Industrial Disputes Act 1947 provides a framework for investigation and
settlement of industrial disputes. The
Industrial Disputes (Amendment) Bill, 2010 was finalized after detailed
consultations with stake holders and the Government had formulated the amendment
proposals mainly on the issues on which consensus were arrived at. The Industrial Dispute (Amendment) Bill, 2009
was introduced in the Rajya Sabha
on 26.2.2009. The Bill was referred to
the Parliamentary Standing Committee on Labour.
The Committee examined the Bill and made certain recommendations for
further modifications to the amendments proposed in the Bill. The Government accepted some of its
amendment proposals in the Industrial Disputes (Amendment) Bill, 2010
inter-alia, seek to amplify the definition of ‘appropriate Government’, enhance
the wage ceiling prescribed for supervisors,
provide direct access for workman to Labour courts or Tribunal in case
of individual disputes, expand the scope
of qualifications of Presiding Officers of Labour Courts or Tribunal, setting up of Grievance Settlement Machinery
and empowerment of Industrial Tribunal-cum-Labour Courts to enforce
Industrial Disputes (Amendment) Bill, 2010 as amended was considered and passed
by the Rajya Sabha on
his introductory remarks the Minister of Labour and Employment Shri Mallikarjun Kharge said that the Industrial Disputes Act 1947 is a
significant piece of legislation which provides a framework for
investigation and settlement of industrial disputes. The Act also seeks to regulate
illegal strikes and lockouts, and provides protection to the workmen in case of
lay-off, retrenchment and closure of establishments. Ministry of Labour & Employment has held
tripartite consultations with stake holders and formulated proposals for
amendment in the Industrial Disputes Act, 1947 on the issues on which consensus
was arrived at.
Industrial Disputes (Amendment) Bill, 2010 seeks the following:
2(a): Amplification of definition of Appropriate
Bill proposes to amplify the definition of ‘appropriate Government’ under 2(a)
of the Act. The Central Government is
the appropriate Government in respect of categories listed in Section 2(a)(i) of the I.D. Act, 1947. In addition to this, it is further clarified
that Central Government would be appropriate Government for any company in which not less than fifty-one
per cent of the paid-up share capital is held by the Central Government, or any
corporation, (not being a corporation referred to in this clause) established
by or under any law made by Parliament, or the Central Public Sector
Undertaking, subsidiary companies set up by the principal undertaking and
autonomous bodies owned or controlled by the Central Government.
State Government will be the appropriate
Government in relation to any other industrial dispute, including the State
Public Sector Undertaking, subsidiary companies set up by the principal
undertaking and autonomous bodies owned or controlled by the State Government.
amplify the definition of term ‘appropriate Government’ the Standing Committee
has suggested that the industrial disputes between a contractor and contract
labour employed in any industrial establishment needs to be brought under the
purview of ‘appropriate Government’. The
Government has accepted this recommendation of the Committee. This amplification of the definition will
eliminate all ambiguities in the interpretation of the definition of
Section 2(s): Amendment of Section 2(s) (iv) - Enhancing the wage ceiling of Rs.1600 per moth
prescribed for supervisors in the definition of workmen under Section 2(s) to
Rs.10,000 per month.
of wage ceiling of the workers working in a supervisory capacity from one
thousand six hundred rupees per month to ten thousand rupees per month.
The wage ceiling has been enhanced to be in consonance with the increase in
wages of industrial workers and also to bring about parity with other labour
laws like Employees State Insurance Act, 1948, Payment of Bonus Act, 1965 and
Payment of Wages Act, 1936.
reference of disputes connected with Termination/ Dismissal/ Retrenchment/
Discharge to Industrial Tribunals.
provide direct access for the workman to the Labour Court or Tribunal in case of
disputes arising out of Section 2A pertaining to retrenchment, discharge,
dismissal or termination of services etc.
At present, such a dispute could be adjudicated by CGIT-cum LC only
after a reference is made by the ‘appropriate Government’. As a consequence of this proposed amendment,
the workman can directly approach the CGIT-cum-LC after filing his grievance
before the conciliation machinery to resolve the issue within 45 days. There will be no need for him to approach the ‘appropriate Government’ for
making a reference. This amendment would
enable the aggrieved workman to choose the alternative of adjudication for
resolution of his dispute faster.
of new Chapter for Chapter IIB-Setting of Grievance Redressal Machinery:
Bill seeks to establish a Grievance Redressal Machinery (GRM) within industrial
establishment having 20 or more workmen with one stage appeal at the head of
the establishment for resolution of disputes arising out of individual
grievances. With this amendment, the workman will get one more alternative
grievance redressal mechanism for the resolution of his dispute within the
organization itself with minimum necessity for adjudication. It may be noted that setting up of GRM in no
way will affect the right of the workman to raise dispute on the same issue
under the provision of Industrial Disputes Act, 1947.
7: Relaxation of Qualifications of Presiding Officers.
also proposed to expand the scope of qualification of Presiding Officers of
CGIT-cum-LC by making officers of Central Labour Service of the rank of Deputy
Chief Labour Commissioner and State Labour Department of the rank of Joint
Labour Commissioner and officers of the Indian Legal Service Gr.III eligible
for the post of Presiding Officer in CGIT-cum-LC. This will enable the Government to appoint
the Presiding Officers from wide range of eligible officers from the relevant
Section 11: - Power to enforce Decree by CGIT.
Bill also proposes to empower the Labour
Court or Tribunal to execute their awards, orders
of settlements arrived at as a decree of a Civil Court. This amendment will ensure better enforcement
of the awards given by CGITs-cum-LC.
Section 38(2) © - Salaries and allowances and
other terms and conditions of service of Presiding Officer of Central
Government Industrial Tribunals-cum-Labour Courts (CGIT) and National
The Bill proposes to make a specific provision
in the Act by amending the Section 38(2) © of the Act that Government may make
rules to decide and review the salaries and allowances and other terms and
conditions for appointment of Presiding Officers. Details will be worked out while framing the
To Summarise, the main amendment proposals in the I.D.
of the definition of ‘Appropriate Government’.
enhance the wage limit from Rs.1600/-
per month to Rs. 10,000/- per month to make the provision meaningful and
in tune with the definition of workman in other labour laws such as Payment of
Bonus Act, 1965, Payment of Wages Act, 1936 and Employees’ State Insurance Act,
provide a grievance ventilation and redressal machinery within an establishment
having 20 or more workmen with one stage appeal at the level of the Head of the
Industrial Establishment in order to promote better industrial relations at the
industrial establishment level.
provide individual workman direct access to Labour Courts/ Tribunals in cases
of retrenchment, discharge, dismissal or termination of services.
officers of the Central Labour Service/State Labour Service/Indian Legal
Service eligible for the post of Presiding Officers in the Central Government
Industrial Tribunals–cum-Labour Courts for addressing the problem of
availability of Presiding Officers.
Government to make rules to decide and review the salaries and allowances and
other terms and conditions for appointment of Presiding Officers.
To empower Central Government Industrial
Tribunals, Labour Courts and National Tribunals to execute their
awards/orders/settlements as a decree of the civil court.