THE INDUSTRIAL DISPUTES ACT, 1947

18. PERSONS ON WHOM SETTLEMENTS AND AWARDS ARE BINDING
(1) A settlement arrived at by agreement between the employer and workman otherwise
than in the course of conciliation proceeding shall be binding on the parties to the
agreement.
(2) Subject to the provisions of sub-section (3), an arbitration award which has become
enforceable shall be binding on the parties to the agreement who referred the dispute
to arbitration.
(3) A settlement arrived at in the course of conciliation proceedings under this Act or an
arbitration award in a case where a notification has been issued under sub-section (3A)
of section 10A or an award of a Labour Court, Tribunal or National Tribunal which has
become enforceable shall be binding on:
(a) all parties to the industrial dispute;
(b) all other parties summoned to appear in the proceedings as parties to the dispute,
unless the Board, arbitrator Labour Court, Tribunal or National Tribunal, as the case
may be, records the opinion that they were so summoned without proper cause;
(c) where a party referred to in clause (a) or clause (b) is an employer, his heirs,
successors or assigns in respect of the establishment to which the dispute relates;
(d) where a party referred to in clause (a) or clause (b) is composed of workmen, all
persons who were employed in the establishment or part of the establishment, as
the case may be, to which the dispute relates on the date of the dispute and all
persons who subsequently become employed in that establishment or part.
COMMENTS
Settlements are divided into two categories, namely. (i) those arrived at outside the conciliation
proceedings; and (ii) those arrived at in the course of conciliation proceedings. A settlement
arrived at in the course of conciliation proceedings with a recognised majority union will be
binding on all workmen of the establishment irrespective of any objection; All India Textile
Janta Union v. The Labour Commissioner, 1994 LLR 203 (P&H) (DB).
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19. PERIOD OF OPERATION OF SETTLEMENTS AND AWARDS
(1) A settlement shall come into operation on such date as is agreed upon by the parties
to the dispute, and if no date is agreed upon, on the date on which the memorandum
of the settlement is signed by the parties to the dispute.
(2) Such settlement shall be binding for such period as is agreed upon by the parties, and
if no such period is agreed upon, for a period of six months from the date on which the
memorandum of settlement is signed by the parties to the dispute, and shall continue
to be binding on the parties after the expiry of the period aforesaid, until the expiry of
two months from the date on which a notice in writing of an intention to terminate the
settlement is given by one of the parties to the other party or parties to the settlement.
(3) An award shall, subject to the provisions of this section, remain in operation for a
period of one year from the date on which the award becomes enforceable under section
17A:
Provided that the appropriate Government may reduce the said period and fix such
period as it thinks fit:
Provided further that the appropriate Government may, before the expiry of the said
period, extend the period of operation by any period not exceeding one year at a time
as it thinks fit so, however, that the total period of operation of any award does not
exceed three years from the date on which it came into operation.
(4) Where the appropriate Government, whether of its own motion or on the application
of any party bound by the award, considers that since the award was made, there has
been a material change in the circumstances on which it was based, the appropriate
Government may refer the award or a part of it to a Labour Court, if the award was that
of a Labour Court or to a Tribunal, if the award was that of a Tribunal or of a National
Tribunal, for decision whether the period of operation should not, by reason of such
change, be shortened and the decision of Labour Court or the Tribunal, as the case may
be on such reference shall, be final.
(5) Nothing contained in sub-section (3) shall apply to any award which by its nature,
terms or other circumstances does not impose, after it has been given effect to, any
continuing obligation on the parties bound by the award.
(6) Notwithstanding the expiry of the period of operation under sub-section (3), the award
shall continue to be binding on the parties until a period of two months has elapsed
from the date on which notice is given by any party bound by the award to the other
party or parties intimating its intention to terminate the award.
(7) No notice given under sub-section (2) or sub-section (6) shall have effect, unless it is
given by a party representing the majority of persons bound by the settlement or award,
as the case may be.
20. COMMENCEMENT AND CONCLUSION OF PROCEEDINGS
(1) A conciliation proceeding shall be deemed to have commenced on the date on which




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a notice of strike or lock-out under section 22 is received by the conciliation officer or
on the date of the order referring the dispute to a Board, as the case may be.
(2) A conciliation proceeding shall be deemed to have concluded :
(a) where a settlement is arrived at, when a memorandum of the settlement is signed
by the parties to the dispute;
(b) where no settlement is arrived at, when the report of the conciliation officer is
received by the appropriate Government or when the report of the Board is published
under section 17, as the case may be; or
(c) when a reference is made to a court, Labour Court, Tribunal or National Tribunal
under section 10 during the pendency of conciliation proceedings.
(3) Proceedings before an arbitrator under section 10A or before a Labour Court, Tribunal
or National Tribunal shall be deemed to have commenced on the date of the reference
of the dispute for arbitration or adjudication, as the case may be and such proceedings
shall be deemed to have concluded on the date on which the award becomes enforceable
under section 17A.
21. CERTAIN MATTERS TO BE KEPT CONFIDENTIAL
There shall not be included in any report or award under this Act, any information obtained
by a conciliation officer, Board, Court, Labour Court, Tribunal, National Tribunal or an
arbitrator in the course of any investigation or inquiry as to a trade union or as to any
individual business (whether carried on by a person, firm or company) which is not available
otherwise than through the evidence given before such officer, Board, Court, Labour Court,
Tribunal, National Tribunal or arbitrator, if the trade union, person, firm or company, in
question has made a request in writing to the conciliation officer, Board, Court Labour
Court, Tribunal, National Tribunal or arbitrator, as the case may be, that such information
shall be treated as confidential; nor shall such conciliation officer or any individual member
of the Board, or Court or the presiding officer of the Labour Court, Tribunal or National
Tribunal or the arbitrator or any person present at or concerned in the proceedings disclose
any such information without the consent in writing of the secretary of the trade union or
the person, firm or company in question, as the case may be:
Provided that nothing contained in this section shall apply to a disclosure of any such
information for the purposes of a prosecution under section 193 of the Indian Penal Code
(45 of 1860).
STRIKES AND LOCK-OUTS
22. PROHIBITION OF STRIKES AND LOCK-OUTS
(1) No person employed in a public utility service shall go on strike, in breach of contract:
(a) without giving to the employer notice of strike, as hereinafter provided, within six
weeks before striking; or
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(b) within fourteen days of giving such notice ; or
(c) before the expiry of the date of strike specified in any such notice as
aforesaid; or
(d) during the pendency of any conciliation proceedings before a conciliation officer
and seven days after the conclusion of such proceedings.
(2) No employer carrying on any public utility service shall lock-out any of his workman:
(a) without giving them notice of lock-out as hereinafter provided, within six weeks
before locking-out; or
(b) within fourteen days of giving such notice; or
(c) before the expiry of the date of lock-out specified in any such notice as aforesaid;
or
(d) during the pendency of any conciliation proceedings before a conciliation officer
and seven days after the conclusion of such proceedings.
(3) The notice of lock-out or strike under this section shall not be necessary where there is
already in existence a strike or, as the case may be, lock-out in the public utility service,
but the employer shall send intimation of such lock-out or strike on the day on which
it is declared, to such Authority as may be specified by the appropriate Government
either generally or for a particular area or for a particular class of public utility services.
(4) The notice of strike referred to in sub-section (1) shall be given by such number of
persons to such person or persons and in such manner as may be prescribed.
(5) The notice of lock-out referred to in sub-section (2) shall be given in such manner as
may be prescribed.
(6) If on any day an employer receives from any person employed by him any such notices
as are referred to in sub-section (1) or gives to any persons employed by him any such
notices as are referred to in sub-section (2), he shall within five days, thereof report to
the appropriate Government or to such authority as that Government may prescribe the
number of such notices received or given on that day.
23. GENERAL PROHIBITION OF STRIKES AND LOCK-OUTS
No workman who is employed in any industrial establishment shall go on strike in breach
of contract and no employer of any such workman shall declare a lock-out
(a) during the pendency of conciliation proceedings before a Board and seven days
after the conclusion of such proceedings;
(b) during the pendency of proceedings before a Labour Court, Tribunal or National
Tribunal and two months, after the conclusion of such proceedings;




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(bb)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; or
(c) 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.
24. ILLEGAL STRIKES AND LOCK-OUTS
(1) A strike or a lock-out shall be illegal if—
(i) it is commenced or declared in contravention of section 22 or section 23; or
(ii) it is continued in contravention of an order made under sub-section (3) of section
10 or sub-section (4A) of section 10A.
(2) Where a strike or lock-out in pursuance of an industrial dispute has already commenced
and is in existence at the time of the reference of the dispute to a Board, an arbitrator,
a Labour Court, Tribunal or National Tribunal, the continuance of such strike or lockout
shall not be deemed to be illegal, provided that such strike or lock-out was not at
its commencement in contravention of the provisions of this Act or the continuance
thereof was not prohibited under sub-section (3) of section 10 or sub-section (4A) of
section 10A.
(3) A lock-out declared in consequence of an illegal strike or a strike declared in consequence
of an illegal lock-out shall not be deemed to be illegal.
COMMENTS
This section deals with the permission for closure of undertaking; Union Carbide Karamchari
Sangh v. Union of India, 1993 LLR 481 (MP).
25. PROHIBITION OF FINANCIAL AID TO ILLEGAL STRIKES AND LOCK-OUTS
No person shall knowingly expend or apply any money in direct furtherance or support of
any illegal strike or lock-out.
LAY-OFF AND RETRENCHMENT
25A. APPLICATION OF SECTIONS 25C TO 25E
(1) Sections 25C to 25E inclusive shall not apply to Industrial Establishments to which
Chapter VB applies, or
(a) to industrial establishments in which less than fifty workmen on an average per
working day have been employed in the preceding calendar month; or
(b) to industrial establishments which are of a seasonal character or in which work is
performed only intermittently.
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(2) If a question arises whether an industrial establishment is of a seasonal
character or whether work is performed therein only intermittently, the decision of the
appropriate Government thereon shall be final.
Explanation- In this section and in sections 25C, 25D and 25E, “industrial establishment”
means—
(i) a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948);
or
(ii) a mine as defined in clause (j) of section 2 of the Mines Act, 1952 (35 of 1952); or
(iii) a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951
(69 of 1951).
25B. DEFINITION OF CONTINUOUS SERVICE
For the purposes of this Chapter:
(1) a workman shall be said to be in continuous service for a period if he is, for that period,
in uninterrupted service, including service which may be interrupted on account of
sickness or authorised leave or an accident or as strike which is not illegal, or a lockout
or a cessation of work which is not due to any fault on the part of the workman;
(2) where a workman is not in continuous service within the meaning of clause (1) for a
period of one year or six months, he shall be deemed to be in continuous service under
an employer:
(a) for a period of one year, if the workman, during a period of twelve calendar months
preceding the date with reference to which calculation is to be made, has actually
worked under the employer for not less than
(i) one hundred and ninety days in the case of a workman employed below ground in
a mine; and
(ii) two hundred and forty days, in any other case;
(b) for a period of six months, if the workman, during a period of six calendar months
preceding the date with reference to which calculation is to be made, has actually
worked under the employer for not less than
(i) ninety-five days, in the case of workman employed below ground in a mine; and
(ii) one hundred and twenty days, in any other case.
Explanation- For the purposes of clause (2), the number of days on which a workman has
actually worked under an employer shall include the days on which:
(i) he has been laid-off under an agreement or as permitted by standing orders made
under the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946), or under
the Act or under any other law applicable to the industrial establishment;




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(ii) he has been on leave with full wages, earned in the previous years;
(iii) he has been absent due to temporary disablement caused by accident arising out of
and in the course of his employment; and
(iv) in the case of a female, she has been on maternity leave; so, however, that the total
period of such maternity leave does not exceed twelve weeks.
COMMENTS
(i) A workman is deemed to be in continuous service for a period of one year, if he, during
the period of twelve calendar months preceding the date of termination, has actually
worked under the employer for not less than 240 days; Gram Panchayat v. Sharadkumar
D. Acharya, 1994 LLR 470 (Guj) (DB).
(ii) Only cases not falling under sub-section (1) are covered by sub-section (2) of section
25B; G. Yadi Reddy v. Brook Bond India Ltd., 1994 LLR 328 (AP) (DB).
(iii) In the computation of the period under sub-section (2) of section 25B, Sundays and
holidays should be taken into account; G.Yadi Reddy v. Brook Bond India Ltd., 1994 LLR
328 (AP) (DB).
25C. RIGHT OF WORKMEN LAID-OFF FOR COMPENSATION
Whenever a workman (other than a badli workman or a casual workman) whose name is
borne on the muster rolls of an industrial establishment and who has completed not less
than one year of continuous service under an employer is laid-off, whether continuously or
intermittently, he shall be paid by the employer for all days during which he is so laid-off,
except for such weekly holidays as may intervene, compensation which shall be equal to
fifty per cent, of the total of the basic wages and dearness allowance that would have been
payable to him had he not been so laid-off:
Provided that if during any period of twelve months, a workman is so laid-off for more than
forty-five days, no such compensation shall be payable in respect of any period of the layoff
after the expiry of the first forty-five days, if there is an agreement to that effect between
the workman and the employer:
Provided further that it shall be lawful for the employer in any case falling within the
foregoing proviso to retrench the workman in accordance with the provisions contained in
section 25F at any time after the expiry of the first forty-five days of the lay-off and when
he does so, any compensation paid to the workman for having been laid-off during the
preceding twelve months may be set off against the compensation payable for retrenchment.
Explanation—“ Badli workman” means a workman who is employed in an industrial
establishment in the place of another workman whose name is borne on the muster rolls of
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the establishment, but shall cease to be regarded as such for the purposes of this section, if
he has completed one year of continuous service in the establishment.
25D. DUTY OF AN EMPLOYER TO MAINTAIN MUSTER ROLLS OF WORK
MEN—Notwithstanding that workmen in any industrial establishment have been laid-off,
it shall be the duty of every employer to maintain for the purposes of this Chapter a muster
roll, and to provide for the making of entries therein by workmen who may present themselves
for work at the establishment at the appointed time during normal working hours.
25E. WORKMEN NOT ENTITLED TO COMPENSATION IN CERTAIN CASES
No compensation shall be paid to a workman who has been laid-off :
(i) if he refuses to accept any alternative employment in the same establishment from
which he has been laid-off, or in any other establishment belonging to the same
employer situate in the same town or village or situate within a radius of five miles
from the establishment to which he belongs, if, in the opinion of the employer, such
alternative employment does not call for any special skill or previous experience
and can be done by the workman, provided that the wages which would normally
have been paid to the workman are offered for the alternative employment also;
(ii) if he does not present himself for work at the establishment at the appointed time
during normal working hours at least once a day;
(iii) if such laying-off is due to a strike or slowing-down of production on the part of
workmen in another part of the establishment.
25F. CONDITIONS PRECEDENT TO RETRENCHMENT OF WORKMEN
No workman employed in any industry who has been in continuous service for not less than
one year under an employer shall be retrenched by that employer until—
(a) the workman has been given one month’s notice in writing indicating the reasons
for retrenchment and the period of notice has expired, or the workman has been
paid in lieu of such notice, wages for the period of the notice;
(b) the workman has been paid, at the time of retrenchment, compensation which shall
be equivalent to fifteen days’ average pay for every completed year of continuous
service or any part thereof in excess of six months; and
(c) notice in the prescribed manner is served on the appropriate Government for such
Authority, as may be specified by the appropriate Government, by notification in
the Official Gazette.
COMMENTS
(i) Termination does not amount to retrenchment and therefore provision of section 25F is
not attracted; Life Insurance Corporation of India v. Rajeev Kumar Srivastava, 1994 LLR 573
(All) (DB).




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(ii) The conditions enumerated in section 25F are condition precedent; State of Rajasthan v.
Miss Usha Lokwani, 1994 LLR 369 (Raj).
(iii) The provisions of section 25F are couched in mandatory form, and non-compliance
therewith has the result of rendering the order of retrenchment void ab initio or non-est;
State of Rajasthan v. Miss Usha Lokwani, 1994 LLR 369 (Raj).
(iv) It is well established that the period of cessation of work not due to any fault on the
part of the employee, always gets calculated as a period of continuous service; Kukadi
Irrigation Project v. Waman, 1994 LLR 381 (Bom).
25FF. COMPENSATION TO WORKMEN IN CASE OF TRANSFER OF UNDERTAKINGS
Where the ownership of management of an undertaking is transferred, whether by agreement
or by operation of law, from the employer in relation to or that undertaking to a new
employer, every workman who has been in continuous service for not less than one year in
that undertaking immediately before such transfer shall be entitled to notice and compensation
in accordance with the provisions of section 25F, as if the workman had been retrenched :
Provided that nothing in this section shall apply to a workman in any case where there has
been a change of employers by reason of the transfer, if—
(a) The service of the workman has not been interrupted by such transfer;
(b) The terms and conditions of service applicable to the workman after such transfer are
not in any way less favourable to the workman than those applicable to him immediately
before the transfer; and section 2,
(i) In relation to any company in which not less than fifty-one per cent. of the paidup
share capital is held by the Central Government, or
(ii) In relation to any corporation not being a corporation referred to in sub-clause (i)
of clause (a) of section 2 established by or under any law made by Parliament, the
Central Government shall be the appropriate Government.
25M. PROHIBITION OF LAY-OFF
(1) No workman (other than a badli workman or a casual workman) whose name is borne
on the muster rolls of an industrial establishment to which this Chapter applies shall
be laid-off by his employer except with the prior permission of the appropriate
Government or such authority as may be specified by that Government by notification
in the Official Gazette (hereafter in this section referred to as the specified authority),
obtained on an application made in this behalf, unless such lay-off is due to shortage
of power or to natural calamity, and in the case of a mine, such lay-off is due also to
fire, flood, excess of inflammable gas or explosion.
(2) An application for permission under sub-section (1) shall be made by the employer in
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the prescribed manner stating clearly the reasons for the intended lay-off and a copy of
such application shall also be served simultaneously on the workmen concerned in the
prescribed manner.
(3) Where the workmen (other than badli workmen or casual workmen) of an industrial
establishment, being a mine, have been laid-off under sub-section (1) for reasons of fire,
flood or excess of inflammable gas or explosion, the employer, in relation to such
establishment, shall, within a period of thirty days from the date of commencement of
such lay-off, apply, in the prescribed manner, to the appropriate Government or the
specified authority for permission to continue the lay-off.
(4) Where an application for permission under sub-section (1) or sub-section (3) has been
made, the appropriate Government or the specified authority, after making such enquiry
as it thinks fit and after giving a reasonable opportunity of being heard to the employer,
the workmen concerned and the persons interested in such lay-off, may, having regard
to the genuineness and adequacy of the reasons for such lay-off, the interests of the
workmen and all other relevant factors, by order and for reasons to be recorded in
writing, grant or refuse to grant such permission and a copy of such order shall be
communicated to the employer and the workmen.
(5) Where an application for permission under sub-section (1) or sub-section (3) has been
made and the appropriate Government or the specified Authority does not communicate
the order granting or refusing to grant permission to the employer within a period of
sixty days from the date on which such application is made, the permission applied for
shall be deemed to have been granted on the expiration of the said period of sixty days.
(6) An order of the appropriate Government or the specified authority granting or refusing
to grant permission shall, subject to the provisions of sub-section (7), be final and
binding on all the parties concerned and shall remain in force for one year from the date
of such order.
(7) The appropriate Government or the specified authority may, either on its own motion
or on the application made by the employer or any workman, review its order granting
or refusing to grant permission under sub-section (4) or refer the matter or, as the case
may be, cause it to be referred, to a Tribunal for adjudication :
Provided that where a reference has been made to a Tribunal under this sub-section, it
shall pass an award within a period of thirty days from the date of such reference.
(8) Where no application for permission under sub-section (1) is made, or where no
application for permission under sub-section (3) is made within the period specified
therein, or where the permission for any lay-off has been refused, such lay-off shall be
deemed to be illegal from the date on which the workmen had been laid-off and the
workmen shall be entitled to all the benefits under any law for the time being in force
as if they had not been laid-off.




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(9) Notwithstanding anything contained in the foregoing provisions of this section, the
appropriate Government may, if it is satisfied that owing to such exceptional
circumstances as accident in the establishment or death of the employer or the like, it
is necessary so to do, by order, direct that the provisions of sub-section (1), or, as the
case may be, sub-section (3) shall not apply in relation to such establishment for such
period as may be specified in the order.
(10) The provisions of section 25C (other than the second proviso thereto) shall apply to
cases of lay-off referred to in this section.
Explanation—For the purposes of this section, a workman shall not be deemed to be laidoff
by an employer if such employer offers any alternative employment (which in the opinion
of the employer does not call for any special skill or previous experience and can be done
by the workman) in the same establishment from which he has been laid-off or in any other
establishment belonging to the same employer, situate in the same town or village, or situate
within such distance from the establishment to which he belongs that the transfer will not
involve undue hardship to the workman having regard to the facts and circumstances of his
case, provided that the wages which would normally have been paid to the workman are
offered for the alternative appointment also.
COMMENTS
In order to prevent hardship to the employees and to maintain higher tempo of production
and productivity, section 25M of the Act puts some reasonable restrictions on the employer’s
right to lay-off, retrenchment and closure; Central Pulp Mills Ltd. v. Central Pulp Mills Employees
Union, 1994 LLR. 130 (Guj) (DB).
25N. CONDITIONS PRECEDENT TO RETRENCHMENT OF WORKMEN
(1) No workman employed in any industrial establishment to which this Chapter applies,
who has been in continuous service for not less than one year under an employer shall
be retrenched by that employer until :
(a) The workman has been given three months’ notice in writing indicating the reasons
for retrenchment and the period of notice has expired, or the workman has been
paid in lieu of such notice, wages for the period of the notice; and
(b) The prior permission of the appropriate Government or such authority as may be
specified by that Government, by notification in the Official Gazette (hereafter in
this section referred to as the specified authority), has been obtained on an application
made in this behalf.
(2) An application for permission under sub-section (1) shall be made by the employer in
the prescribed manner stating clearly the reasons for the intended retrenchment and a
copy of such application shall also be served simultaneously on the workmen concerned
in the prescribed manner.
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(3) Where an application for permission under sub-section (1) has been made, the appropriate
Government or the specified authority, after making such enquiry as it thinks fit and
after giving a reasonable opportunity of being heard to the employer, the workmen
concerned and the person interested in such retrenchment, may, having regard to the
genuineness and adequacy of the reasons stated by the employer, the interests of the
workmen and all other relevant factors, by order and for reasons to be recorded in
writing, grant or refuse to grant such permission and a copy of such order shall be
communicated to the employer and the workmen.
(4) Where an application for permission has been made under sub-section (1) and the
appropriate Government or the specified authority does not communicate the order
granting or refusing to grant permission to the employer within a period of sixty days
from the date on which such application is made, the permission applied for shall be
deemed to have been granted on the expiration of the said period of sixty days.
(5) An order of the appropriate Government or the specified Authority granting or refusing
to grant permission shall, subject to the provisions of sub-section (6), be final and
binding on all the parties concerned and shall remain in force for one year from the date
of such order.
(6) The appropriate Government or the specified Authority may, either on its own motion
or on the application made by the employer or any workman, review its order granting
or refusing to grant permission under sub-section (3) or refer the matter or, as the case
may be, cause it to be referred, to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this sub-section,
it shall pass an award within a period of thirty days from the date of such reference.
(7) Where no application for permission under sub-section (1) is made, or where the
permission for any retrenchment has been refused, such retrenchment shall be deemed
to be illegal from the date on which the notice of retrenchment was given to the workman
and the workman shall be entitled to all the benefits under any law for the time being
in force as if no notice had been given to him.
(8) Notwithstanding anything contained in the foregoing provisions of this section, the
appropriate Government may, if it is satisfied that owing to such exceptional
circumstances as accident in the establishment or death of the employer or the like, it
is necessary so to do, by order, direct that the provisions of sub-section (1) shall not
apply in relation to such establishment for such period as may be specified in the order.
(9) Where permission for retrenchment has been granted under sub-section (3) or where
permission for retrenchment is deemed to be granted under, sub-section (4), every
workman who is employed in that establishment immediately before the date of
application for permission under this section shall be entitled to receive, at the time of
retrenchment, compensation which shall be equivalent to fifteen days’ average pay for
every completed year of continuous service or any part thereof in excess of six months.




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COMMENTS
It is incumbent on the management to prove that the copies of the application as required
by section 25N read with rule 76A of the Industrial Disputes Rules, 1957, were served on the
concerned workman; Shiv Kumar v. State of Haryana, 1994 LLR 522 (SC).
25-O. PROCEDURE FOR CLOSING DOWN AN UNDERTAKING
(1) An employer who intends to close down an undertaking of an industrial establishment
to which this Chapter applies shall, in the prescribed manner, apply, for prior permission
at least ninety days before the date on which the intended closure is to become effective,
to the appropriate Government, stating clearly the reasons for the intended closure of
the undertaking and a copy of such application shall also be served simultaneously on
the representatives of the workmen in the prescribed manner :
Provided that nothing in this sub-section shall apply to an undertaking set up for the
construction of buildings, bridges, roads, canals, dams or for other construction work.
(2) Where an application for permission has been made under sub-section (1) the appropriate
Government, after making such enquiry as it thinks fit and after giving a reasonable
opportunity of being heard to the employer, the workmen and the persons interested
in such closure may, having regard to the genuineness and adequacy of the reasons
stated by the employer, the interests of the general public and all other relevant factors,
by order and for reasons to be recorded in writing, grant or refuse to grant such
permission and a copy of such order shall be communicated to the employer and the
workmen.
(3) Where an application has been made under sub-section (1) and the appropriate
Government does not communicate the order granting or refusing to grant permission
to the employer within a period of sixty days from the date on which such application
is made, the permission applied for shall be deemed to have been granted on the
expiration of the said period of sixty days.
(4) An order of the appropriate Government granting or refusing to grant
permission shall, subject to the provisions of sub-section (5), be final and binding on all
the parties and shall remain in force for one year from the date of such order.
(5) The appropriate Government may, either on its own motion or on the
application made by the employer or any workman, review its order granting or refusing
to grant permission under sub-section (2) or refer the matter to a tribunal for
adjudication : which the proceeding is pending for approval of the action taken by the
employer.
(6) Notwithstanding anything contained in sub-section (2), no employer shall, during the
pendency of any such proceeding in respect of an industrial dispute, take any action
against any protected workman concerned in such dispute
(a) by altering, to the prejudice of such protected workman, the conditions of service
applicable to him immediately before the commencement of such proceeding; or
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(b) by discharging or punishing, whether by dismissal or otherwise, such protected
workman, save with the express permission in writing of the authority before which
the proceeding is pending.
Explanation— For the purposes of this sub-section, a “protected workman”, in relation to
an establishment, means a workman who, being a member of the executive or other officebearer
of a registered trade union connected with the establishment, is recognised as such
in accordance with rules made in this behalf.
(7) In every establishment, the number of workmen to be recognised as protected workmen
for the purposes of sub-section (3) shall be one per cent of the total number of workmen
employed therein subject to a minimum number of five protected workmen and a
maximum number of one hundred protected workmen and for the aforesaid purpose,
the appropriate Government may make rules providing for the distribution of such
protected workmen among various trade unions, if any, connected with the establishment
and the manner in which the workmen may be chosen and recognised as protected
workmen.
(8) Where an employer makes an application to a conciliation officer, Board, an arbitrator,
a Labour Court, Tribunal or National Tribunal under the proviso to sub-section (2) for
approval of the action taken by him, the authority concerned shall, without delay, hear
such application and pass, within a period of three months from the date of receipt of
such application, such order in relation thereto as it deems fit:
Provided that where any such authority considers it necessary or expedient so to do, it
may, for reasons to be recorded in writing, extend such period by such further period
as it may think fit:
Provided further that no proceedings before any such authority shall lapse merely on
the ground that any period specified in this sub-section had expired without such
proceedings being completed.
COMMENTS
(i) Violation of the provisions of section 33 of the Act entitles the workman to file a
complaint under section 33A thereof and makes the employer liable to be punished.
It, however, does not automatically entitle the employee to claim re-instatement;
Kimti Lal v. State of Haryana, 1994 LLR 212 (P&H).
(ii) Where there are more than one unions in operation, every union will have to be
given the representation; Maharashtra State Road Transport Corporation v. The
Conciliation Officer, 1994 LLR 196 (Bom).
(iii) If approval is not granted the order of dismissal or discharge shall not be operative
and the employee concerned shall be deemed to be in service; G.K. Sengupta v.
Hindustan Construction Co. Ltd., 1994 LLR 550 (Bom).




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(iv) Permission should be refused if the Tribunal is satisfied that the management’s
action is not bona fide or that the principles of natural justice have been violated
or that the material on the basis of which the management came to a certain
conclusion would not justify any reasonable person in coming to such a conclusion;
G.K. Sengupta v. Hindustan Construction Co. Ltd., 1994 LLR 550 (Bom).
25P. SPECIAL PROVISION AS TO RESTARTING UNDERTAK-INGS CLOSED DOWN
BEFORE COMMENCEMENT OF THE INDUSTRIAL DISPUTES (AMENDMENT) ACT,
1976
If the appropriate Government is of opinion in respect of any undertaking or an industrial
establishment to which this Chapter applies and which closed down before the
commencement of the Industrial Disputes (Amendment) Act, 1976 (32 of 1976):
(a) That such undertaking was closed down otherwise than on account of unavoidable
circumstances beyond the control of the employer;
(b) That there are possibilities of restarting the undertaking;
(c) That it is necessary for the rehabilitation of the workmen employed in such
undertaking before its closure or for the maintenance of supplies and services essential
to the life of the community to restart the undertaking or both; and
(d) That the restarting of the undertaking will not result in hardship to the employer
in relation to the undertaking, it may, after giving an opportunity to such employer
and workmen, direct, by order published in the Official Gazette, that the undertaking
shall be restarted within such time (not being less than one month from the date of
the order) as may be specified in the order.
25Q. PENALTY FOR LAY-OFF AND RETRENCHMENT WITHOUT PREVIOUS
PERMISSION
Any employer who contravenes the provisions of section 25M or section 25N 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.
25R. PENALTY FOR CLOSURE
(1) Any employer who closes down an undertaking without complying with the provisions
of sub-section (1) of section 25-O shall be punishable with imprisonment for a term
which may extend to six months, or with fine which may extend to five thousand
rupees, or with both.
(2) Any employer, who contravenes an order refusing to grant permission to close down
an undertaking under sub-section (2) of section 25-O or a direction given under section
25P, shall be punishable with imprisonment for a term which may extend to one year,
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or with fine which may extend to five thousand rupees, or with both, and where the
contravention is a continuing one, with a further fine which may extend to two thousand
rupees for every day during which the contravention continues after the conviction.
25S. CERTAIN PROVISIONS OF CHAPTER VA TO APPLY TO INDUSTRIAL
ESTABLISHMENT TO WHICH THIS CHAPTER APPLIES
The provisions of sections 25B, 25D, 25FF, 25G, 25H and 25J in Chapter VA shall, so far as
may be, apply also in relation to an industrial establishment to which the provisions of this
Chapter apply.
UNFAIR LABOUR PRACTICES
25T. PROHIBITION OF UNFAIR LABOUR PRACTICE
No employer or workman or a trade union, whether registered under the Trade Unions Act,
1926 (16 of 1926), or not, shall commit any unfair labour practice.
25U. PENALTY FOR COMMITTING UNFAIR LABOUR PRACTICES
Any person who commits any unfair labour practice shall be punishable with imprisonment
for a term which may extend to six months or with fine which may extend to one thousand
rupees or with both.
PENALTIES
26. PENALTY FOR ILLEGAL STRIKES AND LOCK-OUTS
(1) 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.
(2) Any employer who commences, continues, or otherwise acts in furtherance of a lockout
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.
27. 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 term which may extend to six months, or with fine which may extend to one thousand
rupees, or with both.
28.PENALTY FOR GIVING FINANCIAL AID TO ILLEGAL STRIKES AND LOCK-OUTS
Any person who knowingly expends or applies any money in direct furtherance or support
of any illegal strike or lock-out shall be punishable with imprisonment for a term which may
extend to six months, or with fine which may extend to one thousand rupees, or with both.




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29. PENALTY FOR BREACH OF SETTLEMENT OR AWARD
Any person who commits a breach of any term of any settlement or award, which is binding
on him under this Act, shall be punishable with imprisonment for a term which may extend
to six months, or with fine, or with both, and where the breach is a continuing one, with a
further fine which may extend to two hundred rupees for every day during which the
breach continues after the conviction for the first and the court trying the offence, if it fines
the offender, may direct that the whole or any part of the fine realised from him shall be
paid, by way of compensation, to any person who, in its opinion has been injured by such
breach.
30. PENALTY FOR DISCLOSING CONFIDENTIAL INFORMATION
Any person who wilfully discloses any such information as is referred to in section 21 in
contravention of the provisions of that section shall, on complaint made by or on behalf of
the trade union or individual business affected, be punishable with imprisonment for a term
which may extend to six months, or with fine which may extend to one thousand rupees,
or with both.
30A. PENALTY FOR CLOSURE WITHOUT NOTICE
Any employer who closes down any undertaking without complying with the provisions of
section 25FFA shall be punishable with imprisonment for a term which may extend to six
months, or with fine which may extend to five thousand rupees, or with both.
31. PENALTY FOR OTHER OFFENCES
(1) Any employer who contravenes the provisions of section 33 shall be punishable with
imprisonment for a term which may extend to six months, or with fine which may
extend to one thousand rupees, or with both.
(2) Whoever contravenes any of the provisions of this Act or any rule made thereunder
shall, if no other penalty is elsewhere provided by or under this Act for such
contravention, be punishable with fine which may extend to one hundred rupees.
MISCELLANEOUS
32. OFFENCE BY COMPANIES, ETC
Where a person committing an offence under this Act is a company, or other body corporate,
or an association of persons (whether incorporated or not), every director, manager, secretary,
agent or other officer or person concerned with the management thereof shall, unless he
proves that the offence was committed without his knowledge or consent, be deemed to be
guilty of such offence.
COMMENTS
This section talks of offences by companies under the Industrial Disputes Act, 1947; Rabindra
Chamria v. The Registrar of Companies (W.B.), (1992) 64 FLR 939 (SC).
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33. CONDITIONS OF SERVICE, ETC., TO REMAIN UNCH-ANGED UNDER CERTAIN
CIRCUMSTANCES DURING PENDENCY OF PROCEEDINGS
(1) During the pendency of any conciliation proceeding before a conciliation officer or a
Board or of any proceeding before an arbitrator or a Labour Court or Tribunal or
National Tribunal in respect of an industrial dispute, no employer shall—
(a) in regard to any matter connected with the dispute, alter, to the prejudice of the
workmen concerned in such dispute, the conditions of service applicable to them
immediately before the commencement of such proceeding; or
(b) for any misconduct connected with the dispute, discharge or punish, whether by
dismissal or otherwise, any workman concerned in such dispute, save with the
express permission in writing of the authority before which the proceeding is
pending.
(2) During the pendency of any such proceeding in respect of an industrial dispute, the
employer may, in accordance with standing orders applicable to a workman concerned
in such dispute or, where there are no such standing order, in accordance with the
terms of the contract, whether express or implied, between him and the workman:
(a) alter, in regard to any matter not connected with the dispute, the conditions of
service applicable to that workman immediately before the commencement of such
proceeding; or
(b) for any misconduct not connected with the dispute, discharge or punish, whether
by dismissal or otherwise, that workman:
Provided that no such workman shall be discharged or dismissed, unless he has
been paid wages for one month and an application has been made by the employer
to the authority before which the proceeding is pending for approval of the action
taken by the employer.
(3) Notwithstanding Anything contained in sub-section (2), no employer shall, during the
pendency of any such proceeding in respect of an industrial dispute, take any action
against any protected workman concerned in such dispute :
(a) by altering, to the prejudice of such protected workman, the conditions of
service applicable to him immediately before the commencement of such proceeding;
or
(b) by discharging or punishing, whether by dismissal or otherwise, such protected
workman, save with the express permission in writing of the Authority before
which the proceeding is pending.
Explanation—For the purposes of this sub-section, a “protected workman”, in relation to an
establishment, means a workman who, being a member of the executive or other office




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bearer of a registered trade union connected with the establishment, is recognised as such
in accordance with rules made in this behalf.
(4) In every establishment, the number of workmen to be recognised as protected workmen
for the purposes of sub-section (3) shall be one per cent of the total number of workmen
employed therein subject to a minimum number of five protected workmen and a
maximum number of one hundred protected workmen and for the aforesaid purpose,
the appropriate Government may make rules providing for the distribution of such
protected workmen among various trade unions, if any, connected with the establishment
and the manner in which the workmen may be chosen and recognised as protected
workmen.
(5) Where an employer makes an application to a conciliation officer, Board, an arbitrator,
a Labour Court, Tribunal or National Tribunal under the proviso to sub-section (2) for
approval of the action taken by him, the authority concerned shall, without delay, hear
such application and pass, within a period of three months from the date of receipt of
such application, such order in relation thereto as it deems fit:
Provided that where any such authority considers it necessary or expedient so to do, it
may, for reasons to be recorded in writing, extend such period by such further period as it
may think fit:
Provided further that no proceedings before any such authority shall lapse merely on
the ground that any period specified in this sub-section had expired without such proceedings
being completed.
COMMENTS
(i) Violation of the provisions of section 33 of the Act entitles the workman to file a
complaint under section 33A thereof and makes the employer liable to be punished. It,
however, does not automatically entitle the employee to claim re-instatement; Kimti Lal
v. State of Haryana, 1994 LLR 212 (P&H).
(ii) Where there are more than one unions in operation, every union will have to be given
the representation; Maharashtra State Road Transport Corporation v. The Conciliation Officer,
1994 LLR 196 (Bom).
(iii) If approval is not granted the order of dismissal or discharge shall not be operative and
the employee concerned shall be deemed to be in service; G.K. Sengupta v. Hindustan
Construction Co. Ltd., 1994 LLR 550 (Bom).
(iv) Permission should be refused if the Tribunal is satisfied that the management’s action
is not bona fide or that the principles of natural justice have been violated or that the
material on the basis of which the management came to a certain conclusion would not
justify any reasonable person in coming to such a conclusion; G.K. Sengupta v. Hindustan
Construction Co. Ltd., 1994 LLR 550 (Bom).
CIA-13
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33A. SPECIAL PROVISION FOR ADJUDICATION AS TO WHETHER CONDITIONS
OF SERVICE, ETC., CHANGED DURING PENDENCY OF PROCEEDING
Where an employer contravenes the provisions of section 33 during the pendency of
proceedings before a conciliation officer, Board, an arbitrator, Labour Court, Tribunal or
National Tribunal any employee aggrieved by such contravention, may make a complaint
in writing, in the prescribed manner,
(a) to such conciliation officer or Board, and the conciliation officer or Board shall take such
complaint into account in mediating in, and promoting the settlement of, such industrial
dispute; and
(b) to such arbitrator, Labour Court, Tribunal or National Tribunal and on receipt of such
complaint, the arbitrator, Labour Court, Tribunal or National
Tribunal, as the case may be, shall adjudicate upon the complaint as if it were a dispute
referred to or pending before it, in accordance with the provisions of this Act and shall
submit his or its award to the appropriate Government and the provisions of this Act shall
apply accordingly.
COMMENTS
Conditions laid down in section 33A are preliminary and collateral upon which jurisdiction
of the Industrial Tribunal depends; Management of Dainik Naveen Duniya v. Presiding Officer,
Labour Court, (1991) 63 FLR 9 (MP).
33B. POWER TO TRANSFER CERTAIN PROCEEDINGS
(1) The appropriate Government may, by order in writing and for reasons to be stated
therein, withdraw any proceeding under this Act pending before a Labour Court, Tribunal
or National Tribunal and transfer the same to another Labour Court, Tribunal or National
Tribunal, as the case may be, for the disposal of the proceeding and the Labour Court,
Tribunal or National Tribunal to which the proceeding is so transferred may, subject to
special directions in the order of transfer, proceed either de novo or from the stage at
which it was so transferred:
Provided that where a proceeding under section 33 or section 33A is pending before a
Tribunal or National Tribunal, the proceeding may also be transferred to a Labour
Court.
(2) Without prejudice to the provisions of sub-section (1), any Tribunal or National Tribunal,
if so authorised by the appropriate Government, may transfer any proceeding under
section 33 or section 33A pending before it to any one of the Labour Courts specified
for the disposal of such proceedings by the appropriate Government by notification in
the Official Gazette and the Labour Court to which the proceeding is so transferred
shall dispose of the same.




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COMMENTS
The Labour Court has no jurisdiction suo motu to transfer the proceedings to any other court;
Bennett Coleman & Co. Ltd. v. State of Punjab, (1992) 64 FLR 449 (P&H).
33C. RECOVERY OF MONEY DUE FROM AN EMPLOYER
(1) Where any money is due to a workman from an employer under a settlement or an
award or under the provisions of Chapter VA or Chapter VB the workman himself or
any other person authorised by him in writing in this behalf, or, in the case of the death
of the workman, his assignee or heirs may, without prejudice to any other mode of
recovery, make an application to the appropriate Government for the recovery of the
money due to him, and if the appropriate Government is satisfied that any money is so
due, it shall issue certificate for that amount to the Collector who shall proceed to
recover the same in the same manner as an arrear of land revenue :
Provided that every such application shall be made within one year from the date on
which the money became due to the workman from the employer:
Provided further that any such application may be entertained after the expiry of the
said period of one year, if the appropriate Government is satisfied that the applicant
had sufficient cause for not making the application within the said period.
(2) Where any workman is entitled to receive from the employer any money or any benefit
which is capable of being computed in terms of money and if any question arises as to
the amount of money due or as to the amount at which such benefit should be computed,
then the question may, subject to any rules that may be made under this Act, be decided
by such Labour Court as may be specified in this behalf by the appropriate Government
within a period not exceeding three months.
Provided that where the presiding officer of a Labour Court considers it necessary or
expedient so to do, he may, for reasons to be recorded in writing, extend such period
by such further period as he may think fit.
(3) For the purposes of computing the money value of a benefit, the Labour Court may, if
it so thinks fit, appoint a Commissioner who shall, after taking such evidence as may
be necessary, submit a report to the Labour Court and the Labour Court shall determine
the amount after considering the report of the Commissioner and other circumstances
of the case.
(4) The decision of the Labour Court shall be forwarded by it to the appropriate Government
and any amount found due by the Labour Court may be recovered in the manner
provided for in sub-section (1).
(5) Where workmen employed under the same employer are entitled to receive from him
any money or any benefit capable of being computed in terms of money, then, subject
to such rules as may be made in this behalf, a single application for the recovery of the
amount due may be made on behalf of or in respect of any number of such workmen.
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Explanation—In this section “Labour Court” includes any court constituted under any law
relating to investigation and settlement of industrial disputes in force in any State.
COMMENTS
(i) The cause of action created in favour of workman under section 33C (2) of the Act
should in normal circumstances survive to the heirs; Rameshwar Manjhi (deceased) through
his son Lakhiram Manjhi v. The Management of Sungramgarh Colliery, 1994 LLR 241 (SC).
(ii) The proceedings under section 33C (2) are in the nature of execution proceedings and
once it is shown that the relationship of master and servant has come to an end, rightly
or wrongly, it is not open to the Labour Court to proceed on the basis that it still exists
and commute the monetary benefits to which the workman may, in the event, entitled
to; Canara Bank v. Presiding Officer, 1994 LLR 189 (P&H).
(iii) Once there is an admission of the existing right of the workman by the employer in
regard to the benefit which the former is entitled to and receive from the latter, section
33C (2) of the Act would come into play; M.D., Oswal Hosiery (Regd.) v. D.D. Gupta, 1994
LLR 487 (Del).
34. COGNIZANCE OF OFFENCES
(1) No court shall take cognizance of any offence punishable under this Act or of the
abetment of any such offence, save on complaint made by or under the authority of the
appropriate Government.
(2) No court inferior to that of a Metropolitan Magistrate or a judicial Magistrate of the first
class shall try any offence punishable under this Act.
COMMENTS
(i) A complaint for an offence under the Industrial Disputes Act can be filed by the
appropriate Government or at its instance; Tubu Enterprises Ltd. v. The Lt. Governor of
Delhi, 1994 LLR 169 (Delhi) (DB).
(ii) Under section 34 of the Act the complaint for an offence thereunder, except section 30,
cannot be filed by a private individual under the authority of the appropriate
Government; Tubu Enterprises Ltd. v. The Lt. Governor of Delhi, 1994 LLR 169 (Del) (DB).
35. PROTECTION OF PERSONS
(1) No person refusing to take part or to continue to take part in any strike or lock-out
which is illegal under this Act shall, by reason of such refusal or by reason of any action
taken by him under this section, be subject to expulsion from any trade union or society,
or to any fine or penalty, or to deprivation of any right or benefit to which he or his
legal representatives would otherwise be entitled, or be liable to be placed in any
respect, either directly or indirectly, under any disability or at any disadvantage as




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compared with other members of the union or society, anything to the contrary in the
rules of a trade union or society notwithstanding.
(2) Nothing in the rules of a trade union or society requiring the settlement of disputes in
any manner shall apply to any proceeding for enforcing any right or exemption secured
by this section, and in any such proceeding the Civil Court may, in lieu of ordering a
person who has been expelled from membership of a trade union or society to be
restored to membership, order that he be paid out of the funds of the trade union or
society such sum by way of compensation or damages as that Court thyinks just.
36. REPRESENTATION OF PARTIES
(1) A workman who is a party to dispute shall be entitled to be represented in any proceeding
under this Act by
(a) any member of the executive or other office-bearer of a registered trade union of
which he is a member;
(b) any member of the executive or other office-bearer of a federation of trade unions
to which the trade union referred to in clause (a) is affiliated;
(c) where the worker is not a member of any trade union, by any member of the
executive or other office-bearer of any trade union connected with, or by any other
workman employed in, the industry in which the worker is employed and authorised
in such manner as may be prescribed.
(2) An employer who is a party to a dispute shall be entitled to be represented in any
proceeding under this Act by—
(a) an officer of an association of employers of which he is a member;
(b) an officer of a federation of association of employers to which the association referred
to in clause (a) is affiliated;
(c) where the employer is not a member of any association of employers, by an officer
of any association of employers connected with, or by any other employer engaged
in, the industry in which the employer is engaged and authorised in such manner
as may be prescribed.
(3) No party to a dispute shall be entitled to be represented by a legal practitioner in any
conciliation proceedings under this Act or in any proceedings before a court.
(4) In any proceeding before a Labour Court, Tribunal or National Tribunal, a party to a
dispute may be represented by a legal practitioner with the consent of the other parties
to the proceeding and with the leave of the Labour Court, Tribunal or National Tribunal,
as the case may be.
COMMENTS
(i) To practice is not an absolute right of any lawyer; J. Subash v. Labour Court, (1992) 65
FLR 561 (Ker).
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(ii) Taking the vakalatnama and keeping it on record cannot be taken as implied leave of the
court or Tribunal; Punjabi Ghasitaram Halwai v. Sahdeo Shivram Pawer, (1994) 68 FLR 528
(Bom).
(iii) Before a Labour Court or Industrial Tribunal, workman can be represented by an
Executive or office-bearer of the Trade Union while the employer can be represented by
the association of employers or its executive. The management has officers like Deputy
Manager (Law), Assistant Manager (Law), etc., who are qualified law graduates. The
Management is competent to engage any one of them to defend their case against one
of their own workmen. However, employer is justified in approaching the Federation
of Chamber of Commerce to contest a case of a workman of its own corporation; R.M.
Duraiswany v. Labour Courts, Salem, 1998 LLR 478 (16).
36A. POWER TO REMOVE DIFFICULTIES
(1) If, in the opinion of the appropriate Government, any difficulty or doubt arises as to the
interpretation of any provision of an award or settlement, it may refer the question to
such Labour Court, Tribunal or National Tribunal as it may think fit.
(2) The Labour Court, Tribunal or National Tribunal to which such question is referred
shall, after giving the parties an opportunity of being heard, decide such question and
its decision shall be final and binding on all such parties.
36B. POWER TO EXEMPT
Where the appropriate Government is satisfied in relation to any industrial establishment or
undertaking or any class of industrial establishments or undertakings carried on by a
department of that Government that adequate provisions exist for the investigation and
settlement of industrial disputes in respect of workmen employed in such establishment or
undertaking or class of establishments or undertakings, it may, by notification in
the Official Gazette, exempt, conditionally or unconditionally such establishment or
undertaking or class of establishments or undertakings from all or any of the provisions of
this Act.
37. PROTECTION OF ACTION TAKEN UNDER THE ACT
No suit, prosecution or other legal proceeding shall lie against any person for anything
which is in good faith done or intended to be done in pursuance of this Act or any rules
made thereunder.
38. POWER TO MAKE RULES
(1) The appropriate Government may, subject to the condition of previous publication,
make rules for the purpose of giving effect to the provisions of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules
may provide for all or any of the following matters, namely:




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(a) the powers and procedure of conciliation officers, Boards, Courts, Labour Courts,
Tribunals and National Tribunals including rules as to thesummoning of witnesses,
the production of documents relevant to the subject-matter of an inquiry or
investigation, the number of members necessary to form a quorum and the manner
of submission of reports and awards;
(aa) the form of arbitration agreement, the manner in which it may be signed by the
parties the manner in which a notification may be issued under sub-section (3A) of
section 10A, the powers of the arbitrator named in the arbitration agreement and
the procedure to be followed by him;
(aaa) the appointment of assessors in proceedings under this Act;
(b) the constitution and functions of and the filling of vacancies in Works Committees,
and the procedure to be followed by such Committees in the discharge of their
duties;
(c) the allowances admissible to members of court and Boards and presiding officers
of Labour Courts, Tribunals and National Tribunals and to assessors and witnesses;
(d) the ministerial establishment which may be allotted to a court, Board, Labour Court,
Tribunal or National Tribunal and the salaries and allowances payable to members
of such establishment;
(e) the manner in which and the persons by and to whom notice of strike or lock-out
may be given and the manner in which such notices shall be communicated;
(f) the conditions subject to which parties may be represented by legal practitioners in
proceedings under this Act before a court, Labour Court, Tribunal or National
Tribunal;
(g) any other matter which is to be or may be prescribed.
(3) Rules made under this section may provide that a contravention thereof shall be
punishable with fine not exceeding fifty rupees.
(4) All rules made under this section shall, as soon as possible after they are made, be laid
before the State Legislature or, where the appropriate Government is the Central
Government, before both Houses of Parliament.
(5) Every rule made by the Central Government under this section shall be laid, as soon as
may be after it is made, before each House of Parliament while it is in session for a total
period of thirty days which may be comprised in one session or in two or more successive
sessions, and if, before the expiry of the session immediately following the session or
the successive sessions aforesaid both Houses agree in making any modification in the
rule, or both Houses agree that the rule should not be made, the rule shall thereafter
have effect only in such modified form or be of no effect, as the case may be; so
however, that any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.
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40. POWER TO AMEND SCHEDULES
(1) The appropriate Government may, if it is of opinion that it is expedient or necessary in
the public interest so to do, by notification in the Official Gazette, add to the First
Schedule any industry, and on any such notification being issued, the First Schedule
shall be deemed to be amended accordingly.
(2) The Central Government may, by notification in the Official Gazette, add to or alter or
amend the Second Schedule or the Third Schedule and on any such notification being
issued, the Second Schedule or the Third Schedule, as the case may be, shall be deemed
to be amended accordingly.
(3) Every such notification shall, as soon as possible after it is issued, be laid before the
Legislature of the State, if the notification has been issued by a State Government, or
before Parliament, if the notification has been issued by the Central Government.
THE FIRST SCHEDULE
See Section 2(n)(vi)
Industries which may be declared to be Public Utility Services under sub-clause (vi) of
clause (n) of section 2
1. Transport (other than railways) for the carriage of passengers or goods, by land or
water;
2. Banking;
3. Cement;
4. Coal;
5. Cotton textiles;
6. Food stuffs;
7. Iron and Steel;
8. Defence establishments;
9. Service in hospitals and dispensaries;
10. Fire Brigade Service;
11. India Government Mints;
12. India Security Press;
13. Copper Mining;
14. Lead Mining;
15. Zinc Mining;




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16. Iron Ore Mining;
17. Service in any oilfield;
19. Service in the Uranium Industry;
20 Pyrites Mining; 21. Security Paper Mill, Hoshangabad;
22. Services in the Bank Note Press, Dewas;
23. Phosphorite Mining;
24. Magnesite Mining;
125. Currency Note Press;
126. Manufacture or production of mineral oil (crude oil), motor and aviation spirit, diesel
oil, kerosene oil, fuel oil, diverse hydrocarbon oils and their blends including synthetic
fuels, lubricating oils and the like;
127. Service in the International Airports Authority of India.
128. Industrial establishments manufacturing or producing Nuclear Fuel and
components, Heavy Water and Allied Chemicals and Atomic Energy.
THE SECOND SCHEDULE
(See Section 7)
Matters within the Jurisdiction of Labour Courts
1. The propriety or legality of an order passed by an employer under the standing orders;
2. The application and interpretation of standing orders;
3. Discharge or dismissal of workmen including re-instatement of, or grant of relief to,
workmen wrongfully dismissed;
4. Withdrawal of any customary concession or privilege;
5. Illegality or otherwise of a strike or lock-out; and
6. All matters other than those specified in the Third Schedule.
THE THIRD SCHEDULE
(See Section 7A)
Matters within the Jurisdiction of Industrial Tribunals
1. Wages, including the period and mode of payment;
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2. Compensatory and other allowances;
3. Hours of work and rest intervals;
4. Leave with wages and holidays;
5. Bonus, profit sharing, provident fund and gratuity;
6. Shift working otherwise than in accordance with standing orders;
7. Classification by grades;
8. Rules of discipline;
9. Rationalisation;
10. Retrenchment of workmen and closure of establishment; and
11. Any other matter that may be prescribed.
THE FOURTH SCHEDULE
(See Section 9A)
Conditions of Service for change of which Notice is to be given
1. Wages, including the period and mode of payment;
2. Contribution paid, or payable, by the employer to any provident fund or pension
fund or for the benefit of the workmen under any law for the time being in force;
3. Compensatory and other allowances;
4. Hours of work and rest intervals;
5. Leave with wages and holidays;
6. Starting alteration or discontinuance of shift working otherwise than in
accordance with standing orders;
7. Classification by grades;
8. Withdrawal of any customary concession or privilege or change in usage;
9. Introduction of new rules of discipline, or alteration of existing rules, except in so far
as they are provided in standing orders;
10. Rationalisation, standardisation or improvement of plant or technique which is likely to
lead to retrenchment of workmen;
11. Any increases or reduction (other than casual) in the number of persons employed or
to be employed in any occupation or process or department or shift, not occasioned by
circumstances over which the employer has no control.




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THE FIFTH SCHEDULE
See Section 2(ra)
Unfair Labour Practices
I. On the part of employers and trade unions of employers
1. To interfere with, restrain from, or coerce, workmen in the exercise of their right to
organise, form, join or assist a trade union or to engage in concerted activities for the
purposes of collective bargaining or other mutual aid or protection, that is to say:
(a) Threatening workmen with discharge or dismissal, if they join a trade union;
(b) Threatening a lock-out or closure, if a trade union is organised;
(c) Granting wage increase to workmen at crucial periods of trade union organisation,
with a view to undermining the efforts of the trade union organisation.
2. To dominate, interfere with or contribute support, financial or otherwise, to any trade
union, that is to say:
(a) an employer taking an active interest in organising a trade union of his workmen;
and
(b) an employer showing partiality or granting favour to one of several trade unions
attempting to organise his workmen or to its members, where such a trade union
is not a recognised trade union.
3. To establish employer sponsored trade unions of workmen.
4. To encourage or discourage membership in any trade union by discriminating against
any workman, that is to say:
(a) discharging or punishing a workman, because he urged other workmen to join or
organise a trade union;
(b) discharging or dismissing a workman for taking part in any strike (not being a
strike which is deemed to be an illegal strike under this Act);
(c) changing seniority rating of workmen because of trade union activities;
(d) refusing to promote workmen to higher posts on account of their trade union
activities;
(e) giving unmerited promotions to certain workmen with a view to creating discord
amongst other workmen, or to undermine the strength of their trade union;
(f) discharging office-bearers or active members of the trade union on account of their
trade union activities.
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5. To discharge or dismiss workmen
(a) by way of victimisation;
(b) not in good faith, but in the colourable exercise of the employer’s rights;
(c) by falsely implicating a workman in a criminal case on false evidence or on concocted
evidence;
(d) for patently false reasons;
(e) on untrue or trumped up allegations of absence without leave;
(f) in utter disregard of the principles of natural justice in the conduct of domestic
enquiry or with undue haste;
(g) for misconduct of a minor or technical character, without having any regard to the
nature of the particular misconduct or the past record or service of the workman,
thereby leading to a disproportionate punishment.
6. To abolish the work of a regular nature being done by workmen, and to give such work
to contractors as a measure of breaking a strike.
7. To transfer a workman mala fide from one place to another, under the guise of following
management policy.
8. To insist upon individual workmen, who are on a legal strike to sign a good conduct
bond, as a pre-condition to allowing them to resume work.
9. To show favouritism or partiality to one set of workers regardless of merit.
10. To employ workmen as “badlis”, casuals or temporaries and to continue them as such
for years, with the object of depriving them of the status and privileges of permanent
workmen.
11. To discharge or discriminate against any workman for filing charges or testifying against
an employer in any enquiry or proceeding relating to any industrial dispute.
12. To recruit workmen during a strike which is not an illegal strike.
13. Failure to implement award, settlement or agreement.
14. To indulge in acts of force or violence.
15. To refuse to bargain collectively, in good faith with the recognised trade unions.
16. Proposing or continuing a lock-out deemed to be illegal under this Act.
II. On the part of workmen and trade unions of workmen
1. To advise or actively support or instigate any strike deemed to be illegal under this Act.




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2. To coerce workmen in the exercise of their right to self-organisation or to join a trade
union or refrain from joining any trade union, that is to say :
(a) for a trade union or its members to picketing in such a manner that non-striking
workmen are physically debarred from entering the work places;
(b) to indulge in acts of force or violence or to hold out threats of intimidation in
connection with a strike against non-striking workmen or against managerial staff.
3. For a recognised union to refuse to bargain collectively in good faith with the employer.
4. To indulge in coercive activities against certification of a bargaining representative.
5. To stage, encourage or instigate such forms of coercive actions as wilful “go slow”,
squatting on the work premises after working hours or “gherao” of any of the members
of the managerial or other staff.
6. To stage demonstrations at the residences of the employers or the managerial staff
members.
7. To incite or indulge in wilful damage to employer’s property connected with the industry.
8. To indulge in acts of force or violence or to hold out threats of intimidation against any
workman with a view to prevent him from attending work.
Find below a compilation of Frequently Asked Questions in Industrial Disputes Act.
1. What are Industrial Disputes?
Industrial Dispute means any dispute or differences between employers and employers
or between employers and workmen or between workmen and workmen which is
connected with the employment or non-employment or the terms of employment or
with the conditions of labour of any person.
2. What are the different categories of Industrial Disputes?
The Second Schedule of the I.D. Act deals with matters within the jurisdiction of Labour
Courts which fall under the category of Rights Disputes. Such disputes are as follows:
1. The propriety or legality of an order passed by an employer under the standing orders;
2. The application and interpretation of standing orders which regulate conditions of
employment.
3. Discharge or dismissal of workmen including reinstatement of, or grant of relief to,
workmen wrongfully dismissed;
4. Withdrawal of any customary concession or privilege;
5. Illegality or otherwise of a strike or lock-out; and
6. All matters other than those specified in the Third Schedule.
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The Third Schedule of the I.D. Act deals with matters within the jurisdiction of Industrial
Tribunals which could be classified as Interest Disputes. These are as follows:-
1. Wages, including the period and mode of payment;
2. Compensatory and other allowances;
3. Hours of work and rest intervals;
4. Leave with wages and holidays;
5. Bonus, profit sharing, provident fund and gratuity;
6. Shift working otherwise than in accordance with standing orders;
7. Classification by grades;
8. Rules of discipline;
9. Rationalization;
10. Retrenchment of workmen and closure of establishment; and
11. Any other matter that may be prescribed.
3. Who can raise an Industrial Dispute?
Any person who is a workman employed in an industry can raise an industrial dispute. A
workman includes any person (including an apprentice) employed in an industry to do
manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or
reward. It excludes those employed in the Army, Navy, Air Force and in the police service,
in managerial or administrative capacity. Industry means any business, trade, undertaking,
manufacture or calling of employers and includes any calling, service, employment, handicraft,
or industrial occupation or avocation of workmen.
4. How to raise an Industrial Dispute?
A workman can raise a dispute directly before a Conciliation Officer in the case of discharge,
dismissal, retrenchment or any form of termination of service. In all other cases listed at 2
above, the dispute has to be raised by a Union / Management.
5. Who are Conciliation Officers and what do they do?
The Organization of the Chief Labour Commissioner(Central) acts as the primary conciliatory
agency in the Central Government for industrial disputes. There are the Regional Labour
Commissioners (Central) and Assistant Labour Commissioners (Central) who on behalf of
the Chief Labour Commissioner (Central) act as Conciliatory Officers in different parts of the
country. The Conciliation Officer make efforts to resolve the dispute through settlement
between the workmen and the management. The duties of Conciliation Officers have been
laid down under Section 12 of the Industrial Disputes Act.




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6. What happens if conciliation fails?
In case of failure of conciliation (FOC) a report is sent to Government (IR Desks in Ministry
of Labour). The Ministry of Labour after considering the FOC Report exercises the powers
available to it under Section 10 of the Industrial Disputes Act and either refers the dispute
for adjudication or refuses to do so. Details of functions of IR Desks and reasons for declining
may be seen above.
There are at present 17 Central Government Industrial Tribunals-cum-Labour Courts in
different parts of the country to whom industrial disputes could be referred for adjudication.
These CGTIs-cum-Labour Courts are at New Delhi, Mumbai (2 CGITs), Bangalore, Kolkata,
Asansol, Dhanbad (2 CGITs), Jabalpur, Chandigarh, Kanpur, Jaipur, Lucknow, Nagpur,
Hyderabad, Chennai and Bhubaneshwar. Out of these CGITs, 2 CGITs namely Mumbai-I
and Kolkata have been declared as National Industrial Tribunals.
7. What happens when the dispute is referred to Labour Court ?
After the matter is referred to any of the CGIT- cum- Labour Court , the adjudication process
begins. At the end of the proceedings an Award is given by the Presiding Officer.
The Ministry of Labour under Section 17 of the I.D. Act publishes the Award in the Official
Gazette within a period of 30 days from the date of receipt of the Award.
8. How is the Award implemented? An Award becomes enforceable on the expiry of 30
days from the date of its publication in the Official Gazette. The Regional Labour
Commissioner is the implementing authority of the Awards.
9. What are the provisions for General Prohibition of Strikes and Lockouts?
No workman who is employed in any industrial establishment shall go on strike in breach
of contract and no employer of any such workman shall declare a lockout:
(a) During the pendency of conciliation proceedings before a Board and seven days
after the conclusion of such proceedings,
(b) During the pendency of such proceedings before a Labour Court, Tribunal or National
Tribunal and 2 months after the conclusion of such proceedings.
(c) During the pendency of arbitration proceedings before an Arbitrator and 2 months
after the conclusion of such proceedings, where a notification has been issued.
(d) During any period during in which a settlement or Award is in operation in respect
of any of the matters covered by the settlement of Award.
10. Does the workman have the Right to go on strike with proper notice in Public Utility
Services?
No person employed in a Public Utility Service can go on strike without giving to the
employer notice of strike;
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(a) Within 6 weeks before striking.
(b) Within 14 days of giving such notice.
(c) Before the expiry of the date of strike specified in such notice.
(d) During the pendency of any conciliation proceedings before a Conciliation Officer
and 7 days after the conclusion of such proceedings.
11. Does the Employer have the right to lock out any Public Utility Service?
No employer carrying on any Public Utility service can lockout any of his workman :
(i) Without giving to them notice of lockout provided within 6 weeks before locking
out.
(ii) Within 14 days of giving such notice.
(iii) Before expiry of the date of lockout specified in any such notice.
(iv) During the pendency of any conciliation proceedings before a Conciliation Officer
and 7 days after the conclusion of such proceedings.
12. What compensation will a workman get when laid off?
Whenever a workman (other than a badli workman or a casual workman) whose name is
borne on the muster rolls of an industrial establishment employing 50 or more workmen on
an average working day and who has completed not less than one year of continuous service
under an employer laid off, whether continuously or intermittently, he is to be paid by the
employer for all days during which he is so laid off, except for such weekly holidays as may
intervene, compensation which shall be equal to fifty per cent of the total of the basic wages
and dearness allowance that would have been payable to him had he not been so laid-off.
13. What are the conditions precedent to retrenchment of workmen?
No workmen employed in any industry who has been in continuous service for not less than
one year under an employer can be retrenched by that employer until :
(a) The workman has to be given one month’s notice in writing indicating the reasons
for retrenchment or the workman has to be paid in lieu of such notice, wages for
the period of the notice.
(b) The workman has to be paid, at the time of retrenchment, compensation which is
equivalent to fifteen days’ average pay (for every completed year of continuous
service) or any part thereof in excess of six months; and
(c) Notice in the prescribed manner is to be served on the appropriate Government (or
such authority as may be specified by the appropriate Government by notification
in the Official Gazette).




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14. What compensation will the workman get when an undertaking closes down?
Where an undertaking is closed down for any reason whatsoever, every workman who has
been in continuous service for not less than one year in that undertaking immediately before
such closure is entitled to notice and compensation in accordance with the provisions as if
the workman had been retrenched.
Provided that where the undertaking is closed down on account of unavoidable circumstances
beyond the control of the employer, the compensation to be paid to the workman is not to
exceed his average pay for three months.
CIA-14
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3.3. The Workmen’s Compensation Act, 1923
INTRODUCTION
The passing of Workmen’s Compensation Act in 1923 was the first step towards social security
of workmen. The theory of this act is that “ the cost of product should bear the blood of the
workman”. This Act provides compensation to certain classes of workmen by their employers
for injury, which may be suffered, by the workmen as result of an accident during the course of
employment.
Object
To provide Compensation to Workmen for accidental injury and occupational diseases arising
during and in the course of employment.
Applicability of Act
This Act is applicable to all employments in which the ESI Act is not applicable.
BASIC CONCEPTS
“Dependent” means any of the following relatives of a deceased workman, namely :—
(i) A widow, a minor legitimate or adopted son, and unmarried legitimate or adopted
daughter, or a widowed mother; and
(ii) If wholly dependent on the earnings of the workman at the time of his death, a son or a
daughter who has attained the age of 18 years and who is infirm;
(iii) If wholly or in part dependent on the earnings of the workman at the time of his death,
(a) a widower,
(b) A parent other than a widowed mother,
(c) A minor illegitimate son, an unmarried illegitimate daughter or a daughter legitimate
or illegitimate or adopted if married and a minor or if widowed and a minor,
(d) A minor brother or an unmarried sister or a widowed sister if a minor,
(e) A widowed daughter-in-law,
(f) A minor child of a pre-deceased son,
(g) A minor child of a pre-deceased daughter where no parent of the child is alive, or
(h) A paternal grandparent if no parent of the workman is alive.
Explanation : For the purposes of sub-clause (ii) and items (f) and (g) of sub-clause
(iii), references to a son, daughter or child include an adopted son, daughter or child
respectively;
COMMERCIAL & INDUSTRIAL LAWS A 199
”Employer”
Includes any body of persons whether incorporated or not, and any managing agent of an
employer, and the legal representative of a deceased employer, and, when the services of a
workman are temporarily lent or let on hire to another person by the person with whom the
workman has entered into a contract of service or apprenticeship, means such other person
while the workman is working for him;
”Wages”
Includes any privilege or benefit which is capable of being estimated in money, other than a
travelling allowance or the value of any travelling concession or a contribution paid by the
employer a workman towards any pension or provident fund or a sum paid to a workman to
cover any special expenses entailed on him by the nature of his employment;
”Workman”
Means any person (other than a person whose employment is of a casual nature and who is
employed otherwise than for the purposes of the employer’s trade or business) who is - (i) a
railway servant as defined in clause (34) of section 2 of the Railways Act, 1989 (24 of 1989), not
permanently employed in any administrative, district or sub-divisional office of a railway and
not employed in any such capacity as is specified in Schedule II.
Disablement
Total disablement Partial disablement Incapacitates workman for all work which he was capable
of doing at the time of accident Temporary Permanent Reduces earning capacity of workman
in any employment in which he was engaged at the time of accident Reduces earning capacity
of workman in every employment in which he was engaged at the time of accident.
Main Provisions of the Act
Injury / Diseases arising out of and in course of employment are payable – The term ‘arising
out of and in the course of employment’ means that Compensation is payable only in those
injury/diseases where the employment is the immediate and proximate cause of the said injury
disease. In other words, the injury/disease would not have occurred had the workman not
been employed in the particular employment.
Compensation payable – The Workmen’s Compensation payable as per the act is as under :
Compensation
1. Death due to injury 50% of wages * Relevant factor OR Rs 80,000/- , whichever is more,
2. Permanent total disablement due to injury 60% of wages * Relevant factor OR
Rs 90,000/- , whichever is more,
3. Permanent Partial disablement due to injury % of compensation as is payable in (ii) or %
of compensation proportionate to loss of earning capacity,
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A 200 COMMERCIAL & INDUSTRIAL LAWS
4. Temporary Disablement 25% of wages paid half monthly,
5. Occupational disease Occupational disease to be treated as injury by accident and
compensation as applicable in the cases of injury are payable.
Following points are to be noted in calculation of compensation :
(a) Wages to be actual or Max Rs 4000/- per month,
(b) Relevant factor are given in Schedule III of the Act,
(c) Employee not eligible for compensation when he/she has filed a Civil Suit against the
employer.
Compensation not payable : Compensation under this Act is not payable when
• The disablement due to injury is less than 4 days.
• The employee was under the influence of drugs/alcohol at the time of accident.
• Workman willfully disobeys any safety rule.
• Workman willfully removes/disregards any safety guard/ equipments.
• Workman has filed a Civil suit against the employer for claim of compensation.
• Workman has refused to get himself medically examined cost of which is borne by the
employer.
Payment of Compensation
The Compensation payable under the Act is to be made by deposit to the Commissioner of
Workmen’s Compensation who will distribute the same to workmen or his dependents.
However, amount equal to 3 months wages can be paid directly to the dependents in cases of
death of workman, provided the said amount is less than the total compensation payable to
workman.
Report of death and serious bodily injury – should be given within 7 days of the death/ serious
bodily injury to the Commissioner of Workmen’s Compensation.
Medical Examination –The employer should get the medical examination of the workman
who has made a claim for compensation, within 3 days of receipt of claim.
Workmen’s Compensation Rules, 1924:
Object:
The objective of this Act is that in the case of an employment injury compensation be provided
to the injured workman and in case of his death to his dependants.
Employer to pay compensation:
COMMERCIAL & INDUSTRIAL LAWS A 201
In case a personal injury is caused to a workman by accident arising out of and in the course of
his employment, his employer is liable to pay compensation in accordance with the provision
of the Act within 30 days from the date when it fell due otherwise he would also be liable to
pay interest and penalty.
When employer is not liable:
In case the disablement of workman is three or less days; except in case of death when the
injury is caused due to influence of drink or drug takenby the workman or upon his wilful
disobedience to obey safety rules or removal of safetyguards by him.
Amount of compensation :
(1) in case of death:- an amount equal to 50% of the monthlywage multiplied by the relevant
factor as given in Schedule IV of the Act or Rs. 80,000/-whichever is more.
(2) In case of permanent total disablement, it is 60% or Rs. 90,000/-whichever is more, and
(3) In case of permanent partial disablement occurs then thecompensation is proportionate to
the disability arrived as at (2) above.
Notice: An injured person or his dependants have to give a notice to the employer to pay
compensation.
Claim:
Upon the failure or refusal of an employer to give compensation, an application is to the made
in Form - F to the Commissioner under the Workmen’s Compensation Act,1923 who is the
Assistant Labour Commissioner or the Labour-cum-Conciliation Officer of the area where the
accident took place or where the claimant ordinarily resides or where the employer has his
registered office. After hearing both the parties, the Commissioner decides the claim.
Contracting out: Any contract or agreement whereby an injured person or his dependant
relinquishes or reduce his right to receive compensation is null and void to that extent.
Appeal:
An appeal lie to the High Court against the orders of the Commissioner with regard to the
awarding or refusing to award compensation, or imposing interest or penalty, or regarding
distribution of compensation etc.Recovery : The amount of compensation awarded by the
Commissioner is to berecovered as arrears of land revenue.
3. EMPLOYER’S LIABILITY FOR COMPENSATION
(1) If personal injury is caused to a workman by accident arising out of and in the course of
his employment, his employer shall be liable to pay compensation in accordance with the
provisions of this Chapter :
Provided that the employer shall not be so liable—
(a) in respect of any injury which does not result in the total or partial disablement of the
workman for a period exceeding three days;
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A 202 COMMERCIAL & INDUSTRIAL LAWS
(b) in respect of any injury, not resulting in death or permanent total disablement, caused
by an accident which is directly attributable to—
(i) the workman having been at the time thereof under the influence of drink or drugs, or
(ii) the willful disobedience of the workman to an order expressly given, or to a rule
expressly framed, for the purpose of securing the safety of workmen, or
(iii) the willful removal or disregard by the workman of any safety guard or other device
which he knew to have been provided for the purpose of securing the safety of
workmen.
(2) If a workman employed in any employment specified in Part A of Schedule III contracts
any disease specified therein as an occupational disease peculiar to that employment, or if
a workman, whilst in the service of an employer in whose service he has been employed
for a continuous period of not less than six months (which period shall not include a
period of service under any other employer in the same kind of employment) in any
employment specified in Part B of Schedule III, contracts any disease specified therein as
an occupational disease peculiar to that employment, or if a workman whilst in the service
of one or more employers in any employment specified in Part C of Schedule III, for such
continuous period as the Central Government may specify in respect of each such
employment, contracts any disease specified therein as an occupational disease peculiar
to that employment, the contracting of the disease shall be deemed to be an injury by
accident within the meaning of this section and, unless the contrary is proved, the accident
shall be deemed to have arisen out of, and in the course of, the employment :
Provided that if it is proved,—
(a) that a workman whilst in the service of one or more employers in any employment
specified in Part C of Schedule III has contracted a disease specified therein as an
occupational disease peculiar to that employment during a continuous period which
is less than the period specified under this sub-section for that employment, and
(b) that the disease has arisen out of and in the course of the employment; the contracting
of such disease shall be deemed to be an injury by accident within the meaning of this
section :
Provided further that if it is proved that a workman who having served under any
employer in any employment specified in Part B of Schedule III or who having served
under one or more employers in any employment specified in Part C of that Schedule,
for a continuous period specified under this sub-section for that employment and he
has after the cessation of such service contracted any disease specified in the said Part
B or the said Part C, as the case may be, as an occupational disease peculiar to the
employment and that such disease arose out of the employment, the contracting of
the disease shall be deemed to be an injury by accident within the meaning of this
section.
COMMERCIAL & INDUSTRIAL LAWS A 203
(2A)If a workman employed in any employment specified in Part C of Schedule III contracts
any occupational disease peculiar to that employment, the contracting whereof is deemed
to be an injury by accident within the meaning of this section, and such employment was
under more than one employer, all such employers shall be liable for the payment of the
compensation in such proportion as the Commissioner may, in the circumstances, deem
just.
(3) The Central Government or the State Government, after giving, by notification in the
Official Gazette, not less than three months’ notice of its intention so to do, may, by a like
notification, add any description of employment to the employments specified in Schedule
III, and shall specify in the case of employments so added the diseases which shall be
deemed for the purposes of this section to be occupational diseases peculiar to those
employments respectively, and thereupon the provisions of sub-section (2) shall apply In
the case of a notification by the Central Government, within the territories to which this
Act extends or, in case of a notification by the State Government, within the State as if
such diseases had been declared by this Act to be occupational diseases peculiar to those
employments.
(4) Save as provided by Sub-sections (2), (2A) and (3), no compensation shall be payable to a
workman in respect of any disease unless the disease is directly attributable to a specific
injury by accident arising out of and in the course of his employment.
(5) Nothing herein contained shall be deemed to confer any right to compensation on a
workman in respect of any injury if he has instituted in a Civil Court a suit for damages in
respect of the injury against the employer or any other person; and no suit for damages
shall be maintainable by a workman in any Court of law in respect of any injury -
(a) If he has instituted a claim to compensation in respect of the injury before a
Commissioner; or
(b) If an agreement has been come to between the workman and his employer providing
for the payment of compensation in respect of the injury in accordance with the
provisions of this Act.