Industrial Disputes
Industrial disputes are a common challenge in the workplace, especially in large industries where employers and employees have different interests. The Industrial Disputes Act 1947 was introduced to provide a legal framework for resolving such conflicts. In this article, we will discuss the causes of industrial disputes, their impact, and the legal provisions under the Act that help employers manage disputes effectively.
Define Industrial Dispute
An industrial dispute refers to any disagreement between employers and employees that affects the business. According to Section 2k of Industrial Dispute Act 1947, an industrial dispute involves disputes between employers and workmen related to employment, terms of service, or working conditions. These disputes may occur at an individual level or involve multiple workers in an organisation.
Legal Framework for Industrial Disputes
The Industrial Disputes Act 1947 provides guidelines for handling conflicts between employers and employees. Some important sections of this Act are:
Section 2 (j) of Industrial Dispute Act
Defines “industry” as any business, trade, manufacturing process, or service that involves the employment of workers.
Section 2 (s) of Industrial Dispute Act
Defines "workman" and specifies who falls under this category. This section is important for employers to determine which employees can raise industrial disputes.
Section 25F of Industrial Dispute Act
Lays down conditions for the retrenchment of workers. It states that employees must be given one month’s notice or compensation before being terminated.
Section 33 of Industrial Dispute Act
Prohibits changes in service conditions or dismissal of workers during the pendency of a dispute before a tribunal or labour court.
Closure in Industrial Dispute Act
If an employer wants to shut down a business, they must follow the legal provisions for closure, including compensation to workers.
Settlement of Industrial Disputes
Employers must take proactive steps to resolve industrial disputes and maintain industrial harmony. The Act provides multiple ways to settle disputes:
01
Negotiation
Employers and employees should attempt to resolve issues through direct discussions.
02
Conciliation
A government-appointed conciliation officer helps both parties reach a mutual agreement.
03
Arbitration
If negotiation fails, an independent arbitrator is appointed to resolve the dispute.
04
Adjudication
In severe cases, labour courts or tribunals are involved in giving a final verdict.
Employers should always follow the legal procedures in the Industrial Disputes Act 1947 to prevent conflicts.