Section 2 of IDA : Section 2: Definitions

Explanation using Example

Imagine a scenario where a group of workers employed by a railway company, which is under the authority of the Central Government, have a dispute over wages. According to the definitions provided in Section 2 of The Industrial Disputes Act, 1947, the 'appropriate Government' to handle this dispute would be the Central Government. This is because the industry (railway) is carried on by the Central Government's authority.

Now, let's say the workers believe their 'average pay' has been incorrectly calculated by the company. They argue that the calculation did not consider the actual days they worked, which were less than the standard period due to a temporary shutdown of operations. The dispute could be resolved by recalculating the 'average pay' based on the actual days they worked, as defined in the Act.

If the dispute escalates, it may be brought before a Labour Court or Industrial Tribunal, and any decision made by this body would be referred to as an 'award'. This award would be binding and include the final determination of the workers' wages dispute.