THE INDUSTRIAL DISPUTES ACT, 1947

DEFINITIONSINDUSTRY:Old definition:- industry means any business, trade, undertaking, manufacture or calling of employees and includes any calling, service, employment, handicraft, or industrial occupation, or avocation of workmen.Bangalore water supply v. A.Rajappa, A.I.R., [1949]F.C.111. Any systematic activity organised or arranged in a manner in which trade or business is generally organised or arranged will be industry.

Industrial Dispute:- [Sec.2(k)] means any dispute or difference between employers and employers, employers and workmen or workmen and workmen which is connected with the employment or non employment or terms of employment or the conditions of labour of any person.

LAY-OFF:- [sec.2(kkk)] means the failure, refusal or inability of an employer to give employment to a workman due to - Shortage of coal, power or raw material.Accumulation of stocksBreak down of machineryNatural calamity or other connected reasons

LOCK-OUT:- [sec.2(l)] means temporary closing or suspension of work or the refusal by an employer to continue to employ any number of workman.PUBLIC UTILITY SERVICE:- [sec.2(n)]RETRENCHMENT:- [sec.2(oo)] means termination of service of a workman for any reason other than as punishment by way of disciplinary action.

STRIKE:- [sec.2(q)] means cessation of work by persons employed in any industry acting in combination or concerted refusal to continue to work or accept employment or refusal to continue to work or to accept employment under a common understanding.

UNFAIR LABOUR PRACTICE:-[sec.2(ra)]On the part of employersOn the part of workmen and T.Us

WORKMAN [sec.2(s)] 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 and includes in relation to an industrial dispute any person who has been dismissed discharged or retrenched in connection with or as a consequence of that dispute or whose dismissal, discharged or retrenchment led to that dispute.

CONCILIATION MACHINERYWORKS COMMITTEES [Sec.3]CONCILIATION OFFICERS [Sec.4]Duties of C.Os.To hold conciliation proceedings To investigate the dispute To send a report and a memorandum of settlement to Govt.To send full report in case of no settlement

BOARD OF CONCILIATION [Sec.5]Duties:To bring about a settlement To send a report and memorandum To send a full report in case of no settlementTo communicate reasons to the parties if no further reference madeTo submit report within two months

COURT OF ENQUIRY [Sec.6]

ADJUDICATION MACHINERY Labour Courts [sec.7]:Matters within the jurisdiction of labour courts.(The Second Schedule).Duties to adjudicate and give award.Powers to enter premises and to have powers of civil court.

Industrial Tribunals [sec.7-A]Matters within the jurisdiction.Reference of disputes.Prohibition of strike or lock out.DutiesPowers to enter premises and to have the powers of civil court.Power to appoint assessorsPower to avoid costs

National Tribunal [sec.7-B]Appointment and constitutionReference of dispute Jurisdiction of Labour Court and Industrial Tribunal to cease on a reference made to National TribunalJurisdiction Awardpowers

CONDITIONS OF SERVICEMeans terms of employment governed by Contract between the employer and employee.The statute lawThe decisions of the courtThe standing ordersCustom and usages of trade

Notice of change to be given for items covered in the Fourth Schedule.Wages, the period and mode of paymentContribution to PF or pension fundCompensatory and other allowancesHours of work and rest intervalsLeave with wages and holidaysIntroduction of new rules or alteration of existing rulesWithdrawal of any concession or privilege etc.

AWARD AND SETTLEMENTForm of report or award [sec.16]Publication of reports and awards[sec.17]Commencement of award[sec.17-A]Payment of full wages pending proceedings[sec.17-B]Persons on whom settlements and awards or binding[sec.18]Period of operation and awards[sec.19]Penalty for breach of settlement or award[sec. 29]

STRIKES AND LOCK-OUTS [Secs.22 to 25]Prohibition of strikes and lock-outsStrike in a public utility serviceLock-out in a public utility serviceNotice of lock-out or strike not necessary in a certain casesIntimation of notices of strike or lock-out to be given within five daysStrike and lock-out in an industrial establishment.Illegal strikes and lock-outs

LAY-OFFRight of work men laid-off for compensation [sec.25-C]Duty of an employer to maintain muster rules[sec.25-D]Workmen not entitled to compensation in certain cases[sec.25-E]

RETRENCHMENTCondition precedent to retrenchment of workmen [sec.25-F]Procedure for retrenchment [sec.25-G]Re-employment of retrenched workmen [25-H]

TRANSFER AND CLOSING DOWNCompensation to workmen in case of transfer of undertakings [sec.25-FF]Sixty notice to be given to close down any undertaking [sec.25-FFA]Compensation to workmen in case of closing down [sec.25-FFF]

PROHIBITION OF LAY-OFFS [sec.25-M]Lay-off to be with permission from appropriate government or specified authorityApplication by the employer for permissionApplication for permission to continue lay-off in a mineOrder granting or refusing permission for lay-off to be communicated to employer and workmenPresumption of permission if no order communicated within sixty days

Order binding on all parties for one yearReview of orderLay-off illegal in certain casesExemptionNo lay-off if alternative employment is offeredPenalty for illegal lay-off

CONDITIONS PRECEDENT TO RETRENCHMENTThree months notice or prior permission of appropriate governmentApplication to be made for permissionOrder to be communicated to employer and workmenPresumption of permission Order binding on all parties for one yearReview of order

Consequences of illegal retrenchmentExemptionCompensation- fifteen days wages for every completed year of servicePenalty for illegal retrenchment

PROCEDURE FOR CLOSING DOWNApplication to be made at least 90 days before the intended date of closureOrder to be communicated to employer and workmenPresumption of permissionOrder binding on all parties for one yearReview of orderConsequences of illegal closure

THE PAYMENT OF BONUS ACT 1965

OBJECT OF THE ACTHutti Gold Mines Kamgar Sangh v. Govt. of India, (1973) 1 L.L.J.46 (A.P)Associated Cement Cos.Ltd (Dwarka & Bombay) V.Their Workmen, (1956) S.C.967To maintain peace and harmony between labour and capital by allowing the employee, the recognition of their right, to share in the prosperity of the establishment.To impose statutory liability of an employer of every establishment covered by the Act.

APPLICATION OF THE ACTThe Act applies to every factory as defined in sec.2(m) of the Factories Act 1948.To every other establishment in which 20 or more persons are employed on any day during the accounting year.Minimum bonus of 8.33% of the wages or salary (upto Rs.3500/- per month). Act not to apply certain categories of employees (sec.32)

DEFINITIONSAllocable surplus :- 67% or 60%, as the case may be, of available surplus.Available surplus:- the available surplus in respect of any accounting year is the gross profit for that year after deducting therefrom the sums referred to in sec 6.Employee means any person other than an apprentice drawing a salary or wage not exceeding RS10,000 per month.

DETERMINATION OF BONUSComputation of gross profits.(sec 4).Gross profits of a banking company to be determined as per the first schedule.Computation of gross profits of non-banking establishments to be done as specified in second schedule.Prior charges to be deducted from gross profits as per third schedule.

Set on and Set off of allocable surplus. The manor of setting on and setting off of allocable surplus is illustrated in the fourth schedule.Bonus shall be payable only in respect of accounting year in which the employer derives profit from such establishment, during the first five accounting years.6th and 7th accounting years.From the 8th accounting year.

Thank you

Lab Test-IIIPart A. (each question 5 marks)Write short notes on effects of registration.Explain Doctrine of ultra vires.Explain Doctrine of indoor management with a suitable case law.Part B. (10 Marks)Discuss the circumstances in which the corporate veil will be lifted by Courts.