Section 2

Amendment status not verified — confirm the current text below against the official source.

Definitions. - In this Act, unless there is anything repugnant in the subject or context,— (a) “Appropriate Government” means— (i) in relation to any industrial dispute concerning 4[***] any industry carried on by or under the authority of the Central Government, 5[***] 1 For Statement of Objects and Reasons see Gazette of India, 1946, Pt. V., pp. 239-240, for Report of Select Committee, see Gazette of India 1947, Pt. V. pp. 33-35. This Act has been extended to Goa, Daman and Diu by Reg. 12 of 1962, Section 3 and Schedule, to Pondicherry by Reg. 7 of 1963, Section 3 and Schedule 1 and Laccadive, Minicoy and Amindivi Islands by Reg. 8 of 1965, Section 3 and Schedule 2 Subs. by Act 36 of 1956, Section 2, for sub-section (2) (w.e.f. 29.8.1956). 3 Proviso omitted by Act 51 of 1970, Section 2, 2nd Schedule (w.e.f. 1.9.1971). 4 Certain words and figures inserted by Act 10 of 1963, Section 47 and Schedule II, Pt. II and omitted by Act 36 of 1964, Section 2 (w.e.f. 19.12.1964). 5 The words “by the Federal Railway Authority” omitted by the A.O. 1948. The Industrial Disputes Act, 1947 or by a railway company 1*[or concerning any such controlled industry as may be specified in this behalf by the Central Government] 2[***] or in relation to an industrial dispute concerning 3[4[5[6[a Dock Labour Board established under section 5A of the Dock Workers (Regulation of Employment) Act, 1948 (9 of 1948), or 7[the Industrial Finance Corporation of India Limited formed and registered under the Companies Act, 1956 (1 of 1956)] or the Employees’ State Insurance Corporation established under section 3 of the Employees’ State Insurance Act, 1948 (34 of 1948), or the Board of Trustees constituted under section 3A of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948), or the Central Board of Trustees and the State Boards of Trustees constituted under section 5A and section 5B, respectively, of the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 (19 of 1952), 8[***] or the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956), or 9[the Oil and and Natural Gas Corporation Limited registered under the Companies Act, 1956 (1 of 1956)], or the Deposit Insurance and Credit Guarantee Corporation established under section 3 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961 (47 of 1961), or the Central Warehousing Corporation established under section 3 of the Warehousing Corporations Act, 1962 (58 of 1962), or the Unit Trust of India established under section 3 of the Unit Trust of India Act, 1963 (52 of 1963), or the Food Corporation of India established under section 3, or a Board of Management established for two or more contiguous States under section 16, of the Food Corporations Act, 1964 (37 of 1964), or 2[the Airports Authority of India constituted 1 Ins. by Act 65 of 1951, Section 32. 2 The words “operating a Federal Railway” omitted by the A.O. 1950. 3 Ins. by Act 47 of 1961, Section 51 and Schedule II, Pt. III (i.e. 1.1.1962). 4 Subs. by Act 36 of 1964, Section 2, (w.e.f. 19.12.1964). 5 Subs. by Act 45 of 1971, Section 2 (w.e.f. 15.12.1971). 6 Subs. by Act 46 of 1982, Section 2 (w.e.f. 21.8.1984). 7 Subs. by Act 24 of 1996, Section 2 (w.r.e.f. 11.10.1995). 8 Certain words omitted by Act 21 of 1996, see. 2 (w.r.e.f. 11.10.1995). 9 Subs. by Act 24 of 1996, Section 2 for certain words (w.r.e.f. 11.10.1995). The Industrial Disputes Act, 1947 under section 3 of the Airports Authority of India Act, 1994 (55 of 1994)], or 1[a Regional Rural Bank established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976), or] the Export Credit and Guarantee Corporation Limited or the Industrial Reconstruction Bank of India Limited], 2[the National Housing Bank established under under section 3 of the National Housing Bank Act, 1987 (53 of 1987)], or 3[4[an air transport service, or a banking or an insurance company,] company,] a mine, an oil field,] 5[a Cantonment Board,] or a major port, the Central Government, and] (ii) in relation to any other industrial dispute, the State Government; 6[(aa) “arbitrator” includes an umpire;] 7[8[(aaa)] “average pay” means the average of the wages payable to a workman- (i) in the case of monthly paid workman, in the three complete calendar months, (ii) in the case of weekly paid workman, in the four complete weeks, (iii) in the case of daily paid workman, in the twelve full working days, preceding the date on which the average pay becomes payable if the workman had worked for three complete calendar months or four complete weeks or twelve full working days, as the case may be, and where such calculation cannot be made, the average pay shall be calculated as the average of the wages payable to a workman during the period he actually worked;] 9[(b) “award” means an interim or a final determination of any industrial dispute or of any question relating thereto by any Labour Court, Industrial 1 Ins. by Act 21 of 1976, Section 33 (w.r.e.f. 26.9.1975). 2 Ins. by Act 53 of 1987, Section 56 and Second Schedule , Pt. III (w.e.f. 9.7.1988). 3 Subs. by Act 54 of 1949, Section 3, for “a mine, oil-field”. 4 Subs. by Act 24 of 1996, Section 2 for certain words (w.r.e.f. 11.10.1995). 5 Ins. by Act 36 of 1964, Section 2 (w.e.f. 19.12.1964). 6 Ins. by Act 36 of 1964, Section 2 (w.e.f. 19.12.1964). 7 Ins. by Act 43 of 1953, Section 2 (w.e.f. 24.10.1953). 8 Clause (aa) re-lettered as “(aaa)” by Act 36 of 1964, Section 2 (w.e.f. 19.12.1964). 9 Subs. by Act 36 of 1956, Section 3, for clause (b) (w.e.f. 10.3.1957). The Industrial Disputes Act, 1947 Tribunal or National Industrial Tribunal and includes an arbitration award made under section 10A;] 1[(bb) “banking company” means a banking company as defined in section 5 of the 2Banking Companies Act, 1949 (ID of 1949), having branches or other establishments in more than one State, and includes 3[the Export- Import Bank of India) 4[the Industrial Reconstruction Bank of India,] 5[***], 5[***], 6[the Small Industries Development Bank of India established under under section 3 of the Small Industries Development Bank of India Act, 1989], the Reserve Bank of India, the State Bank of India, 7 [a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) 8[a corresponding new bank constituted under section 3 of the Banking Companies {Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), and any subsidiary bank], as defined in the State Bank of India (Subsidiary Banks) Act/1959 (38 of 1959);] (c) “Board” means a Board of Conciliation constituted under this Act; 9(cc) “closure” means the permanent closing down of a place of employment employment or part thereof;] (d)“conciliation officer” means a conciliation officer appointed under this Act; (e)“conciliation proceeding” means any proceeding held by a conciliation officer or Board under this Act; 1[(ee) “controlled industry” means any industry the control of which by the Union has been declared by any Central Act to be expedient in the public interest;] 1 Ins. by Act 54 of 1949, Section 3 and Subs. by Act 38 of 1959, Section 64 and Schedule III, Pt. II. 2 Now “the Banking Regulation Act, 1949”. 3 Ins. by Act 28 of 1981, Section 40 and Schedule II, Pt II. (w.e.f. 1.1.1982). 4 Ins. by Act 62 of 1984, Section 71 and Schedule III, Pt II (w.e.f. 20.3.1985). 5 The words “the Industrial Development Bank of India,” ins. by Act 18 of 1964, Section 38 and Schedule II, Pt. II (w.e.f. 1.7.1964) and omitted by Act 53 of 2003, Section 12 & Schedule, Pt. Ill (w.e.f. 2.7.2004). 6 Ins. by Act 39 of 19S9, Section 53 and 2nd Schedule. 7 Subs. by Act 5 of 1970, sec, 20, for “and any subsidiary bank” (w.r.e.f. 19.7.1969). 8 Subs. by Act 40 of 1980, Section 20, for certain words (w.e.f. 15.4.1980). 9 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.1984). The Industrial Disputes Act, 1947 2[***] (f) “Court” means a Court of Inquiry constituted under this Act; (g) “employer” means— (i) in relation to any industry carried on by or under the authority of any department of 3[the Central Government or a State Government, the authority prescribed in this behalf, or where no authority is prescribed, the head of the department; (ii) in relation to an industry carried on by or on behalf of a local authority, the chief executive officer of that authority; 4[(gg)“executive”, in relation to a trade union, means the body, by whatever name called, to which the management of the affairs of the trade union is entrusted;] 5[***] (i) a person shall be deemed to be “independent” for the purpose of his appointment as the Chairman or other member of a Board, Court or Tribunal, if he is unconnected with the industrial dispute referred to such Board, Court or Tribunal or with any industry directly affected by such dispute: 6[Provided that no person shall cease to be independent by reason only of the fact that he is a shareholder of an incorporated company which is connected with, or likely to be affected by, such industrial dispute; but in such a case, he shall disclose to the appropriate Government the nature and extent of the shares held by him in such company;] 7(j) “industry” means any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen; 1 Ins. by Act 65 of 1951, Section 32. 2 Clause (eee) ins. by Act 43 of 1953, Section 2 and omitted by Act 36 of 1964, Section 2 (w.e.f. 19.12.1964). 3 Subs. by the A.O. 1948, for “a Government in British India”. 4 Ins. by Act 45 of 1971, Section 2 (w.e.f. 15.12.1971). 5 Clause (h) omitted by the A.O. 1950. 6 Ins. by Act 18 of 1952, Section 2. 7 On the enforcement of clause (c) of section 2 of Act 46 of 1982, clause (j) of section 2 shall stand substituted as directed in clause (c) of Act 46 of 1982. For the text of clause (j) of section 2 see Appendix. The Industrial Disputes Act, 1947 (k) “industrial dispute” means any dispute or difference between employers and employers, or between employers and workmen, or between workmen and workmen, which is connected with the employment or non- employment or the terms of employment or with the conditions of labour, of any persons; 1[(ka)“Industrial establishment or undertaking” means an establishment or undertaking in which any industry is carried on: Provided that where several activities are carried on in an establishment or undertaking and only one or some of such activities is or are an industry or industries, then,— (a) if any unit of such establishment or undertaking carrying on any activity, being an industry, is severable from the other unit or units of such establishment or undertaking, such unit shall be deemed to be a separate industrial establishment or undertaking; (b) if the predominant activity or each of the predominant activities carried on in such establishment or undertaking or any unit thereof is an industry and the other activity or each of the other activities carried on in such establishment, or undertaking or unit thereof is not severable from and is, for the purpose of carrying on, or aiding the carrying on of, such predominant activity or activities, the entire establishment or undertaking or, as the case may be, unit thereof shall be deemed to be an industrial establishment or undertaking;] 2[(kk) “insurance company” means an insurance company as defined in section 2 of the Insurance Act, 1938 (4 of 1938), having branches or other establishments in more than one State;] 3[(kka) “khadi” has the meaning assigned to it in clause (d) of section 2 of the Khadi and Village Industries Commission Act, 1956 (61 of 1956);] 4[(kkb) “Labour Court” means a Labour Court constituted under section 7;] 7;] 1 Ins. by Act 46 of 1982, sec, 2 (w.e.f. 21.8.1984). 2 Ins. by Act 54 of 1949, Section 3. 3 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.1984). 4 Clause (kka) ins. by Act 36 of 1956, Section 3 (w.e.f. 10.3.1957) and re-lettered as clause (kkb) by Act 46 of 1982, Section 2 (w.e.f. 21.8.1984). The Industrial Disputes Act, 1947 1(kkk) “lay-off” (with its grammatical variations and cognate expressions) means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery 2[or natural calamity or for any other connected reason] to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched. Explanation.—Every workman whose name is borne on the muster rolls of the industrial establishment and who presents himself for work at the establishment at the time appointed for the purpose during normal working hours on any day and is not given employment by the employer within two hours of his so presenting himself shall be deemed to have been laid-off for that day within the meaning of this clause: Provided that if the workman, instead of being given employment at the commencement of any shift for any day is asked to present himself for the purpose during the second half of the shift for the day and is given employment then, he shall be deemed to have been laid-off only for one- half of that day: Provided further that if he is not given any such employment even after so presenting himself, he shall not be deemed to have been laid-off for the second half of the shift for the day and shall be entitled to full basic wages and dearness allowance for that part of the day;] (l) “lock-out” means the 3[temporary closing of a place of employment], or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him; 4[(la) “major port” means a major port as defined in clause (8) of section 3 of the Indian Ports Act, 1908 (15 of 1908); (lb) “mine” means a mine as defined in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952);] 1 Ins. by Act 43 of 1953, Section 2 (w.e.f. 24.10.1953). 2 Subs. by Act 46 of 1982, Section 2, for “or for any other reason” (w.e.f. 21.8.1984). 3 Subs. by Act 46 of 1982, Section 2, for “closing of a place of employment’ (w.e.f. 21.8.1984). 4 Ins. by Act 36 of 1964, Section 2 (w.e.f. 19.12.1964). The Industrial Disputes Act, 1947 1[(ll) “National Tribunal” means a National Industrial Tribunal constituted under section 7B;] 2[(lll) “office bearer”, in relation to a trade union, includes any member of the executive thereof, but does not include an auditor;] (m) “prescribed” means prescribed by rules made under this Act; (n) “public utility service” means— (i) any railway service 2[or any transport service for the carriage of passengers or goods by air]; 3[(ia) any service in, or in connection with the working of, any major port or dock;] (ii) any section of an industrial establishment, on the working of which the safety of the establishment or the workmen employed therein depends; (iii) any postal, telegraph or telephone service; (iv) any industry which supplies power, light or water to the public; (v) any system of public conservancy or sanitation; (vi) any industry specified in the 4[First Schedule] which the appropriate Government may, if satisfied that public emergency or public interest so requires, by notification in the Official Gazette, declared to be a public utility service for the purposes of this Act, for such period as may be specified in the notification: Provided that the period so specified shall not, in the first instance, exceed six months but may, by a like notification, be extended from time to time, by any period not exceeding six months, at any one time if in the opinion of the appropriate Government public emergency or public interest requires such extension; (o) “railway company” means a railway company as defined in section 3 of the Indian Railways Act, 1890 (9 of 1890); 1 Ins. by Act 36 of 1956, Section 3 (w.e.f. 10.3.1957). 2 Ins. by Act 45 of 1971, Section 2 (w.e.f. 15.12.1971). 3 Ins. by Act 45 of 1971, Section 2 (w.e.f. 15.12.1971). 4 Subs. by Act 36 of 1964, Section 2, for “Schedule” (w.e.f. 19.12.1964). The Industrial Disputes Act, 1947 1[(oo) “retrenchment” means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action but does not include— (a) voluntary retirement of the workman; or (b) retirement of the workman on reaching the age of superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or 2[(bb) termination of the service of the workman as a result of the non- renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or] (c) termination of the service of a workman on the ground of continued ill-health;] 3[(p) “settlement” means a settlement arrived at in the course of conciliation proceeding and includes a written agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to 4[an officer authorised in this behalf by] the appropriate Government and the conciliation officer;] (q) “strike” means a cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal, or a refusal, under a common understanding of any number of persons who are or have been so employed to continue to work or to accept employment; 5[(qq) “trade union” means a trade union registered under the Trade Unions Act, 1926 (16 of 1926);] 1 Ins. by Act 43 of 1953, Section 2 (w.e.f. 24.10.1953). 2 Ins. by Act 49 of 1984, Section 2 {w.e.f. 18.8.1984). 3 Subs. by Act 36 of 1956, Section 3, for clause (p) (w.e.f. 7.10.1956). 4 Ins. by Act 35 of 1965, Section 2 (w.e.f. 1.12.1965). 5 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.1984). The Industrial Disputes Act, 1947 1[(r) “Tribunal” means an Industrial Tribunal constituted under section 7A and includes an Industrial Tribunal constituted before the 10th day of March, 1957, under this Act;] 2[(ra) “unfair labour practice” means any of the practices specified in the Fifth Schedule; 3(rb) “village industries” has the meaning assigned to it in clause (h) of section 2 of the Khadi and Village Industries Commission Act, 1956 (61 of 1956);] 4[(rr) “wages” means all remuneration capable of being expressed in terms of money, which would, if the terms of employment, expressed or implied, were fulfilled, be payable to a workman in respect of his employment or of work done in such employment, and includes— (i) such allowances (including dearness allowance) as the workman is for the time being entitled to; (ii) the value of any house accommodation, or of supply of light, water, medical attendance or other amenity or of any service or of any concessional supply of foodgrains or other articles; (iii) any travelling concession;] 5[(iv) any commission payable on the promotion of sales or business or both; but does not include— (a) any bonus; (b) any contribution paid or payable by the employer to any pension fund or provident fund or for the benefit of the workman under any law for the time being in force; (c) any gratuity payable on the termination of his service;] 6[(s)“workman” means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of 1 Subs. by Act 18 of 1957, Section 2, for clause (r) (w.r.e.f. 10.3.1957) 2 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.1984). 3 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.1984). 4 Ins. by Act 43 of 1953, Section 2 (w.e.f. 24.10.1953). 5 Ins. by Act 46 of 1982, Section 2 (w.e.f. 21.8.1984). 6 Subs. by Act 46 of 1982, Section 2, for clause (s) (w.e.f. 21.8.1984). The Industrial Disputes Act, 1947 employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person— (i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act, 1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or (ii) who is employed in the police service or as an officer or other employee of a prison; or (iii) who is employed mainly in a managerial or administrative capacity; or (iv) who, being employed in a supervisory capacity, draws wages exceeding one thousand six hundred rupees per mensem or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.] Case Law “Any person” scope thereof The expression ‘any person’ in section 2(k) of the Act, must be read subject to limitations and qualifications; the two crucial limitations are (1) the dispute must be a real dispute between the parties to the dispute so as to be capable of settlement or adjudication by one party to the dispute giving necessary relief to the other; and the person regarding whom the dispute is raised must be one in whose employment, non- employment, terms of employment, or conditions of labour, the parties to the dispute have a direct or substantial interest; Workmen of Dimakatach Tea Estate v. Management, AIR 1958 SC 353. ‘Apprentice’—A Workman An “Apprentice” is a Workman; Uttar Pradesh Awas Evam Vikas Parishad v. Labour Court II, Kanpur, 2004 LLR 432. Burden of proof It is for the claimant-workman claiming retrenchment compensation to lead evidence that he had worked for two hundred forty days in the year preceding his termination and filing of affidavit cannot be regarded as sufficient evidence for any court or Tribunal to the conclusion that a workman had in fact worked for two hundred forty days in a year; Range Forest Officer v. S.T. Hadinani, 2002 LLR 339. Definition of “appropriate Government” The Industrial Disputes Act, 1947 The ‘appropriate Government’ as defined in clause (a) of section 2 of the Act in relation to industrial disputes concerning NALCO is State Government; NALCO v. Union of India, (2003) II LLJ 995 (Ori). For whom dispute can be raised Where the Workmen raise a dispute as against their employer, the person regarding whose employment, non-employment, terms of employment or conditions of labour the dispute is raised, need not be, strictly speaking, a ‘workman’ within the meaning of the Act, but must be one in whose employment, non-employment, terms of employment or conditions of labour the workmen as a class have a direct or substantial interest; Workmen of Dimakatch Tea Estate v. Management of D.T.E. AIR 1958 SC 353. Held to be worker According to the Labour Court, the workman could not be continued as a trainee for such a long period and, therefore held that a workman was a ‘workman’ under section 2(s) of the Act; Mara Thomas Gonsalvies v. Concept Pharmaceuticals (Pvt. Ltd., (2002) IV LLJ (Supp) Bom 906. ‘Salesman’ is a workman; Management of Roneo Vickers India Ltd, v. Lt. Governor of Delhi, 1994 LLR 253 (Del). Held not to be worker The petitioner who joined as a clerk was later on promoted and at the time of his termination, he was working in a supervisory capacity as senior Personnel Assistant Officer and drawing salary more than Rs. 500. Held petitioner is not a workman; Vilas Dumale v. Siporex India Ltd., 1998 LLR 380. The petitioner was working as a supervisor quality control, drawing a salary exceeding Rs. 1600 per month. Held, he was not a workman; G.M. Pillai v. A.P. Lakhmikaf Judge, 3rd Labour Court, 1998 LLR 310. Irrigation department: Industry or not It has been held that the irrigation department of the State is an industry; State of Uttar Pradesh v. Industrial Tribunal IV, Agra, (2002) IV LLJ (Supp) NOC 8. Projects undertaken by irrigation department would fall within the definition of ‘industry’ as defined in this section; Executive Engineer Yavatmal Medium Project Division, v. Anant, (1998) II LLJ 77. “Lock-out” meaning thereof If an employer shuts down his place of business as a means of reprisal or as an instrument of coercion or as a mode of exerting pressure on the employees, or, generally speaking, when his act is what may be called an act of belligerency there would be a lockout. If, on the other hand, he shuts down his work because he cannot for instance get The Industrial Disputes Act, 1947 the raw materials or the fuel or the power necessary to carry on his manufacturing or because he is unable to sell the goods he has made or because his credit is exhausted or because he is losing money, that would not be a lockout; Sri Ramachandra Spinning Mills, Pandalapaka v. Province of Madras, AIR 1956 Mad 241. Relevancy The designation of an employee is not of much importance and what is important is the nature of duties being performed by the employee; S.K. Maini v. Carona Sahu Co. Ltd., 1994 LLR 321 (SC). Retrenchment: Definition If the termination is meant to exploit an employee or to increase the bargaining power of the employer, then it has to be excluded from the ambit of sub-clause (bb) of clause (oo) and the definition of “retrenchment” has to be given full meaning; Chief Administrator, Haryana Urban Development Authority, Manimajra v. Presiding Officer, Industrial Tribunal-cum-Labour Court, Rohtak, 1994 LLR 454 (P&H) (DB). If a person is engaged for a specific period, or for the execution of a specific work and a clear stipulation is made in the contract of employment that the services shall be terminated at the expiry of the work, the workman shall not be entitled to claim that he has been retrenched or that the action is violative of the provisions of the Act; Municipal Committee v. Presiding Officer, Labour Court, 1994 LLR 206 (P&H). Scope Where the workers were not project employees and were not employed for any particular project, they would not be governed by sub-clause (bb) or clause (oo) of section 2 of the Act; S.M. Nilajkar v. Telecom District Manager, (2003) 4 SCC 27. Clubs, Educational Institutions, Co-operatives, Research Institutes, Charitable projects and other kindred adventures, if they fulfil the triple test of systematic activity. Co-operation between employer and employee and production of goods and services, then they cannot be exempted from the scope of section 2(j); Bangalore Water Supply v. A. Rajappa, AIR 1978 SC 548. The mere fact that a worker is a piece-rate worker would not necessarily take him out of the category of a worker within the meaning of section 2(1) of the Factories Act, if the relationship of master and servant or employer and employee existed; Birdhichand v. First Civil Judge, AIR 1961 SC 644. In an industrial dispute concerning Insurance Corporation of India the provisions of the Industrial Disputes Act, 1947 will apply; Life Insurance Corporation of India v. Rajeev Kumar Srivastava, 1994 LLR 573 (All) (DB). Scope of ‘industry’ The definition in clause (ka) of section 2 does not make any difference between “industrial establishment” and “undertaking” in which any industry is carried on; Savani The Industrial Disputes Act, 1947 An establishment can be taken out of the pale of industry only if it exercises inalienable Government functions. Sovereign functions of the State cannot be included in “industry”; Mohan v. State of Kerala, 1994 LLR 169 (Ker). Substantial nature test When the Courts have to decide whether an employee was employed on manual labour or not, then the test of the substantial nature of the employment is to be applied. In determining which of the employees in the various categories are covered by the definition of “Workman”, the Court has to see what is the main or substantial work which the employees are engaged to do; Burmah Shell Oil Storage v. Management of Staff, AIR 1971 SC 922. ‘Workman’ scope thereof If a Workman has consented to give his personal services and not merely to get work done and if he is bound under his contract to work personally, he is not excluded from the definition, simply because he has assistance from others, who work under him; D.C. Works Ltd. v. State of Saurashtra. The persons engaged on job work basis could be workers, but only such persons would be workers who work regularly at the factory and are paid for the work, turned out during their regular employment on the basis of the work done- Piece-rate workers can be workers, but they must be regular workers and not workers who come according to their sweet will under the provision of section 2 (1); Sankar Balaji v. State of Maharashtra, AIR 1962 SC 517. 1[2A. Dismissal, etc., of an individual workman to be deemed to be an industrial dispute.—Where any employer discharges, dismisses, retrenches or otherwise terminates the services of an individual workman, any dispute or difference between that workman and his employer connected with, or arising out of, such discharge, dismissal, retrenchment or termination shall be deemed to be an industrial dispute notwithstanding that no other workman nor any union of workmen is a party to the dispute.] 1 Ins. by Act 35 of 1965, Section 3 (w.e.f. 1.12.1965). The Industrial Disputes Act, 1947 CHAPTER II AUTHORITIES UNDER THIS ACT