INDUSTRIAL DISPUTE ACT 1947( 01.04.1947 )


This act is based on the principle of social security and justice. It came into force on the first day of April, 1947 and is called as “Industrial Dispute Act 1947”.

Aims & Objects:

This act aims making provisions for the investigation & settlements of industrial disputes.


This act extends to whole of the India


1. Industrial Dispute :

Industrial Dispute means any dispute or difference between employees 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.

2. Industry:

Industry means any systematic activity carried on by co-operation between employer and his workman for the production, supply or distribution of goods or services with a view to satisfy human wants.

3. Lay Off :

Lay off means the failure, refusal or inability of an employer on account of shortage of coal, power or raw material or the accumulation of stock or the breakdown of machinery or natural calamity or for any other connected reason to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.

4. Lock Out :

Lock out means the temporary closing of a place of employment or the suspension or work, or the refusal by an employer to continue to employ any number of persons employed by him.

5. Strike :

Strike means cessation of work by a body of persons employed in any industry acting combination, or a concerted refusal, or a refusal under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment.

6. Public Utility: (Sec.2)

Public utility service means any Railway service or any transport service for the carriage of passenger or goods by air. Any section of industrial establishment on the working on the safety of the establishment of workman employed there in depends. Any postal, telegraph or telephone service. Precedent can declare any industry as public utility service in emergency.

Main Provision:


1. Works Committee : Where more than 100 workers are employed in any industrial establishment, the works committee are formed of equal no. of representatives of workman and employer to promote good Industrial between workmen & employee
2. Conciliation Officer :
The appropriate Govt. may by notification in the official gazette, appoint such number of persons as it thinks fit, to be conciliation officer, for mediating in & promoting settlement.
3. Boards of Conciliation :
Appointed by the appropriate govt. with a chairman and two or four members for promoting settlement of the dispute.
4. Court of enquiry :
The court of enquiry is constituted by the appropriate Govt. which consists of Chairman with one or more member to enquire into any matter appearing to be connected with or relevant to an industrial dispute.
5. Labour courts :
One or more labour courts may be constituted by the appropriate Govt.for adjudication of industrial disputes, shall consist of one person known as Presiding Officer.
6. Tribunal :
The appropriate Govt. may constitute one or more Tribunals for adjudication of industrial disputes in accordance with the provisions of this act.
7. National Tribunals :
This will be constituted by the central government for the adjudication of the industrial dispute which involves questions of National importance & shall consist one person only, the Govt. may appoint 02 persons as assessor to advice the Tribunal in the proceedings before it, if think fit so..


Strike and lock out shall be illegal if it is declared or commenced in contravention of section 22 and 23 of this act i.e.

1. Without giving six weeks notice before commencing strike.
2. Before 14 days of given such notice.
3. Before the expire of the date specified in such notice.
4. During the pendency of any conciliation proceedings before conciliation officer and 07 days after the conclusion of such proceedings.
5. During the pendency or proceedings before a tribunal or national tribunal and 02 months after the conclusion of such proceedings.
6. During the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such proceeding, where a notification has been issued.
7. During any period in which a settlement or award is in operation in respect of any of the matter covered by the settlement or award.

Procedure for layoff :

Whenever a workman whose name is born on muster roll of an industrial establishment & who has completed not less than 1 year of continues service is laid off whether continuously or intermittently he shall be paid for all days during which he is laid off except for such weekly holidays, compassion which shall be equal to 50 % of total basic wages & D A that would have been payable to him had he not been laid off.


Retrenchment means the termination by the employer of the service of workmen for any reason whatsoever, otherwise than as a punishment inflicted by was of disciplinary action but does not include. :

1. Voluntary retirement
2. Retirement on reaching the age of superannuation.
3. Termination of service of workmen as a result of non renewal of the contract.
4. Termination of service of a workmen on the ground of continued ill-health.

Procedure for Retrenchment :

No workman employed in any industrial establishment who has work continuously for not less than 1 year shall be retrenched until the workman has given three months notice indicating reasons for retrenchment. On the principle of last man should go first & after obtaining prior permission of appropriate government.


For illegal strike - Imprisonment upto 01 month & fine upto Rs 1000/- or both
For Illegal Lockout - Imprisonment upto 01 month & fine upto Rs 1000/- or both.
Lay off/ Retrenchment- Without prior permission/ notice - Imprisonment upto 01
month or fine of Rs. 1000/- or both.