Source: Rajasthan High Court (Civil Writ Petition No. 8182/2005)

Why in News?

The bench of Justice Anoop Kumar Dhand observed that a dispute under the Apprentices Act, 1961 (Act of 1961) cannot be termed as an 'industrial dispute' under the purview of Industrial Disputes Act, 1947 (Act of 1947).

• The Rajasthan High Court gave this observation in the matter of Indian Oil Corporation Limited v. Shri Narendra Singh Shekhawat & Anr. and Other Connected petitions.

Background

• An apprenticeship contract was executed between the parties for 11 months and during these 11 months apprenticeship training was provided to the respondents.
  • After completion of the said period, the agreement ended through a termination order.
• Thereafter, the respondents raised an industrial dispute before the Industrial Tribunal Cum Labour Court, Jaipur, under Section 10 of the Act of 1947 challenging the validity of their termination order.
• The Tribunal passed the order in favor of respondents by considering the dispute as an industrial dispute and considering them as workmen under Act of 1947 and hence, held the termination as violative of the provisions of the Act.
• Petitioners filed a petition in this case before the HC contending that the dispute cannot be considered as an industrial dispute.
  • And said, the respondents do not fall within the definition of workmen, hence the Labour Court was not having any jurisdiction to entertain the claim petition filed by the respondents.
  • Furthermore, as per Section 18 of the Act of 1961 the provisions of labour law are not applicable.

Court’s Observation

• The HC mainly observed that in case of dispute of apprentices, the award granted by an Industrial Dispute Tribunal is illegal and without jurisdiction.

Industrial Dispute

• Industrial disputes are conflicts that arise between employers and employees, often due to differences in interests, opinions, or perceived violations of rights.
• These disputes can have far-reaching implications for both the parties involved and the overall functioning of the economy.
• Industrial disputes can result in legal actions, such as lawsuits and court orders.
  • This can lead to additional costs and complexities for all parties involved.
• These disputes are governed under the Industrial Dispute Act, 1947 and are adjudged by the Labour Court/Industrial Tribunal.
• Section 2(k) of the Act defines Industrial Dispute.

Workman

• Under the Act of 1947, a 'workman' refers to any person employed in an industry, whether skilled or unskilled, manual or clerical, technical or non-technical.
• Workman includes diverse array of individuals, from factory workers and laborers to administrative staff, all of whom contribute to the functioning of an industrial establishment.

Apprenticeship Act, 1961

• The Act of 1961 is a crucial piece of legislation in India that governs the framework and implementation of apprenticeship training programs across various industries.
• The Act contains 38 Sections segregated into 3 chapters.
• Under the Apprenticeship Act, eligible organizations are required to offer apprenticeship training to individuals, allowing them to acquire practical knowledge and skills under the guidance of experienced professionals.
• Section 18 of the Act differentiates apprentices and workers.

Legal Provision

Section 18 of the Act of 1961: Apprentices are trainees and not workers -

Save as otherwise provided in this Act -

(a) every apprentice undergoing apprenticeship training in a designated trade in an establishment shall be a trainee and not a worker; and

(b) the provisions of any law with respect to labour shall not apply to or in relation to such apprentice.