Industrial disputes act 1947


In the simple form industrial dispute can be defined as the difference or irregular link between employers and employers or even between workmen and employers or can be between workmen and workmen on the terms of employment or non-employment aspects, conditions of labour and so on matters related to them.

Objectives of the act:

There are certain detailed and descriptive objectives enacted along with the Industrial Dispute Act of 1947, those objectives serve as the milestone in safeguarding the real essence of the act. Important objectives of the act are the following ones given below;

  • For making a well defined structure based on equal, just and peaceful terms.
  • For having a healthy bond between employers and employees.
  • Abolish illegal strikes.
  • Gibing relief to workers in all sense and improve their working conditions
  • Promote method of collective bargaining
  • To destroy and check unfair labour activities.

Causes or reasons on disputes occur:

There are some causes on which most of the industrial disputes may happen in and around the society. Any of them can light the fire of industrial dispute in the society. Those reasons for the dispute are the following ones;

  • Need for increase in wage and other allowances
  • Payment of bonus wage
  • Social security issues of workers
  • Payment of compensation to the workers
  • Government welfare schemes and securities to the workers.
  • Good and safer working atmosphere
  • Duration of work and including of leisure space and entertainments.
  • Need for labour welfare systems and other needful benefits.
  • Other basic need like accommodation, travel allowances and so on.

The industrial disputes act extends to whole parts of India, applies to all the industrial terms like business, trade, manufacture distribution and re-distribution. Every one working in this sector even though he can be a Contract Labour or Apprentice or Part-timer or other kind of other  terms doing any clerical or manual or skilful or unskilled sort of jobs are covered by this Industrial Disputes Act of 1947. These laws and acts are applied to all the organised industrial sectors. It tries to develop harmony and peace culture in industrial sector for Indian sub continent.

We can say that the ultimate aim or goal of Industrial Disputes Act is to have a secure industrial peace and order by giving mechanism and process for all the checking and settlement of all industrial disputes by the methods of Conciliation, Arbitration and Adjudication. Looking to each part;


 It’s a process of act in which a third neutral party is being included in order to reduce the disputes and differences between the two disputing parties and to have a amicable settlement of having a agreed solution. Post of Conciliation Officer is appointed to conciliate the both disputing parties. Government gives him or her power similar to that of civil court. In addition to conciliation officer board of conciliation is also formed. The board consists of a chairman and three or four other members. Government asks the board to submit the collected data and report within a period of two months of disputing parties. Conciliation boar is used or formed as soon as the government sees that the Conciliation officer fails to solve the dispute. Under conciliation process Conciliation Officer or Board reaches to a decision over the dispute between the two parties


It’s the other process of Industrial Disputes Act in which the both disputing and conflicting parties agree to meet or refer to a third neutral party called as ‘Arbitrator’. The arbitrator gives a judgement and review over the dispute, this character of judgement make the arbitrator differ from conciliator who makes decision during disputes among two parties. Two branches of arbitration is included; Voluntary Arbitration and compulsory Arbitration;

Voluntary Arbitration:

Both the disputing and conflicting parties allows neutral third party as the arbitrator.  The chosen arbitrator activates on when the dispute is being referred to them. But, the actual fact is that in most of the cases it could not be successful because of the judgements made are not binding on those disputants. Any way moral concept is being added to this part of arbitration.

Compulsory Arbitration:

In this branch of arbitration the government sometimes force the both disputing parties to have mandatory or compulsory arbitration.  As the name depicts the compulsory arbitration with the inclusion of Government and also results in a judgement by the arbitrator which binds the both disputing parties.


The final legal aid of solving unresolved and problematic disputes is Adjudication process. Government can take action on disputes with or without the concern or disputing parties. It also has two part; Voluntary Adjudication and Compulsory Adjudication.

Voluntary Adjudication:

When the conflict or dispute is sent to adjudication with the concern of both disputing parties to the government, its called as voluntary adjudication process.

Compulsory Adjudication:

 It’s the method in which Government takes action and involving herself in the disputes and making judgements over it.

Three tier machinery systems are also added to the adjudication system;

  • Labour court
  • Industrial Tribunal
  • National tribunal.

Labour Court:

Industrial Disputes Act of 1947 has a Section 7 which talks about Labour Court. It deals with those matters specified under the Act of 1947.

Industrial Tribunal:

Under Section 7A, it states that proper government must have one or more Industrial Tribunals for the adjudication of Industrial disputes. It has a wider jurisdiction. It’s meant for limited time for a specific conflict between the parties.

National Tribunal:

It is the third part of Adjudication process under the Industrial Act of 1947. Its a body appointed by the Central Government. It has power of solving disputes over conflicting parties more than labour court as well as industrial tribunals.


We know that several disputes may occur in time within the society, it may lead to severe issue if its not checked and treated in a better way, legal system is the authority who have better [power in looking after those conflicts. Several bills, amendments and acts under Industrial Disputes Act since 1947 helps in solving several misunderstanding and making equal, just and appropriate solutions. Smooth functioning of all branches can make the objective to its fulfilment.


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