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The Industrial Disputes Act aims to prevent, investigate, and settle industrial disputes. It provides avenues for resolving disputes through conciliation, arbitration, collective agreements, industrial courts, and labour tribunals. Conciliation involves a third party facilitating an agreement between disputing parties. If conciliation fails, arbitration refers the dispute to an independent arbitrator who makes a binding decision. The act defines industrial disputes and excludes some government employees and categories of workers.

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49 views12 pages

Presentation 1

The Industrial Disputes Act aims to prevent, investigate, and settle industrial disputes. It provides avenues for resolving disputes through conciliation, arbitration, collective agreements, industrial courts, and labour tribunals. Conciliation involves a third party facilitating an agreement between disputing parties. If conciliation fails, arbitration refers the dispute to an independent arbitrator who makes a binding decision. The act defines industrial disputes and excludes some government employees and categories of workers.

Uploaded by

maithily
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Industrial Disputes Act

• Objectives of the Act


• The Act has been enacted to
prevent, investigate, settle industrial disputes, and
provide for other matters connected to or that arises due to industrial disputes, dispute
prevention, investigation, or settlement.
• Excluding Categories
• • Employees in the government/public service
• • Employees in the government owned business undertakings
• • Trainees under the Employment of Trainees (Private) Act No. 8 of 1978
• • Employees in local government authorities
Government or public corporations are not excluded from the Act. Employees in these
organizations are permitted to seek relief from Labour Tribunals under the Act, provided
they have not sought relief under some Corporative Commission on the same matter.
• Government or public corporations are not excluded from the Act. Employees
in these organizations are permitted to seek relief from Labour Tribunals under
the Act, provided they have not sought relief under some Corporative
Commission on the same matter.
Industrial Dispute
• The Act clearly defines what an industrial dispute is. Any dispute that does not
fall into this definition of a dispute will not be resolved according to the Act.
• An industrial dispute is any dispute or difference between an employer and a
workman; or employers and workmen; or workmen and workmen,
• Connected with, employment or non-employment; terms of employment;
conditions of labour; termination of services; or reinstatement in service of any
person.
• Dispute
where the parties are waiting for an opening to clash, is enough for it to be
qualified as an industrial dispute. However, personal quarrels or agitations will
not amount to industrial disputes according to the Act.
• Subject matter
• According to the Act, disputes must be connected with employment, non-
employment, terms of employment, conditions of labour, termination of
services, or re-instatement in services of any person, for it to qualify as an
industrial dispute
• Any person
• The clause 'any person' can only mean a
• candidate who have applied for a vacancy in the organization (with regard to
the subject matter: non-employment),
• workman who is currently in employment in the organization (with regard to
subject matters: employment, terms of employment, and condition of
labour),or
• an ex-employee of the company (with regard to subject matters: termination of
employment and re-instatement).
• Methods of Solving Industrial Disputes
• The Act has made available different avenues for solving industrial
disputes. The Act provides five main methods of industrial dispute
settlements.
•Conciliation
•Arbitration
•Collective Agreements 
•Industrial Courts
•Labour Tribunals
Conciliation
• Conciliation is the method of solving disputes through the facilitation of a third
party. Commissioner of Labor or an authorized officer will act as this third party.
It is the duty of the third party to take all necessary steps that he considers fit
for inducing the parties to the dispute to come to a fair and amicable
settlements.

• Once the dispute come is settled, the terms of the settlement must be recorded
in writing by the third parties and should be signed by both parties (or their
representatives). If the Commissioner considers the dispute to be a major
dispute, he will publish the memorandum of settlement in the Government
Gazette.
• Where the parties fail to settle the dispute through Conciliation, the third
party will prepare a report setting out the steps he has taken to investigate
and settle the dispute, and his recommendation for the settlement of the
dispute
• Effective date of the settlement
• Every memorandum of settlement which has been published in the Gazette, will
come into effect on
• the date of its publication, or
• the date specified in the settlement.
• Every memorandum of settlement which has not been published in the Gazette,
will come to effect on
• the date the parties signed the settlement, or
• the date specified in the settlement
• Duration of the settlement
• Unless the parties to the dispute terminate the settlement early, the
settlement will be in effect for the time period or the date specified in the
settlement.
• Termination of the settlement
• Any party bound by the settlement may repudiate such settlement by written
notice sent to the Commissioner and every other party bound by the
settlement.
• However, any employer or employee who is a member of a trade union, which
is a party to the settlement, cannot repudiate such settlement, independently
of such trade union.
• Advantages of Conciliation
• Conciliation is considered as one of the most effective methods of settling
industrial disputes due to following reasons:
• Speedy settlement
• Greater acceptance of the terms of the settlement, since the parties
voluntarily agree to the terms of the settlement
• Less hostility between the parties of the dispute
• Leads to better industrial relations
• Arbitration
• Referring an industrial dispute to an independent third party (Arbitrator) for
settlement is known as Arbitration.
• When a dispute is referred to an Arbitrator, he will make all necessary inquiries
into the matter, hear all evidence necessary, and make an award that is just and
equitable.
• Once an award is granted, it will be transmitted to the Commissioner of Labour,
who will publish the award in the Gazette, the terms of the award will become
implied terms in contract of employment between the employer and employee
bounded by the award.
• The main difference between Arbitration and Conciliation is that the award of
the Arbitration Was to be accepted by the parties whether they agree with the
award or not. But in conciliation, a settlement is arrived only the parties fully
accept the settlement.
• Voluntary Arbitration takes place where the parties to an industrial dispute
agree to refer the dispute for settlement to an Arbitrator, It can be considered
as an extension of the process of Conciliation,
• When the parties agree to Voluntary Arbitration, the Commissioner of Labour
has to refer it for settlement by an Arbitrator, only if the parties to the dispute
give their consent.
• The reference of the Commissioner should be supported by a report of the
Commissioner setting out the matters, which to his knowledge is in dispute

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