Manager (ir&legal)
Korgaonkar K A
Service As Dgm-hr/legal
+1 Other

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Please provide practical inputs on who all can sign a settlement (LTS) in case of CB..
Can 'Core Negotiation Team" sign it?.. what would it mean if a signing authority is an Occupier or someone else (authorised) etc..- what would each infer?
How would this work in case of an amalgamation of many unions into one for the purpose of settlement?

Dear Mahesh
Any settlement should be signed by a principal employer or an authorized representative thereof, who has specifically given the power in writing otherwise it would be nullity under law if challenged.
Since under the factories Act an occupier is treated as the principal employer he has deemed power and can sign any agreement otherwise any person authorized by the occupier or company’s Board can sign a settlement.
Last query about amalgamation of unions in to one ….. raised by you not clear to me please clarify


Who should sign??
From Management:
The Manager under factories act should definitely sign if the occupier is not signing. Any authorised person can sign. I have seen instances where Unit Head and HR Manager sign settlement. More than legality, look at internal issues. If two are three senior executives of the Company sign the agreement, legality can not be questioned.
In case of amalgamation, ensure one representative from each union signs. Also ensure, the signatory is either President or secretary of the Union
T Sivasankaran

Dear Mahesh,

Your query I also have not understood. LTS, do you mean to say Long Term Settlement with union by the employer?

What is CB?

Amalgamation of many unions, do you mean to say many unions joining in arriving settlement or are parties to settlement jointly?

You need to explain it and elaborate.

To my view, in any settlement the parties negotiating can sign the deed of settlement. They have implied authority. It is an agreement between the negotiating parties. The signatures are done on behalf of parties generally with designation and the same can be described in short recital in the deed of settlement.

Authority can be submitted in writing also, if it is insisted by other party.

If any party objects the authority of other party, then it is not an agreement or settlement.

Generally, in long term settlement of charter of demands by union, employer side CEO or HR Head signs the deed of settlement and from union side President or Secretary / Jt. Secretary of union signs it. The negotiating team signs as witness.

Settlement can be bipartite or multipartite. Long term settlement of charter of demands are generally bipartite one.

Dear Mahesh ji, I hope your query resolved to your satisfaction. I wish to know what do you mean CB? Please reply.
Shri Keshav ji Generally “CB” stand for Conciliation Board as defined under ID Act - ( Board for Conciliation). And Mr. Mahesh used the same for that as it appears to me.
Dear Friends,
CB means collective bargining. Any officers/Managers authorised to negotiate with the Union are authorised to sign wage negotiation settlement as they are part of the collective bargaining process and they know the each and every point of the settlement.
Usually, the CEO, HR and Accounts personal or in some cases the Managing Director of the company would sign the wage settlements. It varies from company to company. It all depends on the policy of the company.
Sr. Manager-HR

Dear Friends, It seems to me the answer given by Shri. Manjunath ji on CB is most correct. I think Shri. Mahesh ji got the right answer from above discussions.
I wish to add another in this term there is also a "DISCIPLINARY AUTHORITY" under the Employment Standing Orders who can generally be more near to sign on the matter related with "the Industrial Dispute Act 1947" and the appointing Authority is the Disciplinary Authority. CB is definitely signed by the Disciplinary authority.
Dear All

If the settlement which is proposed to be signed is a settlement under the provisions of the Industrial Disputes Act 1947, then the Rules framed by the respective State Governments and the Central Government have to be seen to find out as to who could sign a settlement under the Act. I answer the question with reference to the Tamilnadu Industrial Disputes Rules. Under Rule 25 of the Tamilnadu Industrial Disputes Rules, a settlement shall be signed by

(a) in the case of an employer, by the employer himself or by his authorised agent or when the employer is an incorporated company or other body corporate by the agent manager or other principal officer of the corporation and

in the case of workmen

either by the President or Secretary of a registered trade union of workmen or by two office bearers of the union authorised by the President or Secretary

or by five representatives of workmen duly authorised in this behalf at a meeting of the workmen held for the purpose and attended by majority of the workmen concerned.

If the workmen affected is not more than two the settlement may be signed by the workman or workmen concerned.

The Madras High Court has held that if the settlement is not signed by the persons specified in Rule 25 then the settlement becomes invalid.

Similar provision is available in the Rules framed under the Industrial Disputes Act by the various States and the Central Government.

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