Understanding Union Settlements: How Do Sections 12(3) and 18(1) Compare?

Dear All,

I am C. Bhaalaaji. I would like to know the comparison of union settlement between 12(3) and 18(1). Both are different sections, but the pros and cons.

Seniors, please help me out.

Regards,
C. Bhaalaaji

Dear Bhaalaaji, You are right in quoting Section 12(3) and 18(1) of the Industrial Disputes Act, 1947, which are available to the working class in case of a dispute with the employer. The following is the basic difference:

(i) Under Section 12(3), a settlement of the dispute is arrived at in the course of the conciliation proceedings, and the conciliation officer sends his report to the appropriate government together with a memorandum of the settlement signed by the parties to the dispute.

(ii) Under Section 18(1), a settlement is arrived at by agreement between the employer and workman otherwise than in the course of conciliation proceedings.

A settlement arrived under Section 12(3) is binding on (a) all the parties to the industrial dispute; (b) all other parties summoned to appear in the proceedings as parties to the dispute; (c) the employer, his heirs, successors, or assigns in respect of the establishment to which the dispute relates; (d) all persons who were employed in the establishment at the time of the dispute and all persons who are subsequently employed in that establishment. Whereas the settlement under Section 18(1) is binding only on the parties to the agreement.

Regards,
BS Kalsi

Understanding Sections 12(3) and 18(1) of the ID Act

Section 12(3) under the ID Act envisages the settlement of disputes between employers and workmen with the help of a third party, i.e., the Conciliation Officer, and is known as Tripartite settlements. Both parties, employer and workmen, are bound by the conditions of such a settlement. The Conciliation Officer is required to submit the report of the settlement reached to the appropriate government or the designated authority.

Section 18(1) of the ID Act allows for the settlement of disputes between the employer and the workmen directly without third-party intervention. The pros and cons depend on the nature of the dispute(s) on a case-to-case basis.

Regards,
R K Singh

The relation between Union & Mgmt is cordial.

In this situation, both parties have a documented agreement on a piece of paper. Is it mandatory to register with Labour Authorities of the district, or is simple information (with a copy of the agreement) through registered post enough?

Please guide.

TP

Thank you, Mr. B.S. Kalsi, Mr. Madanagoplaswamy, and Mr. R.K. Singh. From your views, I could understand that the main difference is the intervention of a third party, and the rest depends on a case-by-case basis.

Regards,
C. Bhaalaaji