Industrial Relations Act, 1946

Restrictions on making establishment orders.

37.—The Court shall not make an establishment order in respect of any workers and their employers unless the Court is satisfied—

(a) in case the application is made by an organisation or a group of persons claiming to be representative of such workers or such employers, that the claim is well-founded, and

(b) that either—

(i) there is substantial agreement between such workers and their employers to the establishment of a joint labour committee, or

(ii) the existing machinery for effective regulation of remuneration and other conditions of employment of such workers is inadequate or is likely to cease or to cease to be adequate, or

(iii) having regard to the existing rates of remuneration or conditions of employment of such workers or any of them, it is expedient that a joint labour committee should be established