Section 2 (p) of the Industrial Disputes Act defines "settlement";-
"Settlement" means a settlement arrived at in the course of conciliation proceeding and includes a written agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to an officer authorised in this behalf by the appropriate Government and the conciliation officer;"
"Section 18 . Persons on whom settlements and awards are binding:
(1) A settlement arrived at by agreement between the employer and workmen otherwise than in cause of conciliation proceeding shall be binding on the parties to the agreement :"
Unless the settlement is signed 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, the settlement is illegal, null and void.
Rule 25(2) (b) of Tamilnadu Industrial Disputes Rule says that who can sign a settlement between the employer on behalf of the workmen.
It does not define anything about "Five Men Committee" and " Internal Sole Bargaining Agent" as stated by the management of ITC Limited, Tiruvottiyur.
Rule 25(2) (b) of Tamilnadu Industrial Disputes Rule reads as follows.
25.Memorandum of settlement:-
(1) A settlement arrived at in the course of conciliation proceedings or otherwise, shall be in Form 'B'
(2) The 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
(b) 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:
Provided that where the number of workmen affected is not more than 2, the settlement is not more than 2, the settlement may be signed by the workman or workmen concerned;
(c) in the case of an industrial dispute raised in pursuance of sec 2A, by workman concerned.
(3)......
(4) ......
In Tamilnadu, in the absence of any union, if the agreement is between the workers and management, the 5 workmen who are going to sign the agreement are not authorised by the majority of workmen to enter into a settlement, no agreement between workmen and the management can be called a settlement as defined in section 2 (p) of ID Act.