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Section (Oo) Retrenchment

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Industrial Dispute Act 1947 Sec 1 Scope and object The object of the industrial relations legislation in General

is industrial peace and economic justice. The


prosperity of any industry very much defends upon its growing production. The production is only possible when the industry functions smoothly without any
interruptions. There are some other factors that influence the production, namely absence of disputes, i.e., harmonious relationship between the labour and the
management. Therefore, every industrial relations legislation necessarily aims at providing conditions congenial to the industrial peace. The industrial disputes
Act, 1947. Extends to the whole of India. It came into operation on the first day of April, 1947. The object of the Act as laid down in the preamble of the Act is
to make provision for the investigation and settlement of industrial disputes. The object of all labour legislations is to ensure fair wages and to prevent disputes
so that production might not be adversely affected. The principle objects of the Act as analysed by the Supreme Court are as follows: (1) The promoting of
measures for securing amity and good relations between the employer and workmen; (2) An investigation and settlement of industrial dispute between
employers and employers, employers and workmen or workmen and workmen with a right of representation by a registered Trade Union of Federation of Trade
Union or Association of employers or a federation of association of employers; (3) The prevention of illegal strikes lock-outs; (4) Relief to workmen in the
matter of lay-off, retrenchment and closure of an undertaking; (5) Collection bargaining. The Industrial Disputes Act is a progressive measure of social
legislation aiming at the amelioration of the conditions of workmen in industry. Main Features of the Act.- Some of the distinguishing features of the Industrial
Disputes Act, 1947 may be summarised as under :- (1) Any industrial dispute may be referred to an industrial tribunal by an agreement of parties to the dispute
or by the State Government if it deems it expedient so to do. (2) An award shall be binding on both the parties to the dispute for the specified period not
exceeding one year. It shall be normally enforced by the Government. (3) Strike and lock-out are prohibited : (i) During the pendency of conciliation and
adjudication proceedings; (ii) During the pendency of settlement reached in the course of conciliation proceedings; and (iii) During the pendency of awards of
Industrial Tribunal declared binding by the appropriate government. (4) In public interest or emergency the appropriate Government has power to declare the
transport (other the railways), coal, cotton, textiles, foodstuffs and iron and steel industries to be a public utility service for the purpose of this Act, for a
maximum period of six months. (5) In case of lay off or retrenchment of workmen the employer id required to pay compensation to them. (6) Provision has also
been made for payment of compensation to workmen in case of transfer or closure of an undertaking. (7) A number of authorities such as, Works committee,
Conciliation officers, Board of conciliation, Courts of inquiry, Labour Courts, Tribunal and National Tribunal are provided for settlement of industrial dispute.
The nature of powers, function and duties of these authorities differ from each other but each one of them plays an important role In ensuring industrial peace.

LAY-OFF means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the
breakdown of machinery or natural calamity or for any other connected reason to give employment-to a workman whose name is borne on the muster rolls of his
industrial establishment and who has not been retrenched; Section (kkk) DEFINE LAY-OFF. The following are salient features of Lay-off : 1. An employer,
who is willing to employ, fails or refuses or is unable to provide employment for reasons beyond his control 2. Any such failure or refusal to employ a workman
may be on account of : (i) shortage of coal, power or raw materials or (ii) the accumulation of stock, or (iii) the breakdown of machinery, or (iv) natural calamity
or (v) any other connected reasons. 3. A workmen who is deprived of employment must be such whose name is borne on the muster rolls of his industrial
establishment. 4. The workman must not have been retrenched. Section 25-C. Right of workmen Lay-off for compensation- Section 25-C of this Act entitled a
workmen to get compensation from the employer for the period he is laid-off. When the employer is unable to provide work to his workmen for reasons beyond
his control, he owes a duty to pay laid-off compensation to such workmen. Before a workmen may claim lay-off compensation he must fulfill the following
conditions : 1. his name must be borne on the muster rolls of an industrial establishment. 2. he must have completed at least one year‘s continuous service.
Section(oo) Retrenchment- Retrenchment connotes in its ordinary acceptation that the business itself is being contained, but a portion of the staff of labour
force is discharged as surplusage. It means the discharge of surplus labour or staff by the employer for any reason whatsoever. The order of termination must be
actuated with a motive of economy.Section 2 (oo) which defines the term ―retrenchment‖ may be analyzed as follows : (1) Retrenchment means the termination
by the employer of the service of a workmen. (2) The termination may be for any reason whatsoever; (3) But the termination should not be as a measure of
punishment by way of discipline action; The following are not retrenchment : (a) voluntary retirement of a workmen; (b) retirement of a workman on reaching
the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf (bb) termination
of the service of a workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of
such contract being terminated under a stipulation in that behalf contained therein; (c) termination of the service of a workmen on the ground of continued ill-
heald. Section 25-F. Condition precedent to retrenchment of workmen- Section 25-F lays down the requirements for a valid retrenchment. However, these
conditions apply in case of retrenchment of an employee who has been in continuous service for not less than one year. The section prescribes three conditions
for a valid retrenchment. Namely- (a) the workman should be given one month‘s notice in writing indicating the reasons of retrenchment. Retrenchment should
be effected after the expiry of the period of notice. If no such notice is given, the workmen must be paid in lieu of such notice wages for the period of notice. (b)
the workman has been paid, at the time of retrench, compensation, equivalent to fifteen days, average pay for every completed year of continuous service or any
part thereof in excess of six months. (c) notice in the prescribed manner is served on the appropriate Government or such authority as may be specified by the
appropriate Government by notification in the Official Gazette.

Settlement of Industrial Dispute Authorities under this Act that make use of conciliation as the sole method of settlement of disputes are the: 1-Works
Committee 2-Conciliation Officer 3-Board of Conciliation 4-The Labour Court 5-Tribunal and 6-National Tribunal
Section3Works Committee Duties of Works Committee.--(a) to promote measures for securing and preserving amity and good relations between the employers
and workmen; (b) to achieve the above object, it is their duty to comment upon matters of common interest or concern of employers and workmen; (c) to
endeavour to compose any material difference of opinion in respect of matters of common interest or concern between employers and workmen. \
Section4Conciliation Officer- The Appropriate Government may by notification in the Official Gazette, appoint conciliation officers. These officers are
charged with the duty of mediating in and promoting the settlement of industrial disputes. The Appropriate Government may appoint one or more conciliation
officers, as it thinks fit. A conciliation officer may be appointed for a specified area or for specified industries in a specified area or for one or more specified
industries. The appointment may be made either permanently or for a limited period.
Section5.Boards of. Conciliation--The provision for appointment of Boards of Conciliation is made under the Act to bring the two parties to a dispute to sit
together and thrash out their differences and to find out ways and means to settle them. Section 5 of the Act provides that the Appropriate Government may, by
notification in the Official Gazette, constitute a Board of Conciliation. The object of appointing the Board is promotion of settlement of an industrial dispute. A
Board shall consists of a Chairman and two or four other members, as the Appropriate Government thinks fit.
Section6 Court of Inquiry– If any matter is referred to a Court by the Appropriate Government, it shall inquire and make a report ordinarily within a period of
six months from the commencement of inquiry. Section 6(1) points out that if ―occasion arises‖ the appropriate Government may constitute a court of inquiry.
The purpose of constitution of Court of Inquiry is to inquire into any matter appearing to be connected with or relevant to an industrial dispute. The constitution
of the court has to be notified in the official gazette
Section7 Labour Court- Thy power of appointment of a Labour Court under Section 7 of the Act is vested with the Appropriate Government. The Appropriate
Government may constitute one or more Labour Courts.
Section7A.Tribunals- In our country the Industrial Tribunals were for the first time created by the Industrial Disputes Act, 1947. Commenting upon the status
of these tribunals the SC has observed that the tribunals under the Act are invested with many trappings of a Court but do not have the same status as Courts.
Section7B National Tribunals- Unlike the other authorities under the Act the National Tribunals can only be constituted by the Central Government. The
power is to be exercised by issuing of notification in the Official Gazette. The name of the person constituting the National Tribunal shall also be notified in the
Official Gazette.

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