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.