ARBITRATION • Arbitration act 1996. • Arbitration means when two parties are arguing they cant come to an agreement they call someone in who is neutral and they figure out the matter. • In Arbitration rules will be followed to solve the problem by the mediator.
TYPES OF ARBITRATION 1.VOLUNTARY ARBITRATION 2.COMPULSORY ARBITRATION
1.VOLUNTARY ARBITRATION• Voluntary arbitration is a non-binding.• Voluntary arbitration implies that the two contending parties, unable to compromise their differences by themselves or with the help of mediator, agree to submit the conflict/ dispute to an impartial authority, whose decisions they are ready to accept.• Under voluntary arbitration the parties to the dispute can and do they refer voluntarily and dispute to arbitration before it is referred for adjudication. This type of reference is known as “voluntary reference”.
ESSENTIAL ELEMENTS INVOLUNTARY ARBITRATION 1. The voluntary submission of dispute to an arbitrator. 2. It involves the presence of witness and investigation. 3. The enforcement of an award may not be necessary and binding because there is no compulsion. 4. Voluntary arbitration may be specially needed for disputes arising under agreements.
2.COMPULSORY ARBITRATION• Compulsory Arbitration is a non- binding.• Compulsory arbitration is one where the parties are required to accept arbitration without any willingness on their part.• Compulsory arbitration leaves no scope for strikes and lock-outs; it deprives both the parties of their very important and fundamental rights.
ESSENTIAL ELEMENTS INCOMPULSORY ARBITRATION 1. The parties fail to arrive at a settlement by a voluntary method. 2. When there is a national emergency which requires that the wheels of production should not be obstructed by frequent work-stoppages. 3. The country is passing through a grave economic crisis. 4. There is a grave public dissatisfaction with the existing industrial relations. 5. Public interest and the working conditions have to be safeguarded and regulated by the state.
MERITS OF ARBITRATION • Confidential • Cost saving • Time saving • Expert neutral • Arbitrators often work faster than a judge to decide disputes. • The parties can select their arbitrator. • Appointments are scheduled with the arbitrator at the mutual convenience of all concerned; no other cases compete for attention.
DEMERITS OF ARBITRATION• Workers cannot go on a strike during the discussion.• Sometimes arbitrator show result towards one group due to bias.• Two groups of people should agree the result what the arbitrator said.• The couple gives up their power to decide and leaves their fate in the hands of a third party stranger.• The arbitrator’s settlement is final.• The parties, not the court calendar, decide when and how much time the arbitrator spends on their case.
ADJUDICATION• Adjudication act 1996.• This is next level of problem solving. If they not satisfied with the arbitrator result they can approach the adjudication method.• In this, the problem will be solved by the lawyer who is appointed by the government.
TIER SYSTEM OF ADJUDICATION • Labour Courts • Industrial Tribunals • National Tribunals
LABOUR COURTS Labour court shall consist of one person, who :• Retirement of high court judge.• For a period of not less than 3 years as district judge.• Judicial office in India for not less than 7 years. FUNCTIONS OF LABOUR COURS1.To hold adjudication proceedings expeditiously.2.Submit its award to the appropriate government as soon as practicable on the conclusion of the proceedings.
INDUSTRIAL TRIBUNAL• Formed by central or state government.• One man court who is the president or retired high court judge.• Industrial disputes will come under this. NATIONAL TRIBUNAL• Only central government is empowered to form national tribunal.• Single member body who is the president. He can be retired judge of supreme or high court.