Voluntary arbitration involves two disputing parties agreeing to involve a neutral third party to resolve their conflict. Compulsory arbitration requires parties to accept arbitration without consent. Either type can lead to adjudication, where a lawyer appointed by the government makes a binding decision, through a tiered system of labor courts, industrial tribunals, and national tribunals. While arbitration aims to resolve conflicts efficiently, it also deprives parties of control over the decision and potential bias from the arbitrator.

1. INDUSTRIAL CONFLICTS
 ARBITRATION
 ADJUDICATION

2. ARBITRATION
• Arbitration act 1996.
• Arbitration means when
two parties are arguing
they can't 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.

3. TYPES OF ARBITRATION
1.VOLUNTARY ARBITRATION
2.COMPULSORY ARBITRATION

4. 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”.

5. ESSENTIAL ELEMENTS IN
VOLUNTARY 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.

6. 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.

7. ESSENTIAL ELEMENTS IN
COMPULSORY 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.

8. 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.

9. 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.

10. 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.

11. Types
1.VOLUNTARY ADJUDICATION
2.COMPULSORY ADJUDICATION

12. TIER SYSTEM OF ADJUDICATION
• Labour Courts
• Industrial Tribunals
• National Tribunals

13. 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 COURS
1.To hold adjudication proceedings expeditiously.
2.Submit its award to the appropriate government as
soon as practicable on the conclusion of the
proceedings.

14. 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.