Understanding Conciliation and Arbitration: How Do They Resolve Workplace Disputes?

Settlement Types in the Industrial Dispute Act

In the Industrial Dispute Act, there are primarily two types of settlements commonly used to resolve disputes between employers and employees. The first type is 'Conciliation,' which involves the intervention of a third party, such as a conciliator or a mediator, to help the conflicting parties reach a mutually acceptable agreement. The second type is 'Arbitration,' where the dispute is referred to an arbitrator who makes a final and binding decision based on the evidence presented by both sides.

Both conciliation and arbitration are essential mechanisms provided by the Industrial Dispute Act to promote peaceful and timely resolution of conflicts in the workplace. By understanding these settlement types and their processes, employers and employees can effectively navigate disputes and maintain harmonious industrial relations.

Types of Settlements in the Industrial Dispute Act

A settlement can be a bilateral settlement or a tripartite settlement. The former is a settlement between the workers and the management (18(1) settlement), and the latter is a settlement arrived at in the presence of a conciliation officer (12(3) settlement).

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Types of Settlements under the ID Act

There are two types of settlements under the ID Act as follows:

Tri-partite Settlement

The first one is the Tripartite Settlement under section 12(3) of the ID Act. This settlement is generally executed before the Conciliation Officer or a Government Authority. It is binding on the parties, and they cannot raise any dispute on the validity or legality of this settlement.

Bi-partite Settlement

The second one is a bi-partite settlement under section 18(1) of the ID Act in which only two parties will be present, i.e., the Government will not be a party to this kind of settlement. The validity of this settlement is challengeable, although it is arrived at as per the provisions of the ID Act. When the relationship with the Union is very good, companies generally prefer to go for a bilateral settlement and send the copies to the concerned government and labor department authorities for registering this as a settlement under the ID Act.

Settlement Types in the Industrial Disputes Act of 1947

The Industrial Disputes Act of 1947 (ID Act) provides for three main types of settlement for industrial disputes.

1. Conciliation: A third party helps the employer and workers resolve the dispute through persuasion and mutual agreement.

2. Arbitration: A neutral arbitrator makes a binding decision to resolve the dispute.

3. Adjudication: A labor court, tribunal, or national tribunal makes a ruling to resolve the dispute.