Pay [Sec.2 (Aaa)]

 
 
This clause lays down the manner of calculating the average pay for the purpose of payment of compensation at the time of retrenchment of a workman.
The determination of average pay is to be made in a different way in the case of
 
            Monthly paid workmen,
 
            Weekly paid workmen, and
 
            Daily paid workmen.
 
The average pay is calculated in the following manner for the different categories of workers:
 
            In the case of monthly paid workmen, the average of the wages paid for three complete calendar months;
 
            In the case of weekly paid workmen, the average of the wages paid for four complete weeks;
 
            In the case of daily paid workmen, the average of the wages paid for twelve full working days.

The period of three months, four weeks or twelve days as specified above, must precede the day on which the average pay becomes payable. In case a workman has not worked for the period specified above, the average pay shall be calculated as the average of wages paid to the workmen for the period he actually worked.
 

Workman [Sec.2(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. His terms of employment may be express or implied. For the purpose of any proceeding under this Act in relation to an industrial dispute, ‘workman’ includes any 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.
 

Industry [Sec.2 (j)]

 
 
In the light of the judgment in Bangalore Water Supply Case, the term ‘Industry’ has been defined in Sec.2 (j) as amended in 1982 as follows: ‘Industry’ means any systematic activity carried on by co-operation between an employer and his workmen (whether such workmen are employed by such employer directly or by or through any agency including a contractor) for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes (not being wants or wishes which are merely spiritual or religious in nature). It makes no difference whether or not
 
            Any capital has been invested for the purpose of carrying on such activity; or
 
            Such activity is carried on with a motive to make any gain or profit.
 
 
‘Industry’ includes-
 
            Any activity of the Dock. Labour Board established under Section 5-A of the Dock Workers (Regulation of Employment) Act, 1948.
 
            Any activity relating to the development of sales or business or both carried on by an establishment.

 
 

 

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