Dispute Resolution under the Industrial Relations Code

When internal forums fail, an industrial dispute passes to the statutory machinery: conciliation, then adjudication by an Industrial Tribunal or, for disputes of national importance, the National Industrial Tribunal. The Industrial Relations Code simplifies the old structure of Labour Courts, Tribunals and Boards into two-member Tribunals, and lets a party apply to the Tribunal directly instead of waiting for a Government reference. This note covers the machinery, the stages and time limits, the effect of settlements and awards, and the leading cases.

1. The Stages

Figure 1: From dispute to award

• Conciliation officers, s.43. Appointed by the appropriate Government to mediate and promote settlement.
• No Government reference. Under the 1947 Act a dispute reached a Labour Court or Tribunal only on reference by the Government. Under s.53(6), a party applies directly to the Tribunal after conciliation fails.
• Individual disputes. A worker whose grievance is pending in conciliation for 45 days may apply directly to the Tribunal, within two years of termination (Topic 13)
• Commencement, s.60. Conciliation begins with the first meeting after notice of a strike or lock-out, and ends on settlement, failure report or reference to the National Tribunal; Tribunal proceedings end when the award becomes enforceable.

2. The Tribunals

Figure 2: Composition and allocation of matters

• Industrial Tribunal, s.44. Two members, a Judicial Member and an Administrative Member; the Administrative Member must have held at least the rank of Joint Secretary or equivalent.
• National Industrial Tribunal, s.46. Constituted by the Central Government; its Judicial Member is or has been a High Court Judge, and its Administrative Member a Secretary or equivalent.
• Procedure and powers, s.49. The Tribunals have the powers of a civil court for summoning, discovery and evidence.

3. Relief and Awards

• Discharge and dismissal, s.50. Where the Tribunal finds a discharge or dismissal unjustified, it may set it aside and order reinstatement on terms, or give lesser relief, including a lesser punishment. This carries forward s.11A of the 1947 Act.
• Award, s.55. In writing, signed and communicated; it becomes enforceable 30 days after communication. The Government may declare it unenforceable on grounds of the national economy or social justice, and must then place it before the legislature within 90 days.
• Wages pending challenge, s.56. If an award of reinstatement is challenged in the High Court or Supreme Court, the employer must pay the worker full wages last drawn during the pendency, unless the worker is employed elsewhere.
• Recovery, s.59. Money due under a settlement or award is recovered as arrears of land revenue on a certificate.

4. Settlements and Awards: Binding Effect and Duration

• Private settlement, s.57. A settlement made outside conciliation binds only the parties to it.
• Conciliation settlement or award. Binds all parties to the dispute, other parties summoned, the employer's successors and assigns, and all workers in the establishment on the date of the dispute and later.
• Duration, s.58. A settlement runs for the agreed period or, if none is agreed, six months; an award for one year from the date it becomes enforceable.

5. Leading Cases

• Western India Automobile Association v Industrial Tribunal (1949). An industrial tribunal may create new rights and obligations between the parties, beyond the contract of employment, including reinstatement.
• Bharat Bank v Employees (1950). An industrial tribunal performs judicial functions, so its awards are open to appeal by special leave under Article 136.
• Workmen of Firestone Tyre v Management (1973). Under s.11A, now s.50, the tribunal may examine the evidence and the punishment afresh, even where a domestic inquiry was properly held.
• Herbertsons v Workmen (1976). A settlement is judged as a whole, and one reached by a recognised union in collective bargaining is presumed fair.

6. Frequently Asked Questions

How does an industrial dispute reach the Tribunal under the IR Code?

After conciliation fails, the conciliation officer sends a failure report to the parties and the Government. Any concerned party may then apply to the Industrial Tribunal within ninety days of receiving the report under section 53(6). The Government no longer refers disputes to the Industrial Tribunal, though the Central Government refers disputes to the National Industrial Tribunal.

Who is bound by a settlement?

A settlement made outside conciliation binds only the parties who sign it. A settlement reached in conciliation, or an award, binds all parties to the dispute, the employer's successors and assigns, and all present and future workers of the establishment, under section 57.

7. Related Topics

• Topic 13: Notice of Change and Bi-partite Committees. The steps before conciliation.
• Topic 15: Strikes and Lock-outs. Collective action during disputes.