Skip to content
Fri, 18 Sep 2026 Policies, schemes, jobs and law — tracked daily
Law New

The Industrial Disputes Act, 1947

Ministry Of Labour and Employment

Published 18 September 2026

In short

The Industrial Disputes Act 1947 governs how employer-worker disputes, layoffs and retrenchments are resolved, requiring notice and compensation for retrenchment, government permission for large establishments before layoffs, and referral of disputes to Labour Courts or Tribunals.

Key facts

Year
1947
Act number
Act No. 14 of 1947
Administered by
Ministry Of Labour and Employment
In force from
1 April 1947

The Industrial Disputes Act provides a legal mechanism for the investigation and settlement of industrial disputes between employers and workers, covering issues like layoffs, retrenchment, strikes, lockouts, and closure of establishments, aiming to maintain industrial peace.

Section 2A allows an individual workman to raise a dispute over dismissal, discharge or retrenchment even without union support, widening access to dispute resolution beyond collective disputes. Section 25F lays down conditions for valid retrenchment, including one month’s notice or wages in lieu, and retrenchment compensation of 15 days’ wages for every completed year of service.

Section 25N requires establishments with 100 or more workmen (earlier 300, varying by state amendments) to obtain government permission before retrenchment, layoff or closure, a provision often described as one of India’s most stringent labour protections.

Section 10 empowers the government to refer disputes to Labour Courts, Industrial Tribunals or National Tribunals for adjudication, and Section 22 restricts strikes and lockouts in public utility services without proper notice, balancing workers’ right to protest with continuity of essential services.

Key penalties

  • Section 2A: Individual workman can raise a dispute over dismissal without union backing
  • Section 25F: Conditions for valid retrenchment - notice and compensation of 15 days' wages per year of service
  • Section 25N: Government permission required for retrenchment/layoff/closure in establishments with 100+ workmen
  • Section 10: Government's power to refer disputes to Labour Courts, Industrial Tribunals or National Tribunals
  • Section 22: Restrictions on strikes and lockouts in public utility services without notice

Frequently asked questions

Can an individual worker raise an industrial dispute without a union?

Yes, Section 2A allows an individual workman to raise a dispute over dismissal, discharge or retrenchment independently.

What compensation is due on retrenchment?

15 days' wages for every completed year of service, along with one month's notice or wages in lieu, under Section 25F.

When does an employer need government permission before retrenchment?

When the establishment has 100 or more workmen, under Section 25N, though this threshold varies by state amendments.

Before you apply: confirm every date, fee and eligibility rule on the official website linked on this page. Public and Policy is an independent portal, not a government body, and details change without notice.