Page 162 - DMGT516_LABOUR_LEGISLATIONS

Unit 7: Dispute Resolution and Industrial Harmony

7.3 Prevention of Industrial Disputes Notes

The Act not only provides machinery for investigation and settlement organization disputes,
but also some measures for the containment and prevention of conflicts and disputes. Important
preventive measures provided under the Act are:
1. Setting up of Works committees in establishments employing 100 or more persons with
equal number of representatives of workers and management for endeavouring to compose
any differences of opinion in matters of common interest, and thereby promote measure
for securing and preserving amity and cordial relations between the employer and
workmen. The representatives of workmen will not be less than the representatives of
employers and such representatives of workmen will be from among the workmen engaged
in the establishment and in consultation with registered trade unions. The decision of the
works committee carries weight but is not conclusive and binding; its duties is to smooth
away friction then to alter conditions of services, etc. (section 3).
2. Prohibition of changes in the conditions of service in respect of matters laid down in the
Fourth Schedule of the A (Appendix-I) (a) without giving notice to the workmen affected
by such changes; and (b) within 21 days of giving such notice. No such prior notice is
required in case of, (a) changes affected as a result of any award or settlement; (b) Employees
governed by Government rules and regulations (Sec. 9A).
3. Prohibition of strikes and lock-outs in a public utility service (a) without giving notice to
other party within six weeks before striking or locking out, (b) within 14 days of giving
such notice, (c) before the expiry of the date of strike or lock-out specified in the notice and
during the pendency of any conciliation proceedings before a conciliation office and
seven days after the 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 (Appendix-II). Commission of such an offence is punishable with imprisonment up to
six months and fine up to 1,000, or both. (ch.V-C).
5. Requiring employers to obtain prior permission of the authorities concerned before whom
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-
section 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 rate 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
laying off employees and closing of establishments employing 100 or more persons
(Ch. VA, VB).

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