Fourth Schedule of Industrial Disputes Act 1947: Conditions of Service Requiring Notice of Change

The Fourth Schedule to the Industrial Disputes Act, 1947 lists the conditions of service for which Section 9A requires an employer to give notice before effecting a proposed change. It covers wages, statutory fund contributions, allowances, working hours, leave, shift working, classification, customary privileges, discipline, rationalisation and specified changes in employment strength.

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. Section 9A and the Fourth Schedule regulate notice of changes in conditions of service; they do not themselves prescribe rules of evidence.

Section 9A: Notice of Change

Section 9A provides that an employer proposing to effect a change in the conditions of service applicable to a workman in respect of a matter specified in the Fourth Schedule cannot effect that change without giving the workmen likely to be affected notice, in the prescribed manner, of the nature of the proposed change. The change also cannot be effected within twenty-one days after the notice is given.

The statutory focus is therefore on a proposed change to an existing condition of service concerning a Fourth Schedule matter. Whether Section 9A applies in a particular case depends on the nature of the change, the workmen affected, the applicable statutory exceptions and the governing Central or State rules.

Fourth Schedule: Conditions of Service for Which Notice Is to Be Given

Wages, including the period and mode of payment.
Employer contribution to funds or workmen benefits - contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefit of the workmen under any law for the time being in force.
Compensatory and other allowances.
Hours of work and rest intervals.
Leave with wages and holidays.
Shift working - starting, alteration or discontinuance of shift working otherwise than in accordance with standing orders.
Classification by grades.
Customary concession, privilege or usage - withdrawal of any customary concession or privilege or change in usage.
Rules of discipline - introduction of new rules of discipline, or alteration of existing rules, except in so far as they are provided in standing orders.
Rationalisation, standardisation or improvement of plant or technique which is likely to lead to retrenchment of workmen.
Increase or reduction in employment strength - any increase or reduction, other than casual, in the number of persons employed or to be employed in any occupation or process or department or shift, not occasioned by circumstances over which the employer has no control.

Twenty-One Day Requirement under Section 9A

Section 9A operates in two stages. First, notice of the nature of the proposed change must be given in the prescribed manner to the workmen likely to be affected. Second, the employer cannot effect the proposed change within twenty-one days of giving that notice. Compliance with the prescribed form and procedure must be considered with the applicable Industrial Disputes rules.

When Notice under Section 9A Is Not Required

The proviso to Section 9A specifies statutory exceptions. Notice is not required where the change is effected in pursuance of a settlement or award. The provision also contains an exception for workmen governed by specified service rules and regulations, including the Fundamental and Supplementary Rules and certain civil service, defence service and railway establishment rules, as well as other rules or regulations that may be notified by the appropriate Government in the Official Gazette.

Section 9B: Government Power to Exempt

Section 9B empowers the appropriate Government, subject to the statutory conditions stated in that section, to direct by notification in the Official Gazette that Section 9A shall not apply, or shall apply subject to specified conditions, to a class of industrial establishments or a class of workmen employed in an industrial establishment. Any claimed exemption should therefore be checked against the applicable notification.

Standing Orders and the Fourth Schedule

Items 6 and 9 expressly refer to standing orders. Item 6 concerns starting, alteration or discontinuance of shift working otherwise than in accordance with standing orders. Item 9 concerns new or altered disciplinary rules except to the extent they are provided in standing orders. The applicable certified or statutory standing orders should therefore be examined when deciding whether a proposed change falls within these items.

Rationalisation and Changes in Workforce Strength

Item 10 is directed at rationalisation, standardisation or improvement of plant or technique where the measure is likely to lead to retrenchment of workmen. Item 11 separately addresses non-casual increases or reductions in the number of persons employed or proposed to be employed in an occupation, process, department or shift, subject to the statutory qualification concerning circumstances beyond the employer's control.

Official Legal Sources

For authoritative statutory wording, amendments, rules and notifications, verify the applicable position from official Government sources.

This article is an informational presentation of the statutory framework. Applicable Central or State amendments, rules, notifications, standing orders, settlements, awards and judicial decisions should be checked for the relevant establishment, workmen, period and proposed change.