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Industrial Disputes in India

Introduction​

Industrial disputes play a significant role in the Indian labor landscape. This guide provides an overview of key aspects of industrial disputes under Indian law, focusing on the Industrial Disputes Act, 1947.

Key Sections of the Industrial Disputes Act, 1947​

Section 2A: Definition of 'Industrial Dispute'​

Section 2A defines an industrial dispute as any dispute which relates to:

  1. Any matter specified in Schedule X
  2. Any other matter specified in Schedule II

Schedule X includes disputes related to wages, hours of work, leave, etc.

Schedule II covers disputes arising out of the interpretation or application of standing orders.

Section 25-N: Lay-off, Retrenchment, and Closure​

Section 25-N deals with lay-off, retrenchment, and closure of industrial establishments.

  • Lay-off: Temporary stoppage of work due to supervening circumstances beyond the control of the employer.
  • Retrenchment: Discharge of permanent employees for reasons other than lack of work.
  • Closure: Permanent closing down of an undertaking.

These provisions are subject to certain conditions and prior approval requirements.

Case Studies and Illustrations​

Case Study 1: Tata Iron & Steel Co. Ltd. vs. State of Bihar (1971)​

In this landmark case, the Supreme Court held that:

  • The power to lay off workers cannot be exercised arbitrarily.
  • The employer must follow the procedure prescribed under Section 25-N.
  • The employer must pay compensation to affected workers during the period of lay-off.

Legal Section: Section 25-N of the Industrial Disputes Act, 1947

Case Study 2: Indian Airlines vs. Their Workmen (1981)​

This case established that:

  • The concept of 'retrenchment' does not apply to temporary or casual workers.
  • The employer must provide reasonable notice before effecting retrenchment.
  • Compensation must be paid according to the Industrial Disputes Act, 1947.

Legal Sections: Sections 25-F and 25-G of the Industrial Disputes Act, 1947

Conclusion​

Understanding industrial disputes is crucial for law students and practicing lawyers. This guide has provided an overview of key legal provisions and relevant case studies. Students studying LLB should note that practical knowledge of labor laws is essential in today's legal landscape.

Additional Resources​