We all know that India is a labour-intensive country. Major of the industries
work in the country depends on labour. Since ancient times, wealthy and
influential class people harassed their workmen. They tend them to do more work
on less pay or no pay, not even necessary facilities are provided to them like
sanitary, food, clean water, etc. The conditions were so extreme that the
workmen did not even see the sunlight for days. Out of poverty, the workmen had
no choice but to work on a lesser wage.
There was no law to protect the interest
and restore the fundamental rights of the workmen. After some years, when the
industries started establishing, the same condition was with the employers and
the employees. It tends to rise in industrial disputes between the workmen and
the industrialists, employers and the employees. It made the need for a proper
Act or law to combat with the conflicts occurring in the industries. Hence,
Industrial Dispute Act, 1947, was passed to fulfill the requirements which were
based on socialistic law (law for the welfare of the society). Before the
Industrial Disputes Act, 1947, there was no other law to combat with industrial
disputes.
The earlier dispute management system was based on Common Law, and as
per the common law, disputes are solved according to the contract between the
parties. That's the reason why the Common Law system does not apply to the
industrial system.
The main objective of the Industrial Disputes Act, 1947 is to ensure a peaceful
settlement of the Industrial disputes through the compulsory adjudication method
as an alternative to strikes and lockouts, which are inherent in the process of
collective bargaining and to establish a machinery for the protection of rights
of the workmen and to provide them, Social Justice, by deciding the case based
on Socialistic law rather than deciding it on the basis of Contractual Law.
Compulsory adjudication may be considered as the cornerstone of the Industrial
Disputes Act. Malhotra rightly commented, "the central theme of the act is
adjudication."[1]
As the adjudication of disputes is to be managed at the initiative of the
government, without asking from the parties to the disputes, it is to be
considered as compulsory adjudication, also known as mandatory arbitration in
some jurisdiction, as for Australia, where the system is very popular.
Main Objectives of the Industrial Disputes Act, 1947
The Act is primarily meant for regulating the relations between the employers
and workmen-past, present, and future. It provides a distinction between
'workmen' as such and the managerial or supervisory staff and confers a benefit
on the former only. Apart from this, as stated earlier or the name suggests, the
main objective of the Act is to ensure the peaceful settlement of the Industrial
Disputes.
From the Judicial view, the Supreme Court, in some of its judgments
summed up some principle objects of the Act. In the case
Workmen of Dimakuchi
Tea Estate vs The Management of Dimakuchi tea[2], the Supreme Court set out some
principle object of the Act as follows:
- The promotion of measure for securing amity and good relationship
between the employer and workmen
- Collective bargaining.
- Prevention of illegal strikes and lockouts.
- Relief to workmen in the matter of lay-off, retrenchment and closure of
undertaking
- An investigation and settlement of the industrial dispute between
employers and employers, employers and workmen or workmen and workmen with
the right of a presentation by a registered trade union.
While the Supreme Court, in the case of
Rajasthan State Road Transport vs Zakir
Hussain[3] held the following things
- The object of the Industrial Disputes Act, as its preamble
indicates, is to make provision for the investigation and settlement of
industrial disputes which means adjudication of such disputes also
- The Act envisages collective bargaining, contracts between union
representing the workmen and the management, a matter which is outside
the realm of the common law or the Indian law of contract.
- The Act also provided for the constitution of various committees and
conferred extensive powers on different kinds of authorities in the
matter of settlement of adjudication of industrial disputes.
- It also provides remedies under Sections 10, 12, 18, 19 and 31(2),
33(1)(a), 33C (1) and 33C (2).
Industrial Dispute- Meaning and Concept
Though there are many types of disputes in the society, in layman's language,
the Industrial Disputes refers to those disputes that are specifically related
to the industries, workers, employer, employee. According to Section 2 (k) of
Industrial Disputes Act, 1947 "industrial dispute means any dispute or
difference between employers and employers, or between employers and workmen, or
between workmen and workmen, which is connected with the employment or
non-employment or the terms of employment or with the conditions of labour, of
any person"[4].
To combat or resolve this issue in a peaceful manner the Act
provides various modes of settlement of Disputes. These are Conciliation,
Adjudication and Arbitration. The Authorities that make the use of conciliation
as the sole method of settlement of disputes are: Work Committee, Conciliation
Officer, and Board of Conciliation, while the authorities that uses adjudication
process to decide any disputes are: Labour Courts, Tribunal and National
Tribunal. Apart from these, Provision has also been made for the Constitution of
a Court of Inquiry whose main function is to inquire into any matter appearing
to be connected with or relevant to the Industrial Dispute.
The main objective
of this work is to provide a light on the role of the adjudicating bodies is
resolving Industrial Disputes. Justice D.A. Desai also very aptly described the
nature and philosophy of compulsory adjudication in his judgment in
Workmen of
Hindustan Lever Ltd v. Hindustan Lever Ltd[5] in the following words:
"The concept of Compulsory adjudication was statutory ushered in with a view to
providing a forum and compelling the parties to resort to the forum for
arbitration so as to avoid confrontation and dislocation in industry.
The
Legislature considered it wise to arm the government with the power to compel
the parties to resort to arbitration with a view to avoid confrontation or trial
of strength which are considered wasteful from national and public interest
point of view. For assuring uninterrupted production, peace and harmony,
industrial relations are necessary."
Composition and Qualification of Adjudicatory Authorities
Earlier the Industrial Dispute Act only provided only for the establishments of
Industrial Tribunals for adjudication of all industrial disputes, After the 1956
Amendment, the present three-tier machinery of Labour Courts, Industrial
Tribunals and National Tribunal, is provided.
Where the National Tribunal is to
be formed by the Central Government in exceptional situations, viz., to resolve
disputes of national importance or disputes relating to the industrial
establishments situated in more than one state, the Labour Courts and National
Tribunals are the normal adjudicatory bodies formed by all the appropriate
Governments i.e., the State Government and the Central Government, for
adjudication of industrial disputes.
The 1956 Amendment Act draws a clear distinction between the matters specified
in Second Schedule that are stated to be "matters within the jurisdiction of
Labour Courts" and those in the Third Schedule that are stated to be "matters
within the Jurisdiction of Industrial Tribunals."
Labour Courts
Section 7 of the Industrial Dispute Act, 1947 provides that "The appropriate
Government may, by notification in the Official Gazette, constitute one or more
Labour Courts for the adjudication of industrial disputes relating to any matter
specified in the Second Schedule and for performing such other functions as may
be assigned to them under this Act"[6] and also specifies the qualification for
the presiding officer of a Labour Court.
Qualification for the appointment of a Presiding Officer of the Court:
- He is or has been the Judge of a High Court
- He has for a period of not less than 3 years been a district
Judge or an Additional Judge.
- He has held any Judicial office in India for not less than 7
years.
- He has been the Presiding officer of Labour Court constituted under any
provision Act for not less than 5 years.
Disqualification
Section 7-C of the Industrial Dispute Act, 1947 prescribes Disqualifications for
the presiding officer appointed to the Labour Court. It Provides that no person
shall be appointed to or continue in the office of a Labour Court, Tribunal or
National Tribunal, if:
- he is not an independent person; or
- he has attained the age of sixty-five years.
Jurisdiction of Labour Courts[7]
- The propriety or legality of any order passed by an employer under the
Standing Orders
- The application and interpretation of Standing Order.
- Discharge or dismissal of workmen, including reinstatement of, or grant
of, or relief to, workmen wrongfully dismissed.
- Withdrawal of any customary concession or privilege.
- Illegality or otherwise of a strike or lockouts; and
- All matters other than those specified in the Third Schedule.
Functions of Labour Court
Section 7 of the Industrial Disputes Act, 1947 itself provides for the functions
of a Labour Court that as follows:
- Adjudication upon Industrial disputes specified in Second Schedule of
the said Act, the following matters are specified in the Second Schedule:
- The propriety or legality of any order passed by an employer under the
Standing Orders
- The application and interpretation of Standing Order.
- Discharge or dismissal of workmen, including reinstatement of, or grant
of, or relief to, workmen wrongfully dismissed.
- Withdrawal of any customary concession or privilege.
- Illegality or otherwise of a strike or lockouts; and
- All matters other than those specified in the Third Schedule.
- Performance of some other functions as may be assigned to it under the
Industrial Dispute Act, 1947
The other matters assignable to Labour Courts are:
- Voluntarily reference of dispute by written agreement between the
parties under Section 10A
- Arbitrations reference under Section 10A.
- Permission to or approval of the action of discharge under Section 33.
- Complaint by the aggrieved employees under Section 33A
- Application under Section 33(c)2 for the computation of any money or any
benefit which is capable of being computed in the terms of money.
- Reference of awards or settlement for the interpretation in case of
difficulty or doubt under Section 36A.
Duties of Labour Courts
In the case of Pubali Bank Limited v. Chairman[8], First Labour Court, Dhaka.
The question raised that whether Labour Court is a civil court or not. The
Lordship of Abdul Halim, The Bangladesh Labour Code, 2006, CCB Foundation Ed.1
P.282
The appellate division after the consideration of all relevant provision of the
industrial relation ordinance 1969 held that the labour court acts as civil
court for limited purpose but not a civil court at all. It's just a legal
fiction or a statutory hypothesis that it is to be treated as a civil court.
Labour Court shall hold its proceedings within the stipulated time and shall
submit its award to the appropriate government. The award must be in writing or
signed by the presiding officer. The Labour Court has the same power as a Civil
Court. The proceeding and the judgement of the labour court can not be
challenged on the ground that it is not properly established.
Industrial Tribunals
Section 7-A provides Industrial Disputes Act, 1947 provides that "The
appropriate Government may, by notification in the Official Gazette, constitute
one or more Industrial Tribunals for the adjudication of industrial disputes
relating to any matter, whether specified in the Second Schedule or the Third
Schedule, [and for performing such other functions as may be assigned to them
under this Act]. It also provides that a Tribunal shall consist of one person
only to be appointed by the appropriate government.
Qualification for the appointment of a Presiding Officer of the Tribunal:
- He is, or has been a Judge of a High Court or
- He has, for a period of not less than three years, been a
District Judge or Additional District Judge;
- He is or has been Deputy Chief Labour Commissioner (Central) or Joint
Commissioner of the State Labour Department, having a degree in law and at least
seven years' experience including labour department including three years of
experience as Conciliation Officer: Provided that no such Deputy Chief Labour
Commissioner or Joint Labour Commissioner shall be appointed unless he resigns
from the service of the Central Government or State Government, as the case may
be before being appointed as the presiding officer or;
- He is an officer of Indian Legal Service in Grade III with
three years' experience in grade.
Disqualification
Section 7-C of the Industrial Dispute Act, 1947 prescribes Disqualifications for
the presiding officer appointed to the Labour Court. It Provides that no person
shall be appointed to or continue in the office of a Labour Court, Tribunal or
National Tribunal, if:
- he is not an independent person; or
- he has attained the age of sixty-five years.
Jurisdiction of Industrial Tribunal
The Industrial Dispute Act, 1947 assigned Industrial Tribunal to adjudicate upon
industrial disputes provided in Second and Third Schedule of the Act or any
matter appearing to be associated or relevant to such disputes, referred to it
under Section 10 (1) (d) of the Act. It is immaterial whether any such matter
appearing to be connected with or relevant to the basic dispute relates to any
matter enumerated in Second Schedule or Third Schedule or not. The first
provision of Section 10 provides that "the dispute relates to matter specified
in the third schedule and it is not likely to affect more than a hundred
workmen, the appropriate government has the discretion to make a reference to
the Labour Court."
Functions of Industrial Tribunal
In India Industrial Tribunal were first established by the Industrial Dispute
Act, 1947. According to Section 7-A of Industrial Disputes Act, 1947 the main
function of Industrial Tribunal is to adjudicate industrial dispute enumerated
under Second and Third Schedule of the Industrial Disputes Act, 1947 and for
performing such others functions as may be assigned to them under the Act.
The following matters are specified in the Second Schedule[9]:
- The propriety or legality of any order passed by an employer under the
Standing Orders
- The application and interpretation of Standing Order.
- Discharge or dismissal of workmen, including reinstatement of, or grant
of, or relief to, workmen wrongfully dismissed.
- Withdrawal of any customary concession or privilege
- Illegality or otherwise of a strike or lockouts; and
- All matters other than those specified in the Third Schedule.
The following matters are specified in the Third Schedule[10]:
- Wages, including the period and mode of payment
- Compensatory and other allowances.
- Hours of work and rest intervals.
- Leave with wages and holidays.
- Bonus, profit sharing, provident fund and gratuity
- Shift working otherwise than in accordance with standing orders;
- Classification by grades.
- Rules of discipline;
- Rationalisation;
- Retrenchment of workmen and closure of establishment; and
- Any other matter that may be prescribed.
Duties of Industrial Tribunal
In case of
J.K. Iron and Steel Co. Ltd. vs The Iron and Steel Mazdoor
Union[11] the Supreme Court commenting upon the status of these tribunals
observed that the tribunals under the Act are invested with many trappings of a
Court but do not have the same status as Courts. These tribunals need not to
follow the strict technicalities of law in adjudication of industrial disputes.
Section 15 provides that "where an industrial dispute has been referred to a Labour Court, Tribunal or National Tribunal for adjudication, it shall hold its
proceedings expeditiously and shall,] within the period specified the order
referring such industrial dispute or the further period extended under the
second proviso to sub-section (2-A) of section 10][,submit its award to the
appropriate government. ][12].
National Industrial Tribunal
Section 7-B of ID Act, 1947 provides that "the Central Government may, by
notification in the Official Gazette, constitute one or more National Industrial
Tribunals for the 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".[13]
Qualification for the appointment of a Presiding Officer of the National
Tribunal
Section 7-B of the ID Act, 1947 provides that the National Tribunal
shall consists of only one person, who is to be appointed by the Central
Government. Provided that:
- A person shall not be qualified for appointment as a presiding
officer of a National Tribunal, unless he is, or has been a Judge of
a High Court.
- The Central Government may, if it so thinks fit, appoint two
persons as assessors to advise the National Tribunal in the
proceeding before it.
Disqualification
Section 7-C of the Industrial Dispute Act, 1947 prescribes Disqualifications for
the presiding officer appointed to the National Industrial Tribunal. It Provides
that no person shall be appointed to or continue in the office of a Labour
Court, Tribunal or National Tribunal, if:
- he is not an independent person; or
- he has attained the age of sixty-five years.
Jurisdiction of National Tribunal
Section 10 (1-A) provides that:
where the Central Government is of opinion that
any industrial dispute exists or is apprehended and the dispute involves any
question of national importance or is of such a nature that industrial
establishments situated in more than one State are likely to be interested in,
or affected by, such dispute and that the dispute should be adjudicated by a
National Tribunal."[14]
Section 10 (2) provides that:
when the parties to the industrial dispute apply
to government to refer dispute to the National Tribunal and if the government
satisfies it shall make the reference to the Industrial Tribunal."[15]
Conclusion
In my opinion the adjudicatory bodies play a vital role in the peaceful
settlement of industrial disputes, as it complies with the main objective of the
Industrial Dispute Act,1947. In a developing country like India where more
industries is to be set up in future which will obviously raise the Industrial
disputes so to combat with that adjudication is the best method among all of the
four ways of settlement of disputes. For that there must be an Act or law to
manage it all.
End-Notes:
- Malhotra. O.P., The Law of Industrial Disputes, (1988), 5th ed. Vol. 1,
p. 16
- AIR 1958 353, 1958 SCR 1156
- Civil Appeal No. 5176 of 2005 LLR 1044
- Industrial Disputes Act, 1947, Section 2(k), No. 14, Acts of Parliament
1947 (India)
- (1984) Lab.I.C. 276 (286-87) (S.C)
- Industrial Dispute Act, 1947, Section 7, No. 14, Acts of Parliament 1947
(India)
- Industrial Dispute Act, 1947, Second Schedule, No. 14, Acts of
Parliament 1947 (India)
- II ADC (2005) 12
- Industrial Dispute Act, 1947, Second Schedule, No. 14, Acts of
Parliament 1947 (India)
- Industrial Dispute Act, 1947, Third Schedule, No. 14 Acts of Parliament
1947 (India
- AIR 1956 231, 1955 SCR (2)1315
- Industrial Disputes Act, 1947, Section 10, No. 14, Acts of Parliament
1947 (India)
- Industrial Disputes Act, 1947, Section 7-B, No. 14, Acts of Parliament
1947 (India
- Industrial Dispute Act,1947, Section 10 (1-A), No. 14, Acts of
Parliament 1947 (India)
- Industrial Dispute Act,1947, Section 10 (2), No. 14, Acts of Parliament
1947 (India)
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