Industrial Disputes Act 1947 > Second Schedule

Second Schedule of Industrial Disputes Act 1947: Matters within the Jurisdiction of Labour Courts

The Second Schedule to the Industrial Disputes Act, 1947 identifies matters within the jurisdiction of Labour Courts constituted under Section 7. It covers disputes concerning standing orders, discharge or dismissal, customary concessions or privileges, strikes and lock-outs, and matters not specified in the Third Schedule.

Legal position covered: This article explains the Industrial Disputes Act, 1947 framework applicable before the Bharatiya Sakshya Adhiniyam, 2023 came into force on 1 July 2024. The Second Schedule determines Labour Court subject-matter jurisdiction under the Industrial Disputes Act; it does not itself prescribe rules of evidence.

Section 7: Labour Courts

Section 7 of the Industrial Disputes Act, 1947 empowers the appropriate Government, by notification in the Official Gazette, to constitute one or more Labour Courts for adjudication of industrial disputes relating to matters specified in the Second Schedule and for performing other functions assigned to Labour Courts under the Act. A Labour Court consists of one person appointed by the appropriate Government, subject to the statutory qualifications prescribed for the presiding officer.

Second Schedule: Matters within Labour Court Jurisdiction

The Second Schedule, read with Section 7, specifies the following matters:

  1. The propriety or legality of an order passed by an employer under the standing orders.
  2. The application and interpretation of standing orders.
  3. Discharge or dismissal of workmen, including reinstatement of, or grant of relief to, workmen wrongfully dismissed.
  4. Withdrawal of any customary concession or privilege.
  5. Illegality or otherwise of a strike or lock-out.
  6. All matters other than those specified in the Third Schedule.

Meaning and Scope of the Second Schedule

Orders passed under standing orders

Item 1 covers the propriety or legality of an employer's order made under the applicable standing orders. The Labour Court may therefore adjudicate an industrial dispute questioning whether such an order is proper or lawful within the governing industrial-relations framework.

Application and interpretation of standing orders

Item 2 covers disputes about how standing orders apply and how their provisions should be interpreted. Standing orders regulate specified conditions of employment in industrial establishments and may govern matters such as classification, attendance, misconduct, disciplinary procedure and termination, depending on the applicable standing orders.

Discharge, dismissal and reinstatement

Item 3 expressly includes discharge or dismissal of workmen, reinstatement and relief to workmen who are found to have been wrongfully dismissed. This makes dismissal and reinstatement disputes a core subject of Labour Court adjudication under the Second Schedule.

Customary concessions and privileges

Item 4 covers withdrawal of a customary concession or privilege. Whether a particular benefit has acquired the character of a customary concession or privilege depends on the facts, the employment practice and the applicable law.

Strike or lock-out

Item 5 covers the question whether a strike or lock-out is illegal or otherwise. The issue must be examined with the provisions of the Industrial Disputes Act governing strikes and lock-outs and the facts applicable to the industrial dispute.

Matters outside the Third Schedule

Item 6 is residuary in character: it includes all matters other than those specified in the Third Schedule. The Second and Third Schedules should therefore be read together when identifying the statutory adjudicatory forum.

Section 10: Reference of Industrial Disputes

Section 10 governs reference of industrial disputes. Under Section 10(1)(c), a dispute or connected matter relating to a subject specified in the Second Schedule may be referred to a Labour Court for adjudication. Section 10(1)(d) permits a dispute concerning a matter in the Second or Third Schedule to be referred to a Tribunal. The proviso to Section 10(1) also permits a Third Schedule dispute that is not likely to affect more than one hundred workmen to be referred to a Labour Court if the appropriate Government thinks fit.

Second Schedule and Third Schedule: Jurisdictional Distinction

The Second Schedule is specifically associated with Labour Courts under Section 7. The Third Schedule is associated with Industrial Tribunals under Section 7A and includes matters such as wages, allowances, working hours, leave, bonus, classification by grades, discipline, rationalisation, retrenchment and closure. Because Item 6 of the Second Schedule refers to matters other than those specified in the Third Schedule, both Schedules are relevant when determining the statutory subject matter of a dispute.

State Amendment: Madhya Pradesh

The earlier text of this page recorded a Madhya Pradesh State amendment concerning the structure of the Second Schedule, including references to omission of the expressions "Part A" and "Part B". State amendments can differ from the central text and may have been altered by later State legislation. For proceedings governed by Madhya Pradesh law, the current State amendment and notification position should therefore be verified from the applicable official State publication before reliance.

Official Legal Sources

For authoritative statutory text, amendments and notifications, verify the applicable law from official Government sources.

This article is an informational presentation of the statutory framework. Central and State amendments, rules, notifications, standing orders, terms of reference and judicial decisions applicable to the particular dispute should also be examined.