Section 9B of the Industrial Disputes Act 1947 - Power of Government to Exempt

Section 9B gives the appropriate Government a limited statutory power to exempt a class of industrial establishments or a class of workmen from Section 9A, or to make Section 9A applicable subject to specified conditions, where the statutory requirements of serious repercussions on the industry and public interest are satisfied.

Section 9B - Statutory rule

What is the purpose of Section 9B?

Section 9A ordinarily requires notice before an employer effects specified changes in conditions of service relating to matters in the Fourth Schedule. Section 9B creates a statutory exemption mechanism where application of that notice regime to a class of establishments or workmen would have the serious industrial consequences described in the section and public interest requires an exemption or conditional application.

Conditions for exercise of the power

The structure of Section 9B requires the appropriate Government to address the statutory considerations before issuing an exemption notification:

1. Application of Section 9A: the issue must concern application of Section 9A to a class of industrial establishments or a class of workmen.
2. Prejudicial effect: the Government must be of opinion that such application affects the employers concerned prejudicially.
3. Serious repercussions: the prejudicial effect must be such that application of Section 9A may cause serious repercussions on the industry concerned.
4. Public interest: the Government must also be of opinion that public interest requires the proposed direction.
5. Official Gazette: the exemption or conditional application must be directed by notification in the Official Gazette.

Meaning of appropriate Government

The expression "appropriate Government" is defined in Section 2(a) of the Industrial Disputes Act. The definition allocates statutory responsibility between the Central Government and State Governments according to the establishments, industries and circumstances specified in that provision. The competent Government must therefore be identified before relying on a notification under Section 9B.

Meaning of industrial establishment

Section 9B uses the expression "industrial establishments" in identifying the class to which an exemption may apply. Its operation must be understood in the context of the Industrial Disputes Act, the nature of the establishment concerned and the scope of the notification issued by the appropriate Government. The precise coverage of a notification should be read from its operative terms.

Section 9A and Section 9B must be read together

Section 9A is the substantive notice-of-change provision. It generally prevents an employer from changing conditions of service relating to a matter in the Fourth Schedule without giving affected workmen notice in the prescribed manner and, under the central provision, without observing the 21-day waiting period. Section 9B does not replace Section 9A generally; it enables the appropriate Government to modify its application for the class identified in a valid Gazette notification when Section 9B's conditions are met.

Effect of a Section 9B notification

A notification may take either of two forms. It may direct that Section 9A does not apply to the identified class, or it may preserve the application of Section 9A subject to conditions stated in the notification. The legal effect therefore depends on the exact wording, scope, conditions and period, if any, stated in the applicable Official Gazette notification.

Official Gazette notification is essential

Section 9B expressly requires action by notification in the Official Gazette. Employers and workmen should therefore verify the actual notification rather than assume that an exemption exists because of an administrative practice, communication or general policy. The notification should also be checked for the class covered and any conditions attached to the exemption.

Legislative history

Section 9B was inserted by the Industrial Disputes (Amendment and Miscellaneous Provisions) Act, 1956 (Act 36 of 1956), with effect from 10 March 1957. It forms part of Chapter IIA dealing with notice of change.

Related provisions

Section 9A - Notice of Change

Section 9A regulates changes in conditions of service applicable to workmen in respect of matters specified in the Fourth Schedule. Section 9B operates as the Government exemption provision connected directly with Section 9A.

Fourth Schedule - Conditions of service

The Fourth Schedule lists matters in respect of which notice of change is required under Section 9A, including specified matters concerning wages, allowances, hours of work, leave, shift working, classification by grades, customary concessions or privileges, discipline, rationalisation or improvement likely to lead to retrenchment, and specified changes in the number of persons employed.

Official sources

For the authoritative central text, refer to the Industrial Disputes Act, 1947 on India Code. The Chief Labour Commissioner (Central) Industrial Disputes Act resource also provides official labour-law material. Applicable Gazette notifications and State amendments should be checked for the establishment and period concerned.

This article presents the statutory position within the stated historical cut-off. Always check the applicable Central or State text and the relevant Official Gazette notification before relying on an exemption under Section 9B.