ikjot2004 Started The Discussion:
dear seniors , kindly tell what are the difference between conciliation , arbitration, & adjudication under id act paramjeet singh
id act specifies the above three as a part of dispute settlement machinery under from sec 3 to sec 10a of the act .......
conciliation is the starting phase of resolving any dispute where a conciliation officer put his efforts to solve the issue ...the regional labor dept official wil act as a conciliation officer
if he cannot solve the issue then he can refer the case to the board of concilition which is formed by the central govt by an official gazette. it consists of a chairman and board members and this issue wil be referred to them then they wil make a suitable solution for the issue.
if they also fail to solve the dispute then the case wil be referred to "Labour courts and Industrial Tribunals " sec 7,7a of ID act
the process where the dispute is referred to Labour courts and Industrial tribunals is called as Adjudication process.
Adjudication means the said dispute is being refrred to the labour courts and tribunals for a solution.
if this process fails, the the next stage is Arbitration where an external person wil act as an arbitrator who is accepted by both the parties.he wil discuss with both the parties i.e management and labor union and wil get a solution out of which would be bounded by both the parties ........
arbitration is of two types
voluntary and compulscry
ref. sec 10a of ID act ..........
hope i gave u a clear picture upto sum extent .......
pls refer sec 3 to 10a of ID act for clear understanding........
Dear Mr.Paramjeet Singh
Conciliation, arbitration and adudication are the different methods provided for in the Industrial Disputes Act 1947 for the settlement of industrial disputes.
Conciliation: The Government that is either the Central Government or the State Government appoints conciliation officers who are usually officials of the State Labour Department or the officials of the Ministry of Labour Government of India. Usually conciliation officers are appointed for a particular geographical area, usually a revenue district. In certain cases the conciliation officer is appointed for a particular industry in a particular area. If any industrial dispute arises between an employer and his workmen the workmen or the employer can approach the Conciliation Officer for the area in which the industry is situated and request him to hold conciliation talks in the dispute and settle the issue. The talks initiated by the conciliation officer are called conciliation talks. The conciliation talks may end in the settlement of the disputes in which case a settlement is drafted and signed by the employer, the workmen(trade union) and the conciliation officer. There may be cases when the conciliation officer may not be able to settle the dispute for several reasons. In such circumstances, the conciliation officer sends a report to the Government. This report is called the conciliation failure report. The Government considers the report of the conciliation officer and if necessary refers the issue in dispute to the Labour Court/Industrial Tribunal as the case may be for adjudication.
Adjudication: The Labour Court/Industrial Tribunal gets the jurisdiction to decide an industrial only if the Government makes a reference of that dispute to it. The proceedings before the Labour Court/Industrial Tribunal are called adjudication proceedings. The Labour Court/Industrial Tribunal after following the procedure prescribed under law finally gives its Award. This Award is sent to the Government and becomes operational thirty days after the date of its publication by the Government. The Award given by the Labour Court/Indiustrial Tribunal is binding on the parties to the industrial dispute. However, any one of the parties in the adjudication proceedings before the Labour Court/Industrial Tribunal can challenge the Award by means of a writ petition before the High Court.
Arbitration: Arbitration is also a procedure for the settlement of the industrial dispute. In the case of arbitration, the parties agree that the issue in dispute between them should be settled by referring the issues for arbitration. The parties to the dispute can select the person who should arbitrate the issue i.e., the arbitrator. The difference between arbitration and adjudication is that in the case of arbitration the parties to the dispute agree to refer the dispute for the decision of the arbitrator. In the case of adjudication, the dispute is referred for adjudication by the Government. In the case of arbitration the parties to the dispute can choose the arbitrators. In the case of adjudication the Presiding Officer of the Labour Court/Industrial Tribunal are appointed by the Government. The parties to an adjudication proceedings cannot choose the Presiding Officer of the Labour Court/Industrial Tribunal
All Three Terms Conciliation, Arbitration and Adjudication are method of solving any Industrial Dispute under the ID Act.
Conciliation and Arbitration may be called ADR( Alternate Dispute Resolution Method) by intervention of any third person with consent of parties.
However, Adjudication is the settlement of any dispute by Court or Tribunal.
First stage of any dispute arose between the Employer and Workmen or Trade Union is Conciliation by the person appointed by Govt to this effect i.e Labour Officer/ALC/DLC of that particular area. However in case of any faluire of Conciliation Proceeding before the conciliation officer, for any reasons, then Conciliation Officer shall send reference of faluire of conciliation officer under Section 10 to the Govt. On reciept of reference under section 10, Govt shall refere the case to Labour Court or Tribunal as the case may be for Adjudication of the dispute. After Court Proceedings, evidence, agruments etc Court shall pass Award.
If dispute is settled by the Conciliation Officer then, then both parties will enter into Settlement agreement and same shall be binding on parties to the settlement.
However if any party want to refer the dispute to Arbitration then they by an Agreement or Application shall be refere the dispute to Arbitrator, who shall be appointed by both the parties. After hearing both the parties Arbitrator can also pass an Award, but the Award shall be refer to Court.
So All these three Process is to adjudicate the industrial dispute arise between the Employer and Employees.
i am in receipt of failure of conciliation report wherein it is mentioned that "during the discussion both the parties suggested to refer the matter for voluntary arbitration under Sec 10 (a) of the I.D Act" but the same was never suggested on the part of the employer. please suggest the best possible course of action to be taken on behalf of the employer.
Please write a letter through registered post with acknowledgment due to the official to whom the conciliation failure report is addressed pointing out the discrepancy in the report. Secondly write a letter to the conciliation officer who has signed the failure report informing him that you never suggested to refer the matter for voluntary arbitration and requesting him to issue an amendment/correction to the failure report sent by him. Thirdly mark a copy of both the letters to all including the Union/workmen to whom the copies of the conciliation failure report has been sent. All these letters to be sent by registered post with acknowledgment due. The acknowledgment to be kept for future reference.
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