Industrial Disputes Act, 1947
(1) Where any industrial dispute exists or is apprehended and the employer and the workmen agree to refer the dispute to arbitration, they may, at any time before the dispute has been referred under section 10 to a Labour Court or Tribunal or National Tribunal, by a written agreement, refer the dispute to arbitration and the reference shall be to such person or persons (including the presiding officer of a Labour Court or Tribunal or National Tribunal) as an arbitrator or arbitrators as may be specified in the arbitration agreement. [ (1A) Where an arbitration agreement provides for a reference of the dispute to an even number of arbitrators, the agreement shall provide for the appointment of another person as umpire who shall enter upon the reference, if the arbitrators are equally divided in their opinion, and the award of the umpire shall prevail and shall be deemed to be the arbitration award for the purposes of this Act.] (2) An arbitration agreement referred to in sub-section (1) shall be in such form and shall be signed by the parties thereto in such manner as may be prescribed. (3) A copy of the arbitration agreement shall be forwarded to the appropriate Government and the conciliation officer and the appropriate Government shall, within [one month] from the date of the receipt of such copy, publish the same in the Official Gazette. [ (3A) Where an industrial dispute has been referred to arbitration and the appropriate Government is satisfied that the persons making the reference represent the majority of each party, the appropriate Government may, within the time referred to in sub-section (3), issue a notification in such manner as may be prescribed; and when any such notification is issued, the employers and workmen who are not parties to the arbitration agreement but are concerned in the dispute, shall be given an opportunity of presenting their case before the arbitrator or arbitrators.] (4) The arbitrator or arbitrators shall investigate the dispute and submit to the appropriate Government the arbitration award signed by the arbitrator or all the arbitrators, as the case may be. [ (4A) Where an industrial dispute has been referred to arbitration and a notification has been issued under sub-section (3A), the appropriate Government may, by order, prohibit the continuance of any strike or lock-out in connection with such dispute which may be in existence on the date of the reference.] (5) Nothing in the Arbitration Act, 1940 (10 of 1940), shall apply to arbitration under this section.] STATE AMENDMENT Kerala Insertion of new section 10B.—After section 10A of the Industrial Disputes Act, 1947 (Central Act 14 of 1947) (hereinafter referred to as the principal Act), the following section shall be inserted, namely:- “10B. Power to issue orders regarding terms and conditions of service pending settlement of disputes.— (1) Where an industrial dispute has been referred by the State Government to a Labour Court or Tribunal under sub-section (1) of section 10 and if, in the opinion of that Government, it is necessary or expedient so to do for securing the public safety or convenience or the maintenance of public order or supplies and services essential to the life of the community or for maintaining employment or industrial peace in the establishment concerning which such reference has been made, it may, by general or special order, make provision— (a) for requiring the employers or workmen or both to observe such terms and conditions of employment as may be specified in the order or as may be determined in accordance with the order, including payment of money by the employer to any person who is or has been a workman; (b) for requiring any public utility service not to close or remain closed and to work or continue to work on such terms and conditions as may be specified in the order; and (c) for any incidental or supplementary matters which appear to it to be necessary or expedient for the purposes of the order: Provided that no order made under this sub-section shall require any employer to observe terms and conditions of employment less favourable to the workmen than those which were applicable to them at any time within three months immediately preceding the date of the order. Explanation.—For the purposes of this sub-section "public utility service" means— (i) any section of an industrial establishment on the working of which the safety of the establishment or the workmen employed therein depends; (ii) any industry which supplies power, light or water to the public; (iii) any industry which has been declared by the State Government to be a public utility service for the purposes of this Act. (2) An order made under sub-section (1) shall cease to operate on the expiry of a period of six months from the date of order or on the date of the award of the Labour Court or the Tribunal, as the case may be, whichever is earlier. (3) Any money paid by an employer to any person in pursuance of any order under sub-section (1) may be deducted by that employer from out of any monetary benefit to which such person becomes entitled under the provisions of any award passed by the Labour Court or the Tribunal, as the case may be."] [Vide Kerala Act 30 of 1979, s. 2 ] Karnataka Insertion of new section 10B.—After section 10A of the principal Act, the following section shall be inserted namely:— “10B. Power to issue order regarding terms and conditions of service pending settlement of disputes.— (1) Where an industrial dispute has been referred by the State Government to a Labour Court or a Tribunal under Sub-section (1) of section 10 and if in the opinion of the State Government it is necessary or expedient so to do for securing the public safety or convenience or the maintenance of public order or supplies and services essential to the life of the community or for maintain employment or industrial peace in the establishment concerning which such reference has been made, it may, by general or special order, make provision,— (a) for requiring the employer or workman or both to observe such terms and conditions of employment s may be specified in the order or as may be determined in accordance with the order, including payment of money by the employer to any person who is or has been a workman; (b) for requiring any public utility service not to close or remain closed and to work or continue to work on such terms and conditions as may be specified in the order, and (c) for any incidental or supplementary matter which appears to it to be necessary or expedients for the purpose of the order: Provident that no order made under this sub-section shall require any employer to observe terms and conditions of employment less favorable to the workman than those which were applicable to them at any time within the months immediately preceeding the date of the order. Explanation.—For the purpose the this sub-section “public utility service” means,— (i) any section of an industrial establishment on the working of which the safety of the establishment or the workman employed therein depends; (ii) any industry which supplies power, light or water to the public; (iii) any industry which has been declared by the State Government to be a public utility service for the purpose of this Act. (2) An order made under sub-section (1) shall cease to operate on the expiry of a period of six months from the date of the order or on the date of the award of the Labour Court or the Tribunal, as the case may be, whichever is earlier. (3) Any money paid by an employer to any person in pursuance of an order under sub-section (1), may be deducted by that employer from out of any monetary benefit to which such person becomes entitled under the provisions of any award passed by the Labour Court or the Tribunal, as the case may be. [Vide Karnataka Act 5 of 1988, s. 3] Rajasthan Insertion of new section 10K. in Central Act 14 of 1947.-After section 10J of the principal Act, the following new section shall be inserted, namely:- "10K. State Government may lay down terms and conditions of employment and prohibit strikes, etc.- (1) Notwithstanding anything contained in the Act, if in the opinion of the State Government, it is necessary or expedient so to do, for securing the public safety or convenience or the maintenance of public order or supplies and services essential to the life of the community or for maintaining employment or maintaining industrial peace, it may by a general or special order, make provision- (a) for requiring employers, workmen or both to observe for such period as may be specified in the order, such terms and conditions of employment as may be determined in accordance with the order; and (b) for prohibiting, subject to the provision of the order, strikes or lockouts generally or a strike or lockout in connection with any industrial dispute. (2) In case any industrial dispute is raised in respect of any provisions in the order of the State Government made under sub-section (1) within a period of three months of the order, it shall be referred by the State Government for adjudication to an Industrial Tribunal and the order shall lapse when the award of the Tribunal becomes enforceable: Provided, however, that the reference of the industrial dispute to adjudication shall not have the effect of staying the operation of the order”. [Vide Rajasthan Act 14 of 1970, s. 6] Insertion of new Chapter III-A in Central Act XIV of 1947.- For section 10A of the principal Act, the following new Chapter shall be inserted, namely:- "