On whom Award and Settlements are Binding | Industrial Dispute Act 1947 | Labour Law

1) Introduction -

             The Industrial Disputes Act 1947 is a Comprehensive piece of Legislation envisaging elaborate machinery for prevention and settlement of  Industrial Disputes.  Section 2(b) and Section 2(p) of the Industrial dispute Act 1947 defines Award and Settlement respectively.

2) Award -

         Section 2(b) of the Industrial dispute Act 1947 defines Award. Award is the decision given by the arbitrator, Labour Court or Industrial Tribunal. It resembles the judgment of a Court. It is to be signed by the Presiding Officer.
          Section 2(b) of the Industrial Dispute Act, “Award” means an interim or a final determination of any industrial dispute or of any question relating thereto by any Labour Court, Industrial Tribunal or National Industrial Tribunal and includes an arbitration award made under Section 10-A.  

Ingredients - 

      a) An award is an interim or final determination of an Industrial Dispute.

       b) It is an interim or Final determination of any question relating to such dispute.

       c) Such interim or final determination is made by a Labour Court or By an Industrial Tribunal or by National Industrial Tribunal. 

3) Settlements -

           Section 2(p) of the Industrial dispute Act 1947 defines Settlement. It is arrived at as a result of conciliation between the parties to the settlement. It resembles a gentleman agreement. It is signed by the parties to the dispute.
           Sectionn 2(p) of the said Act “Settlement” means a settlement arrived at in the course of conciliation proceeding and includes a written agreement between the employer and workmen arrived at otherwise than in the course of conciliation proceeding where such agreement has been signed by the parties thereto in such manner as may be prescribed and a copy thereof has been sent to an officer authorized in this behalf by the appropriate Government and the conciliation officer.

4) Distinction Between Award and Settlement - 

            Award and Settlements are two different things  See.....  Distinction Between Award and Settlement

5) Persons on whom settlements and awards are binding -  

        According to Section 18 of the Industrial Dispute Act 1947 awards and Settlements are binding on the following persons -

        (a) A settlement arrived at by agreement between the employer and workman otherwise than in the course of conciliation proceeding shall be binding on the parties to the agreement.

         (b) An arbitration award shall be binding on the parties to the agreement who referred the dispute to arbitration.

          (c) A settlement arrived at in the course of conciliation proceedings under this Act or an arbitration award in a case where a notification has been issued under sub-section (3A) of section IOA or an award of a Labour Court, Tribunal or National Tribunal which has become enforceable shall be binding on-
            (i) All parties to the industrial dispute; 
           (ii) All the parties summoned to appear in the proceedings as parties to the dispute, unless the Board, arbitrator Labour Court, Tribunal or National Tribunal, as the case may be, records the opinion that they were so summoned without proper cause;
           (iii) The heirs, successors or assigns in respect of the establishment to which the dispute relates.
           (iv) Where a party referred to in clause (a) or clause (b) is composed of workmen, all persons who were employed in the establishment or part of the establishment, as the case may be, to which the dispute relates on the date of the dispute and all persons who subsequently become employed in that establishment or part.


See also.... 

   Authorities for the Prevention and Settlement of Industrial Disputes 

   Consequences of Illegal Strike and Lockouts, Punishment and Penalty for Illegal Strike or Lockout