Award and Settlement | Labor Law | Industrial Dispute Act 1947

1) Introduction - 

            The Industrial Dispute Act, 1947 which extends to the whole of India came into operation on the first day of April 1947. As per Preamble of the said Act, it is enacted to make a provision for the investigation and settlement of the dispute and certain other purposes such as recovery of money from the employer in terms of Settlement or Award by making an application to the appropriate government.  The purpose and aim of the Industrial Disputes Act 1947 is to minimise the conflict between labor and management and to ensure, as far as possible, Economic and Social Justice. The act has made comprehensive provisions both for this settlement of disputes and prevention of disputes in certain Industries.

See... Methods of settlement of Industrial Disputes

2) What is award - 

    The judgment of an arbitrator is called his Award. Award (Judgement) of Arbitrators under section 10A is an Award.


3) Definition of Award -

          Section 2(b) of the Industrial Dispute Act,1947 defines Award as follows -     

 According to Section 2(b) of the Industrial Disputes Act, 1947 ‘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 10A.

4) Ingredients of Award - 

             To constitute Award under Section 2(b) of the Industrial Dispute Act, 1947 the following ingredients are to be satisfied -

        (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 any Labour Court, Industrial Tribunal or National Industrial Tribunal.

        (d) Award (Judgement) of Arbitrators under section 10A is an Award.



5) What is Settlement -

         According to Section 2 (p) of the Industrial Dispute Act, 1947 “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 authorised in this behalf by the appropriate Government and the conciliation officer.

6) Distinction between Award and Settlement -

           

      See...... Distinction between Award and Settlement

7) On whom Awards and Settlements are binding

                According to Section 18 of the Industrial Disputes Act, 1947 Awards and Settlements are binding on the following persons -

              (1) 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.

             (2) Subject to the provisions of sub-section (3), an arbitration award which has become enforceable shall be binding on the parties to the agreement who referred the dispute to arbitration.

             (3) A settlement arrived at in the course of conciliation proceedings and an award of a Labour Court, Tribunal or National Tribunal shall be binding on-

                  (a) All parties to the industrial dispute;

                  (b) All other 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;

                  (c) Where a party referred to in clause (a) or clause (b) is an employer, his heirs, successors or assigns in respect of the establishment to which the dispute relates;

                 (d) All persons who were employed in the establishment or part of the establishment on the date of the dispute and all persons who subsequently become employed in that establishment or part.

See in Detail - On whom Award and Settlements are Binding | Industrial Dispute Act 1947 | Labour Law

8) Penalty for breach of Settlement or Award -

         If any person who commits breach of any terms of a settlement or Award is liable for punishment. The punishment provided for is imprisonment which may extend to 6 months or with fine or with both.
             

9) Period of operation of Awards and Settlement

       Section 19 of the Industrial Disputes Act 1947 provides for the period of operation of Award and Settlement.

          (1) A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the parties to the dispute.

         (2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months  from the date on which the memorandum of settlement is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the period aforesaid, until the expiry of two months from the date on which a notice in writing of an intention to terminate the settlement is given by one of the parties to the other party or parties to the settlement.

        (3) An award shall, subject to the provisions of this section, remain in operation for a period of one year from the date on which the award becomes enforceable under section 17A.

           Provided that the appropriate Government may reduce the said period and fix such period as it thinks fit: Provided further that the appropriate Government may, before the expiry of the said period, extend the period of operation by any period not exceeding one year at a time as it thinks fit so, however, that the total period of operation of an award does not exceed three years from the date on which it came into operation.

        (4) Where the appropriate Government, whether of its own motion or on the application of any party bound by the award, considers that since the award was made, there has been a material change in the circumstances on which it was based, the appropriate Government may refer the award or a part of it to a Labour Court, if the award was that of a Labour Court or to a Tribunal, if the award was that of a Tribunal or of a National Tribunal, for decision whether the period of operation should not, by reason of such change, be shortened and the decision of Labour Court or the Tribunal, as the case may be on such reference shall be final.

   
See also...


Rights of Registered Trade Unions | Labor Law

Types of Strike