Important Facts Related to the Industrial Disputes Act, 1947 for Conciliation Officer

1. What Is an Industrial Dispute?

According to the Industrial Disputes Act, 1947, an “industrial dispute” means any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen that is connected with the employment or non-employment, the terms of employment, or the conditions of labour of any person. In other words, an "industrial dispute" refers to any disagreement or conflict that arises in an industry or workplace. Such disputes may occur between:

1. Employers and Employers: When two or more companies or management units disagree on an industrial or commercial issue (for example, when one management unit wishes to provide a bonus to the workers, but another management unit disagrees on the matter).

2. Employer and Workman: When an employee or a group of employees has a disagreement with their employer regarding an employment-related issue.

3. Workman and Workman: When different groups or individuals of employees have conflicts regarding work conditions, wages, facilities, etc.

This dispute could relate to:

• Employment: Disagreements about granting employment or dismissal from job.

• Non-employment: Issues arising if a person is unjustly removed from work or is not appointed according to provision of Satnding Order.

• Terms of Appointment: Disputes involving wages, working hours, holidays, bonuses, promotions, etc.

• Conditions of Labour: Disputes regarding working conditions, safety, health facilities, discipline, workload, and so on.

2. Who Can Raise an Industrial Dispute?

Any workman employed in an industry can raise an industrial dispute. Here, a "workman" is defined as a person who performs manual work, unskilled or skilled work, technical work, operational work, clerical work, or supervisory work on regular wages or salary in an industry.

• If the appointment is made in writing (via an appointment letter) or on the basis of an oral agreement, the person is considered a workman.

• If a person has been involved in an industrial dispute and is subsequently dismissed, discharged, or retrenched, that person will also be classified as a workman.

• However, personnel of the armed forces (under the Air Force Act, 1950; the Army Act, 1950; the Navy Act, 1957), police and prison department employees, persons employed in chiefly managerial or administrative roles, and supervisors receiving wages above ₹10,000 are not included within the definition of a workman.

3. How Can an Industrial Dispute Be Raised?

• For disputes related to retrenchment, dismissal, termination, or discharged: A workman may directly approach the Conciliation Officer.

• For other matters: The dispute must be raised by the trade union or the management. It is important to note that before a dispute is presented to the Conciliation Officer, the workman must first bring the issue to the notice of the employer.

4. What Types of Industrial Disputes Exist?

The Second Schedule of the Industrial Disputes Act, 1947, covers those matters that fall under the jurisdiction of the labour courts and are termed as “disputes of rights.” These include issues such as:

• The legality or justification of an order passed by the employer.

• The application and interpretation of permanent orders that dictate the terms of service.

• The dismissal or discharge of workmen, including reinstatement or relief for those wrongfully terminated.

• The withdrawal of any customary concession or privilege.

• The legality of strikes or lockouts.

• Any matter not specified in the Third Schedule.

The Third Schedule covers disputes falling under the industrial tribunals’ jurisdiction, which are classified as “disputes of interest,” for example:

• Wages (including the period and method of payment).

• Allowances and other monetary benefits.

• Working hours and rest intervals.

• Leaves and holidays (including those with wage implications).

• Bonus, profit-sharing, provident fund, and gratuity.

• Shift work systems as per permanent orders.

• Classification based on grade.

• Disciplinary rules.

• Structural changes.

• Retrenchment of workmen and the closure of an establishment.

• Any other matter that may be specified in the Act.

5. When Is an Individual Dispute Considered an Industrial Dispute?

If an employer dismisses, discharges, retrenches, or terminates a workman’s service in any manner, any personal dispute arising between that workman and the employer is also considered an industrial dispute—even if it does not involve any other workman or a trade union. Should a workman wish to challenge such a dismissal, he or she must first present the matter to the Conciliation Officer. If no resolution is achieved within 45 days by the Conciliation Officer, the workman may directly apply to the labour court or the industrial tribunal. This application must be made within three years of the date of dismissal.

6. What Are the Duties of the Conciliation Officer?

Under the provisions of the Act, the Conciliation Officer has the following duties:

• Initiation of Conciliation Proceedings: Whenever an industrial dispute exists or is anticipated, the Conciliation Officer can initiate Conciliation proceedings according to the prescribed procedure. In cases where the dispute pertains to public utility services and a notice has been issued under Section 22, the Officer is required to conduct conciliation mandatorily.

• Investigation and Resolution: The Officer must immediately investigate the dispute and examine all relevant facts and circumstances to facilitate an equitable resolution. All appropriate steps should be taken to guide both parties toward a just and amicable settlement.

• Documentation of Resolutions: Should any settlement (in full or in part) occur during the conciliation proceedings, the Officer is required to prepare a memorandum of the resolution, duly signed by both parties, and to forward a report of the settlement to the concerned government authority.

• Reporting Failure to Settle: If no resolution is reached during the conciliation proceedings, the Conciliation Officer must, following a complete investigation, submit a detailed report to the government. This report should include all steps taken to ascertain the facts and circumstances of the dispute and the reasons the resolution could not be achieved.

• Referring the Dispute: If, based on the detailed report, the government deems the matter suitable for referral to a board, Labour Court, Industrial Tribunal, or National Tribunal, it may do so. If the government decides not to refer the dispute, it must record the reasons for its decision and notify the parties involved.

• Timely Submission: The report must be submitted within 14 days from the commencement of the conciliation proceedings (or within a shorter period if specified by the government). With the written consent of all involved parties, the reporting period may be extended with the approval of the Conciliation Officer.

7. What Powers Does the Conciliation Officer Possess?

The Conciliation Officer is empowered with the following authorities:

• Discretionary Procedures: Like any other authority (such as an arbitrator, board, or court) under the Industrial Disputes Act, the Conciliation Officer may choose any procedure he or she deems appropriate for investigating, hearing, or resolving the dispute.

• Access to Establishments: If there is an existing or potential industrial dispute, the Officer has the right to enter any establishment related to the dispute. This is subject to providing reasonable notice before entering the premises where the dispute has arisen or is likely to arise.

• Civil Court-Like Powers: The Conciliation Officer has powers similar to those of a civil court. Specifically, the Officer may ensure the presence of any person deemed necessary for examination and, if required, may compel that person to give an oath.

• Inspection of Documents: The Officer may demand and inspect any relevant documents or materials that are related to the dispute or necessary for verifying the implementation of an award.

8. What Should the Conciliation Officer Keep in Mind Before Sending a Report to the Government Under Section 12(4) of the Act?

Before sending the report under Section 12(4) of the Industrial Disputes Act, 1947, the Conciliation Officer must consider the following:

• The report should include a copy of the dispute raised by the workman/trade union, along with all necessary documents provided during the conciliation proceedings (e.g., Appointment Letter, Termination Letter, etc.).

• Copies of the conciliation proceedings conducted on various dates must be attached.

• The complete name and address of the management must be clearly specified in the report.

• The names of the workman, his/her designation, and the name of the company/employer should be clearly mentioned.

• The report should clearly state the opinions of the workman/trade union, the management, and the Conciliation Officer. It should also include the reasons for the failure to reach a settlement during conciliation.

• The "points of  adjudication" must be clearly identified.

• The report should state in which labour court the matter should be referred to for adjudication.

• It should mention who will represent the workman in the labour court, together with the representative’s complete name, address, and designation.

• At the initiation of the conciliation proceedings, it must be confirmed whether the workman falls under the definition provided in Section 2(s) of the Act.

• If more than one workman is involved in the dispute, the "points of determination" should list the names of all workmen along with their designations, and a list of these workmen should be attached to the report.

— Dr. Ganesh Kumar Jha (Assistant Labour Commissioner)