Settlement of Industrial Disputes — Works Committee & Conciliation

“The object of all labour legislation is, first, to ensure fair terms to the workmen, and secondly, to prevent disputes so that production is not adversely affected.”

The IR Code 2020 provides a step-by-step ladder to resolve industrial disputes — starting inside the workplace and ending, if necessary, before the Industrial Tribunal.

The Dispute-Settlement Ladder

flowchart TD
    D["Industrial dispute arises"]:::start
    D --> WC["Works Committee / Grievance Committee<br/>Ss.3 &amp; 4 — internal resolution"]:::tier1
    WC -->|Fails| CO["Conciliation Officer<br/>S.43 — promotes settlement"]:::tier2
    CO -->|Fails| ARB["Voluntary Arbitration<br/>S.54 — both parties agree"]:::tier3
    CO -->|Fails| TRI["Industrial Tribunal<br/>S.44 — reference or direct application"]:::tier3
    ARB --> AWARD["Award / Settlement<br/>binding on all parties — S.56"]:::outcome
    TRI --> AWARD

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    classDef tier1 fill:#D8F0D8,stroke:#2E7D32,color:#000;
    classDef tier2 fill:#ADD8E6,stroke:#1E3A8A,color:#000;
    classDef tier3 fill:#FFB6C1,stroke:#8B0000,color:#000;
    classDef outcome fill:#E6F3FF,stroke:#1E3A8A,color:#000;
    linkStyle default stroke:#888,stroke-width:1px;

IR Code change: the old separate Labour Court tier has been merged into the Industrial Tribunal — there is now a single Tribunal for all adjudication.

Works Committee & Grievance Redressal

Conciliation — Sec. 43

The Conciliation Officer is a government-appointed officer who investigates the dispute, calls the parties and promotes a settlement — but has no power to impose one. Special rules apply in a public utility service:

flowchart TD
    PUS["Public Utility Service — special rules"]:::special
    PUS --> P1["14 days' notice of strike required — S.62"]:::rule
    PUS --> P2["No strike during conciliation or 7 days after — S.62(2)"]:::rule
    PUS --> P3["Conciliation to conclude within 45 days"]:::rule

    classDef special fill:#FFD700,stroke:#8B6914,color:#000;
    classDef rule fill:#FFF8E1,stroke:#F57F17,color:#000;
    linkStyle default stroke:#888,stroke-width:1px;

A settlement reached in conciliation binds all parties; an award of the Tribunal is likewise binding under S.56. The difference: a settlement is negotiated, an award is imposed.

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