 bill no 42 of 1984 the indust~ dispuifes (amendment) b~ 19ma blll further to amend the inctustria:l dispwtes act, 194'7 be it enacted by parllament in the thirty-fifth year of the republic of 1ndia as follows:-1 (1) this act may be called the industrial disputes (amendment) act, 1984  - -~ short title and com· mence mat 5 (2) it shall come into force on such date as the central government may, by notltjcatlon in the official gazette, appoint, and different dates may be appointed for difterent provisions of this act 14 of 194'1 amendmentot section j, 2 in section 2 of the industrial disputes act, 1947 (hereinafter referred to as the principal act), in clause (00), after sub-clause (b), 10 the following sub-cjause shall be inserted, namely:- "(bb) termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its explry or of such contract being terminated under a stipulation in that behalf contained therein; or"  15 3 in section 25f of the principal act, in claust (a), the proviso shall be omitted l  -;-i amend-mento! section b' 4 in section 25m of the principal act,-20 amendmentor section 25m (a) in sub-section (1), for the words "with the previous pei"mission of such authority as may be specified by the appropriate government by notification in the official gazette, unless such layoff is due to shortage of power or to natural calamity", the words and brackets "with the prior permission of the appropriate government or such authority as may be specified by that government by notification in the official gazette (hereafter in this section referred to as th~ specified authority), obtained on an application made in this behalf, unless such lay-off is due to shortage of power or to natural calamity, and in the case of a mine, such lay-off is due also to fire, flood, excess of inflammable gas or explosion" shall be substituted; (b) for sub-sections ,(2) to (5), the following sub-':t"ections shall be substituted, nameby:-"(2) an application for permission under sub-section (1), shall be made by the employer in the prescribed manner stating clearly the reasons for the intended lay-off and a copy of sach 5 application shall also be served simultaneously on the worlanen concerned in the prescribed manner (3) where the workmen (other than badli workmen or casual workmen) of an industrial establishment, being a mine, have been laid-off under sub-section (1) for reasons of fire, 10 flood or excess of inflammable gas or explosion, the employer, in relation to such establishment, 'shall, within a period: at thirty days from the date of commencement of such lay-oft', apply, i,n the prescribed manner, to the appropriate government or the specified authority for permission to continue the lay-off 15 (4) where all application for permission under subosection (1) or sub-section (3) has been made, the appropriate government or the specified authori,ty, after making such enquiry as it thinks fit and after giving a reasonable opportunity of being heard to the employer, the workmen concerned and the 20 persons interested in such lay-off, may, having regard to the genuineness and adequacy of the reasons for such lay-off, the interests of the workmen 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 shal~, be 25 communicated to the employer and the workmen (5) where an application for permission under sub-section (1) or sub-section (3) has been made and the appropriate { government or the specified authority does not communicate  the order gl'anting or refusing to grant permission to the so 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 (6) an order of ,the appropriate government or the specified authority granting or refusing to grant permission 35 shall, subject to the provisions of sub-section (7), be final and binding on all the part:es concerned and shall remain in' force for one year from the date of such order (7) the appropriate government or the specified authority may, either on its own motion or on the application made by 40 the emp10yer or anyl workman, review its order granting or refusing to grant permission under sub-section (4) or refer the matter or as the case may be, cause it to be referred 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, (8) where no application for permission under sub-section (1) is made, or where no application for permission under subsection (3) is made within the period specified therein, or where the permission for any lay-off has been refused, such lay-off shall 5 be deemed to be illegal from the date on which the workmen had been laid-off and the workmen shall be entitled to all the benefits under any law for the time being in force as if they had not been laid-off (9) notwithstanding anything contained in the foregoflle 10 provisions of tid's section, the appropriate government may, if it is satisfied that owing to such exceptional circumstances as accident in the establishment or death of the employer or the like, it is necessary so to do, by order, direct that the provisions of sub-section (1), or, as the case may be, sub-section (3) shall i'; not apply in relation to such establishment for such period as mlay be specified in the order"; (c) 'sub-secuon (6) shall be re-numbered as sub-section (10) s for section 25n of the principal act, the following s!ction shall subbt;tut>e substituted, namely:-tionof new section for section25n :ao  conditions precedent ot retrenchmentot workmen 30 "25n (1) no workman employed in any industrial establishment to which this chapter applies, who has been in continuous service for not less than one year under an employer shall be retrenched by that employer untit,-(a) the workman has been given three months' notice in writing indicating the reasons for retrenchment and the period af notice has expired, or the workman has been paid in lieu of such notice, wages for th':! period of the notice; and (b) the prior permission of the appropriate government or such autpority as may be specified by that government by notification in the official gazette (hereafter in this section referred to as the specified authority) has been oetained on an application made in this behalf  (2)  an application for permission under 'sub-section (1) shall ll,e made by the employe;r in th~ prescribed manner stating clearly the reaso'ns for the intended retrenchm~nt and a copy of such application shall also be served simultaneously on the workmen concerned 40 , i~ ·the p~escribed manner (3) where an application for permission under sub-section (1) has been made, the appropriate government or the specified authoroty, after making such enquiry as it thinks fit and after giving a reasonabl<;! opportunitv of being heard to the employer, the workmen concerned ann the· persons interested in such retrenchment, rna,, havin~ re~a,d to the genuineness and adequacy of the reasons stated bv the employer, the interests of the workmen and all other relevant factors, by order and for reasons to be recorded in wrltin~, grant or refuse to grant such permission and a copy of such ol'der shajil be communicated to the employer and the workmen   (4) wbe~ an application for permission has been made under: sub-section (1) and the appropriate government or hie specified authority does not com'l1unicate the order granting or refusing to grant permission to the employer within a period of sixty days from the date on which shci: application is made, the permission applied far shall be deemed to have been granted on the expiration of the said period of sixty day:; !) (5) an order of le appropriate government or the spec1aed authority granting 0:' ldusing to grant permission shall, subject to the provisions of sui; -section (6), be final and binding on au the parties con~rned and ~haltl remain in force for one year from the date of such order 10 (6) the app,ropri ate government or the specified authority may either on its own mc~ion or on the application made by the employer or any workman, rniew its order granting or refusing to grant permission under su:l-section (3) orrefer the matter or, as the case may be, cause it to be referred, to n tribunal for adjudication: 15 provided that w:lere a reference has been made to a tribunal under this sub-secti(n, it shall pass an award within a period of thirty days from thc' d,lte of such reference (7) where no application for permis'sion under sub-section (1) is made, or where the permission for any retrenchment has been 20 refused, such retrenchment shall be deemed to be illegal from the date on which the notice of retrenchment was given to the work man and the workman shall be entitled to all the benefits under any law for the time being in force as if no notice had been given to him 25 (8) netwithstanding anything contained in the foregoing provisioll$ of this section, the 'appropriate government may, if it is sati'sfied that owing to such exceptional circumstances as accident in the establishment 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 30 not apply in relation to such establishment for such period as may be ~ecified in the order (9) where permission for retnnchment ha'sbeen granted unc1el sub-section (3) or where permission for retrenchment is deemed to be granted under sub-section (4), every workman who is employed 35 in that establishment immediately before the date of applicyation  for permis:>i(}n under thi's section shall be entitled' to 'receive- at the time ot retrenehment, c·ompenntion which shau be equivalent, to fifteen days' a~rage pay for every completed yeu of c021tmuoua service or any part thereof in excess of six months" 40 8 in section 25q of the principal act, the words, brackets, letter and figures "clause (c) of sub-section (1) or sub-section (4) of" shall be omitted amendmentof eectlon 25q 7 in the industriar disputes (amendment) act, 1982,-amendmentof kt460f 1"2 (a) in sub-section (2) of section 1, after the' words "by not1fica- 45 tion in the official gazette, appoint", the words ", and cwferent dates m~y be appointed for different provirions ot this act" shall be inserted; (b) 'lection 13 shall be omitted   statement of objects and reasonsthe industrial disputes act, 1947', provides the machinery and procedure for the investigation and settlement of industrial disputes the provisions of the act had been amended from time to time in the light of experience gained in its actual working, case laws and industrial relations policy of the government 2 the amendments proposed in the bill are mainly to clarify certain 'doubts expressed by courts on the validity of certain provisions of the 'act the bill, inter alia, seeks to make the following amendments in the act, namely:-(i) difficulties have arisen in the interpretation of the expression "retrenchment" it is proposed to exclude frqm the definition of "retrenchment" as contained in the act termination of the service of a workman as a result of the non-renewal of the contract of employment on its expiry and of the termination of such contract in accordance with the provisions thereof; (ii) following the decision of the supreme cow-t in the excel wear case (air 1979 sc 25), some high courts have declared invalid the special provisions relating 1:0 lay-off and retrenchment contained in the act which applied to establishments employing 300 or more workmen it is proposed to redraft these provisions on the same lines as the amended provision relating to closure, which was inserted by the industrial disputes (amendment) act, 1982, (46 of 1982), after taking into consideration the observations of the supreme court in the above case, 3 the industrial disputes (amendment) act, 1982, was passed by parliament in august, 1982 a number of provisions of that act confer considerable benefits to workmen in order to provide that the various sections of that act can be rwtified for enforcement separately and with effect from different dates, it is proposed to amend suitably seo~on 1 (2)' of that act new d!:lhi; veerendra patil tho 12,th april, 1984  memorandum regarding delegated legislationclause 4(b) of the bill proposes to substitute sub-sections (2) to (5) of section 25m of the industrial disputes act, 1947 new sub-seeuon (2) requires the employer, who intends to lay-off any of his workmen, to app1y for prior permission to the appropriate government, and a copy of such application shall also be served simultaneously on the workmen concerned, in the manner prescribed by rules the new sub-section (3) also requires the employer in relation to a mine to apply in the n1anner prescribed by rules for permission to continue any lay-off declared in respect of that mine 2 clause 5 of the bill proposes to substitute a new section for the existing section 25n of the act sub-section (2) of new section 25n requires the employer, who intends to retrench any workman, to apply for prior permission to the appropriate government, and a copy ot such appucation shall also be served simultaneously on the workmen concel11-ed, in the manner prescribed by rules '3 the matters in respect of which rules may be made under the above provisions are matters of detail or procedure the delegation of legislative power is thus normal in character dejlni· tions (14 of 1947) - iii - - - 2 in this act, unless there is anythipg repugnlult in the subject or context,-i  -   (00) "retrenchment" meana :the termination by the employer of tho service of, a workman for any reason whatsoever, ()t~ ~an as a punishment inflicted by way of djscipbnary action, but does not include- ~ - - zsf no workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until-conditione precedent to retrenchment of workmed (a) the workman has been given one month'lj notice in writing indicating the reasons for ret,rencnment and the period of notice has expired, or the workman has been paid in lieu of such notkoe, wages for the period of the notice: provided that no such notice shall ,be necessary if the retrenchment is under an agreement which, specifies a date fm- tthe tennmation of service; j' - - - 25m (1) no workman (other than a ~li workman or a casual pl'ohibiworkman) whose name is borne on the muster rolls of an industrial tion of establishment to which this chapter applies shall be 18ld-off by his emla,)"-off, ployer except with tne previous permission of such authority as may be s~ed by the appropriate government by notification in the official gazette, unless such lay-off is due to shortage of power or to natural calamity (2) where the workmen (other than badli workmen or casual workmen) of an industrial establishment referred to in sub-section (1) have been laid-ofi before the commencement of the industrlal disputes (amendment) act, 1976 and such lay-off continues at such conuneneement, the employer in relation to such estabhahment shall, within a perio~ of fitteen days from such commencement, apply to the authority spec;ified under sub-section (l) for permission to continue the lay-off (3) in the case of every application for permission wlder sub-section (1) or sub-section (2), the authority to whom the application has been made may, after making such inquiry as he thinks fit, grant or ~, for reasons to be l'ecorded in writing, the permission applied for '(4) where an application fcir permission has been made under sub section (1) or sub-section (2) and the authority to whom the application is made docs not communicate the permission or the refusal to grant the permission to the employer within a period of two months from the date on which the application is made, the permission applied for shall be deemed to have been granted on the expiration of the said period of two months (5) where no application for permjssion undersub-sectiqd (1) is made, or where no applicat:on for permission under sub-section (2) bas been made withtn the period spemfied therem, or where the permiii10n tor the lay-ott or the conllnuance ot the lay-ott nbs been reluaed, such lay-ott snau de deemed to be illegal from the date on whlcb ttle workmen have oeen l8lcl-0n and the v{orlullen snah de entued to all we benents under any law fol' ule tune btnng m iorce as it tney had not been !&ldoff - - - - conditions precedent to retrenchment of workmen zsn (1) no worlanan employed in any industrial establishment to which· this chilpter applt's, who has been in contmuous service for not less tnau one year unaer an employel' iihall be retrenched by that employer untll,- , i )~_;: la) the workman has been given three months' nouce in writing indjcatmg the reasons for retrencrunem and the perlod 01 notice baa explreq, or toe workman has been paid m !leu 01 such notlc8, wages lor the period of the notice: t'rovlued that no such notce silall be necessary if the retrenchment is uuuer an agreem&nt, wfucn spcclnes a c1ate for termmaton 01 service; (0) ,·he worknan has been pajd, at the time of re1rencmnem compejlsauoh willeh snahbe e4ulvalent to ntteen days· average pay tor every compieleu year ot contmuous service or any part thereo1 m exce3s of six months; and  (c) notice in the prescribed manner is served on the appropr1ate government or sucn authority as may be specified by toe appropnate government by notificatlon 10 the officla! gazette, and the perm sion ot such government or authonty is obtamed 'under sub-sectlon (2) (2) on l'eceipt of a nc'tice under clause (c) of sub-section (1) the appropriate government or authority may, after making such inquiry u such government or authority thinks fit, grant or refuse, for reasons to be recorded in writmg, the permission for the retrenchment to which the notice relates (3) where ,the government or authority does not communicate the permission or the refusal to grant the permission to the employer within three months of the date of service of the notice under clause (c) of subseetion (1), the government or authority shall be deemed to have granted permission for such retrenchment on the expiration of the said period of three ~onths  82 of 1976 (4) where at the commencement of the industrial disputes (amendment) act, 1976, the period of notice giv:en under clause (a) of section 25f for the retrenchment of any workman has not expired, the employer shall not retrench the workman but shall, within a period of fifteen days from such commencement, apply to the appropriate government or to the authority specified in sub-section (2) for permission for retrenchment (5) where an ~pplica~ion for permission has been made under subsection (4) and the appropriate government or the authority, as the case may be, does not communicate the permission or the refusal to grant the permission to the employer w:thin a period of two months from the date on which the application is made, the permission applied for shall be deemed to have been granted on the expiration of the said period of two months i  (6) where no application for permission under clause (c) of s'ubsection (1) is made, or where no applitation for permission under subsection (4) if made within the period specified therein or where the permission for the retrenchment has been refused, such retrenchment shall be deemed to be illegal from the date on which the notice of retrenchment was given to the workman and the workman shall be entitled to all the beneats under any law for the time being in foree as if no notice had been given to him (7) where at the commencement of the industrial disputes (amend-32 of 1976 ment) act, 1976, a dispute relating, either solely or in addition to other matters, to the retrenchment of any workman or worlanen oj an ind~ trial establishment to which this chapter applies is pendingbefore a conciliation officer or the central government or the state government, as the case may be, and-(a) there is an allegation that such retrenchment is by way of victimisation; or (b) the appropriate government is of the opinion that such retrenchment is not in the interests of the maintenanc\! of industrial peace, the appropriate government, if satisfied that it is necessary so to do, may, by order, withdraw such dispute or, as the case may be, such dispute in so far as it relates to s'uch retrenchment and transfer the same -to an authority (being an authority specified by he appropriate government by notification in the official gazette) for consideration whether liuch retrenchjllent is justified and any order passed by such authority shall be flnal and binding on the employer and the workman or workmen  - '" '" '" '" zsq any employer who contravenes the provisions of section 25m or clause (c) of sub-section (1) or' sub-section (4) of section 25n shall be punishable with imprisonment for a term which may extend to one month, or with fine which may extend to one thousand rupees, or with both '" '" '" '" '" penalty forlq-d and retrenchment without previous permission  extracts from the industrial disputes (amendment) act, 1982 (46 of 1982)'" - '" '" '" 1 (1) '" '" '" '" '" (2) it shall come into force on such date as the central government may, by notification in the official ga7ette, appoint short htleand commence· dle'nt '" '" '" '" '" 13 in section 25m of the principal act,-amendment of e:ection 25m (ii) in rub-section (1), after the words "or to natural calamity", the words u, and in the case of a mine, such lay -ot! is due also to fire, flood excess of inflammable gas or explosion" shall be inserted; (b) after sub-section (2), the following sub-section shall be ill liierted, namely:-"(2a) where the workmen (other than badli wq1'kmen or casual workmen) of an industrial establishment be~ a mine have been laid-off under sub-section (1) for reasons of fire, flood or excess of inflammable gas or explosion, the employer in relation to such establishment shall, within a period of thirty days from the date of commencement of such lay-off, apply to the authority specified under sub-section (1) for permission to continue the lay-off"; (c) in sub-sections (3), (4) and (5), after the words, brackets and figure "under sub-section (2) ", the words, brackets, figure and letter "or sub-section (2a)" shall be inserted  - - - - - a bill further to amend the industrial disputes act, im'7 (sh,ri vhre7&d1"(& patil, ministef! ~ labour and rehabilitatlion ) 