Law Notifications - Industrial Disputes Act



(Click each heading to get details)

07/10/2010

THE INDUSTRIAL DIPSUTES (AMENDMENT) ACT, 2010

No.24 OF 2010 [18 th August, 2010] 

An Act further to amend the Industrial Disputes Act, 1947.
Be it enacted by Parliament in the Sixtieth Year of the Republic of India as follows:-
1. (1) This Act may be called the Industrial Disputes (Amendment) Act, 2010.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
2. In the Industrial Disputes Act, 1947 (hereinafter referred to as the principal Act), in section 2, -.
(i) in clause (a),- appropriate government
(a) in sub-clause (i), for the words “major port, the Central Government, and”, the words “major port, 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, the Central Government and” shall be substituted:
(b) for sub-clause (ii), the following sub-clause shall be substituted, namely:-
“(ii) 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, the State Government.”;

Provided that in case of a dispute between a contractor and the contract labour employed through the contractor in any industrial establishment where such dispute first arose, the appropriate Government shall be the Central Government or the State Government, as the case may be, which has control over such industrial establishment.”;

Definition of ‘workman’ enlarged

(ii) in clause (5), in sub-clause (iv), for the words “one thousand six hundred rupees”, the words “ten thousand rupees” shall be substituted.
Deemed reference after 3 months from the date of the application before the conciliation officer
3. Section 2A of the principal Act shall be numbered as sub-section (1) thereof and after sub-section (l) as so numbered, the following sub-sections shall be inserted, namely:-
“(2) Notwithstanding anything contained in section 10, any such workman as is specified in sub-section (1) may, make an application direct to the Labour Court or Tribunal for adjudication of the dispute referred to therein after the expiry of three months from the date he has made the application to the Conciliation Officer of the appropriate Government for conciliation of the dispute, and in receipt of such application the Labour Court or Tribunal shall have powers and jurisdiction to adjudicate upon the dispute, as if it were a dispute referred to it by the appropriate Government in accordance with the provisions of this Act and all the provisions of this Act shall apply in relation to such adjudication as they apply in relation to an industrial dispute referred to it by the appropriate Government.

Limitation to raise a dispute - 3 Yrs

(3) The application referred to in sub-section (2) shall be made to the Labour Court or Tribunal before the expiry of three years from the date of discharge, dismissal, retrenchment or otherwise termination of service as specified in sub-section (1).”
4. In section 7 of the principal Act, in sub-section (3), after clause (e), the following clauses shall be inserted, namely:-

Labour court presiding officers qualification enlarged

“(f) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State Labour Department , having a degree in law and at least seven years´ experience in the labour department after having acquired degree in law including three years of experience as Conciliation Officer:
Provided that no such Deputy Chief Labour Commissioner or Joint Labour Commissioner shall be appointed unless he resigns from the service of the Central Government or State Government, as the case may be, before being appointed as the presiding officer; or
(g) he is an officer of Indian Legal Service in Grade III with three years´ experience in the grade.”
5. In section 7A of the principal Act, in sub-section (3), after clause (aa), the following clauses shall be inserted, namely:-
“(b) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State Labour Department, having a degree in law and at least seven years´ experience in the labour department after having acquired degree in law including three years of experience as Conciliation Officer:
Provided that no such Deputy Chief Labour Commissioner or Joint Labour Commissioner shall be appointed unless he resigns from the service of the Central Government or State Government, as the case may he, before being appointed as the presiding officer; or
(c) He is an officer of Indian Legal Service in Grade III with three years´ experience in the grade.”
6. After section 9B of the principal Act, for chapter IIB, the following Chapter shall be substituted, namely:-
“CHAPTER IIB

GRIEVANCE REDRESSAL MACHINERY

9C. (l) Every industrial establishment employing twenty or more workmen shall have one or more Grievance Redressal Committee for the resolution of disputes arising out of individual grievances.
(2) The Grievance Redressal Committee shall consist of equal number of members from the employer and the workmen.
(3) The chairperson of the Grievance Redressal Committee shall be selected from the employer and from among the workmen alternatively on rotation basis every year.
(4) The total number of members of the Grievance Redressal Committee shall not exceed more than six:

 

Implementation of awards of labour courts
“(9) Every award made, order issued or settlement arrived at by or before Labour Court or Tribunal or National Tribunal shall be executed in accordance with the procedure laid down for execution of orders and decree of a Civil Court under order 21 of the Code of Civil Procedure , 1908.
(10) The Labour Court or Tribunal or National Tribunal, as the case may be, shall transmit any award, order or settlement to a Civil Court having jurisdiction and such Civil Court shall execute the award, order or settlement as if it were a decree passed by it.”
8. In section 38 of the principal Act, in sub-section (2),-
(i) clause (ab) shall be omitted;
(ii) for clause (c), the following clause shall be substituted, namely:-
“(c) the salaries and allowances and the terms and conditions for appointment of the presiding officers of the Labour Court, Tribunal and the National Tribunal including the allowances admissible to members of Courts, Boards and to assessors and witnesses;”.

Impact of recent ID Act Amendments to Staffing Industry w.e.f 15-09-2010

1. Direct deemed reference of Dispute after 45 days.
2. Time limit for questioning all such disputes in relation to discharge, dismissal, termination or retrenchment is 3 years.( Earlier no time limit)
3. Individual Employee grievance in relation to discharge, dismissal, termination or retrenchment is subject to Conciliation by Labour Officer and thereafter by Labour Court.
4. Enhancement of wage ceiling by the ID Amendment Act
In continuation of the relevance of the recent ID Act amendments for the Staffing Industry we refer to the aspect Enhancement of wage ceiling by the ID Amendment Act.
Prior to the amendment Wage ceiling of workman in the definition clause Sec 2 (s) was Rs. 1600/- .Now it is enhanced to Rs. 10,000/- per month. Consequently any person, working in any industry, doing any manual, unskilled, skilled, technical, operational, clerical or supervisory work drawing wages up to Rs. 10000/- will be considered as a workman.
In the Staffing Industry this change is conspicuous and Deputed Supervisors and real time Deputed Managers drawing wages exceeding ten thousand rupees per mensem alone may be exempted .All others will come within the definition of workmen for the purposes of any proceeding under the Industrial Disputes Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute.

5. Impact of changes in Appropriate Government for disputes between Contractor and Contract Labour.

The impact of the Amendment on the definition of appropriate Govt has been clarified Accordingly Industry, corporation, PSEs and PSU owned or controlled by the Central Govt., for them appropriate Govt. would be Central Govt. and if such industry under the control of State Govt., appropriate Govt. would be State Govt.

6. Another important Amendment affecting the Staffing Industry and Contractors in general is inclusion of the following proviso:

Provided that in case of a dispute between a contractor and the contract labour employed through the contractor in any industrial establishment where such dispute first arose, the appropriate Government shall be the Central Government or the State Government, as the case may be, which has control over such industrial establishment.
The above proviso literally means that for the Employees of the Contractor of such Industries the concerned Government shall be the Central Government or the State Government, as the case may be, which has control over such industrial establishment. In case the Staffing Company is a Contractor for a central PSU then for the employees of the Contractor to raise a dispute will be the Central Govt and if deputed for a State PSU then it will be the State Govt.

7. Changes made in the Section 11 –Enforcing the Awards of Labour Court.

In section 11 of the principal Act, after sub-section eight , the following sub-sections shall be inserted, namely:

“(1) Every award made, order issued or settlement arrived at by or before Labour Court or Tribunal or National Tribunal shall be executed in accordance with the procedure laid down for execution of orders and decree of a Civil Court under order 21 of the Code of Civil Procedure, 1908.

(2) The Labour Court or Tribunal or National Tribunal, as the case may be, shall transmit any award, order or settlement to a Civil Court having jurisdiction and such Civil Court shall execute the award, order or settlement as if it were a decree passed by it.”

By introduction of the provision the award of Labour Court / Tribunals is now additionally executable by a Civil Court. After the Labour Court/Tribunal passes the award it shall be transmitted to the Civil Court for execution. By this process both the moveable and immovable property of the Judgment Debtor i.e. the person/company against whom the award is passed can be attached. Also the Judgment Debtor can be arrested and put in prison. Earlier the awards were executed by the Revenue Recovery process alone, through collector which was time consuming.

8. Setting up of Grievance Redressal Machinery.

9C. (1) Every industrial establishment employing twenty or more workmen shall have one or more Grievance Redressal Committee for the resolution of disputes arising out of individual grievances.
(2) The Grievance Redressal Committee shall consist of equal number of members from the employer and the workmen.
(3) The chairperson of the Grievance Redressal Committee shall be selected from the employer and from among the workmen alternatively on rotation basis every year.
(4)The total number of members of the Grievance Redressal Committee shall not exceed more than six:

9. INDUSTRY

Whether it will come within the definition of Industry For this Sec 2 (j) of the Industrial Disputes Act defines"industry" means any systematic activity carried on by co-operation between an employer and his workmen(whether such workmen are employed by such employer directly or by or through any agency, including a contractor)for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes(not being wants or wishes which are merely spiritual or religious in nature), whether or not, -

 

  1. any capital has been invested for the purpose of carrying on such activity; or
  2. such activity is carried on with a motive to make any gain or profit, and includes –
  3. any activity of the Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1949);
  4. any activity relating to the promotion of sales or business or both carried on by an establishment, but does not include - (1) any agricultural operation except where such agricultural operation is carried on in an integrated manner with any other activity (being any such activity as is referred to in the foregoing provisions of this clause) and such other activity is the predominant one.

Explanation : For the purposes of this sub-clause, "agricultural operation" does not include any activity carried on in a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951); or
(2) hospitals or dispensaries; or
(3) educational, scientific, research or training institutions; or
(4) institutions owned or managed by organizations wholly or substantially engaged in any charitable, social or philanthropic service; or
(5) khadi or village industries; or
(6) any activity of the Government relatable to the sovereign functions of the Government including all the activities carried on by the departments of the Central Government dealing with defence research, atomic energy and space; or
(7) any domestic service; or
(8) any activity, being a profession practiced by an individual or body of individuals, if the number of persons employed by the individuals or body of individuals in relation to such profession is less than ten; or
(9) any activity, being an activity carried on by a co-operative society or a club or any other like body of individuals, if the number of persons employed by the co-operative society, club or other like body of individuals in relation to such activity is less than ten.

15/09/2010

I.D Act amended after 26 years

 To summarize, the main amendment proposals in the I.D. Act are:

  1. Amplification of the definition of ‘Appropriate Government’.
  2. To 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, 1948.
  3. To 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.
  4. To provide individual workman direct access to Labour Courts/ Tribunals in cases of retrenchment, discharge, dismissal or termination of services.
  5. To make 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.
  6. To empower Government to make rules to decide and review the salaries and allowances and other terms and conditions for appointment of Presiding Officers.
  7. To empower Central Government Industrial Tribunals, Labour Courts and National Tribunals to execute their awards/orders/settlements as a decree of the civil court,

NOTIFICATION 
S.O. 2278(E).- In exercise of the powers conferred by sub-section (2) of Section 1 of the Industrial Disputes (Amendment) Act, 2010 (24 of 2010), the Central Government hereby appoints the 15 th Day of September, 2010, as the date on which the said Act shall come into force.

 
Law Notifications
Notified New name for WC is Employees Compensation Act

Confusing circulars on splitting of P.F wages

From July shop engaing 10 or more employees are covered

Gratuity Act Amendment India 2010 (Gratuity Calculation and Payment)

THE INDUSTRIAL DIPSUTES (AMENDMENT) ACT, 2010

Auto companies call for labour law reforms