Module-6

Industrial Dispute Act 1947

The Industrial Disputes Act, 1947 is a key piece of labor legislation in India. It
was enacted to provide a framework for the investigation and settlement of
industrial disputes, ensuring industrial peace and harmony between
employers and employees.

Objective of the Act

• To investigate and settle industrial disputes.

• To ensure fair labor practices.
• To promote healthy industrial relations.
• To provide machinery for dispute resolution.

Authorities under the Act

1. Works Committee – Promotes measures for securing and preserving

amity and good relations.
2. Conciliation Officers – Mediate in and promote the settlement of
industrial disputes.
3. Board of Conciliation – Handles complex disputes through formal
boards.
4. Court of Inquiry – Investigates matters connected with or relevant to
industrial disputes.
5. Labour Courts – Adjudicate disputes related to the rights of workmen.
6. Industrial Tribunals – Adjudicate wider matters like wages, working
hours, retrenchment, etc.
7. National Tribunals – Handle disputes of national importance.

Key Provisions

• Strikes & Lockouts: Regulated; notice must be given; prohibited in

public utility services during certain periods.
• Layoff, Retrenchment, and Closure: Rules for compensation and
procedures to be followed.
• Protected Workmen: Trade union leaders cannot be punished or
dismissed without prior approval.

PROF. UDAYA S
ASST. PROFESSOR @ SVIT
Recent Developments

In 2020, the Industrial Disputes Act, 1947 was subsumed under the
Industrial Relations Code, 2020, as part of the Indian government's labor law
reforms. The new Code merges:

• Industrial Disputes Act, 1947

• Trade Unions Act, 1926
• Industrial Employment (Standing Orders) Act, 1946

But the 1947 Act still holds relevance in historical and legal contexts until the
new Code is fully implemented across states.

Trade Union act 1926

Enacted to: Provide for the registration, rights, liabilities, and
responsibilities of trade unions.

Objectives

• Legal recognition of trade unions.

• To regulate the relationship between employers and employees.
• To ensure the rights of workers to form associations for mutual
protection and collective bargaining.

Registration of Trade Unions

• Minimum 7 members must apply for registration.

• Must submit:
o Union name
o Rules (constitution)
o Names, occupations, and addresses of members and officers
• Registrar verifies and issues a certificate, making the union a legal
entity.

Legal Status and Rights

• A registered trade union:

o Becomes a body corporate (can sue and be sued).
o Has perpetual succession and a common seal.
o Can acquire and hold property.
PROF. UDAYA S
ASST. PROFESSOR @ SVIT
 • Immunity from:
o Civil and criminal liability in certain circumstances related to
trade disputes.
o Tortious acts done in contemplation or furtherance of a trade
dispute.

Duties of a Registered Union

• Maintain proper books of accounts.

• Submit annual returns to the Registrar.
• Ensure compliance with rules (election of officers, use of funds, etc.).

Rights and Liabilities of Office Bearers

• At least 50% of office bearers must be from the workforce of the same
industry or establishment.
• Disqualifications include:
o Conviction of criminal offence involving moral turpitude (within 5
years).

Trade Union Funds

• Can be used for:

o Welfare of members (benefits, education, legal aid, etc.)
o Political purposes (through a separate fund with member consent).

PROF. UDAYA S
ASST. PROFESSOR @ SVIT
Employee State Insurance Act 1948

Purpose: To provide social security and health insurance to workers in case

of sickness, maternity, disability, or death due to employment injury.

Objectives

• To provide medical care to employees and their families.

• To offer cash benefits in case of sickness, maternity, and employment-
related injuries.
• To ensure financial protection to employees and their dependents.

Feature Details
- Applicable to factories, shops, and establishments
with 10 or more employees (in some states, 20).
Applicability
- Covers employees earning up to ₹21,000 per
month (₹25,000 for disabled employees).
- Employer: 3.25% of the employee’s wages.
Contributions - Employee: 0.75% of wages.
- Contributions are collected monthly.
Benefits Provided
Free medical treatment, hospitalization, surgeries,
Medical Benefit and specialist consultations for employees and their
dependents.
70% of wages for up to 91 days per year during
Sickness Benefit
medical leave.
100% of wages for 26 weeks (extendable by 1
Maternity Benefit
month) for maternity leave.
- Temporary Disablement: 90% of wages for the
disability period.
Disablement Benefit
- Permanent Disablement: Pension based on
disability severity.
Monthly pension to dependents if the insured
Dependents' Benefit
employee dies due to an employment-related injury.
Funeral Expenses Lump sum ₹15,000 for funeral expenses.
Under Rajiv Gandhi Shramik Kalyan Yojana,
Unemployment
unemployed persons receive 50% of wages for up
Allowance
to 24 months in case of retrenchment or closure.
Managed by Employees’ State Insurance
Administration Corporation (ESIC), which operates hospitals and
dispensaries across India.

PROF. UDAYA S
ASST. PROFESSOR @ SVIT
 - Wage limit for coverage increased to ₹21,000 per
month (2017).
- Digital initiatives like ESIC e-challan system
Recent Amendments
introduced.
- Discussions on expanding to gig and platform
workers.

Employee Compensation Act 1923

The Employee’s Compensation Act, 1923 was enacted to ensure that

employees (or their dependents) receive compensation from their employer in
case of accidental injury, disability, or death arising out of and in the course
of employment.

Objectives

• To provide financial support to employees or their dependents in case of

work-related injuries or death.
• To fix the liability of employers for such compensation.
• To ensure quick and fair compensation without the need for prolonged
legal proceedings.

Feature Details
- Applicable to employees working in factories,
mines, plantations, construction work, railways,
and other hazardous occupations.
Applicability
- Covers both manual and clerical workers but not
government employees or employees covered
under the ESI Act, 1948.
Employers must compensate employees for
Employer's Liability injuries, disabilities, or death caused by workplace
accidents or occupational diseases.
- Death: Compensation paid to dependents
(minimum ₹1,20,000, based on wage and age
Types of factor).
Compensation - Permanent Total Disability: Compensation is
based on 60% of monthly wages × relevant age
factor (minimum ₹1,40,000).

PROF. UDAYA S
ASST. PROFESSOR @ SVIT
 - Permanent Partial Disability: Compensation
depends on the extent of disability and employee
wages.
- Temporary Disability: 50% (for temporary total
disability) or lesser percentage of monthly wages
for the disability period.
Employers are liable to pay compensation for
Occupational
specific diseases (e.g., lung disease from dust
Diseases
exposure, hearing loss in noisy environments).
Based on monthly wages, nature of injury, and
Compensation
employee's age. The government periodically
Calculation
revises the minimum compensation amount.
Employers are not liable for compensation if:
- The injury is self-inflicted.
Employer’s Defenses
- The injury occurred due to employee intoxication.
- The worker violated safety guidelines.
Compensation must be paid within one month of
Compensation
the accident or injury. Failure results in penalties
Payment
and interest.
- 2017 Amendment: Increased compensation
amounts and penalties.
Recent Amendments
- 2019 Amendment: Digital payment of
compensation allowed.
Cases are handled by Commissioners for Employee
Administration
Compensation (appointed by state governments).

PROF. UDAYA S
ASST. PROFESSOR @ SVIT
Maternity Benefit Act 1961

The Maternity Benefit Act, 1961 was enacted to protect the employment and
ensure the well-being of women during pregnancy and after childbirth. It
provides paid maternity leave and other benefits to working women.

Objectives

• To regulate the employment of women in certain establishments before

and after childbirth.
• To provide maternity leave, medical bonus, and job security.
• To prevent discrimination and ensure health and dignity of working
mothers.

Feature Details
Applies to establishments with 10 or more
Applicability employees, including factories, mines, plantations,
and shops.
Female employees must have worked for at least
Eligibility
80 days in the past 12 months.
26 weeks of paid leave (8 weeks before delivery,
Maternity Leave 18 weeks after).
For the third child onward: 12 weeks of leave.
12 weeks of leave for mothers adopting a child
Adoption &
below 3 months or commissioning mothers
Surrogacy Leave
(surrogacy).
Miscarriage/Abortion 6 weeks of paid leave in case of miscarriage,
Leave abortion, or medical termination.
Available as per employer’s policy, after maternity
Work from Home
leave ends.
Prohibition on Employers cannot dismiss or change conditions of
Dismissal service during maternity leave.
Mandatory crèche facility for establishments with
Crèche Facility
50 or more employees.
- 2017: Increased maternity leave from 12 to 26
Recent Amendments weeks.
- Crèche facility introduced.
PROF. UDAYA S
ASST. PROFESSOR @ SVIT
Employee provident Fund and Miscellaneous Provisions Act 1952

The EPF Act, 1952 was enacted to ensure financial security for employees
after retirement or in case of disability/death, by creating a compulsory savings
scheme contributed by both employee and employer.

Objectives

• To provide social security and retirement benefits to employees.

• To ensure savings for the future through monthly contributions.
• To support employees in events like retirement, illness, disability, or
death.

Feature Details
Applies to establishments with 20 or more employees
Applicability
in industries specified by the government.

Covers employees earning up to ₹15,000 per month

Coverage
(higher income employees can voluntarily opt-in).
Employee 12% of basic salary + dearness allowance deducted
Contribution monthly.
Employer 12% of basic salary + dearness allowance (8.33%
Contribution goes to EPS, 3.67% to EPF).

Savings scheme where employees contribute monthly,

EPF (Employee
withdrawable after retirement, resignation, or specific
Provident Fund)
conditions.

EPS (Employee Provides pension benefits after 58 years of age,

Pension Scheme) requires 10 years of service.
EDLI (Employee
Life insurance cover of up to ₹7 lakh for EPF
Deposit Linked
members, provided automatically.
Insurance)
Allowed for retirement, home purchase, medical
Withdrawals emergencies, or unemployment (subject to
conditions).
- Higher pension option introduced for eligible
employees.
Recent Amendments
- EPFO digital services improved for faster claim
processing.
PROF. UDAYA S
ASST. PROFESSOR @ SVIT
Gratuity Act 1972

The Gratuity Act was enacted to provide a lump sum monetary benefit to
employees as a token of appreciation for their long-term service when they
leave employment (due to retirement, resignation, death, or disability).

Objectives

• To ensure a financial benefit to employees after long, continuous

service.
• To promote employee loyalty and reduce job insecurity.
• To provide support to the family in case of an employee’s death

Feature Details
Establishments with 10 or more employees (once
Applicability
covered, always covered).
Employees who have completed 5 years of
Eligibility continuous service. (Not required in case of death or
disability).
Formula: (Last drawn salary × 15 days × No. of
Gratuity Calculation
years of service) / 26
Maximum Gratuity ₹20 lakh (as per the latest amendment).
Must be paid within 30 days of eligibility, else
Payment Timeline
interest is applicable.

Gratuity is tax-free up to ₹20 lakh for non-

Tax Benefits
government employees.
- 2018: Increased tax-free limit from ₹10 lakh to ₹20
Recent Amendments
lakh.

PROF. UDAYA S
ASST. PROFESSOR @ SVIT
Bonus Act 1965.
The Payment of Bonus Act, 1965 was enacted to provide bonus payments to
employees working in factories and establishments, to ensure that employees
receive a share of the profits of the organization, in addition to their regular
wages.

Objectives

• To provide a statutory bonus to employees.

• To enhance the income of workers and promote their well-being.
• To create a better work environment by sharing the profits of the
organization with employees.

Feature Details
Establishments with 20 or more employees in any
Applicability
industry.

Employees earning up to ₹21,000 per month and

Eligibility
having worked at least 30 days in a financial year.

Minimum: 8.33% of salary

Bonus Calculation Maximum: 20% of salary (based on company
profits).
Salary Considered ₹7,000 or minimum wage, whichever is higher.
Must be paid within 8 months of the financial
Payment Timeline
year’s end.

- Wage limit for bonus eligibility raised from

Recent Amendments
₹10,000 to ₹21,000 (2015 amendment).

PROF. UDAYA S
ASST. PROFESSOR @ SVIT