top of page
  • Writer's pictureNyayasastra

Prevention and Settlement of Industrial Disputes in India: A Comprehensive Guide

Industrial disputes are conflicts between employers and employees or between employees and employees. The resolution of such disputes is crucial for maintaining industrial harmony. The following provides a comprehensive look into the various methods for preventing and settling industrial disputes in India:

1. Preventive Measures

These measures aim to prevent industrial disputes from arising in the first place.

Labour Welfare Officers:

  • Appointed under the Factories Act, 1948.

  • Act as a liaison between workers and management, thus fostering good relationships.

Works Committees:

  • Encourage dialogue between employees and management.

  • Consist of equal representatives from both workers and employers.

Code of Conduct:

  • Established rules and guidelines to be followed by both parties.

  • Helps in maintaining discipline and preventing disputes.

2. Conciliation

This is a method of persuading parties to reach an agreement.

Boards of Conciliation:
  • Established under the Industrial Disputes Act, 1947.

  • Act as mediators between disputing parties.

  • Case Law: In Dwarka Prasad Laxmi Narain v. State of Uttar Pradesh, the Supreme Court emphasized the importance of a bona fide attempt at conciliation.

Conciliation Officers:

  • Appointed by the government.

  • Assist in negotiations between disputing parties.

3. Arbitration

This involves the submission of a dispute to an impartial third person for decision.

Voluntary Arbitration:
  • Both parties agree on the arbitrator.

  • Arbitrator's decision is binding.

  • Case Law: In Bharat Petroleum Corporation Ltd. v. Maharashtra General Kamgar Union, arbitration was preferred over prolonged litigation.

4. Adjudication

This involves the settlement of disputes by legal authority.

Labour Courts:

  • Decide disputes regarding working conditions, rights, and other matters.

Industrial Tribunals:

  • Higher authority than labour courts.

  • Handle more serious and complex disputes.

National Tribunals:

  • Handle disputes that have implications beyond one state.

  • Case Law: In Bangalore Water Supply & Sewerage Board v. A. Rajappa, the Supreme Court upheld the jurisdiction of industrial tribunals.

5. Collective Bargaining

This is a negotiation process between employers and employees.

  • Leads to mutual agreement and understanding.

  • Example: Many trade unions in India use collective bargaining to negotiate wages and benefits.

Conclusion: Settlement of Industrial Disputes

Prevention and settlement of industrial disputes in India comprise a diverse array of methods. These range from preventive measures like the appointment of Labour Welfare Officers and Works Committees to the resolution of disputes through conciliation, arbitration, adjudication, and collective bargaining. The careful application of these methods contributes to the peaceful coexistence of labour and management in the industrial field, thus contributing to overall economic growth and social stability.

20 views0 comments


Nyayasastra Cover_edited.jpg

Try Nyayasastra Today!

Fill your details and be the first to experience India's First AI Powered Law Learning Engine

Thanks for submitting!

bottom of page