The Act is known for famous Indian gLABOUR COURTSh which are constituted under this Act. This is a Act which has given super protection to Indian employees. This Act also provides full machinery for conciliation and adjudication of disputes between employee and employer and vice versa, between workman and workman & between employer and employer.

The Act does not applies on a person employed in Supervisory or Managerial capacity and drawing wages exceeding Rs. 2,500/- per month.

It deal in detail provisions related to strikes and lock outs, lay off and retrenchment and unfair labour practices.

It has special provisions regarding termination of services of a employee. In case, the service of employee is terminated as a punishment inflected by way of disciplinary action, subject to relevant rules and regulation in that regards, the employee has no protection except the provisions of natural justice or no opportunity was given to him to represent his side. In case, the services is terminated without punishment inflected by way of disciplinary action, the employee has right of retrenchment compensation (subject to some exceptions and other provisions of this Act). Its section-2 (o o) details out conditions when the service of a person can be terminated without punishment and retrenchment benefits.

There is provision of Conciliation Officer for consoling the Industrial disputes, if no settlement arise during conciliation, Conciliation Officer gives failure report to Government which sent that Industrial dispute to labour court for adjudication. Labour Court have vast powers to adjudicate any such matter.

The Act is not applicable on Education, Scientific Research or Training Institutions, Hospitals and Dispensaries, Khaddi or Village Industries and domestic service, agriculture operation, etc. etc.