The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery and procedure for the investigation and settlement of industrial disputes by negotiations.
The Act also lays down
(a) The provision for payment of compensation to the Workman on account of closure or lay off or retrenchment. (b) The procedure for prior permission of appropriate Government for laying off or retrenching the workers or closing down industrial establishments (c) Unfair labour practices on part of an employer or a trade union or workers.
Applicability
The Industrial Disputes Act extends to whole of India and applies to every industrial establishment carrying on any business, trade, manufacture or distribution of goods and services irrespective of the number of workmen employed therein.
Every person employed in an establishment for hire or reward including contract labour, apprentices and part time employees to do any manual, clerical,skilled, unskilled, technical, operational or supervisory work, is covered by the Act.
This Act though does not apply to persons mainly in managerial or administrative capacity,persons engaged in a supervisory capacity and drawing > 10000 p.m or executing managerial functions and persons subject to Army Act, Air Force and Navy Act or those in police service or officer or employee of a prison.
