LABOUR DISPUTES

One important current-law point first: the Industrial Disputes Act, 1947 (ID Act) was the principal Indian legislation governing industrial disputes for decades, but it has now been subsumed into the Industrial Relations Code, 2020. The Central Government brought the Code into force on 21 November 2025, and the ID Act stands repealed subject to the Code's savings provisions.

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So, if you are studying or explaining a case using the Industrial Disputes Act, 1947, it is useful to understand the old Act, while remembering that the Industrial Relations Code, 2020 is the current framework.

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In simple terms, an industrial dispute is a disagreement connected with employment or conditions of employment.

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Traditionally, under Section 2(k) of the Industrial Disputes Act, 1947, it covered disputes or differences between:

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• employer and employer;

• employer and workmen; or

• workman and workman,

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where the dispute was connected with employment, non-employment, terms of employment, or conditions of labour.

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EXAMPLES

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Imagine a factory where the workers' union claims that:

      "The employer has suddenly reduced wages and introduced longer working hours."

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The employer responds:

       "The changes are necessary because production costs have increased."

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This can develop into an industrial dispute.

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Other common disputes include:

• wages and bonuses;

• working hours;

• leave and service conditions;

• disciplinary action;

• dismissal or termination;

• retrenchment;

• lay-off;

• closure of an establishment;

• recognition or representation of workers;

• unfair labour practices;

• disputes concerning collective bargaining.

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The ID Act specifically contained provisions dealing with lay-off, retrenchment and closure, strikes and lock-outs, settlements, adjudication and other aspects of industrial relations.