Is It Fair to Reduce Staff with New Tools? Understanding Section 9A of the ID Act 1947

Application of Section 9A of the Industrial Disputes Act, 1947

Under what circumstances does Section 9A of the Industrial Disputes Act, 1947 apply? In a situation where wheel servicing was initially done by four employees, due to new kits and modern tools, the management asked for the service to be carried out with three employees. Subsequently, the trade union lodged a complaint before the labor officer. Is this correct?

This is a case of either of the following two changes in the service conditions:

1. Rationalization, standardization, or improvement of plant or technique that is likely to lead to the retrenchment of workmen.
2. Any increases or reductions (other than casual) in the number of persons employed or to be employed in any occupation, process, department, or shift, not occasioned by circumstances over which the employer has no control.

If so, a notice under Section 9A of the Industrial Disputes Act is required.

Regards,
Madhu.T.K

If you can prove that the job can be handled by three persons even with old kits, you have a chance to argue that this is simply a case of surplus staff and only attracts retrenchment but not Section 9-A of the I.D. Act.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Section 2A of the Industrial Disputes Act

Section 2A provides that where an employer dismisses, discharges, or terminates an individual employee, the employee can raise an industrial dispute even if no other workmen or a trade union is a party to the dispute. This new section states that an individual can make an application directly to the Labour Court or such other dispute redressal machinery.

I don't know if there is any Section 2K in the ID Act. But if you mean to say 2(k) and not 2K, then it is nothing but the definition of an industrial dispute, which says that any dispute between a workman and workman, employer and workman/workmen, or employer and employer that is connected with employment and non-employment is an industrial dispute. As such, any difference of opinion about employment or service conditions is an industrial dispute, and at the same time, if an employee is terminated, that act (non-employment) is also a dispute. Please note that the definition of a workman in Section 2(s) includes one who is dismissed or discharged from service.

Regards,
Madhu.T.K

Item 11 of the Fourth Schedule must be read in conjunction with Item 10 and Section 9A of the Industrial Disputes Act. Courts have not interpreted Item 11 in isolation. For further details, please read the following cases:

Hindustan Lever Ltd. v. Hindustan Lever Employees' Union

Parry & Co. Ltd vs P.C. Pal & Ors.

KEC International v. Kamani (1998)