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INDUSTRIAL DISPUTES (AMENDMENT) ACT, 1982

THE INDUSTRIAL DISPUTES (AMENDMENT) ACT, 1982

No. 46 OF 1982

[31^st August, 1982]

An Act further to amend the Motor Vehicles Act, 1947

BE it enacted by Parliament in the Thirty-third Year of the Republic of India as follows:—

Short title and commencement

1. (1) This Act may be called, the Industrial Disputes (Amendment) Act, 1982.

(2) It shall come into force on such date (The clauses (a), (b) and (d) to (k) of section 2 and sections 3, 4, 5, 6, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 20, 21 and 23 of this Act shall come into force w.e.f. 21.08.1984: vide Notifn.No.S.O.606(E), dated 21.8.1984) as the Central Government may, by notification in the Official Gazette, appoint, and different dates maybe appointed for different provisions of this Act.

Amendment of section 2

2. In section 2 of the Industrial Disputes Act, 1947 (hereinafter referred to as the principal. Act),—

(a) in clause (a), in sub-clause (i), for the portion beginning with the words “the Industrial Finance Corporation of India” and ending with the words and figures “the Regional Rural Banks Act, 1976”, the following shall be substituted, namely:—

‘a Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948, or the Industrial Finance Corporation of India established under section 3 of the Industrial Finance Corporation Act, 1948, or the Employees’ State Insurance Corporation established under section 3 of the Employees’ State Insurance Act, 1948, or the. Board of Trustees constituted under section 3A of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948, or the Central Board of Trustees Wand the State Boards of Trustees constituted under section 5A and section 5B, respectively, of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, or the “Indian Airlines” and “Air India” Corporations established under section 3 of the Air Corporations Act, 1953, or the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956, or the Oil and Natural Gas Commission established under section 3 of the Oil and Natural Gas Commission Act, 1959, or the Deposit Insurance and Credit Guarantee Corporation established under section 3 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, or the Central Warehousing Corporation established under section 3 of the Warehousing. Corporations Act, 1962, or the Unit Trust of India established under section 3 of the Unit Trust of India Act, 1963, or the Food Corporation of India, established under section 3, or a Board of Management established for two or more contiguous States under section 16, of the Food Corporations Act, 1964, or the International Airports Authority of India constituted under section 3 of the International Airports Authority of India Act, 1971, or a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976, or the Export Credit and Guarantee Corporation Limited or the Industrial Reconstruction Corporation of India Limited;

(b) after clause (c), the following clause shall be inserted, namely:—

‘(cc) “closure” means the permanent closing down of a place of employment or part thereof;’;

‘(j) “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,—

(i) any capital has been invested for the purpose of carrying on such activity; or

(ii) such activity is carried on with a motive to make any gain or profit,

and includes—

(a) any activity of the Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948;

(b) any activity relating to the promotion of sales business or both carried On by An establishment,

but does not include—

(1) any agricultural operation except where such agricultural operation its carried on in an integrated manner with any other activity (being any such activity as is referred to in the foregoing provisions of this 0.ause) 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; or

(2) hospitals or dispensaries; or

(3) educational, scientific, research or training institutions; or

(4) institutions owned or managed by organisations 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 practised by an individual or body of individuals, if the number of persons employed by the individual or body of individuals in relation to such profession is less than ten; or

(9) any activity, being an activity carried on by a cooperative 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;’;

(d) after clause (k), the following clause shall be inserted, namely:—

(ka) “industrial establishment or undertaking” means an establishment or undertaking in which any industry is carried on:

Provided that where several activities are carried on in an establishment or undertaking and only one or some of such activities is or are an industry or industries, then,—

(a) if any unit of such establishment or undertaking carrying on any activity, being an industry, is severable from the other unit or units of such establishment or undertaking, such unit shall be deemed to be a separate industrial establishment or undertaking;

(b) if the predominant activity or each of the predominant activities carried on in such establishment or undertaking or any unit thereof is an industry and the other activity or each of the other activities carried on in such establishment or undertaking or unit thereof is not severable from and is, for the purpose of carrying on, or aiding the carrying on of, such predominant activity or activities, the entire establishment or undertaking or, as the case may be, unit thereof shall be deemed to be an industrial establishment or undertaking;’;

(e) clause (kka) shall be relettered as clause (kkb) and before the clause as so relettered, the following clause shall be inserted, namely:—

(kka) “khadi” has the meaning assigned to it in clause (d) of section 2 of the Khadi and Village Industries Commission Act, 1956;’;

(f) in clause (kkk), for the words “or for any other reason”, the words “or natural calamity or for any other connected reason” shall be substituted;

(g) in clause (l), for the words “closing of a place of employment”, the words “temporary closing of a place of employment” shall be substituted;

(h) after clause (q), the following clause shall be inserted, namely:—

(qq) “trade union” means a trade union registered under the Trade Unions Act, 1926;’;

(i) after clause (r), the following clauses shall be inserted, namely:—

‘(ra) “unfair labour practice” means any of the practices specified in the Fifth Schedule;

(rb) “village industries” has the meaning assigned to it in clause (h) of section 2 of the Khadi and Village Industries Commission Act, 1956;’;

(j) in clause (rr), after sub-clause (iii), the following sub-clause shall be inserted, namely:—

“(iv) any commission payable on the promotion of sales or business or both;”;

(k) for clause (s), the following clause shall be substituted, namely:—

(s) “workman” means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this 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, but does not include any such person—

(1) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or

(n) who is employed in the police service or as an officer or other employee of a prison; or

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.’.

Amendment of section 7

3. In section 7 of the principal Act, in sub-section (3), clause (c) shall be omitted.

Amendment of section 7A

4. In section 7A of the principal Act,—

(a) in sub-section (1), after the words “the Third Schedule”, the words “and for performing such other functions as may be assigned to them under this Act” shall be inserted;

(b) in sub-section (3),—

(i) in clause (aa), the word “or” at the end shall be omitted; (ii) clause (b) shall be omitted.

Amendment of section 7B

5. In section 7B of the principal Act, in sub-section (3), for the portion beginning with the word “unless” and ending with the words “not less than two years”, the words “unless he is, or has been, a Judge of a High Court” shall be substituted.

Amendment of section 9A

6. In the proviso to section 9A of the principal Act, in clause (a), for the words, brackets and figures “settlement, award or decision of the Appellate Tribunal constituted under the Industrial Disputes (Appellate Tribunal) Act, 1950”, the words “settlement or award” shall be substituted.

Insertion of new Chapter IIB

7. After section 9B of the principal Act, the following Chapter shall be inserted, namely:—

“CHAPTER IIB

REFERENCE OF CERTAIN INDIVIDUAL DISPUTES TO GRIEVANCE SETTLEMENT AUTHORITIES

Setting up of Grievance Settlement Authorities and reference of certain individual disputes to such authorities

9C. (1) The employer in relation to every industrial establishment in which fifty or more workmen are employed or have been employed on any day in the preceding twelve months, shall provide for, in accordance with the rules made in that behalf under this Act, a Grievance Settlement Authority for the settlement of industrial disputes connected with an individual workman employed in the establishment.

(2) Where an industrial dispute connected with an individual workman arises in an establishment referred to in sub-section (1), a workman or any trade union of workmen of which such workman is a member, refer, in such manner as may be prescribed, such dispute to the Grievance Settlement Authority provided for by the employer under that sub-section for settlement.

(3) The Grievance Settlement Authority referred to in sub-section (1) shall follow such procedure and complete its proceedings within such period as may be prescribed.

(4) No reference shall be made under Chapter III with respect to any dispute referred to in this section unless such dispute has been referred to the Grievance Settlement Authority concerned and the decision of the Grievance Settlement Authority is not acceptable to any of the parties to the dispute.”.

Amendment of section 10

8. In section 10 of the principal Act,—

(a) in sub-section (1), after the second proviso, the following proviso shall be inserted, namely:—

“Provided also that where the dispute in relation to which the Central Government is the appropriate Government, it shall be competent for that Government to refer the dispute to a Labour Court or an Industrial Tribunal, as the case may be, constituted by the State Government:”;

(b) after sub-section (2), the following sub-section shall be inserted, namely:—

“(2A) An order referring an industrial dispute to a Labour Court, Tribunal or National Tribunal under this section shall specify the period within which such Labour Court, Tribunal or National Tribunal shall submit its award on such dispute to the appropriate Government:

Provided that where such industrial dispute is connected with an individual workman, no such period shall exceed three months:

Provided further that where the parties to an industrial dispute apply in the prescribed manner, whether jointly or separately, to the Labour Court, Tribunal or National Tribunal for extension of such period or for any other reason, and the presiding officer of such Labour Court, Tribunal or National Tribunal considers it necessary or expedient to extend such period, he may for reasons to be recorded in writing, extend such period by such further period as he may think fit:

Provided also that in computing any period specified in this sub-section, the period, if any, for which the proceedings before the Labour Court, Tribunal or National Tribunal had been stayed by any injunction or order of a Civil Court shall be excluded:

Provided also that no proceedings before a Labour Court, Tribunal or National Tribunal shall lapse merely on the ground that any period specified under this sub-section had expired without such proceedings being completed.”;

“(8) No proceedings pending before a Labour Court, Tribunal ‘or National Tribunal in relation to an industrial dispute shall lapse merely by reason of the death of any of the parties to the dispute being a workman, and such Labour Court, Tribunal or National Tribunal shall complete such proceedings and submit its award to the appropriate Government.”.

Amendment of section 11

9. In section 11 of the principal Act,—

(a) in sub-section (4),—

(i) for the words “may call for”, the words “may enforce the attendance of any person for the purpose of examination of such person or call for” shall be substituted;

(ii) for the words “in respect of compelling the production of documents”, the words “in respect of enforcing the attendance of any person and examining him or of compelling the production of documents” shall be substituted;

(b) in sub-section (8), for the words and figures “sections 480, 482 and 484 of the Code of Criminal Procedure, 1898”, the words and figures “sections 345, 346 and 348 of the Code of Criminal Procedure, 1973” shall be substituted.

Amendment of section 15

10. In section 15 of the principal Act, for the words “as soon as it is practicable on the conclusion thereof”, the words, brackets, figures and letter “within the period specified in the order referring such industrial dispute or the further period extended under the second proviso to sub-section (2A) of section 10” shall be substituted.

Insertion of new section 17B

11. After section 17A of the principal Act, the following section shall be inserted, namely:—

Payment of full wages to workman pending proceedings in higher courts

“17B. Where in any case, a Labour Court, Tribunal or National Tribunal by its award directs reinstatement of any workman and the employer prefers any proceedings against such award in a High Court or the Supreme Court, the employer shall be liable to pay such workman, during the period of pendency of such proceedings, in the ‘High Court or the Supreme Court, full wages last drawn by him, inclusive of any maintenance allowance admissible to him under any rule if the workman had not been employed in any establishment during such period and an affidavit by such workman had been filed to that effect in such Court:

Provided that where it is proved to the satisfaction of the High Court or the Supreme Court that such workman had been employed and had been receiving adequate remuneration during any such period or part thereof, the Court shall order that no wages shall be payable under this section for such period or part, as the case may be.”.

Amendment of section 25K

12. In section 25K of the principal Act, in sub-section (1), for the words “three hundred”, the words “one hunched” shall be substituted.

Substitution of new section for section 25-O

14. For section 25-O of the principal Act, the following section shall be substituted, namely:—

Procedure for closing down an undertaking

“25-O. (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:

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.

(6) Where no application for permission under sub-section (1) is made within the period specified therein or where the permission for closure has been refused, the closure of the undertaking shall be deemed to be illegal from the date of closure and the workmen shall be entitled to all the benefits under any law for the time being in force as if the undertaking had not been closed down.

(7) 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 undertaking 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 undertaking for such period as may be specified in the order.

(8) Where an undertaking is permitted to be closed down under sub-section (2) or where permission for closure is deemed to be granted under sub-section (3), every workman who is employed in that undertaking immediately before the date of application for (permission under this section, shall be entitled to receive 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.”.

Amendment of section 25R

15. In section 25R of the principal Act,—

(a) in sub-section (2), for the words, brackets, figures and letters “a direction given under sub-section (2) of section 25-O or section 25P”, the words, brackets, figures and letters “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 substituted;

(b) sub-section (3) shall be omitted.

Insertion of new Chapter VC

16. After Chapter VB of the principal Act, the following Chapter shall be inserted, namely:—

“CHAPTER VC

UNFAIR LABOUR PRACTICES

Prohibition of unfair labour practice

25T. No employer or workman or a trade union, whether registered, under the Trade, Unions Act, 1926, or not, shall commit any Unfair labour practice.

Penalty for committing unfair labour practices

25U. 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.”.

Amendment of section 33

17. In section 33 of the principal Act, in sub-section (5),—

(a) for the words “as expeditiously as possible”, the words “within a period of three months from the date of receipt of such application” shall be substituted;

(b) the following provisos shall be inserted, namely:—

“Provided that where any such authority considers it necessary or expedient so to do, it may, for reason 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.”.

Amendment of section 33A

18. In section 33A of the principal Act,—

(a) for the words “before a Labour Court, Tribunal or National Tribunal”, the words “before a conciliation officer, Board, an arbitrator, a Labour Court, Tribunal or National Tribunal” shall be substituted;

(b) for the portion beginning with the words “in the prescribed manner to such Labour Court” and ending with the words “apply accordingly.”, the following shall be substituted, namely:—

“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 land shall submit his or its award to the appropriate Government and the provisions of this Act shall apply accordingly.”.

Amendment of section 33C

19. In section 33C of the principal Act, in sub section (2),—

(a) after the words “the appropriate Government”, the words “within a period not exceeding three months” shall be inserted;

(b) the following, proviso shall be added at the end, namely:—

“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.”.

Amendment of section 34

20. In sub-section (2) of section 34 of the principal Act, for the words “a Presidency Magistrate or a Magistrate of the first class”, the words “a Metropolitan Magistrate or a Judicial Magistrate of the first class” shall be substituted.

Insertion of new section 36B

21. After section 36A of the principal Act, the following section shall be inserted, namely:—

Power to exempt

“36B. 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.”.

Amendment of section 38

22. In sub-section (2) of section 38 of the principal Act, after clause (aaa), the following clause shall be inserted, namely:—

“(ab) the constitution of Grievance Settlement Authorities referred to in section DC, the manner in which industrial disputes may be referred to such authorities for settlement, the procedure to be followed by such authorities in the proceedings in relation to disputes referred to them and the period within which such proceedings shall be completed;”.

Insertion of new Fifth Schedule

23. After the Fourth Schedule to the principal Act, the following Schedule shall be inserted, namely:—

‘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 at 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.

5. To discharge or dismiss workmen—

(a) by way of victimization;

(b) not in good faith, but in the colourable exercise of the employer’s rights;

(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 n

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