Unit II — Settlement of Industrial Disputes

“The object of all labour legislation is, first, to ensure fair terms to the workmen, and secondly, to prevent disputes so that production might not be adversely affected.”

The Dispute-Settlement Ladder

flowchart TD
    D["Industrial Dispute Arises"]:::start
    D --> WC["Works Committee / Grievance Redressal Committee\nSec. 3 and 4 — internal resolution"]:::tier1
    WC -->|Fails| CO["Conciliation Officer\nSec. 43 — 45 days in public utility service"]:::tier2
    CO -->|Fails| ARB["Voluntary Arbitration\nSec. 54 — both parties agree"]:::tier3
    CO -->|Fails| TRI["Industrial Tribunal\nSec. 44 — Govt reference OR direct application"]:::tier3
    ARB --> AWARD["Award / Settlement\nBinding on all parties — Sec. 56"]:::outcome
    TRI --> AWARD

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IR Code change: The old separate Labour Court tier has been merged into the Industrial Tribunal. There is now one Tribunal that handles all adjudication.

Works Committee and Grievance Redressal

Conciliation — Sec. 43

flowchart TD
    CO["Conciliation Officer — Sec. 43"]:::root
    CO --> F1["Government-appointed officer"]:::feat
    CO --> F2["Investigates dispute, calls parties, promotes settlement"]:::feat
    CO --> F3["No power to impose — only facilitates"]:::feat
    CO --> PUS["Public Utility Service — special rules"]:::special
    PUS --> P1["14 days notice of strike required — Sec. 62"]:::rule
    PUS --> P2["No strike during conciliation or 7 days after — Sec. 62(2)"]:::rule
    PUS --> P3["Conciliation must conclude within 45 days"]:::rule

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Strikes and Lock-outs

When is a Strike/Lock-out Illegal? — Sec. 62

A strike or lock-out is illegal if:

Key case: Bank of India v. T.S. Kelawala (1990) — the Supreme Court held that workers participating in an illegal strike are not entitled to wages for the strike period; employer may also take disciplinary action.

Strike vs Lock-out

Lay-off, Retrenchment and Closure

flowchart TD
    T["Termination of Employment"]:::root
    T --> LO["Lay-off — Sec. 2(v)"]:::type
    T --> RE["Retrenchment — Sec. 2(zm)"]:::type
    T --> CL["Closure — Sec. 2(e)"]:::type
    LO --> L1["Temporary inability to give work\ndue to shortage of coal, power, raw material, etc."]:::detail
    LO --> L2["Lay-off compensation = 50% of wages — Sec. 77"]:::detail
    RE --> R1["Permanent termination for economic reasons\n— not disciplinary action"]:::detail
    RE --> R2["LIFO — Last In First Out — Sec. 70(b)"]:::detail
    RE --> R3["One month notice or pay in lieu — Sec. 70(a)"]:::detail
    RE --> R4["Retrenchment compensation = 15 days wages per year of service — Sec. 70(c)"]:::detail
    CL --> C1["Permanent closing of the whole establishment"]:::detail
    CL --> C2["60 days notice to government if 100+ workers — Sec. 74"]:::detail
    CL --> C3["Compensation = 15 days wages per year — Sec. 74(6)"]:::detail

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Lay-off vs Retrenchment vs Closure — Quick Compare

Unfair Labour Practices — Sec. 2(zo) and Fifth Schedule

flowchart TD
    ULP["Unfair Labour Practices — Fifth Schedule IR Code"]:::root
    ULP --> EMP["By Employers"]:::side
    ULP --> WRK["By Workers / Unions"]:::side
    EMP --> E1["Interfere with union formation or membership"]:::act
    EMP --> E2["Victimise worker for union activity"]:::act
    EMP --> E3["Discriminate between union and non-union workers"]:::act
    EMP --> E4["Refuse to bargain in good faith"]:::act
    WRK --> W1["Coerce workers to join a particular union"]:::act
    WRK --> W2["Stage go-slow / work-to-rule as pressure tactic"]:::act
    WRK --> W3["Refuse to implement settlement or award"]:::act

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✏️ Sample Solved Problem (IRAC Method)

Problem: Workers in a public utility service send a strike notice to the employer on Day 1. The employer immediately refers the matter to a Conciliation Officer on Day 3. On Day 10, frustrated at slow progress, the workers go on strike. The employer says the strike is illegal. Is this correct?

I — Issue

Whether a strike called during pending conciliation proceedings in a public utility service is illegal under the IR Code 2020, and what consequences follow.

R — Rule

• Sec. 62(1) IR Code — In a public utility service, no worker shall go on strike without giving 14 days’ notice AND without waiting for the expiry of the notice period
• Sec. 62(2) — No strike shall be commenced during any period when conciliation is pending before a Conciliation Officer and for 7 days after its conclusion
• Penalty — A worker who participates in an illegal strike is liable to dismissal or other disciplinary action — Sec. 89

A — Analysis

Two violations are present. First, the workers gave only 10 days’ notice (Day 1 to Day 10) — the IR Code requires 14 days in a public utility service. Second, conciliation was pending (since Day 3) when the strike commenced on Day 10 — striking during pending conciliation is expressly prohibited by Sec. 62(2). The employer’s argument is that both requirements are breached. The employer’s provocation or slow pace of conciliation is irrelevant to legality — the prohibition is absolute under the Code.

C — Conclusion

The strike is illegal — it violates both the 14-day notice rule and the prohibition on striking during pending conciliation. The workers face liability under Sec. 89. The employer may take disciplinary action and deny wages for the illegal strike period (Bank of India v. T.S. Kelawala).

📄 The full PDF bundle has 6 more problems for Unit II — retrenchment vs lay-off, closure compensation, unfair labour practice by employer, domestic enquiry procedure, and the Award binding effect. Get the bundle — ₹149