Understanding Industrial Disputes: Can You Explain Award Enforcement, Operation, and Commencement?

Please, can anyone tell me the meaning or differences among enforcement of the award, operation of the award, and commencement of the award? Additionally, could someone explain the commencement and conclusion of proceedings?

Definition of Award under the Industrial Disputes Act, 1947

Section 2(b) of the Industrial Disputes Act, 1947 defines "Award" as follows:

According to Section 2(b) of the Industrial Disputes Act, 1947, "Award" means an interim or a final determination of any Industrial Dispute or of any question relating thereto by any Labour Court, Industrial Tribunal, or National Industrial Tribunal, and includes an arbitration award made under section 10A.

Period of Operation of Award and Settlement under Section 19

Section 19 of the Industrial Disputes Act, 1947 provides for the period of operation of Award and Settlement.

1. A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the parties to the dispute.

2. Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute. It shall continue to be binding on the parties after the expiry of the period aforesaid, until the expiry of two months from the date on which a notice in writing of an intention to terminate the settlement is given by one of the parties to the other party or parties to the settlement.

3. An award shall, subject to the provisions of this section, remain in operation for a period of one year from the date on which the award becomes enforceable under section 17A.

Provided that the appropriate Government may reduce the said period and fix such period as it thinks fit. Provided further that the appropriate Government may, before the expiry of the said period, extend the period of operation by any period not exceeding one year at a time as it thinks fit, so however, that the total period of operation of an award does not exceed three years from the date on which it came into operation.

I think that you must be a student. Even otherwise, since the questions you raised are direct ones, the answers for which require no interpretative exercise, you could have simply gone through the provisions of the Industrial Disputes Act, 1947 before raising them. Only such a reading of the bare Act would enable you to frame the questions in an orderly and logical manner.

Coming to your questions:

(1) Any industrial dispute contemplated under the IDA, 1947 requires a determination or resolution through the various machineries provided for therein. "Award" as defined under section 2(b) of the IDA, 1947 is one such interim or final determination of any industrial dispute or of any related question by any Labor Court, Industrial Tribunal, or National Industrial Tribunal and includes an arbitration award.

(2) Commencement or enforceability of an award is one and the same. As per section 17-A of the Act, an award becomes enforceable on the expiry of 30 days from the date of its publication. However, the appropriate Government can stall its enforceability on certain grounds and reject or modify the award.

(3) As per section 19(3), an award would be in operation for a period of one year from the date it becomes enforceable. It will also continue to be binding on the parties even after one year until it is terminated by them by means of a notice in this regard under section 19(6).

(4) Section 20 of the IDA, 1947 categorically deals with the commencement and conclusion of conciliation, arbitration, and adjudication proceedings, and you can go through the same.

Thank you for your response, sir.

Yes, sir, I have reviewed all the sections. However, my question pertains to why two different words, commencement and enforceability, are in use when their meanings appear to be the same. Is there a subtle distinction in meaning between them?

I also have a query regarding the actual variance between enforceability and operations. In my understanding, enforceable typically implies that it eventually comes into operation. Or could there be another interpretation?

Enforcement of the Award

Unless declared otherwise by the appropriate government under section 17A of the Act, an award becomes enforceable 30 days after its publication. Such an award is binding on all parties involved in the industrial dispute.

Understanding Section 17A of The Industrial Disputes Act, 1947

Section 17A in The Industrial Disputes Act, 1947, can be referred to for a better understanding of this concept.

Clarification on the Operation and Applicability of the Award

Para 2 of my above reply will clarify the operation of the award and the period for which the award is applicable and binding on all parties.

Importance of Reading the Bare Act

Reading the Bare Act will be very useful for understanding these concepts.

Award and Settlement under the IDA, 1947

Award and settlement under the IDA, 1947 are legal instruments creating certain contractual rights and obligations on the parties to the industrial dispute resolved through the process of adjudication or arbitration and collective bargaining or conciliation respectively.

Difference Between Adjudication and Arbitration

The basic difference between these two sets of resolution of industrial disputes is that adjudication and arbitration involve the absolute intervention of a third party who is empowered to modify the existing terms of the contract or introduce new ones in the interest of equity and industrial peace. An award becomes enforceable only after the expiry of a certain number of days from its date of publication in the gazette by the appropriate Government. Thus, an award becomes operational only upon its publication, which can be described as a tacit approval of the appropriate Government concerned.

Settlement Through Bilateral Negotiations

In the case of a settlement arrived at through direct bilateral negotiations between the parties to the dispute or through conciliation, the terms are mutually agreed upon, mostly by the active participation of the parties in the deliberations. Therefore, the settlement comes into effect automatically from the date it is signed by the parties or the date specifically mentioned therein.

Operation vs. Enforceability

In essence, "operation" refers to the duration of the subsistence of the instrument, whereas "enforceability" refers to the legal sanction for its operation.