Industrial Disputes Act 1947 > Third Schedule

Third Schedule of Industrial Disputes Act 1947: Matters within the Jurisdiction of Industrial Tribunals

The Third Schedule to the Industrial Disputes Act, 1947 specifies the principal subjects that fall within the jurisdiction of Industrial Tribunals. The Schedule is expressly linked to Section 7A of the Act.

Legal position covered: This article states the Industrial Disputes Act, 1947 framework applicable before the Bharatiya Sakshya Adhiniyam, 2023 came into force on 1 July 2024. The Third Schedule concerns industrial adjudication and does not itself create rules of evidence under the Indian Evidence Act, 1872.

Section 7A: Industrial Tribunals

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

In practical terms, the Third Schedule identifies important service-condition and employment matters that may be referred for adjudication before an Industrial Tribunal under the Act.

Third Schedule: Matters within the Jurisdiction of Industrial Tribunals

The Third Schedule, read with Section 7A, contains the following matters:

  1. Wages, including the period and mode of payment.
  2. Compensatory and other allowances.
  3. Hours of work and rest intervals.
  4. Leave with wages and holidays.
  5. Bonus, profit sharing, provident fund and gratuity.
  6. Shift working otherwise than in accordance with standing orders.
  7. Classification by grades.
  8. Rules of discipline.
  9. Rationalisation.
  10. Retrenchment of workmen and closure of establishment.
  11. Any other matter that may be prescribed.

Meaning and Scope of Important Third Schedule Matters

Wages and allowances

Items 1 and 2 cover disputes concerning wages, the period or manner in which wages are paid, and compensatory or other allowances. These subjects concern monetary conditions of service and may form the subject matter of industrial adjudication.

Working hours, rest intervals, leave and holidays

Items 3 and 4 cover the organisation of working time, rest intervals, leave with wages and holidays. These matters directly concern conditions under which work is performed.

Bonus, profit sharing, provident fund and gratuity

Item 5 expressly includes bonus, profit sharing, provident fund and gratuity. Where a dispute concerning such a subject is governed by a special enactment, the provisions of that enactment must also be considered along with the industrial-dispute framework.

Shift working and standing orders

Item 6 covers shift working otherwise than in accordance with standing orders. Standing orders regulate specified conditions of employment in industrial establishments, and the wording of this item makes their terms relevant when a dispute concerns departure from an established shift-working arrangement.

Classification by grades and rules of discipline

Items 7 and 8 cover classification of employees by grades and rules of discipline. These subjects may affect status, service conditions, workplace regulation and the manner in which employees are grouped or governed within an establishment.

Rationalisation

Item 9 places rationalisation within the Third Schedule. Rationalisation generally concerns reorganisation or changes intended to improve or reorganise operations, methods, staffing or production. The legal consequences depend on the nature and effect of the proposed change and the other applicable provisions of labour law.

Retrenchment and closure

Item 10 covers retrenchment of workmen and closure of an establishment. These expressions are governed by the relevant definitions and substantive provisions of the Industrial Disputes Act, 1947, including the statutory conditions applicable to retrenchment or closure in a given case.

Other prescribed matters

Item 11 preserves jurisdiction over any other matter that may be prescribed under the statutory framework. It should therefore be read together with the Act and the applicable rules and notifications.

Third Schedule and Labour Court Jurisdiction

The Second Schedule identifies matters within the jurisdiction of Labour Courts, while the Third Schedule identifies matters within the jurisdiction of Industrial Tribunals. The Second Schedule also includes matters other than those specified in the Third Schedule. The appropriate forum and the scope of a reference therefore depend on the subject matter of the industrial dispute and the terms of the reference made under the Act.

Power to Amend the Schedules

Section 40 of the Industrial Disputes Act, 1947 authorises amendment of the statutory Schedules in the manner provided by that section. In particular, the Central Government may, by notification in the Official Gazette, add to, alter or amend the Second Schedule or the Third Schedule, after which the relevant Schedule is deemed to stand amended accordingly.

Official Legal Sources

For the authoritative statutory text, amendments and notifications, readers should verify the applicable law from official Government sources, particularly India Code and the Ministry of Labour and Employment.

This page is an informational presentation of the statutory framework and should be read with the applicable Central or State amendments, rules, notifications and judicial decisions relevant to the particular dispute.