Industrial Disputes Act, 1947

The Industrial Disputes Act (IDA), 1947 is the foundational legislation governing labour relations in India's organised sector. Its objective is to prevent and settle industrial disputes and protect workers' rights. Section 2(j) defines "industry" as "any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen." The definition is deliberately broad and the question of whether a particular employer or establishment qualifies as an "industry" determines whether the IDA's protections — regarding lay-off, retrenchment, closure, and collective bargaining — apply to its workforce. Key IDA provisions: Section 25F (conditions for retrenchment compensation), Section 25N (prior permission for retrenchment in large units), Chapter VB (establishments with 300+ workers need government permission to close). The IDA applies to workmen (non-supervisory employees); its reach now also partly overlaps with the Industrial Relations Code, 2020.