Under the Guidance of Sir U.M.Dangarwala
Faculty of Post Graduate
Master of Commerce
M.S.University of Baroda
Department of Commerce & Business Mgt.
Conciliation is the most important method for prevention and
settlement of industrial disputes through third party intervention.
It is an attempt to reconcile the views of disputants to bring them
to an agreement.
It is a process by which representatives of the workers and the
employers are brought together before a third person or a group
of persons with a view to persuade them to arrive at an agreement
among themselves by mutual discussion between them.
International Labour organization:
“The practice by which the services of a neutral third party are
used in dispute as a means of helping the disputing parties to
reduce the extent of their differences and to arrive at an
amicable settlement or agreed solution. It is process of
rational and orderly discussion of differences between the
parties to a dispute under the guidance of a conciliator.”
The conciliation machinery in india consists of following:
Board of Conciliation.
Court of Enquiry.
Conciliation officer means a conciliation officer appointed under act
The Approprite government may be notification in the official Gazette. Appoint conciliation
These Officers are charged with the duty of mediating in & promoting the settlement of
The officer enjoys the power of civil court and he is expected to give Judgment within 14
days of the commencement of the conciliation proceeding.
Duties of Conciliation Officer :
To hold conciliation Proceeding
To investigate The dispute
To send a report and Memorandum of settlement to
Where no settlement is Arrived at.
(2) Board of Conciliation :
A board consist of an independent chairman and two or four other
members, representing the parties to the dispute.
The board conduct conciliation proceedings in same as the conciliation
The board is however expected to submit report within two months of
the date on which the dispute was referred.
(3) Court of Enquiry :
In case the conciliation fail to resolve a dispute , a court of
enquiry is constituted by the government to investigate the
dispute and submit the report within six months.
This body basically is fact finding agency, constituted just to
reveal the causes of the dispute and does not care much for the
The report of the court shall be published by the government
within 30 days of its receipt.
Difference Between Arbitration &
“Adjudication involves intervention in the dispute by a third
party appointed by the government for the purpose of deciding
the nature of final settlement”
When the government gets a report of the failure of conciliation,
it has to decide whether it would be appropriate to refer the
dispute to adjudication
Types of Adjudication :
When the government gets a report of the failure of conciliation
proceedings, it has to decide whether it would be appropriate to refer
the dispute to arbitration.
The reference of dispute to adjudication is at the discretion of the
When both the parties , of their own accord, agree to refer the dispute
to adjudication ,it is obligatory on the part of the government to make
a reference. When a reference to adjudication is made by the parties,
it is called “Voluntary Adjudication”.
On the other hand , when reference is made to adjudication by the
government without the consent of either or both the parties to the
dispute, it is known as “compulsory Adjudication”.
Three –Tiers Systems of Adjudication :
The industrail Disputes Act ,1947 Provides For a three – Tier
system of Adjudication:
(1) Labour court;(State and central govt.)
(2) Industrial Tribunals;(state and central govt.)
(3) National Tribunals.(only by Central govt.)
(1) Labour Court:
The labor courts Adjudicate upon disputes listed in schedule II of the Act.
A labor court consists of one person only to be appointed by the appropriate
The person so appointed is known as Presiding Officer of a Labor court.
Labour Court Deals with disputes relating to :
The propriety or legality of an order passed by an employer under the standing orders.
Discharge or dismissal of workers, including reinstatement of ,or grant of relief to , workers
Illegality or otherwise of a strike or lockout.
(2) Industrial Tribunal:
The jurisdiction of Industrial Tribunal is comparatively wider than Labour Courts.
The government concern may appoint two assessors to advise the presiding
officer in the proceedings.
The industrail tribunal may be appointed for a limited period on an ad hoc basis
Award of the tribunal shall enforceable on the expiry of 30 days from the date of
A tribunal shall consist of one or more persons, such as
(a) He is or , has been , a judge of high court or,
(b) He has been District Judge(s) for a period of not less than 3 years ;
Duties of Industrial Tribunal :
Wages including the period and mode of payment.
Compensatory and other allowances.
Hours of work and rest periods
Leave with wages and holidays
Bonus , profit sharing, provident fund and gratuity
Retrenchment and closure of establishment. etc
(3) National Tribunal :
This is the third one-man adjudicatory body to be appointed by the central
government to deal with disputes of national importance or issues which are
likely to affect the industrail establishment in more than one state.
It shall consists of one person not below the rank of a high court and not below
the age of 65 year .