Industrial Disputes Act, 1947

Industrial Disputes Act, 1947 Objective: The objective of the Industrial Disputes Act, 1947 is to secure industrial peace and harmony by providing mechanism and procedure for the investigation and settlement of industrial disputes which is provided under the statute. Industrial Disputes have adverse effects on industrial production, efficiency, costs, quality, human satisfaction, discipline, technological and economic progress and finally on the welfare of the society. Hence, the Industrial Dispute Act of 1947, was passed as a preventive and curative measure. Meaning of Industrial dispute In the Industrial Disputes Act, 1947, an Industrial dispute means “Difference between employer and employer or between employer and workmen or between workmen and workmen, or any dispute among these which are related to the employment or non-employment or terms and conditions of employment of any person”. Practically, Industrial dispute primarily refers to the disengagement between employers and their employees. Also it is not a personal dispute of any one person. Industrial and labour disputes are mostly related to strikes, lock-outs, go slow, lay off, retrenchments, non-payment of wages and salary, working hours, wrong behaviour of management with labourers, gherao, etc. The Industrial Disputes Act extends to the whole of India and applies to every Industry and its various industrial establishments carrying on any business, trade, manufacture or distribution of goods and services irrespective of the number of workmen employed there. Meaning of workmen "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, or the Army Act, 1950, or the Navy Act, 1957; or (Note: Armed forces and police personnel have also been kept out of the workmen category as they are governed by different laws) (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 ten thousand rupees per month. Supervisory Work vs. Supervisory Capacity Supervisory work is not supervisory role, Supervisory Capacity is. Designation is not a conclusive factor in determining the nature of work of a person. Rather the work performed, the principal nature of duties and functions will determine whether the person will fall under the purview of the workman under the Act. People who are into creative work are not covered in workman definition. A person suggesting ways to increase sales and using an imaginative mind is out of the scope of this definition. However, a person carrying out such ideas by distributing pamphlets or engaging in door-to-door publicity will be covered as a "workman" under the ID Act. A salesperson may use various techniques to convince the consumers but that is not considered as use of creative or imaginative faculty and such sales person, even if he goes through a training to acquire knowledge about the product, will not be excluded from the definition of a workman. An independent contractor cannot be termed as a workman. The employer must be in a position to control the manner of employee’s work i.e there has to be a master-servant relationship. Tests for Determination of Supervisory Capacity The Bombay High Court in Union Carbide (India) Ltd v. d. Samuel and others summarised the tests laid down by the Supreme Court in various decisions as follows: Designation is not material but what is important is the nature of work; Find our the dominant purpose of employment and not any additional duties the employee may be performing; Can he bind the company/employer to some kind of decisions on behalf of the company/employer; Has the employee the power to direct or oversee the work of his subordinates; Does he have the power to sanction leave or recommend it; and Does he have the power to appoint, terminate or take disciplinary action against workmen.