Object of the Act

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


Important Definition

Industry – has attained wider meaning than defined except for domestic employment, covers from shops with nominal employees to big industrial units.

Workman – Includes almost all category of employees, except person doing

Managerial and Administrative work, and also Supervisors earning wages more than Rs.10,000/- p.m.


Machinery to deal with Disputes

Works Committee–Joint Committee with equal number of employers and employees’ representatives for discussion of certain common problems.

Conciliation–is an attempt by Govt. Official in helping to settle the disputes.

Adjudication – Labour Court, Industrial Tribunal or National Tribunal to hear and decide the dispute.


Persons Bound by Settlement

• When in the course of conciliation proceedings etc., all persons working or joining subsequently.

• Otherwise than in course of conciliation, upon the parties to the settlement.


Period of Operation of Settlements and Awards

• A settlement for a period as agreed by the parties, or

• Period of six months on signing of settlement.

• An award for one year after its enforcement.


Conditions for Laying off

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

• Shortage of coal, power or raw material.

• Accumulation of stocks.

• Breakdown of machinery.

• Natural calamity.


Lay off Compensation

Payment of wages except for intervening weekly holiday compensation 50% of total or basic wages and DA for a period of lay off upto maximum 45 days in a year.


Notice of Change

21 days notice to be given by an employer to workmen about changing the conditions of service as provided in IVth Schedule.


Prohibition of strikes & lock out

• 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 conciliation proceedings before a Board and seven days after the conclusion of such proceedings.

• During the pendency of proceedings before a Labour Court, Tribunal or National

• 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 covered by the settlement or award.


Prior Permission from the Govt.

When there are more than 100 workmen (in UP 300 or more) during proceeding 12 months, prior permission to be obtained by the Employer for Lay Off, Retrenchment or Closure.


Retrenchment of Workmen Compensation & Conditions

No employees who has worked for 240 days in a year shall not be retrenched unless paid/given:

• Retrenchment compensation @ 15 days’ wages for every completed year of service.

• Given One month’s notice or wages in lieu thereof.

• Reasons for retrenchment

• Complying with principle of ‘last come first go’.


Notice for Closure of an Undertaking

• 60 days’ notice to the authorities for intended closure in prescribed form, when there are minimum 50 workers and less than 100 workers.

• To apply for Prior permission from Govt. atleast 90 days before the intended closure, when there are 100 or more workmen during preceding 12 months (in UP 300 or more workmen)


Penal Provision

• For breach of provisions of the Act, the employer shall be punishable with imprisonment upto 6 months and/or fine not exceeding Rs.5,000/-.

• On continuity of offence fine upto Rs.200/- per day.