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UNIT -5
 Employee Grievances
 Causes of Grievances
 Conciliation, Arbitration and Adjudication
 Procedural aspects for Settlement of Grievances
 Standing Orders
 Code Discipline.
 Industrial Disputes-Meaning, nature and scope of
industrial disputes
 Causes and Consequences of Industrial Disputes
 Prevention and Settlement of industrial disputes
in India.
 A grievance is a complaint raised by
an employee which may be resolved by
procedures provided for in a collective
agreement, an employment contract, or by
other mechanisms established by an
employer.
 Have you ever worked for an employer who you
believed did not meet the terms of your employment
contract? Perhaps you were not fully compensated for
your work or you experienced unsafe work
conditions. In this situation you may wish to file a
formal complaint against your employer. This is
known as an employee grievance.
 Whether the grievance is valid or not, it can have a
negative effect on employee morale, productivity, and
retention. Organizations must therefore have policies
and procedures in place to address employee
grievances. This is an important human resource
management function.
 Economic
 Work environment
 Supervision
 Organizational change
 Employee relations
 On the production
 On the employees
 On the managers
 Pay and Benefits
 Workloads:
 Work Conditions
 Union and Management Relations
 Standing Orders’ Means Rules Of Conduct For Workmen Employed In
Industrial Establishments. ‘Standing Orders’ Means Rules Relating To
Matters Set Out In The Schedule To The Act. [Section 2(G)].
 The Schedule To The Act Requires That Following Should Be Specified In
Standing Orders –
 (A) Classification Of Workmen I.E. Temporary, Badli, Casual, Permanent, Skilled Etc.
 (B) Manner Of Intimating To Workmen Working Hours, Shift Working, Transfers Etc.
 (C) Holidays
 (D) Attendance And Late Coming Rules
 (E) Leave Rules (F) Leave Eligibility And Leave Conditions
 (G) Closing And Reopening Of Sections Of Industrial Establishment
 (H) Termination Of Employment, Suspension, Dismissal Etc. For Misconduct And Acts
Or Omissions Which Constitute Misconduct
 (I) Retirement Age
 (J) Means Of Redressal Of Workmen Against Unfair Treatment Or Wrongful Exactions
By Employer
 (K) Any Other Matter That May Be Prescribed.
 To Maintain Dicipline i Industry (both Public
and Private sector)
 Management and Union (s) Agree:
 Management (s) Agree:
 Union (s) Agree:
 (i) It prohibits strikes and lock outs without proper notice and also
prohibits intimidation, victimization, go-slow tacties, violence, coercion
or instigation by both the parties.
(ii) There shall be no on one-sided action in any matter by either party.
(iii) The existing machinery for the settlement of disputes should be
followed and the awards and agreements should be implemented
without any delay.
(iv) A common grievance procedure should be provided for after a
careful consideration and negotiations for the settlement of disputes.
(v) Both the parties should attempt to avoid any action which may
disturb industrial peace in the industry.
(unless parties should make a determined bid to observe it both in
letters and spirit.
 vi) The employers will not increase work loads without prior agreement
with the workers.
(vii) The employers will provide full facilities for unfacttered growth of
trade unions. However unfair labour practices should be discouraged.
(viii) Prompt action should be taken against those officers who instigate
the workers for the breach of its discipline.
(ix) The workers will not indulge in any trade union activity during
working hours.
(x) The workers will implement their part of awards and settlements
promptly and will take action against those office bearers of the union
who are responsible for the breach of code.
(xi) The unions shall discourage the negligence of duty, careless
operation, damage to property, disturbance of normal work and
insubordination.
 The code is undoubtedly a major step in the
direction of discipline but it is a matter of
sorrow that no party is sincere in their effort
to employment the code seriously. Strikes,
lockouts, gherao, and go slow tactic are still
followed in a large number. It is not wrong to
say that both the parties have accepted the
code by letters only and not by their conduct.
It should be remembered that merely having
a code cannot resolve the problem
 Hold conciliation proceedings relating to Strikes and lockouts
procedural matters of public utility services.
 Investigate the matters of the disputes.
 Conciliation officers shall induce the parties to come to a fair and
amicable settlement of the dispute.
 Duty to send the report of settlement of dispute and
memorandum of the settlement signed by the parties to the
dispute to the government or his superior.
 In case of failure of settlement of dispute in between parties,
duty to send them to the government or his superior, report of
facts and circumstances relating to the disputes and in his
opinion, a settlement could not be arrived at,
 Duty to send the report to the government or his superior within
14 days from the commencement of the proceeding. or within
such shorter period as may be fixed by the appropriate
Government .
 as occasion arises appropriate Government is also
authorised to constitute a Board of conciliation for
promoting the settlement of an industrial dispute. It
consists of a chairman who shall be an independent
person, and two or four other members. The members
appointed shall be in equal numbers to represent the
parties to the dispute. On the dispute being referred to the
Board it is the duty of the Board to do all things as it
thinks fit for the purpose of inducing the parties to come
to fair and amicable settlement.
If there are many parties relating to or in the dispute the
government may appoint the conciliation board consisting
of the above said members
 The appropriate Government is empowered to appoint any
number of persons, as it thinks fit, to be conciliation
officers. The conciliation officer having duty of mediating
and acts as the mediators in between the parties to resolve
the dispute.
In the case of public utility services matters like strikes
and lockouts the conciliation officer can initiate the
conciliation proceeding ad tries to settle the dispute in
between the parties.
If the conciliation officer fails to resolve the dispute
between the parties, he should report to the appropriate
government. If necessary the dispute shall be referred to
the Board, Labour Court, Tribunal or National Tribunal, by
the appropriate government. [Sec 12 (5)]
 According to [Sec 10 (2)] when parties in the industrial dispute apply to
the government to refer dispute to the Conciliation Board and if
government satisfies it shall make the reference to the Conciliation
Board.
Duties of board. [Sec 13]
it shall be the duty of the Board to endeavor to bring about a settlement
of dispute.
 Investigate the matters relating to the dispute between parties and
inducing the parties to come to a fair and amicable settlement of the
dispute.
 In case of failure of settlement of dispute in between parties, duty to
send to the government the report of facts and circumstances relating to
the disputes and board opinion, a settlement could not be arrived at,
 The Board shall submit its report under this section within 2 months of
the date on which the dispute was referred to it or within such shorter
period as may be fixed by the appropriate Government.

 as occasion arises, Government can initiate a
Court of Inquiry. This Court of Inquiry was to find
out matters connected with or relevant to an
industrial dispute. Where a Court consists of two
or more members, one of them shall be
appointed as the chairman.
A Court of Inquiry looks into only matters which
are referred to it by Government and submits its
report to the Government ordinarily within
certain period from the date of reference.
 CONCILIATION / MEDIATION are often terms used
interchangeably. It is a confidential, voluntary and
private dispute resolution process in which a neutral
person helps the parties to reach a negotiated
settlement. This method provides the parties with an
opportunity to negotiate, converse and explore
options aided by a neutral third party, the conciliator,
to exhaustively determine if a settlement is possible.
The conciliator is not given any power to impose a
settlement. His function is to try to break any
deadlock and encourage the parties to reach an
amicable settlement by acting as a conduit for
communication, filtering out the disturbing elements
and allowing the parties to focus on the underlying
core objectives
 The first step is to choose a conciliator who is a neutral
third party. This can be done by the disputants themselves
or with the help of an institution.
 At the initial session a decision is taken as to who will
attend the conciliation and what the cost will be.
 Usually the cost of this session is shared between the
parties. Parties are encouraged to bring their lawyers with
them.
 The process is explained to both parties and the
conciliator is introduced.
 Ground rules of courtesy and propriety are laid down and
scrupulously followed.
 During the next stage the parties are encouraged to explain their
case and vent their feelings.
 The conciliator merely listens, makes no judgment and identifies
issues. One of the big advantages of mediation is that the
sessions are private and confidential.
 A brainstorming session follows and creative solutions are
explored. Focusing on interests and moving away from positions
is the aim now.
 If parties are reluctant to disclose certain information in joint
sessions, the Conciliator may request them to join him/her in a
private session. In this, the Conciliator will skillfully draw out
relevant information.
 This can also be kept confidential, should the party wish so. The
final stage is when the parties reach consensus and a written
agreement is drawn up.
 Monitoring and reviewing the case is very important.
 Conciliation offers a more flexible alternative to
arbitration as well as litigation, for resolution of
disputes in the widest range of contractual
relationships, as it is an entirely voluntary process.
 In conciliation proceedings, the parties are free to
withdraw from conciliation, without prejudice to their
legal position, at any stage of the proceedings.
 The matter is settled at the threshold of the dispute,
avoiding protracted litigation efforts at the courts. As
conciliation can be scheduled at an early stage in the
dispute, a settlement can be reached much more
quickly than in litigation.
 Parties are directly engaged in negotiating a
settlement.
 The conciliator, as a neutral third party, can view the dispute objectively
and can assist the parties in exploring alternatives which they might not
have considered on their own.
 Parties generally save money by cutting back on unproductive costs such
as traveling to court, legal costs of retaining counsels and litigation and
staff time.
 Conciliators may be carefully chosen by the parties for their knowledge
and experience.
 Conciliation enhances the likelihood of the parties continuing their
amicable business relationship during and after the proceedings.
 Creative solutions to special needs of the parties can become a part of
the settlement.
 Confidentiality is maintained throughout the proceedings with respect to
information exchanged, the offers and counter offers of solutions made
and the settlement arrived at. Also, information disclosed at a
conciliation meeting may not be divulged as evidence in any arbitral,
judicial or other proceeding

 The history and evolution of ADR is visible from
12th century in China , England and America.
And in the Indian perspective it has been seen
that the practice of amicable resolution of the
disputes can be caught from the historic times ,
when in the villages disputes were resolved
between members of a particular relations or
occupations or between members of the same
family was in practice in the ancient times. In the
villages still the panchayat decides approximately
all the disputes between the people as in earlier
times the disputes were resolved by the elders.
The concept of Conciliation was introduced in the
statute of Industrial Disputes Act, 1947.
 The Conciliation is generally conducted by an
officer appointed by Government under Industrial
Disputes Act, 1947. Industrial Disputes Act, 1947
provides provisions for the parties to settle
disputes through Negotiation, Mediation and
Conciliation, for example Section 12 , Section 18
, etc. Alternate Dispute Resolution plays a major
role in the family disputes settlement. Section 5
of the Family Court Act, 1984 provides provisions
for the association of social welfare organizations
to hold Family Courts under control of
government. Section 6 of the Act provide for
appointment of permanent counselors to enforce
settlement decisions in the family matters.
 Further Section 9 of the Act imposes an
obligation on the court to make effort for the
settlement before taking evidence in the case . In
addition to all provisions referred above, Indian
Contract Act, 1872 most importantly gives a
mention about Arbitration Agreement as an
exception to Section 28 that renders an
agreement void if it restrains a legal proceeding.
Alternate Dispute Resolution whether sorted for
or not can be easily inferred from presence or
absence of the ‘Arbitration clause'.
Section 61 of the Arbitration and Conciliation Act of 1996
provides for the Application and Scope of Conciliation. Section
61 points out that the process of conciliation extends, in the first
place, to disputes, whether contractual or not. But the disputes
must arise out of the legal relationship. It means that the dispute
must be such as to give one party the right to sue and to the
other party the liability to be sued. The process of conciliation
extends, in the second place, to all proceedings relating to it. But
Part III of the Act does not apply to such disputes as cannot be
submitted to conciliation by the virtue of any law for the time
being in force.
Number and qualification of conciliators-Section 63 fixes the
number of conciliators. There shall be one conciliator. But the
parties may by their agreement provide for two or three
conciliators. Where the number of conciliator is more than one
,they should as general rule act jointly.
 Section 64 deals with the appointment of the conciliators. When
the invitation to the conciliation is accepted by the other party,
the parties have to agree on the composition of the conciliation
tribunal. In the absence of any agreement to the contrary ,there
shall be only one conciliator.
 The conciliation proceeding may be conducted by a sole
conciliator to be appointed with the concent of both the parties,
failing to which the same may be conducted by two conciliators
(maximum limit is three), then each party appoints own
conciliator ,and the third conciliator is appointed unanimously by
both the parties.
 The third conciliator so appointed shall be the presiding
conciliator. The parties to the arbitration agreement instead of
appointing the conciliator themselves may enlist the assistance
of an institution or person of their choice for appointment of
conciliators. But the institution or the person should keep in view
during appointment that, the conciliator is independent and
impartial.
 Independence and impartiality [Section 67(1)]
 Fairness and justice[Section 67(2)]
 Confidentiality [Section 70]
 Disclosure of the information[Section 70]
 Co-operation of the parties with Conciliator
[Section. 71]
 Commencement of the conciliation
proceedings [Section 62
 Submission of Statement to Conciliator
[Section 65]
 Conduct of Conciliation Proceedings[Section
69(1),67(3)]-
 Administrative assistance [S. 68]-

1. Haresh Dayaram Thakur v. State of Maharashtra and Ors. while dealing with the provisions
of Sections 73 and 74 of the Abbitration and Conciliation Act of 1996 in paragraph 19 of the
judgment as expressed thus the court held that-

"19. From the statutory provisions noted above the position is manifest that a conciliator is a
person who is to assist the parties to settle the disputes between them amicably. For this
purpose the conciliator is vested with wide powers to decide the procedure to be followed by
him untrammeled by the procedural law like the Code of Civil Procedure or the Indian Evidence
Act, 1872. When the parties are able to resolve the dispute between them by mutual agreement
and it appears to the conciliator that their exists an element of settlement which may be
acceptable to the parties he is to proceed in accordance with the procedure laid down in
Section 73, formulate the terms of a settlement and make it over to the parties for their
observations; and the ultimate step to be taken by a conciliator is to draw up a settlement in
the light of the observations made by the parties to the terms formulated by him. The
settlement takes shape only when the parties draw up the settlement agreement or request the
conciliator to prepare the same and affix their signatures to it. Under Sub-section (3) of Section
73 the settlement agreement signed by the parties is final and binding on the parties and
persons claiming under them. It follows therefore that a successful conciliation proceedings
comes to end only when the settlement agreement signed by the parties comes into existence.
It is such an agreement which has the status and effect of legal sanctity of an arbitral award
under Section 74”.

 2. In Mysore Cements Ltd. v. Svedala Barmac Ltd it was said that Section
73 of the Act speaks of Settlement Agreement. Sub-section (1) says that
when it appears to the Conciliator that there exist elements of
settlement which may be acceptable to the parties, he shall formulate
the terms of a possible settlement and submit them to the parties for
their observation. After receiving the observations of the parties, the
Conciliator may reformulates the terms of a possible settlement in the
light of such observations. In the present case, we do not find there any
such formulation and reformulation by the Conciliator, under Sub-
section (2), if the parties reach a settlement agreement of the dispute on
the possible terms of settlement formulated, they may draw up and sign
a written settlement agreement. As per Sub-section
(3) when the parties sign the Settlement Agreement, it shall be final and
binding on the parties and persons claiming under them respectively.
Under Sub-section (4), the Conciliator shall authenticate the Settlement
Agreement and furnish a copy thereof to each of the parties. From the
undisputed facts and looking to the records, it is clear that all the
requirements of Section 73 are not complied with.
 Arbitration is a procedure in which a dispute
is submitted, by agreement of the parties, to
one or more arbitrators who make a binding
decision on the dispute. In choosing
arbitration, the parties opt for a private
dispute resolution procedure instead of going
to court.
 Arbitration is consensual
 The parties choose the arbitrator(s)
 Arbitration is neutral
 Arbitration is a confidential procedure
 The decision of the arbitral tribunal is final
and easy to enforce
 1. Voluntary Arbitration
2. Compulsory Arbitration
 Voluntary Arbitration Is A Binding, Adversarial Dispute Resolution
Process In Which The Disputing Parties Choose One Or More
Arbitrators To Hear Their Dispute And To Render A Final
Decision Or Award After An Expedited Hearing
Voluntary Arbitration Implies That The Two Contending Parties,
Unable To Compromise Their Differences By Themselves Or With
The Help Of Mediator Or Conciliator, Agree To Submit The
Conflict/ Dispute To An Impartial Authority, Whose Decisions
They Are Ready To Accept. In Other Words, 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”, For The Parties Themselves Volunteer To Come To A
Settlement Though An Arbitration Machinery.
 The Voluntary Submission Of Dispute To An
Arbitrator.
 The Subsequent Attendance Of Witnesses And
Investigations.
 The Enforcement Of An Award May Not Be
Necessary And Binding Because There Is No
Compulsion.
 Voluntary Arbitration May Be Specially Needed
For Disputes Arising Under Agreements.
 Compulsory Arbitration Is A Non-Binding, Adversarial Dispute Resolution
Process In Which One Or More Arbitrators Hear Arguments, Weigh
Evidence And Issue A Non-Binding Judgment On The Merits After An
Expedited Hearing. The Arbitrator's Decision Addresses Only The
Disputed Legal Issues And Applies Legal Standards. Either Party May
Reject The Ruling And Request A Trial De Novo In Court.
Compulsory Arbitration Is One Where The Parties Are Required To
Accept Arbitration Without Any Willingness On Their Part. When One Of
The Parties To An Industrial Dispute Feels Aggrieved By An Act Of The
Other, It May Apply To The Appropriate Government To Refer The
Dispute To Adjudication Machinery. Such Reference Of A Dispute Is
Known As “Compulsory” Or “Involuntary” Reference, Because Reference
In Such Circumstances Does Not Depend On The Sweet Will Of Either The
Contending Parties Or Any Party To The Dispute. It Is Entirely The
Discretion Of The Appropriate Govt. Based On The Question Of Existing
Dispute, Or On The Apprehension That Industrial Dispute Will Emerge In
Particular Establishment.
 When There Is A National Emergency Which
Requires That The Wheels Of Production
Should Not Be Obstructed By Frequent Work-
Stoppages.
 The Country Is Passing Through A Grave
Economic Crisis.
 There Is A Grave Public Dissatisfaction With
The Existing Industrial Relations.
 Public Interest And The Working Conditions
Have To Be Safeguarded And Regulated By
The State.
 Employers or Employees matters
 Property Matters
 Medical
 Partnership Issues
 1) Ad-hoc Arbitration: When a dispute or difference
arises between the parties in course of commercial
transaction and the same could not be settled
friendly by negotiation in form fo conciliation or
mediation, in such case ad-hoc arbitration may be
sought by the conflicting parties. This arbitration is
agreed to get justice for the balance of the un-settled
part of the dispute only.
 (2) Institutional Arbitration: This kind of arbitration
there is prior agreement between the parties that in
case of future differences or disputes arising between
the parties during their commercial transactions,
such differences or disputes will be settled by
arbitration as per clause provide in the agreement.
 (3) Statutory Arbitration: It is mandatory arbitration which is imposed on
the parties by operation of law. In such a case the parties have no option
as such but to abide by the law of land. It is apparent that statutory
arbitration differs from the above 2 types of arbitration because (i) The
consent of parties is not necessary; (ii) It is compulsory Arbitration; (iii) It
is binding on the Parties as the law of land; For Example: Section 31 of
the North Eastern Hill University Act, 1973, Section 24,31 and 32 of the
Defence of India Act, 1971 and Section 43(c) of The Indian Trusts Act,
1882 are the statutory provision, which deal with statutory arbitration.
 (4) Domestic or International Arbitration: Arbitration which occurs in
India and have all the parties within India is termed as Domestic
Arbitration. An Arbitration in which any party belongs to other than India
and the dispute is to be settled in India is termed as International
Arbitration.
 (5) Foreign Arbitration: When arbitration proceedings are conducted in a
place outside India and the Award is required to be enforced in India, it
is termed as Foreign Arbitration
 Number of Arbitrators - The parties typically outline in a contract
whether one, or a panel of three (3) or more, arbitrators will decide their
dispute. As a general rule, the more complicated and significant an issue
is, the more likely multiple arbitrators will be involved.
 How Arbitrators will be Chosen - Parties can choose to appoint
arbitrators in a number of ways, including by agreement, selecting from
a list of arbitrators, or via a process of elimination.
 Timelines for Arbitration - Rules can establish timelines for resolving a
dispute, including when notices are provided, how long hearings last,
etc.
 Evidence - Rules of evidence can be complex in ordinary litigation. They
are typically more relaxed in arbitrations allowing more evidence to be
considered, although there can also be less time to present and discover
evidence, as well.
 Awards - Rules often dictate the form that an award can take, as well as
any potential deadlines for decisions.
 Confidentiality and Records - Rules may allow parties to keep and
receive records of the proceedings, and/or to keep such records entirely
confidential.
 Arbitrations generally are intended to streamline the process and decrease the costs when
compared to resolving a dispute in court. But, as noted above, arbitrations are not all run the
same way. With some important exceptions, arbitration is generally thought to be more
informal than litigation, and is typically intended to provide a more streamlined, time-saving,
and cost-effective method for resolving potential legal disputes.
 The beginning of the arbitration process involves one party giving notice to another of their
intent to arbitrate a dispute, informing them of the nature and basis for the proceeding. The
other party then gets a period of time to respond in writing, indicating whether they agree to
resolve this dispute via arbitration. Once it is established that the disagreement will be
resolved in an arbitration, the arbitration process itself begins, based on the rules and
procedures selected by the parties or specified by contract.
 One of the reasons that arbitration is often thought of as quicker and cheaper than litigation is
that the paperwork involved in a dispute is cut down sharply when compared to litigation. The
procedures for many arbitrations cut down sharply on some of the burdensome and expensive
litigation tools collectively known as "discovery". The discovery process is intended to allow for
exchanges of documents and evidence between parties in a dispute. However, this can often
lead to costly and time-consuming disputes, with mountains of paperwork. The arbitration
process usually cuts down significantly on discovery, allowing an arbitrator to take a more
active role and possibly curtail excesses.
 After this, the process is somewhat similar to a courtroom trial. Parties make arguments before
the arbitrator(s), call witnesses, and present evidence to establish and defend their respective
cases. The rules for an arbitration hearing may differ from those of a courtroom, however, and
opportunities to question or cross-examine witnesses may be more limited. Once the hearing
is concluded, an arbitrator or panel is given a certain amount of time in which to consider the
decision and make a ruling.
 Labour Court [Sec. 7]: The appropriate
Government is empowered to constitute one
or more Labour Courts. Its function is the
adjudication of industrial disputes relating to
any matter specified in the Second Schedule.
 SECOND SCHEDULE
The propriety or legality of an order passed by an employer under the
standing orders;
 The application and interpretation of standing orders;
 Discharge or dismissal of workmen including reinstatement of, or grant
of relief to, workmen wrongfully dismissed;
 Withdrawal of any customary concession or privilege;
 Illegality or otherwise of a strike or lock-out; and
 According to [Sec 10 (1) (c)] matters specified in THIRD SCHEDULE,
dispute not effecting more than 100 workers can be referred to labour
court.
 According to [Sec 10 (2)] when parties in the industrial dispute apply to
the government to refer dispute to the labour court and if government
satisfies it shall make the reference to the labour courts.
 According to [Sec 10 (6)] no Labour Court or Tribunal shall have
jurisdiction to adjudicate upon any matter which is under adjudication
before the National Tribunal.
 A Labour Court consists of one person only. A person is qualified to be appointed as presiding
officer of a Labour Court, if:
(a) he is, or has been a judge of a High Court, or
(b) he has been a District judge or an Additional District judge for at least three years, or
(c) he has held the office of the chairman or any other member of the Labour Appellate
Tribunal or of any Tribunal for at least two years, or
(d) he has held any judicial office in India for not less than seven years, or
(e) he has been the presiding officer of a Labour Court constituted under any Provincial Act or
State Act for at least five years.
(f) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of
the State Labour Department , having a degree in law and at least 7 years’ experience in the
labour department after having acquired degree in law including three years of experience as
Conciliation Officer:
(g) as the case may be, before being appointed as the presiding officer; or (g) he is an officer of
Indian Legal Service in Grade III with three years’ experience in the grade.”

 Industrial Tribunal [Sec. 7A]: The appropriate
Government may, by notification in the
Official Gazette, constitute one or more
Industrial Tribunals for the adjudication of
industrial disputes relating to any matter,
whether specified in the Second Schedule or
the Third Schedule and for performing such
other functions as may be assigned to them
under this Act.
 SECOND SCHEDULE
1. The propriety or legality of an order passed by an
employer under the standing orders;
2. The application and interpretation of standing
orders;
3. Discharge or dismissal of workmen including
reinstatement of, or grant of relief to, workmen
wrongfully dismissed;
4. Withdrawal of any customary concession or
privilege;
5. Illegality or otherwise of a strike or lock-out; and

 THIRD SCHEDULE
1. Wages, including the period and mode of payment;
2. Compensatory and other allowances;
3. Hours of work and rest intervals;
4. Leave with wages and holidays;
5. Bonus, profit sharing, provident fund and gratuity;
6. Shift working otherwise than in accordance with
standing orders;
7. Classification by grades;
8. Rules of discipline;
9. Rationalisation;
10. Retrenchment of workmen and closure of
establishment; and
11. Any other matter that may be prescribed.
 According to [Sec 10 (2)] when parties in the
industrial dispute apply to the government to
refer dispute to the industrial tribunal and if
government satisfies it shall make the
reference to the industrial tribunal.
 According to [Sec 10 (6)] no Labour Court or
Tribunal shall have jurisdiction to adjudicate
upon any matter which is under adjudication
before the National Tribunal.
 A Tribunal consists of one person only.
For appointment as the presiding officer of a Tribunal
he is, or has been, a Judge of a High Court; or
 he has, for a period of not less than 3 years, been a District
Judge or an Additional District Judge;
 he is or has been a Deputy Chief Labour Commissioner (Central)
or Joint Commissioner of the State Labour Department, having a
degree in law and at 7 seven years’ experience in the labour
department after having acquired degree in law including three
years of experience as Conciliation Officer:

Provided that no such Deputy Chief Labour Commissioner or
Joint Labour Commissioner shall be appointed unless he resigns
from the service of the Central Government or State Government,
as the case may he, before being appointed as the presiding
officer; or he is an officer of Indian Legal Service in Grade III with
three years’ experience in the grade.”
 National Tribunal [Sec. 7 (B)]: The Central Government may, by
notification in the Official Gazette, constitute one or more
National Industrial Tribunals. Its main function is the
adjudication of industrial disputes which involve questions of
national importance or affecting the interest of two or more
States.
According to [Sec 10 (1-A)] dispute involves any question of
national importance or is of such a nature that industrial
establishments situated in more than one State, whether it
relates to any matter specified in the Second Schedule or the
Third Schedule, the government will order in writing refer to
National Tribunal for adjudication.
According to [Sec 10 (2)] when parties in the industrial dispute
apply to the government to refer dispute to the National Tribunal
and if government satisfies it shall make the reference to the
National Tribunal.

The Central Government shall appoint a National
Tribunal consisting of one person only.
A person to be appointed a presiding officer of a
National Tribunal must be, or
 must have been, a judge of a High Court or
 must have held the office of the chairman or
 any other member of the Labour Appellate
Tribunal for a period of not less than two years.
 The Central Government may appoint two
persons as assessors to advise the National
Tribunal.
 Voluntary reference of disputes to arbitration. [sec. 10 (a)]: an
arbitrator is appointed by the Government. Whether the dispute
is before Labour Court, or Industrial Tribunal or National
Tribunal, the parties can go to arbitration by written agreement.
The arbitrators conduct the investigation in to the dispute
matters and give arbitration award (final decision or settlement
or decree) as for making reference of an industrial dispute. If an
industrial dispute exists or is apprehended and the employer and
the workman agree to refer the dispute to an arbitration, they
may refer the dispute to an arbitration. But such reference shall
be made before the dispute has been referred under Sec. 19 to a
Labour Court or Tribunal or National Tribunal by a written
agreement. The arbitrator may be appointed singly or more than
one in number. 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.
 This Section is incorporated as a new chapter
II B of the Act. As per this Section, the
employer in relation to every industrial
establishment in which fifty or more workmen
are employed or have been employed on any
day in the preceding twelve months, shall
provide for, in accordance with the rules
made in that behalf under this Act, a
Grievances Settlement Authority.
 9C. every industrial establishment employing 20 or more workmen shall have one
or more Grievance Redressal Committee for the resolution of disputes arising out
of individual grievances.
The Grievance Redressal Committee shall consist of equal number of members
from the employer and the workmen.
 The chairperson of the Grievance Redressal Committee shall be selected from the
employer and from among the workmen alternatively on rotation basis every year.
 The total number of members of the Grievance Redressal Committee shall not
exceed more than 6: Provided that there shall be, as far as practicable, one woman
member if the Grievance Redressal Committee has two members and in case the
number of members is more than two, the number of women members may be
increased proportionately.
 The Grievance Redressal Committee may complete its proceedings within forty-
five days on receipt of a written application by or on behalf of the aggrieved party.
 The workman who is aggrieved of the decision of the Grievance Redressal
Committee may prefer an appeal to the employer against the decision of
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.
 Nothing contained in this section shall apply to the workmen for whom there is an
established Grievance Redressal Mechanism in the establishment concerned.”
 The Industrial Dispute Act of 1947, came into
force on the first day of April, 1947. Its aim is to
protect the workmen against victimization by the
employers and to ensure social justice to both
employers and employees. The unique object of
the Act is to promote collective bargaining and to
maintain a peaceful atmosphere in industries by
avoiding illegal strikes and lock outs. The Act
also provides for regulation of lay off and
retrenchment. The objective of the Industrial
Disputes Act is to secure industrial peace and
harmony by providing machinery and procedure
for the investigation and settlement of industrial
disputes by negotiations.
 (1) a dispute or difference between
(a) employers and employers, or
(b) employers and workmen,
(c) workmen and workmen; ..
 (2) the dispute or difference should be
connected with
(a) employment or . non-employment, or
(b) terms of employment, or
(c) conditions of labor of any person; .
 (3) the dispute may be in relation to any
workman or workmen or any other person in
whom they are interested as a body.
 An industrial dispute is caused by revolting
employees who disturb industrial peace and
harmony. Industrial disputes generally arise
due to tensions between labour and
management, and gives rise to more issues.
This may cause employees to not do their
work, and affecting the quality and quantity
of production. Furthermore, as industrial
tensions rise, there may be strikes and lock-
outs.
 1. Low income: As prices and living expenses are rising in India,
employees also expect their income to rise. Unfortunately, that rarely
happens. To make things worse, there is only one earning member in
the household and this person alone supports everyone financially. Many
times, the income is not enough to keep everyone content and pay all
the bills. Thus, if the earning member loses his/her job, the entire family
suffers in poverty. Low wages cause discontent in employees.
 2. Prices in India are rising constantly, hence, it is also expected that the
income of industrial labourers increase, but that never happens.
 3. Dearness Allowance associated with labourers has no corresponding
increase with rising prices.
 4. Most industries have unhygienic and unsafe working conditions. This
puts pressure on workers' health.
 5. Employees find it extremely difficult to get leave with pay.
 6. Employees are becoming more and more conscious about self-
respect. Tempers flare when they are insulted or instigated by their
superiors.
 7. Most of the time, extra bonus is not paid, or not paid on time.
This causes industrial conflicts.
 8. Sometimes, employees are unfairly relieved from their jobs.
Nevertheless, their colleagues unite and fight for the rehiring of
their relieved colleagues.
 9. Sometimes, trade unions are not recognized by industries
resulting in strained relations and stress.
 10. Replacement of workers by machinery is causing discontent.
Workers are getting laid off and replaced by cheaper machines
that do the same work.
 11. Many industrial disputes are being caused by political
parties. Political involvement in trade unions causes divisions
and unnecessary tensions.
 12. Disputes may also arise due to dishonest mid-level
management. This management prevent labourers from
contacting senior management, and act as middle-men. Lack of
communication causes distrust.
 1. Unrest and unnecessary tensions engulf the hearts and
minds of all the people involved - labourers and senior
management.
 2. There is economic loss due to conflicts because
conflicts may result in strikes and lock-outs. This causes
low or no production resulting in industrial loss.
 3. Industrial losses may cause economic depression
because many industries are interlinked. A problem in one
industry may drastically affect another industry.
 4. The lives of low-level labourers become worse when
they are out of work. They may be the only working
members of the family, and their joblessness may lead
everyone in the family to poverty.
 5. When industrial conflicts get out of hand, they become a
threat to peace and security. Workers may resort to
violence and indulge in sabotage.
 1. Works committees
 2. Conciliation officers
 3. Boards of conciliation
 4. Court of enquiry
 5. Labour courts
 6. Industrial Tribunals
 7. National Tribunal
 8. Arbitration.
THANK YOU

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Unit 5

  • 2.  Employee Grievances  Causes of Grievances  Conciliation, Arbitration and Adjudication  Procedural aspects for Settlement of Grievances  Standing Orders  Code Discipline.  Industrial Disputes-Meaning, nature and scope of industrial disputes  Causes and Consequences of Industrial Disputes  Prevention and Settlement of industrial disputes in India.
  • 3.  A grievance is a complaint raised by an employee which may be resolved by procedures provided for in a collective agreement, an employment contract, or by other mechanisms established by an employer.
  • 4.  Have you ever worked for an employer who you believed did not meet the terms of your employment contract? Perhaps you were not fully compensated for your work or you experienced unsafe work conditions. In this situation you may wish to file a formal complaint against your employer. This is known as an employee grievance.  Whether the grievance is valid or not, it can have a negative effect on employee morale, productivity, and retention. Organizations must therefore have policies and procedures in place to address employee grievances. This is an important human resource management function.
  • 5.  Economic  Work environment  Supervision  Organizational change  Employee relations
  • 6.  On the production  On the employees  On the managers
  • 7.  Pay and Benefits  Workloads:  Work Conditions  Union and Management Relations
  • 8.  Standing Orders’ Means Rules Of Conduct For Workmen Employed In Industrial Establishments. ‘Standing Orders’ Means Rules Relating To Matters Set Out In The Schedule To The Act. [Section 2(G)].  The Schedule To The Act Requires That Following Should Be Specified In Standing Orders –  (A) Classification Of Workmen I.E. Temporary, Badli, Casual, Permanent, Skilled Etc.  (B) Manner Of Intimating To Workmen Working Hours, Shift Working, Transfers Etc.  (C) Holidays  (D) Attendance And Late Coming Rules  (E) Leave Rules (F) Leave Eligibility And Leave Conditions  (G) Closing And Reopening Of Sections Of Industrial Establishment  (H) Termination Of Employment, Suspension, Dismissal Etc. For Misconduct And Acts Or Omissions Which Constitute Misconduct  (I) Retirement Age  (J) Means Of Redressal Of Workmen Against Unfair Treatment Or Wrongful Exactions By Employer  (K) Any Other Matter That May Be Prescribed.
  • 9.
  • 10.  To Maintain Dicipline i Industry (both Public and Private sector)  Management and Union (s) Agree:  Management (s) Agree:  Union (s) Agree:
  • 11.  (i) It prohibits strikes and lock outs without proper notice and also prohibits intimidation, victimization, go-slow tacties, violence, coercion or instigation by both the parties. (ii) There shall be no on one-sided action in any matter by either party. (iii) The existing machinery for the settlement of disputes should be followed and the awards and agreements should be implemented without any delay. (iv) A common grievance procedure should be provided for after a careful consideration and negotiations for the settlement of disputes. (v) Both the parties should attempt to avoid any action which may disturb industrial peace in the industry. (unless parties should make a determined bid to observe it both in letters and spirit.
  • 12.  vi) The employers will not increase work loads without prior agreement with the workers. (vii) The employers will provide full facilities for unfacttered growth of trade unions. However unfair labour practices should be discouraged. (viii) Prompt action should be taken against those officers who instigate the workers for the breach of its discipline. (ix) The workers will not indulge in any trade union activity during working hours. (x) The workers will implement their part of awards and settlements promptly and will take action against those office bearers of the union who are responsible for the breach of code. (xi) The unions shall discourage the negligence of duty, careless operation, damage to property, disturbance of normal work and insubordination.
  • 13.  The code is undoubtedly a major step in the direction of discipline but it is a matter of sorrow that no party is sincere in their effort to employment the code seriously. Strikes, lockouts, gherao, and go slow tactic are still followed in a large number. It is not wrong to say that both the parties have accepted the code by letters only and not by their conduct. It should be remembered that merely having a code cannot resolve the problem
  • 14.  Hold conciliation proceedings relating to Strikes and lockouts procedural matters of public utility services.  Investigate the matters of the disputes.  Conciliation officers shall induce the parties to come to a fair and amicable settlement of the dispute.  Duty to send the report of settlement of dispute and memorandum of the settlement signed by the parties to the dispute to the government or his superior.  In case of failure of settlement of dispute in between parties, duty to send them to the government or his superior, report of facts and circumstances relating to the disputes and in his opinion, a settlement could not be arrived at,  Duty to send the report to the government or his superior within 14 days from the commencement of the proceeding. or within such shorter period as may be fixed by the appropriate Government .
  • 15.  as occasion arises appropriate Government is also authorised to constitute a Board of conciliation for promoting the settlement of an industrial dispute. It consists of a chairman who shall be an independent person, and two or four other members. The members appointed shall be in equal numbers to represent the parties to the dispute. On the dispute being referred to the Board it is the duty of the Board to do all things as it thinks fit for the purpose of inducing the parties to come to fair and amicable settlement. If there are many parties relating to or in the dispute the government may appoint the conciliation board consisting of the above said members
  • 16.  The appropriate Government is empowered to appoint any number of persons, as it thinks fit, to be conciliation officers. The conciliation officer having duty of mediating and acts as the mediators in between the parties to resolve the dispute. In the case of public utility services matters like strikes and lockouts the conciliation officer can initiate the conciliation proceeding ad tries to settle the dispute in between the parties. If the conciliation officer fails to resolve the dispute between the parties, he should report to the appropriate government. If necessary the dispute shall be referred to the Board, Labour Court, Tribunal or National Tribunal, by the appropriate government. [Sec 12 (5)]
  • 17.  According to [Sec 10 (2)] when parties in the industrial dispute apply to the government to refer dispute to the Conciliation Board and if government satisfies it shall make the reference to the Conciliation Board. Duties of board. [Sec 13] it shall be the duty of the Board to endeavor to bring about a settlement of dispute.  Investigate the matters relating to the dispute between parties and inducing the parties to come to a fair and amicable settlement of the dispute.  In case of failure of settlement of dispute in between parties, duty to send to the government the report of facts and circumstances relating to the disputes and board opinion, a settlement could not be arrived at,  The Board shall submit its report under this section within 2 months of the date on which the dispute was referred to it or within such shorter period as may be fixed by the appropriate Government. 
  • 18.  as occasion arises, Government can initiate a Court of Inquiry. This Court of Inquiry was to find out matters connected with or relevant to an industrial dispute. Where a Court consists of two or more members, one of them shall be appointed as the chairman. A Court of Inquiry looks into only matters which are referred to it by Government and submits its report to the Government ordinarily within certain period from the date of reference.
  • 19.  CONCILIATION / MEDIATION are often terms used interchangeably. It is a confidential, voluntary and private dispute resolution process in which a neutral person helps the parties to reach a negotiated settlement. This method provides the parties with an opportunity to negotiate, converse and explore options aided by a neutral third party, the conciliator, to exhaustively determine if a settlement is possible. The conciliator is not given any power to impose a settlement. His function is to try to break any deadlock and encourage the parties to reach an amicable settlement by acting as a conduit for communication, filtering out the disturbing elements and allowing the parties to focus on the underlying core objectives
  • 20.  The first step is to choose a conciliator who is a neutral third party. This can be done by the disputants themselves or with the help of an institution.  At the initial session a decision is taken as to who will attend the conciliation and what the cost will be.  Usually the cost of this session is shared between the parties. Parties are encouraged to bring their lawyers with them.  The process is explained to both parties and the conciliator is introduced.  Ground rules of courtesy and propriety are laid down and scrupulously followed.
  • 21.  During the next stage the parties are encouraged to explain their case and vent their feelings.  The conciliator merely listens, makes no judgment and identifies issues. One of the big advantages of mediation is that the sessions are private and confidential.  A brainstorming session follows and creative solutions are explored. Focusing on interests and moving away from positions is the aim now.  If parties are reluctant to disclose certain information in joint sessions, the Conciliator may request them to join him/her in a private session. In this, the Conciliator will skillfully draw out relevant information.  This can also be kept confidential, should the party wish so. The final stage is when the parties reach consensus and a written agreement is drawn up.  Monitoring and reviewing the case is very important.
  • 22.  Conciliation offers a more flexible alternative to arbitration as well as litigation, for resolution of disputes in the widest range of contractual relationships, as it is an entirely voluntary process.  In conciliation proceedings, the parties are free to withdraw from conciliation, without prejudice to their legal position, at any stage of the proceedings.  The matter is settled at the threshold of the dispute, avoiding protracted litigation efforts at the courts. As conciliation can be scheduled at an early stage in the dispute, a settlement can be reached much more quickly than in litigation.  Parties are directly engaged in negotiating a settlement.
  • 23.  The conciliator, as a neutral third party, can view the dispute objectively and can assist the parties in exploring alternatives which they might not have considered on their own.  Parties generally save money by cutting back on unproductive costs such as traveling to court, legal costs of retaining counsels and litigation and staff time.  Conciliators may be carefully chosen by the parties for their knowledge and experience.  Conciliation enhances the likelihood of the parties continuing their amicable business relationship during and after the proceedings.  Creative solutions to special needs of the parties can become a part of the settlement.  Confidentiality is maintained throughout the proceedings with respect to information exchanged, the offers and counter offers of solutions made and the settlement arrived at. Also, information disclosed at a conciliation meeting may not be divulged as evidence in any arbitral, judicial or other proceeding 
  • 24.  The history and evolution of ADR is visible from 12th century in China , England and America. And in the Indian perspective it has been seen that the practice of amicable resolution of the disputes can be caught from the historic times , when in the villages disputes were resolved between members of a particular relations or occupations or between members of the same family was in practice in the ancient times. In the villages still the panchayat decides approximately all the disputes between the people as in earlier times the disputes were resolved by the elders. The concept of Conciliation was introduced in the statute of Industrial Disputes Act, 1947.
  • 25.  The Conciliation is generally conducted by an officer appointed by Government under Industrial Disputes Act, 1947. Industrial Disputes Act, 1947 provides provisions for the parties to settle disputes through Negotiation, Mediation and Conciliation, for example Section 12 , Section 18 , etc. Alternate Dispute Resolution plays a major role in the family disputes settlement. Section 5 of the Family Court Act, 1984 provides provisions for the association of social welfare organizations to hold Family Courts under control of government. Section 6 of the Act provide for appointment of permanent counselors to enforce settlement decisions in the family matters.
  • 26.  Further Section 9 of the Act imposes an obligation on the court to make effort for the settlement before taking evidence in the case . In addition to all provisions referred above, Indian Contract Act, 1872 most importantly gives a mention about Arbitration Agreement as an exception to Section 28 that renders an agreement void if it restrains a legal proceeding. Alternate Dispute Resolution whether sorted for or not can be easily inferred from presence or absence of the ‘Arbitration clause'.
  • 27. Section 61 of the Arbitration and Conciliation Act of 1996 provides for the Application and Scope of Conciliation. Section 61 points out that the process of conciliation extends, in the first place, to disputes, whether contractual or not. But the disputes must arise out of the legal relationship. It means that the dispute must be such as to give one party the right to sue and to the other party the liability to be sued. The process of conciliation extends, in the second place, to all proceedings relating to it. But Part III of the Act does not apply to such disputes as cannot be submitted to conciliation by the virtue of any law for the time being in force. Number and qualification of conciliators-Section 63 fixes the number of conciliators. There shall be one conciliator. But the parties may by their agreement provide for two or three conciliators. Where the number of conciliator is more than one ,they should as general rule act jointly.
  • 28.  Section 64 deals with the appointment of the conciliators. When the invitation to the conciliation is accepted by the other party, the parties have to agree on the composition of the conciliation tribunal. In the absence of any agreement to the contrary ,there shall be only one conciliator.  The conciliation proceeding may be conducted by a sole conciliator to be appointed with the concent of both the parties, failing to which the same may be conducted by two conciliators (maximum limit is three), then each party appoints own conciliator ,and the third conciliator is appointed unanimously by both the parties.  The third conciliator so appointed shall be the presiding conciliator. The parties to the arbitration agreement instead of appointing the conciliator themselves may enlist the assistance of an institution or person of their choice for appointment of conciliators. But the institution or the person should keep in view during appointment that, the conciliator is independent and impartial.
  • 29.  Independence and impartiality [Section 67(1)]  Fairness and justice[Section 67(2)]  Confidentiality [Section 70]  Disclosure of the information[Section 70]  Co-operation of the parties with Conciliator [Section. 71]
  • 30.  Commencement of the conciliation proceedings [Section 62  Submission of Statement to Conciliator [Section 65]  Conduct of Conciliation Proceedings[Section 69(1),67(3)]-  Administrative assistance [S. 68]-
  • 31.  1. Haresh Dayaram Thakur v. State of Maharashtra and Ors. while dealing with the provisions of Sections 73 and 74 of the Abbitration and Conciliation Act of 1996 in paragraph 19 of the judgment as expressed thus the court held that-  "19. From the statutory provisions noted above the position is manifest that a conciliator is a person who is to assist the parties to settle the disputes between them amicably. For this purpose the conciliator is vested with wide powers to decide the procedure to be followed by him untrammeled by the procedural law like the Code of Civil Procedure or the Indian Evidence Act, 1872. When the parties are able to resolve the dispute between them by mutual agreement and it appears to the conciliator that their exists an element of settlement which may be acceptable to the parties he is to proceed in accordance with the procedure laid down in Section 73, formulate the terms of a settlement and make it over to the parties for their observations; and the ultimate step to be taken by a conciliator is to draw up a settlement in the light of the observations made by the parties to the terms formulated by him. The settlement takes shape only when the parties draw up the settlement agreement or request the conciliator to prepare the same and affix their signatures to it. Under Sub-section (3) of Section 73 the settlement agreement signed by the parties is final and binding on the parties and persons claiming under them. It follows therefore that a successful conciliation proceedings comes to end only when the settlement agreement signed by the parties comes into existence. It is such an agreement which has the status and effect of legal sanctity of an arbitral award under Section 74”. 
  • 32.  2. In Mysore Cements Ltd. v. Svedala Barmac Ltd it was said that Section 73 of the Act speaks of Settlement Agreement. Sub-section (1) says that when it appears to the Conciliator that there exist elements of settlement which may be acceptable to the parties, he shall formulate the terms of a possible settlement and submit them to the parties for their observation. After receiving the observations of the parties, the Conciliator may reformulates the terms of a possible settlement in the light of such observations. In the present case, we do not find there any such formulation and reformulation by the Conciliator, under Sub- section (2), if the parties reach a settlement agreement of the dispute on the possible terms of settlement formulated, they may draw up and sign a written settlement agreement. As per Sub-section (3) when the parties sign the Settlement Agreement, it shall be final and binding on the parties and persons claiming under them respectively. Under Sub-section (4), the Conciliator shall authenticate the Settlement Agreement and furnish a copy thereof to each of the parties. From the undisputed facts and looking to the records, it is clear that all the requirements of Section 73 are not complied with.
  • 33.  Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
  • 34.  Arbitration is consensual  The parties choose the arbitrator(s)  Arbitration is neutral  Arbitration is a confidential procedure  The decision of the arbitral tribunal is final and easy to enforce
  • 35.  1. Voluntary Arbitration 2. Compulsory Arbitration
  • 36.  Voluntary Arbitration Is A Binding, Adversarial Dispute Resolution Process In Which The Disputing Parties Choose One Or More Arbitrators To Hear Their Dispute And To Render A Final Decision Or Award After An Expedited Hearing Voluntary Arbitration Implies That The Two Contending Parties, Unable To Compromise Their Differences By Themselves Or With The Help Of Mediator Or Conciliator, Agree To Submit The Conflict/ Dispute To An Impartial Authority, Whose Decisions They Are Ready To Accept. In Other Words, 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”, For The Parties Themselves Volunteer To Come To A Settlement Though An Arbitration Machinery.
  • 37.  The Voluntary Submission Of Dispute To An Arbitrator.  The Subsequent Attendance Of Witnesses And Investigations.  The Enforcement Of An Award May Not Be Necessary And Binding Because There Is No Compulsion.  Voluntary Arbitration May Be Specially Needed For Disputes Arising Under Agreements.
  • 38.  Compulsory Arbitration Is A Non-Binding, Adversarial Dispute Resolution Process In Which One Or More Arbitrators Hear Arguments, Weigh Evidence And Issue A Non-Binding Judgment On The Merits After An Expedited Hearing. The Arbitrator's Decision Addresses Only The Disputed Legal Issues And Applies Legal Standards. Either Party May Reject The Ruling And Request A Trial De Novo In Court. Compulsory Arbitration Is One Where The Parties Are Required To Accept Arbitration Without Any Willingness On Their Part. When One Of The Parties To An Industrial Dispute Feels Aggrieved By An Act Of The Other, It May Apply To The Appropriate Government To Refer The Dispute To Adjudication Machinery. Such Reference Of A Dispute Is Known As “Compulsory” Or “Involuntary” Reference, Because Reference In Such Circumstances Does Not Depend On The Sweet Will Of Either The Contending Parties Or Any Party To The Dispute. It Is Entirely The Discretion Of The Appropriate Govt. Based On The Question Of Existing Dispute, Or On The Apprehension That Industrial Dispute Will Emerge In Particular Establishment.
  • 39.  When There Is A National Emergency Which Requires That The Wheels Of Production Should Not Be Obstructed By Frequent Work- Stoppages.  The Country Is Passing Through A Grave Economic Crisis.  There Is A Grave Public Dissatisfaction With The Existing Industrial Relations.  Public Interest And The Working Conditions Have To Be Safeguarded And Regulated By The State.
  • 40.  Employers or Employees matters  Property Matters  Medical  Partnership Issues
  • 41.  1) Ad-hoc Arbitration: When a dispute or difference arises between the parties in course of commercial transaction and the same could not be settled friendly by negotiation in form fo conciliation or mediation, in such case ad-hoc arbitration may be sought by the conflicting parties. This arbitration is agreed to get justice for the balance of the un-settled part of the dispute only.  (2) Institutional Arbitration: This kind of arbitration there is prior agreement between the parties that in case of future differences or disputes arising between the parties during their commercial transactions, such differences or disputes will be settled by arbitration as per clause provide in the agreement.
  • 42.  (3) Statutory Arbitration: It is mandatory arbitration which is imposed on the parties by operation of law. In such a case the parties have no option as such but to abide by the law of land. It is apparent that statutory arbitration differs from the above 2 types of arbitration because (i) The consent of parties is not necessary; (ii) It is compulsory Arbitration; (iii) It is binding on the Parties as the law of land; For Example: Section 31 of the North Eastern Hill University Act, 1973, Section 24,31 and 32 of the Defence of India Act, 1971 and Section 43(c) of The Indian Trusts Act, 1882 are the statutory provision, which deal with statutory arbitration.  (4) Domestic or International Arbitration: Arbitration which occurs in India and have all the parties within India is termed as Domestic Arbitration. An Arbitration in which any party belongs to other than India and the dispute is to be settled in India is termed as International Arbitration.  (5) Foreign Arbitration: When arbitration proceedings are conducted in a place outside India and the Award is required to be enforced in India, it is termed as Foreign Arbitration
  • 43.  Number of Arbitrators - The parties typically outline in a contract whether one, or a panel of three (3) or more, arbitrators will decide their dispute. As a general rule, the more complicated and significant an issue is, the more likely multiple arbitrators will be involved.  How Arbitrators will be Chosen - Parties can choose to appoint arbitrators in a number of ways, including by agreement, selecting from a list of arbitrators, or via a process of elimination.  Timelines for Arbitration - Rules can establish timelines for resolving a dispute, including when notices are provided, how long hearings last, etc.  Evidence - Rules of evidence can be complex in ordinary litigation. They are typically more relaxed in arbitrations allowing more evidence to be considered, although there can also be less time to present and discover evidence, as well.  Awards - Rules often dictate the form that an award can take, as well as any potential deadlines for decisions.  Confidentiality and Records - Rules may allow parties to keep and receive records of the proceedings, and/or to keep such records entirely confidential.
  • 44.  Arbitrations generally are intended to streamline the process and decrease the costs when compared to resolving a dispute in court. But, as noted above, arbitrations are not all run the same way. With some important exceptions, arbitration is generally thought to be more informal than litigation, and is typically intended to provide a more streamlined, time-saving, and cost-effective method for resolving potential legal disputes.  The beginning of the arbitration process involves one party giving notice to another of their intent to arbitrate a dispute, informing them of the nature and basis for the proceeding. The other party then gets a period of time to respond in writing, indicating whether they agree to resolve this dispute via arbitration. Once it is established that the disagreement will be resolved in an arbitration, the arbitration process itself begins, based on the rules and procedures selected by the parties or specified by contract.  One of the reasons that arbitration is often thought of as quicker and cheaper than litigation is that the paperwork involved in a dispute is cut down sharply when compared to litigation. The procedures for many arbitrations cut down sharply on some of the burdensome and expensive litigation tools collectively known as "discovery". The discovery process is intended to allow for exchanges of documents and evidence between parties in a dispute. However, this can often lead to costly and time-consuming disputes, with mountains of paperwork. The arbitration process usually cuts down significantly on discovery, allowing an arbitrator to take a more active role and possibly curtail excesses.  After this, the process is somewhat similar to a courtroom trial. Parties make arguments before the arbitrator(s), call witnesses, and present evidence to establish and defend their respective cases. The rules for an arbitration hearing may differ from those of a courtroom, however, and opportunities to question or cross-examine witnesses may be more limited. Once the hearing is concluded, an arbitrator or panel is given a certain amount of time in which to consider the decision and make a ruling.
  • 45.  Labour Court [Sec. 7]: The appropriate Government is empowered to constitute one or more Labour Courts. Its function is the adjudication of industrial disputes relating to any matter specified in the Second Schedule.
  • 46.  SECOND SCHEDULE The propriety or legality of an order passed by an employer under the standing orders;  The application and interpretation of standing orders;  Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen wrongfully dismissed;  Withdrawal of any customary concession or privilege;  Illegality or otherwise of a strike or lock-out; and  According to [Sec 10 (1) (c)] matters specified in THIRD SCHEDULE, dispute not effecting more than 100 workers can be referred to labour court.  According to [Sec 10 (2)] when parties in the industrial dispute apply to the government to refer dispute to the labour court and if government satisfies it shall make the reference to the labour courts.  According to [Sec 10 (6)] no Labour Court or Tribunal shall have jurisdiction to adjudicate upon any matter which is under adjudication before the National Tribunal.
  • 47.  A Labour Court consists of one person only. A person is qualified to be appointed as presiding officer of a Labour Court, if: (a) he is, or has been a judge of a High Court, or (b) he has been a District judge or an Additional District judge for at least three years, or (c) he has held the office of the chairman or any other member of the Labour Appellate Tribunal or of any Tribunal for at least two years, or (d) he has held any judicial office in India for not less than seven years, or (e) he has been the presiding officer of a Labour Court constituted under any Provincial Act or State Act for at least five years. (f) he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State Labour Department , having a degree in law and at least 7 years’ experience in the labour department after having acquired degree in law including three years of experience as Conciliation Officer: (g) as the case may be, before being appointed as the presiding officer; or (g) he is an officer of Indian Legal Service in Grade III with three years’ experience in the grade.” 
  • 48.  Industrial Tribunal [Sec. 7A]: The appropriate Government may, by notification in the Official Gazette, constitute one or more Industrial Tribunals for the adjudication of industrial disputes relating to any matter, whether specified in the Second Schedule or the Third Schedule and for performing such other functions as may be assigned to them under this Act.
  • 49.  SECOND SCHEDULE 1. The propriety or legality of an order passed by an employer under the standing orders; 2. The application and interpretation of standing orders; 3. Discharge or dismissal of workmen including reinstatement of, or grant of relief to, workmen wrongfully dismissed; 4. Withdrawal of any customary concession or privilege; 5. Illegality or otherwise of a strike or lock-out; and 
  • 50.  THIRD SCHEDULE 1. Wages, including the period and mode of payment; 2. Compensatory and other allowances; 3. Hours of work and rest intervals; 4. Leave with wages and holidays; 5. Bonus, profit sharing, provident fund and gratuity; 6. Shift working otherwise than in accordance with standing orders; 7. Classification by grades; 8. Rules of discipline; 9. Rationalisation; 10. Retrenchment of workmen and closure of establishment; and 11. Any other matter that may be prescribed.
  • 51.  According to [Sec 10 (2)] when parties in the industrial dispute apply to the government to refer dispute to the industrial tribunal and if government satisfies it shall make the reference to the industrial tribunal.  According to [Sec 10 (6)] no Labour Court or Tribunal shall have jurisdiction to adjudicate upon any matter which is under adjudication before the National Tribunal.
  • 52.  A Tribunal consists of one person only. For appointment as the presiding officer of a Tribunal he is, or has been, a Judge of a High Court; or  he has, for a period of not less than 3 years, been a District Judge or an Additional District Judge;  he is or has been a Deputy Chief Labour Commissioner (Central) or Joint Commissioner of the State Labour Department, having a degree in law and at 7 seven years’ experience in the labour department after having acquired degree in law including three years of experience as Conciliation Officer:  Provided that no such Deputy Chief Labour Commissioner or Joint Labour Commissioner shall be appointed unless he resigns from the service of the Central Government or State Government, as the case may he, before being appointed as the presiding officer; or he is an officer of Indian Legal Service in Grade III with three years’ experience in the grade.”
  • 53.  National Tribunal [Sec. 7 (B)]: The Central Government may, by notification in the Official Gazette, constitute one or more National Industrial Tribunals. Its main function is the adjudication of industrial disputes which involve questions of national importance or affecting the interest of two or more States. According to [Sec 10 (1-A)] dispute involves any question of national importance or is of such a nature that industrial establishments situated in more than one State, whether it relates to any matter specified in the Second Schedule or the Third Schedule, the government will order in writing refer to National Tribunal for adjudication. According to [Sec 10 (2)] when parties in the industrial dispute apply to the government to refer dispute to the National Tribunal and if government satisfies it shall make the reference to the National Tribunal.
  • 54.  The Central Government shall appoint a National Tribunal consisting of one person only. A person to be appointed a presiding officer of a National Tribunal must be, or  must have been, a judge of a High Court or  must have held the office of the chairman or  any other member of the Labour Appellate Tribunal for a period of not less than two years.  The Central Government may appoint two persons as assessors to advise the National Tribunal.
  • 55.  Voluntary reference of disputes to arbitration. [sec. 10 (a)]: an arbitrator is appointed by the Government. Whether the dispute is before Labour Court, or Industrial Tribunal or National Tribunal, the parties can go to arbitration by written agreement. The arbitrators conduct the investigation in to the dispute matters and give arbitration award (final decision or settlement or decree) as for making reference of an industrial dispute. If an industrial dispute exists or is apprehended and the employer and the workman agree to refer the dispute to an arbitration, they may refer the dispute to an arbitration. But such reference shall be made before the dispute has been referred under Sec. 19 to a Labour Court or Tribunal or National Tribunal by a written agreement. The arbitrator may be appointed singly or more than one in number. 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.
  • 56.  This Section is incorporated as a new chapter II B of the Act. As per this Section, the employer in relation to every industrial establishment in which fifty or more workmen are employed or have been employed on any day in the preceding twelve months, shall provide for, in accordance with the rules made in that behalf under this Act, a Grievances Settlement Authority.
  • 57.  9C. every industrial establishment employing 20 or more workmen shall have one or more Grievance Redressal Committee for the resolution of disputes arising out of individual grievances. The Grievance Redressal Committee shall consist of equal number of members from the employer and the workmen.  The chairperson of the Grievance Redressal Committee shall be selected from the employer and from among the workmen alternatively on rotation basis every year.  The total number of members of the Grievance Redressal Committee shall not exceed more than 6: Provided that there shall be, as far as practicable, one woman member if the Grievance Redressal Committee has two members and in case the number of members is more than two, the number of women members may be increased proportionately.  The Grievance Redressal Committee may complete its proceedings within forty- five days on receipt of a written application by or on behalf of the aggrieved party.  The workman who is aggrieved of the decision of the Grievance Redressal Committee may prefer an appeal to the employer against the decision of 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.  Nothing contained in this section shall apply to the workmen for whom there is an established Grievance Redressal Mechanism in the establishment concerned.”
  • 58.  The Industrial Dispute Act of 1947, came into force on the first day of April, 1947. Its aim is to protect the workmen against victimization by the employers and to ensure social justice to both employers and employees. The unique object of the Act is to promote collective bargaining and to maintain a peaceful atmosphere in industries by avoiding illegal strikes and lock outs. The Act also provides for regulation of lay off and retrenchment. The objective of the Industrial Disputes Act is to secure industrial peace and harmony by providing machinery and procedure for the investigation and settlement of industrial disputes by negotiations.
  • 59.  (1) a dispute or difference between (a) employers and employers, or (b) employers and workmen, (c) workmen and workmen; ..  (2) the dispute or difference should be connected with (a) employment or . non-employment, or (b) terms of employment, or (c) conditions of labor of any person; .  (3) the dispute may be in relation to any workman or workmen or any other person in whom they are interested as a body.
  • 60.  An industrial dispute is caused by revolting employees who disturb industrial peace and harmony. Industrial disputes generally arise due to tensions between labour and management, and gives rise to more issues. This may cause employees to not do their work, and affecting the quality and quantity of production. Furthermore, as industrial tensions rise, there may be strikes and lock- outs.
  • 61.  1. Low income: As prices and living expenses are rising in India, employees also expect their income to rise. Unfortunately, that rarely happens. To make things worse, there is only one earning member in the household and this person alone supports everyone financially. Many times, the income is not enough to keep everyone content and pay all the bills. Thus, if the earning member loses his/her job, the entire family suffers in poverty. Low wages cause discontent in employees.  2. Prices in India are rising constantly, hence, it is also expected that the income of industrial labourers increase, but that never happens.  3. Dearness Allowance associated with labourers has no corresponding increase with rising prices.  4. Most industries have unhygienic and unsafe working conditions. This puts pressure on workers' health.  5. Employees find it extremely difficult to get leave with pay.  6. Employees are becoming more and more conscious about self- respect. Tempers flare when they are insulted or instigated by their superiors.
  • 62.  7. Most of the time, extra bonus is not paid, or not paid on time. This causes industrial conflicts.  8. Sometimes, employees are unfairly relieved from their jobs. Nevertheless, their colleagues unite and fight for the rehiring of their relieved colleagues.  9. Sometimes, trade unions are not recognized by industries resulting in strained relations and stress.  10. Replacement of workers by machinery is causing discontent. Workers are getting laid off and replaced by cheaper machines that do the same work.  11. Many industrial disputes are being caused by political parties. Political involvement in trade unions causes divisions and unnecessary tensions.  12. Disputes may also arise due to dishonest mid-level management. This management prevent labourers from contacting senior management, and act as middle-men. Lack of communication causes distrust.
  • 63.  1. Unrest and unnecessary tensions engulf the hearts and minds of all the people involved - labourers and senior management.  2. There is economic loss due to conflicts because conflicts may result in strikes and lock-outs. This causes low or no production resulting in industrial loss.  3. Industrial losses may cause economic depression because many industries are interlinked. A problem in one industry may drastically affect another industry.  4. The lives of low-level labourers become worse when they are out of work. They may be the only working members of the family, and their joblessness may lead everyone in the family to poverty.  5. When industrial conflicts get out of hand, they become a threat to peace and security. Workers may resort to violence and indulge in sabotage.
  • 64.  1. Works committees  2. Conciliation officers  3. Boards of conciliation  4. Court of enquiry  5. Labour courts  6. Industrial Tribunals  7. National Tribunal  8. Arbitration.