MODES OF SETTLEMENT OF DISPUTES

Table of Contents

CONCILIATION

Authorities under conciliation include:

1. Work Committee (Section 3)

  • It is an authority which makes use of conciliation process
  • Applies to establishments with 100 or more workmen.
  • Constituted by appropriate government with representatives of employers and workmen.
  • Workmen representatives must be chosen in consultation with the registered trade union.

Duties:

  • Promote good relations between employers and workers.
  • Comment on common interest matters.
  • Resolve disagreements amicably.

2. Conciliation Officer (Section 4)

  • Appointed by the government for specific areas or industries.
  • May be permanent or for a limited duration.

Duties:

  • Mediate and promote settlement of disputes.
  • Investigate disputes and summon parties.

3. Board of Conciliation (Section 5)

  • Constituted by appropriate government to promote dispute settlement.
  • Composed of a Chairman (independent) and 2-4 representatives of the disputing parties.
  • Chairman presides, quorum essential for validity.

ADJUDICATION

Authorities under adjudication include:

1. Labour Court (Section 7)

  • Constituted by the appropriate government.
  • One presiding officer appointed by the government.

Qualifications:

  • He is, or has been, a judge of high court or
  • He has for a period of at least 3 years, been a district judge or an additional district judge, or
  • He has held any judicial office in India for at least 7 years, or
  • He has been the presiding officer of a labour court constituted under state act or provincial act for at least 5 years, or
  • He is, or has been, a Deputy Chief Labour Commissioner (Central) or Joint Labour Commissioner of state department, having a degree in law and at least 7 years’ experience in labour department including three years of experience as conciliation officer, or
  • He is officer of Indian Legal Service in Grade III with three years’ experience in the grade.

Vacancy: Section 8 of the Industrial Disputes Act, 1947 provides that if vacancy arises in the labour court, then it should be filled by the appropriate government by appointing the person required to do job.

2. Industrial Tribunal (Section 7A)

  • Constituted by appropriate government.
  • It is a single-member tribunal.
  • Government may appoint Assessors to assist.

Qualifications:

  • He is, or has been, a judge of high court or
  • He has for a period of at least 3 years, been a district judge or an additional district judge, or
  • He has held any judicial office in India for at least 7 years, or
  • He has been the presiding officer of a labour court constituted under state act or provincial act for at least 5 years, or
  • He is, or has been, a Deputy Chief Labour Commissioner (Central) or Joint Labour Commissioner of state department, having a degree in law and at least 7 years’ experience in labour department including three years of experience as conciliation officer, or
  • He is officer of Indian Legal Service in Grade III with three years’ experience in the grade.

3. National Tribunal (Section 7B)

  • Constituted by Central Government for disputes of national importance.
  • There must be a single presiding officer who must be/has been High Court judge.
  • Central Government may appoint Assessors.

Disqualifications (Section 7C)

The presiding officer of a labour court, tribunal or national tribunal are disqualified in following cases:

  • Presiding officer is not an independent person.
  • Age of presiding officer is above 65 years.

VOLUNTARY ARBITRATION (SECTION 10A)

  • Employer and worker may refer to arbitration before the dispute is referred to court.
  • Agreement must be in prescribed form and published by the government within one month.

Duties of Arbitrator:

  • Investigate disputes.
  • Submit signed award to the appropriate government.

Note: Arbitration Act, 1940 does not apply.

DIFFERENCE BETWEEN VOLUNTARY ARBITRATION AND COMPULSORY ADJUDICATION

BASISVOLUNTARY ARBITRATIONCOMPULSORY ADJUDICATION
DefinitionDisputes resolved by mutually agreed arbitratorCourt/tribunal imposes decision
ConsentVoluntaryMandatory by law
NatureInformalFormal
Decision MakerArbitratorJudge/tribunal
BindingBased on agreementLegally binding
Time TakingLessMore
Scope of AppealUsually finalAppealable
CostsLowHigh

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