Understanding 12(3) vs. 18(1) Settlements in India's Industrial Dispute Act: What's the Real Difference?

What is the difference between 12(3) settlement and 18(1) settlement under the Industrial Dispute Act of India? (Apart from the difference of Triparty settlement and byparte settlement)

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The main difference between a 12(3) settlement and an 18(1) settlement under the Industrial Dispute Act of India lies in the provisions they cover. Section 12(3) settlement pertains to settlements reached with the intervention of a conciliator appointed by the government, whereas Section 18(1) settlement involves settlements reached directly between the employer and the workmen without the involvement of a conciliator. Both types of settlements play a crucial role in resolving industrial disputes and maintaining harmonious industrial relations. It is essential for organizations and employees to understand these distinctions to navigate the legal framework effectively.

Hi,

Main Difference

Settlement under 12(3) will cover all unions and employees who were not a party to the settlement. It also covers all future employees.

Settlement signed under Section 18(1) will cover only parties to the settlement. It will cover only the members of the union who are a party to the settlement. Future employees are not covered under this settlement.

Siva

Just go to the ID Act and go through the form given after the rules. You will find Form H and Form I. Make use of these forms for the appropriate settlement.

Another difference is that 12(3) is a tripartite settlement whose signatories are the worker/union, the employer, and the conciliation officer, and 18(1) is a bipartite settlement whose signatories are the worker/union and the employer.

Regards,
Fredrick Castro
VP HR & IR

Please read Section 18(3) of the Industrial Disputes Act, 1947. You will find the difference between a Section 12(3) settlement and a Section 18(1) settlement.

Regards,
N. Vasudevan
IR Specialist