Page 206 - DMGT306_MERCANTILE_LAWS_II

Unit 10: Industrial Disputes Act, 1947

pendency of any conciliation proceedings before a conciliation office and seven days after the Notes
conclusion of such proceedings. In non-public utility services strikes and lock out are prohibited
during the pendency of conciliation proceedings before the Board of Conciliation and seven
days after the conclusion of such proceedings, during the pendency of proceedings before an
arbitrator, labour court, and Industrial Tribunal and National Tribunal, during the operation of
an award and settlement in respect of matters covered by the settlement or award. (Sections 22
and 23)
4. Prohibition of Unfair Labour Practices: Sec. 25 T and 25 U prohibit employers, employees and
unions from committing unfair labour practices mentioned in the Schedule V of the Act.
Commission of such an offence is punishable with imprisonment up to six months and fine up
to 1000, or both. (Ch. V -C)

5. Requiring employers to obtain prior permission of the authorities concerned before which
disputes are pending for conciliation, arbitration and adjudication, for changing working and
employment conditions, or for dismissal or discharging employees and their union leaders.
(Section 33)
6. Regulation, of lay-off and retrenchment and closure of establishment: Sec. 25 and its
sub-sections require employers to (a) pay lay-off compensation to employees (in establishments
employing 50 or more) for the period that they are laid-off, at the rat of 50% of the salary or
wages which they would have paid otherwise, (b) give one month notice, and three months
notice in case of establishments employing 100 or more persons or pay in lieu of notice, and also
pay compensation at the rate of 15 days wages for every completed year of service for
retrenchment and closing establishments (c) Retrench employees on the basis of first come last
go, and (d) obtain permission from the Government for retrenchment and laying off employees
and closing, of establishments employing 100 or more persons.

Penalties

1. Penalty for Illegal Strikes

Any workman, who commences, continues or otherwise acts in furtherance of a strike which is
illegal under this Act, shall be punishable with imprisonment for a term which may extend to
one month, or with fine which may extend to fifty rupees or with both. [Section 26(1)]
In the case of Vijay Kumar Oil Mills v. Their Workmen, it was held that the act of a workman to
participate in an illegal strike gives the employer certain rights against the workman, which are
not the creation of the Statute but are based on policy, and the employer has every right to waive
such rights. In a dispute before the Tribunal, waiver can be a valid defence by the workman.
However, waiver by the employer cannot be a defence against prosecution under Section 26 and
something which is illegal by Statute cannot be made legal by waiver (Punjab National Bank v.
their Workmen).

2. Penalty for Illegal Lock-outs

Any employer, who commences, continues, or otherwise, acts in furtherance of a lock-out which
is illegal under this Act, shall be punishable with imprisonment for a term which may extend to
one month, or with fine which may extend to one thousand rupees, or with both. [Section 26(2)]

3. Penalty for Instigation etc.

Any person who instigates or incites others to take part in, or otherwise acts in furtherance of, a
strike or lock-out which is illegal under this Act, shall be punishable with imprisonment for a

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