Industrial Tribunal is a specialised adjudicatory body constituted by the appropriate government under Section 7A of the Industrial Disputes Act, 1947, for the adjudication of industrial disputes relating to matters specified in the Second Schedule and Third Schedule to the Act. Under Indian law, industrial tribunals have broader jurisdiction than labour courts and handle disputes concerning wages, bonus, hours of work, and rationalisation, in addition to all matters within the labour court's jurisdiction.
Legal definition
The Industrial Disputes Act, 1947 establishes industrial tribunals:
Section 7A(1): The appropriate Government may, by notification in the Official Gazette, constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to any matter, whether specified in the Second Schedule or the Third Schedule.
The presiding officer must be or have been a Judge of a High Court, or must have held the office of District Judge or Additional District Judge for at least three years. An industrial tribunal consists of one person only.
The Third Schedule specifies additional matters within the exclusive original jurisdiction of industrial tribunals:
- Wages, including the period and mode of payment
- Compensatory and other allowances
- Hours of work and rest intervals
- Leave with wages and holidays
- Bonus, including profit-sharing bonus
- Shift working otherwise than in accordance with standing orders
- Classification by grades
- Rules of discipline
- Rationalisation
- Retrenchment of workmen and closure of establishments
- Any other matter that may be prescribed
New law equivalent: The Industrial Relations Code, 2020 merges the labour court and industrial tribunal into a single "Industrial Tribunal" under Section 44, which will have a two-member bench comprising a judicial member (former High Court Judge or District Judge) and an administrative member.
How courts have interpreted this term
Workmen of Meenakshi Mills v. Meenakshi Mills [AIR 1958 SC 153]
The Supreme Court held that an industrial tribunal under the Act exercises quasi-judicial functions and is bound to act judicially, applying principles of natural justice. The tribunal has wide powers to grant appropriate relief, including the power to order reinstatement, back wages, and compensation. The Court observed that the tribunal is not limited to the specific relief sought but may mould relief as justice requires.
Management of Firestone Tyre and Rubber Co. v. Workmen [(1973) 1 SCC 813]
The Supreme Court clarified that an industrial tribunal adjudicating a dispute under Section 10 is bound by the terms of reference and cannot travel beyond the scope of the reference. However, within the scope of the reference, the tribunal has wide discretion in determining the appropriate remedy. The Court also held that the tribunal must consider the financial capacity of the employer when making an award on wages or bonus.
National Engineering Industries Ltd. v. State of Rajasthan [(2000) 1 SCC 371]
The Supreme Court held that the industrial tribunal is a creature of statute with limited jurisdiction defined by the terms of the reference. It cannot assume jurisdiction over matters not referred to it, and any award made beyond the scope of the reference is without jurisdiction and liable to be quashed.
Why this matters
Industrial tribunals handle the most consequential disputes in Indian industrial relations — disputes over wages, bonus, working hours, and rationalisation that affect the economic interests of large bodies of workmen. Unlike labour courts, which primarily deal with individual termination disputes, industrial tribunals adjudicate collective interest disputes that can shape employment conditions across entire establishments or industries.
For employers, the industrial tribunal's power to determine wages, bonus, and allowances means that an adverse award can have substantial financial implications affecting the entire workforce. Awards of industrial tribunals remain in operation for one year (Section 19(3)), extendable by the government, and during their operation, the terms of the award cannot be varied except through the statutory modification procedure.
For practitioners, a critical procedural issue is the appropriate government's discretion in making a reference under Section 10. The government acts as a gatekeeper, and a refusal to refer a dispute to an industrial tribunal can be challenged by writ petition. The Supreme Court has held that the government must apply its mind to the merits while making a reference and cannot refuse on extraneous or irrelevant grounds.
Related terms
Related adjudicatory bodies:
Broader concepts:
Related processes:
Frequently asked questions
What is the difference between an industrial tribunal and a national tribunal?
An industrial tribunal is constituted by the state or central government for disputes within a single state, while a national tribunal is constituted exclusively by the Central Government under Section 7B for disputes of national importance or disputes affecting establishments in more than one state. The presiding officer of a national tribunal must be or have been a High Court judge.
How long does an industrial tribunal award remain in force?
An award of an industrial tribunal becomes enforceable on the expiry of 30 days from the date of its publication under Section 17. Under Section 19(3), the award remains in operation for a period of one year, extendable by the appropriate government for a further period not exceeding one year at a time.
Can an employer challenge an industrial tribunal award?
Yes. While there is no statutory appeal under the Industrial Disputes Act, industrial tribunal awards are subject to writ jurisdiction of the High Court under Article 226 and the supervisory jurisdiction under Article 227 of the Constitution. The Supreme Court may also be approached under Article 136.
This entry is part of the Veritect Indian Legal Glossary, a comprehensive reference of Indian legal terminology grounded in statutory text and judicial interpretation.
Last updated: 2026-03-27. Veritect provides this content for informational purposes and does not constitute legal advice.