Industrial Disputes Act, 1947


Provisions for investigation and settlement of industrial disputes and for certain other purposes.

Important Clarlfications

  • Industry - has attained wider meaning than defined except for domestic employmant, covers from barber shops to big steel companies. [Sec.2(j)]
  • Works Committee - joint Committee with equal number of employers and employees' representatives for discussion of certain common problems. [Sec.3]
  • Concillation - is an attempt by a third party in helping to settle the disputes. [Sec.4]
  • Adjudication - Labour Court, Industrial Tribunal or National Tribunal to hear and decide the dispute. [Sec. 7, 7A & 7B]

Notice of Change

21 days by an employer to workmen about changing the conditions of service as provided in IVth Schedule. [Sec. 9A]

Power of Labour Court

Labour Court/Industrial Tribunal can modify the punishment of dismissal or discharge of workmen and give appropriate relief including reinstatement. [Sec.11A]

Right Of A Workman

During Pendency of Proceedings in High Court, Employer to pay last drawn wages to reinstated workman when proceedings challenging the award of his reinstatement are pending in the higher Courts. [Sec. 17B]

Period Of Operation Of Settlements And Awards

  • A settelement for a period as agreed by the parties, or a period of six months on signing of settlement.
  • An award for one year after its enforcement. [Sec.19]

Prohibition Of Unfair Labour Practice

As stipulated in the Vth schedule, both the employer and the Union can be punished on resorting to unfair labour practices. [Sec 25-T]

Condition For Laying Off

Failure, refusal or inability of an employer to provide work due to

  • - Shortage of coal, power or raw materiel.
  • - Accumulation of stocks.
  • - Breakdown of machinery.
  • - Natural calamity.    [Sec.2(kkk)]

Prior Permission For Lay Off

When there are more than 100 workmen during preceding 12 months.    [Sec.25-M]

Lay Off Compensation

Payment of wagen except foriIntervening weekly holiday compenaation 50% of total or basic wages and DA for a period of lay off upto maximum 45 days in a year.    [Sec.25-C]

Retrenchment of Workmen Compensation & Conditions

  • Workman must have worked for 240 days.
  • Retrenchment compenaation @ 15 days' wages for every completed year to be calculated at last drawn wages
  • One month's notice or wages in lieu thereof.
  • Reasons for retrenchment
  • Complying with principle of 'last come first go'.
  • Sending Form P to Labour Authorities
  • Prior Permission by the Government for Retrenchment to be taken:
    When there are more than 100(in UP 300 or more) workmen during preceding 12 months.
  • Three months' notice or wages thereto to be given to the workmen.
  • Form QA to be submitted.    [Sec.25-N]


  • Conditions of service etc. to remain unchanged under certain circumstances during pendency of proceedings
  • Employer not to alter to the prejudice of workmen concerned the condition of service.
  • To seek expressed permission of the concerned authority by paying one month's wages on dismissal, dicharge or punish a protected workmen connected with the dispute.
  • To seek approval of the authority by paying one month's wages before altering condition of service, desmissing or discharging or punishing a workman.    [Sec.33]

Closure Of The Undertaking

  • 60 days' notice to the labour authorities for intended closure in Form QA.    [Sec.25FFA]
  • Prior permission at least 90 days before in Form O by the Government when there are 100 or more workmen during preceding 12 months (in UP 300 or more workmen)    [Sec.25-O]

Prohibition of Strikes and Lock Outs

  • Without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking.
  • Within fourteen days of giving such notice.
  • Before the expiry of the date of strike specified in any such notice as aforesaid.
  • During the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.
  • During the pendency of proceedings before a Labour Court, Tribunal or Nationl Tribunal and two months, after the conclusion of such proceedings.
  • During the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such proceedings, where a notification has been issued under sub-section(3A) of section 10A.
  • During any period in which a settlement or award is in operation, in respect of any of the matters covers covered by the settlement or award.    [Sec.22 & 23]

Penal Provision

  • Committing unfair labour practices: Imprisonment upto 6 months or with fine upto Rs. 3,000. [25(u)]
  • Illegal strike and lock-outs: Imprisonment upto one month or with fine upto Rs. 50 (Rs. 1000 for lock-out) or with both. [26]
  • Instigation etc. for illegal strike or lock-outs: Imprisonment upto 6 months or with fine upto Rs. 1,000 [27]
  • Giving finencial aid to illegal strikes and lock-outs : Imprisonment upto 6 months or with fine upto Rs. 1,000 [28]
  • Breach of settlement or award: Imprisonment upto 6 months or with fine. On continuity of offence fine upto Rs. 200 per day. [29]
  • Disclosing confidential information pertaining to Sec.21: Imprisonment upto 6 months or with fine upto Rs. 1,000 [30]
  • Closure without 60 days' notice under Sec.25FFA: Imprisonment upto 6 months or with fine upto Rs. 5,000 [31 A]
  • Contravention of Sec.33 pertaining to charge of conditions of service during pendency of dispute etc.: Imprisonment upto 6 months or fine upto Rs. 1,000. [31]