The Industrial Disputes Act


The Industrial Disputes Act, 1947 is the India law that regulates labour and pertains to trade unions. It became effective 1st April, 1947. The law’s aim is to achieve industrial peace and harmony by offering the machinery and process for investigating and settling industrial disputes through negotiations. This law is applicable only to the organised sector of labour. An amendment was introduced to this law in 1976 which mandated organisations with more than 300 workers to get permission from the government for layoffs, closures and retrenchments. In 1982, another amendment was brought about which made this mandatory permission for firms employing over 100 workers. This amendment became effective in 1984.