P U T E

DIS N T
L E M E
SE T T E S
I NE R I
MA C H
 Dispute Settlement within
Organisation
 Works Committee (Sec 3): 100 or more workmen, No. of workmen
representative = No. of employer representative, cannot go beyond
recommendations.
 Grievance Settlement Authority (Sec 9): 50 or more workmen, individual
workman dispute, reference cannot be made unless decision is not accepted to
any of the disputing parties.
 Factors affecting the success of Preventive measures:-
• An expansive attitude is required, openness on the part of management.
• Adequate support from unions, climate of consent, no
partiality/prejudice.
• Whole-hearted implementation of the recommendations of the Works
Committee.
Dispute Settlement within
Organisation
 Domestic Enquiry, Disciplinary Action & Punishment: Fair
opportunity to defend, unbiased person to conduct Enquiry. Domestic
Enquiry should be conducted as per the rules of natural justice i.e.
conducting Preliminary inquiry, issuing Charge-sheet, Notice, allowing
Workman as well as Employer to produce documents, witnesses, lead
evidence. The Enquiry Officer should report his findings including the
reasons for the same. On the basis of the report, the Disciplinary Authority
Awards the punishment and not the enquiry officer.
 Court of Inquiry (Sec 6): Appropriate Government Authority to
conduct inquiry in industrial dispute. Requires to inquire matter similar to
board of conciliation. Certain matters can be kept confidential except
… under IPC.
 Mediation
 Alternative method of Dispute Resolution.
 In mediation an attempt is made to settle disputes with help of eminent
outsider, non-governmental board or board connected to governmental
system of the country.
 Mediation takes only on initiation & consent of disputing parties.
 It is a process by which a third party brings together opposing groups to:
• To find solutions, offers alternatives, voluntary agreement to
disputes.
• Does not impose judgments, assists in negotiations.
• To bring adjustments to disputes which otherwise would have led to
stoppage of work.
 Conciliation
 Conciliation Officers (Sec 4):
Conciliation officer is an independent facilitator appointed by Government. He shall
intervene, investigate and initiate conciliation proceedings in the manner he deems fit
for the purpose of inducing the parties to arrive at a fair and amicable settlement of
disputes. Memorandum of settlement is signed if settlement is arrived.
If no fixed period is mentioned in the settlement then it would be binding for a period
of 6 months and for further period of 2 months after giving notice of termination of
the settlement.

 Board of Conciliation (Sec 5): The Board consists a Chairman (independent

person) & equal no. representatives for both parties. Conciliation proceedings would
commence on receipt of notice of dispute, strike / lockout. If no settlement has
arrived then report is made in writing to Govt. authority & further the case
may be referred for Adjudication.
 Adjudication
When a dispute is referred for Adjudication ….
 Labour Court (Sec 7): The Presiding Officer maybe the current or ex-
judge of High Court or at least 3 years as District Judge or at least 7-years
of Judicial duty. It deals with matters pertaining to discharge and dismissal
of workmen, application,interpretation & order passed under Standing
Orders, legality of strikes of lock outs etc.
 Industrial Tribunals (Sec 7 (A)): Current or ex – judge of High Court
or at least 3 years as District Judge. Industrial Tribunals deal with
collective disputes such as wages, hours of work, leave, closure
retrenchment as well as all matters which come under the jurisdiction of
Labour Courts.
 National Tribunals (Sec 7 (B)): Only High Court Judge appointed by
the Central Government. Matters related to National interest.
Matters within jurisdiction in . Labour
Court
(2nd Schedule of ID Act)

1. The propriety or legality of an order passed by an employer

under the Standing Orders.
2. The application and interpretation of Standing Orders
3. Discharge or dismissal of workmen including reinstatement of
or grant of relief to, workmen wrongfully dismissed
4. Withdrawal of any customary concession or privilege
5. Illegally or otherwise of a strike or lockout and
6. All matters other than those specified in the third schedule
Matters within jurisdiction in .

Industrial Tribunal
(3rd Schedule of ID Act)
1. Wages including the period and the mode of payment.
2. Compensatory and other allowances
3. Hours of work and rest intervals
4. Leave with wages and holidays
5. Bonus, profit sharing, provident fund and gratuity.
6. Shift working otherwise than in accordance with Standing Orders.
7. Classification by grades
8. Rules of discipline
9. Rationalization
10. Retrenchment of workmen and closure of establishment.
11. Any other matter that maybe prescribed.
 Adjudication
 High/Supreme Court (Sec 7): Judicial Powers.
The difference is Tribunals functions as hybrid system of administration of
Justice, but they are not courts in strict sense, while exercising Judicial
powers. Therefore any grievance against the Award can be appealed in
these Courts.
 Then WHY Tribunals are established: Ordinary Courts are
overburdened, Litigation cost, Procedural Delays, Special Knowledge is
required.
 Some Unpleasant Facts: There is wide gap between Public & Private
Sector workers. In India, it is easier to fire a Pvt. sector worker without
paying compensation. Public Sector can refer the dispute to Administrative
Tribunals, Private Sector does not have regular/free institution for dispute
resolution. Compulsory Conciliation / dependence of Government
has lead to more bureaucracy and criticism. This led to
introduce Arbitration in ID Act, 1964 by way of Sec10(A) .
 Arbitration
 Best method to resolve dispute, cheap, less legal work,
quicker hearings and informal trials. The greatest advantage there is no
right to appeal or review the Award.
 Some Facts for Arbitration:-
• Expected to consider the realities of situation, aspirations of people, it is based on
Voluntarism and mutual trust.
• An Arbitration agreement has to be in writing, in prescribed form and signed by the
parties in the prescribed manner (under ID Act and Rules)
• The Arbitration Agreement is required to be forwarded to appropriate government
authority or Conciliation officer. It has to be published in the Gazette.
• If there is any industrial dispute or apprehension then at any time before the dispute
is referred for compulsory adjudication, by a written agreement refer the dispute for
arbitration and forward the copy to the Government. There should be majority of
party, who want to refer for arbitration. Opportunity is given to all.
 Arbitration
 Some Facts for Arbitration cont’d:-
• There are two types of Arbitration: Without Notification to
Government and With Notification to Government.
• In former cases Arbitration would be binding only parties to the
settlement and in latter it would be compulsory adjudication award.

 Selection of Arbitrator and his Role:

• The parties may select their own arbitrators and in as many as
numbers. They maybe Presiding Officers, Ex-Judge etc.
• If there are even nos. of arbitrators, then an agreement has to be
provide for appointment of another person as Umpire. If opinion of
arbitrators is divided equally then decision of umpire will prevail.
• The role of arbitrator is confined to the dispute referred to him in the
agreement of parties and cannot go into any matters whether
connected or incidental to dispute.
 Award
Section 2(b) of Industrial Dispute Act, 1947….
“Award means an interim or final determination of any
Industrial Dispute or any question relating thereto by any Labour Court,
Industrial Tribunal or National Industrial Tribunal and includes an arbitration
award made under Sec 10 (A)”
Parties on which Award is binding:-
• All parties to the dispute
• All other parties summoned to appear in the proceedings as parties to dispute
• If Employer is party then his heirs, successors,or assignees in respect of the
establishment to which the dispute relates
• If Workman is party then all persons in establishment or part of establishment
to which disputes relates and all person who subsequently join the
establishment.