Alternate dispute resolution

1. • CIE 3 : LABOUR LAW
• STUDENT : PIYUSH JAISINGHANI
• SRN : 202101449
• TEACHER : PROF SHRUTI DAS
• UNIVERSITY : VISHWAKARMA UNIVERSITY

2. Topic : Dispute Resolution except Tribunal

3. When does Industrial dispute arise ?
Industrial dispute arises when employees and the
employers fail to sort out their differences.

5. What are the affects of Industrial dispute ?
1) Industrial dispute is always harmful to all persons
associated with such industry as it affects all
stakeholders, management, employees, economy, and
society.
2)The employers suffer losses in production, revenue,
profits and even sickness of the plants; whereas the
employees may suffer due to loss of wages and even
jobs.
3) Since industries are the pillars to economic growth,
any dispute is detrimental to the rate of growth of the
economy which ultimately affects the whole society.

7. Industrial Disputes Act, 1947 provides machinery to
resolve such disputes by following ways:
1) Collective Bargaining
2) Grievance Redressal
3) Arbitration
4) Conciliation
5) Adjudication
6) Code of Discipline
7) Tripartite Bodies ( Consultative Machinery )
8) Works Committee

9. 1) Collective Bargaining :
1) Collective bargaining is the most effective method of
resolving industrial disputes.
2) It occurs basically through Works Committee i.e. when
representatives of both workmen and employer meet to
settle the differences which may be due to disputes in
wages, benefits, work rules, etc.
3) Since both parties have their representatives, they can
collectively bargain to protect their interests and reach a
settlement.

10. 2) Grievance Redressal Mechanism :
1) A grievance may be defined as a sort of
dissatisfaction to workman with any aspect of the
organisation wherein he is employed.
2) The same needs to be redressed for the betterment
of the industry.
3)The Industrial Disputes (Amendment) Act, 2010 has
substituted a new chapter i.e. Chapter II-B in the Act
with the purpose to establish an effective tool to resolve
industrial disputes.
4) The title of the Chapter is Grievance Redressal
Machinery.

11. Section 9C of the Act provides for the establishment
of Grievance Redressal Machinery.
1) Every industrial establishment having twenty or more
workmen shall have one or more Grievance Redressal
Committee for the resolution of disputes arising out of
individual grievances .
2) The Grievance Redressal Committee shall consist of
equal number of members from the employer and the
workmen .
3) The chairperson of the Grievance Redressal Committee
shall be selected from the employer and from among the
workmen alternatively on rotation basis every year .

12. 4) The total number of members of the Grievance
Redressal Committee shall not exceed six .
5) There shall be one woman member in the
Grievance Redressal Committee in case of two
members.
6) In case the number of members are more than two,
the number of women members may be increased
proportionately .
7) The Grievance Redressal Committee shall not affect
the right of the workman to raise industrial dispute on
the same matter under the provisions of this Act .

13. 8) The Grievance Redressal Committee may complete its
proceedings within thirty days on receipt of a written
application by or on behalf of the aggrieved party .
9) The workman who is aggrieved by the decision of the
Grievance Redressal Committee may appeal to the
employer against the decision of the Grievance Redressal
Committee and the employer shall, within one month
from the date of receipt of such appeal, dispose off the
same and send a copy of his decision to the workman
concerned .

15. 3) Arbitration :
1) Arbitration is a method of settlement of a dispute
wherein a neutral third party (appointed by both parties)
apprehends the bargaining situation after listening to
both the parties and studying other information.
2) An award is made on such settlement that binds the
parties.
3) Arbitration is effective as a means of resolving disputes
because it is relatively speedy and efficient as compared
to court.

16. Q) When can the parties refer an industrial dispute to arbitration?
A) Section 10A of Industrial Disputes Act, 1947 provides for Voluntary reference
of disputes to arbitration. It says:
1) Where any industrial dispute exists or is apprehended and the employer and
the workman agree to refer the dispute to arbitration, they may, at any time
before the dispute has been referred under section 10 to a Labour Court or
Tribunal or National Tribunal by a written agreement, refer the dispute to
arbitration and the reference shall be to such person or persons (including the
presiding officer of a Labour Court or Tribunal, or National Tribunal) as an
arbitrator or arbitrators as may be specified in the arbitration agreement .
2) If arbitration agreement provides for a reference of the dispute to an even
number of arbitrators then agreement shall provide for the appointment of
another person as umpire who shall enter upon the reference, if the arbitrators
are equally divided in their opinion, and the award of the umpire shall prevail and
shall be deemed to be the arbitration award for the purposes of this Act.

17. 3) An arbitration agreement must be signed by the
parties thereto in such manner as may be prescribed .
4) A copy of the arbitration agreement shall be
forwarded to the appropriate government and the
conciliation officer .
5) The arbitrator or arbitrators shall investigate the
dispute and submit to the appropriate government the
arbitration award signed by the arbitrator or all the
arbitrators, as the case may be .

18. 4) Conciliation :
1) Conciliation is a process to resolve the dispute where
representatives of workers and employers are brought
together before a third party (conciliation officer) with a
view to convince them to arrive at mutual settlement.
The conciliation officer basically acts as a catalyst who
deals with parties separately and collectively in order to
provide an effective solution to the dispute.
2) The appropriate government may appoint one or more
conciliation officer, charged with the duty of mediating in
and promoting the settlement of industrial disputes.

19. 3) Section 12 of the Act provides the duties of conciliation
officer wherein the conciliation officer is required to hold
conciliation proceedings in case of any industrial dispute or
where the dispute relates to a public utility service and a
notice under section 22.
4) Other duties include investigation of disputes,
appropriate steps to settle the dispute, submission of
reports to appropriate government, etc.
5) Similarly, a board of conciliation (constituted under
Section 5 of the Act) may also be referred for settlement of
the dispute.
The Board of Conciliation is another authority recognized
under Industrial Disputes Act, 1947 to promote the

20. 6) Duties of Board are similar to the duties of conciliation
officer like to take necessary steps for settlement of the
dispute, submission of reports and memorandum of
settlement to appropriate Government within 2 months.
7) In case of no settlement, the Board must submit the full
report of steps taken by it while working for the
settlement.
8) The report shall be in writing and signed by all the
members of the Board.

21. 5) Adjudication :
1) Industrial disputes can be resolved by way of
adjudication i.e. settlement of an industrial dispute by
labour court or industrial tribunal.
2) The appropriate government may refer a dispute to
adjudication depending on the failure of conciliation
proceedings.
3) Section 10 of the Industrial Disputes Act, 1947,
provides for reference of a dispute to the court of inquiry
or labour court or industrial tribunal.

22. 4) The decision of a court of inquiry or labour court or
tribunals is binding on both the parties.
5) The Act also provides for rules regarding the
composition and powers of the court of inquiry, labour
courts and tribunals.
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24. 6) Code of Discipline :
To maintain harmonious relations and promote industrial peace, a Code of Discipline has
been laid down which applies to both public and private sector enterprises.
It specifies various obligations for the management and the workers with the objective of
promoting cooperation between their representatives. The basic objectives of Code of
Discipline are to:
1) Maintain peace and order in industry.
2) Promote constructive criticism at all levels of management and employment.
3) Avoid work stoppage in industry.
4) Secure the settlement of disputes and grievances by a mutually agreed procedure.
5) Avoiding litigation.
6) Facilitate a free growth of trade unions.
7) Eliminate all forms of coercion, intimidation and violations of rules and regulations
governing industrial relations.

25. The Code is based on the following principles:
1) There should be no strike or lockout without prior notice.
2) No unilateral action should be taken in connection with any
industrial matter.
3) Employees should not follow go slow tactic.
4) No deliberate damage should be caused to a plant or property .
5) Acts of violations, intimidation and coercion should not be
resorted.
6) The existing machinery for the settlement of disputes should be
utilized.
7) Actions that disturb cordial relationships should be avoided.

26. 7) Tripartite Bodies ( Consultative Machinery ) :
1) Industrial relations in India have been shaped largely by
principles and policies evolved through tripartite consultative
machinery at industry and national levels.
2) The aim of the consultative machinery is to bring the parties
together for mutual settlement of differences in a spirit of
cooperation and goodwill.
3) Indian Labour Conference (ILC) and Standing Labour
Committee (SLC) have been constituted to suggest way and
means to prevent disputes.
4) The representatives of the workers and employers are
nominated to these bodies by the Central Government in
consultation with the All-India organisations of workers and
employers.

27. 5) The agenda of ILC/SLC meetings is settled by the Labour
Ministry after taking into consideration the suggestions set
to it by member organisations.
6)These two bodies work with minimum procedural rules
to facilitate free and fuller discussions among the
members.
The ILC meets once a year, whereas the SLC meets as and
when necessary.
The functions of ILC are:
(a) to promote uniformity in labour legislation;
(b) to lay down procedure for the settlement of industrial
disputes ;

28. (c) to discuss matters of all-India importance as between
employers and employees.
The ILC advises the Government on any matter
referred to it for advice, taking into account
suggestions made by the state governments and
representatives of the organisations of workers and
employers.
The Standing Labour Committee’s main function is
to consider and determine such questions as may
be referred to it by the Plenary Conference or the
Central Government and to render advice, taking
into account the suggestions made by various state
governments, and the organisations of workers and
employers.

30. 8) Works Committee
1) The appropriate Government may order to constitute a Works
Committee by the employer having an industrial establishment
comprising 100 more workers are employed or have been
employed on any day in the preceding 12 months.
2) The Committee should have an equal number of
representatives of the employer and workers engaged in such
establishment.
3) The Government casts the duty upon such Works Committee of
promoting measures to secure, preserve the harmonious and
good relationship between the employer and workers.

32. THANK YOU