6.1 Legislation in brief
The main statutes are: the Trade Unions Act 1926 (which entitles employees to form unions or associations with a minimum of seven members) and the Industrial Disputes Act 1947 (which sets out the mechanism for the resolution of industrial disputes).
State/Territory legislation may also contain provisions relating to industrial relations.
6.2 Role of trade unions
Indian law guarantees the right to form trade unions and prohibits discrimination on the grounds of trade union membership. Levels of unionisation across a number of industries tend to vary on a regional basis, with high levels in states such as Kerala, Tripura and West Bengal, but much lower levels in Delhi, for example.
Unions may be registered or unregistered, although the Trade Unions Act 1926 grants rights to and imposes liabilities on a registered trade union. In particular, registered trade unions are immune from legal proceedings in a civil court for acts done under the Industrial Disputes Act 1947 in contemplation or furtherance of an industrial dispute.
6.3 Collective agreements, industrial action and disputes
The Industrial Disputes Act 1947 regulates the system for negotiation, conciliation, arbitration and settlement of disputes, involving some specific bodies, such as Work Committees (comprised of both employer and employee representatives), Conciliation Officers, Boards of Conciliation, and Courts of Enquiry.
The Labour Courts, Industrial Tribunals and National Tribunals adjudicate industrial disputes.
Where parties in collective bargaining cannot resolve a dispute, either party or the government may commence conciliation proceedings before a government-appointed conciliation officer and the settlement is then registered in the labour department and becomes binding on all parties (usually for a period of three years). If conciliation fails, the parties may invoke arbitration or the appropriate government may refer the dispute to adjudication before a labour court or a tribunal.