Understanding Sections 12(3) and 18(3) of the ID Act: What's the Real Difference?

Understanding the Difference Between Section 12(3) and 18(3) of the ID Act

What is the difference between Section 12(3) and Section 18(3) of the ID Act?

Thanks.

Understanding Section 12 of the I.D. Act

Let us know what Section 12 of the I.D. Act entails:

Sec. 12: Duties of Conciliation Officer:
1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under Section 22 has been given, shall hold conciliation proceedings in the prescribed manner.

Now, let us know what 12(3) entails. It is an agreement known as a TRIPARTITE AGREEMENT (PARTIES TO IT ARE: A) EMPLOYER OR HIS REPRESENTATIVE, B) WORKMEN OR UNION LEADERS, C) THE CONCILIATING OFFICER (OF ASSISTANT COMMISSIONER OF LABOR OR ABOVE RANK).

Sec. 12(2): The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.

Sec. 12(3): If a settlement of the dispute or any of the matters in dispute is arrived at in the course of the conciliation proceedings, the conciliation officer shall send a report thereof to the appropriate Government (or an officer authorized by the appropriate Government) together with a memorandum of the settlement signed by the parties to the dispute. Such agreements stand as binding to the employer and its employees in the dispute.

Section 18 of the I.D. Act: Persons on Whom Settlements and Awards Are Binding

Sec. 18(1): Whenever a dispute arises between the employer and its workmen, and they come to a settlement after mutual discussions without any third-party intervention and settle the disputes, agreements arrived at by the employer and workman other than in the course of conciliation proceedings shall be binding on either party to the agreement.

According to 18(3) of the act, if the settlement between the two parties is certified by the conciliation officer/ALC or LC, the same shall be binding on all workers, whether they are members of the union party to the agreement or not. This is typically a tripartite agreement.

As per my knowledge...!!!!

Regards,
Mukesh Upadhyay
Assistant Manager HR (Operation & Sourcing)

Understanding the Difference Between Section 12(3) and Section 18(1) of the ID Act

Probably your question is about the difference between settlements signed under Section 12(3) and Section 18(1) of the Industrial Disputes Act, 1947!

• Section 18(1) Settlement

(a) When an industrial dispute is amicably settled through direct negotiations between the employer and employees, a settlement will be signed under Section 18(1) of the Act by the employer or his authorized representative and the concerned workman in the case of an individual dispute or the authorized representatives of the workmen in the case of a collective dispute, together with the signatures of witnesses on either side. It is called a bipartite settlement or an 18(1) settlement.

• Section 12(3) Settlement

(b) When an industrial dispute is settled through the conciliation proceedings initiated by a conciliation officer under Section 12(1) of the Act, a settlement will be signed by the authorized representatives of both sides with the counter-signature of the conciliation officer under Section 12 of the Act. It is called a tripartite settlement or a 12(3) settlement.

• Submission of Settlement Copies

(a) In the case of an 18(1) settlement, copies should be jointly sent by the parties to the Central Government, Chief Labor Commissioner, the R.L.C, and A.L.C, if the Central Government is the Appropriate Government. Whereas if the State Government is the Appropriate Government, the copies should be sent to the State Government, the State Labor Commissioner, and the Conciliation Officer for the area.

(b) In the case of a 12(3) settlement, a report together with copies of the settlement will be submitted to the State Government and the Commissioner of Labor by the Conciliation Officer.

• Binding Nature of Settlements

An 18(1) settlement will be binding upon only the signatories to the settlement, whereas a 12(3) settlement will not only bind the signatories but also the future employers and employees of the establishment during its currency. So, the latter stands on a higher pedestal.

Regards