Section 37 of IDA : Section 37: Protection Of Action Taken Under The Act

Explanation using Example

Imagine a scenario where a Human Resources manager at a manufacturing company has to lay off several employees due to economic downturn. The manager follows the procedures outlined in The Industrial Disputes Act, including negotiations and severance packages. Despite this, one of the laid-off employees feels aggrieved and decides to sue the manager personally. Under Section 37 of The Industrial Disputes Act, 1947, the manager would be protected from such a lawsuit, as long as they acted in good faith and in accordance with the Act and its rules while conducting the layoffs.