Grievance Settlement Machinery

GRIEVANCE SETTLEMENT
MACHINERY UNDER THE

INDUSTRIAL DISPUTES
ACT,1947
Industrial Dispute Settlement Machinery has
been provided under the Industrial Dispute
Act,1947.It provides a legalistic way
of settling the disputes.
This machinery comprises following organs:-
a) CONCILIATION
b) VOLUNTARY ARBITRATION
c) COURT OF INQUIRY
d) ADJUDICATION (COMPULSORY ARBITRATION)
1. Conciliation is the “practice by which the services of the
neutral party are used in a dispute as a means of helping
the disputing parties to reduce the extent of their
differences and to arrive at an amicable settlement or
agreed solution.”
2. This neutral party intervenes in the dispute situation upon

a request by either or both the parties.
3. The Conciliator simply assist the disputing parties in

negotiations and decision making, he resolve the
impasse ,removes the bottleneck by bringing both the
parties to a compromise.
4. The Industrial Disputes Act,1947 provides for conciliation,
and can be utilized either by appointing Conciliation
Officers or by constituting a Board of Conciliation.
5. Under the Act, conciliation is compulsory in all disputes in

public utility services and optional in other industrial
establishments.
6. With a view to expediting conciliation proceeding, time

limits have been prescribed -14 days in the case of
Conciliation Officers and two months in the case of a board
of conciliation.
7. The Act prohibits strike and lock-out during the pendency

of conciliation proceedings before a Board and for seven
days after the conclusion of such proceedings.
1. The Conciliation Officers is appointed by the appropriate
Government by notification in the Official Gazette for any
specified area or for one or more specified industries, either
permanently or for a limited period.
2. Conciliation Officers are charged with the duty of holding

conciliatory proceedings for the purpose of bringing about a
fair settlement of any industrial dispute.
1. In case Conciliation Officers fails to resolve the differences between
the parties, the appropriate Government may by notification in the
Official Gazette, constitute a Board of Conciliation for settlement of
an industrial dispute.
2. A Board shall consist of a Chairman and two or four other members.
3. The Chairman is to be an independent person and other members

are nominated in equal numbers by the parties to the dispute.
4. The quorum for a meeting is two where the total number is three,
and three where the number is five.
5. A Board, having a quorum, may act notwithstanding the absence of

the Chairman or any of its members, or any vacancy in its number.
But if the Government informs the Board that the services of the
Chairman or any other member have ceased to be available, The
Board must not act until a new Chairman or member has been
appointed.
1. On failure of conciliation proceedings, the conciliation officer may
persuade the parties to refer the dispute to a voluntary arbitrator.
2. Voluntary arbitration refers to getting the disputes settled

through an independent person chosen by the parties involved
mutually and voluntarily.
3. The process of arbitration saves time and money of both the

parties which is wasted in case of adjudication.
4. For the purpose of reference of a dispute to arbitration, the

parties must enter into a written agreement called the “arbitration
agreement” to refer the dispute to an arbitrator or arbitrators
whose name they must specify in the agreement.
5. The agreement must be in the form prescribed and must be
signed by the parties jointly, and a copy sent to the
appropriate Government and the conciliation officer.
6. Nothing in the Arbitration Act, 1940 shall apply to

arbitrations under this section.
7. The appropriate Government shall, within 14 days from the

date of receipt of such copy , publish the same in the Official
Gazette.
8. The parties are free to appoint one or more arbitrators but in

case their number is even, the parties should provide for the
appointment of another person as umpire who may give
award if the arbitrators are equally divided in their opinion.
The award of the umpire is then deemed as the ‘arbitration
award’.
9. The provision for Voluntary arbitration was made because of

the lengthy legal proceedings and formalities and resulting
delays involved in adjudication
1. Easy availability of adjudication in case of failure
of negotiations;
2 Cost to the parties, particularly workers;
3. Legal obstacles;
4. Absence of simplified procedure;
5. Dearth of suitable arbitrators who command the
confidence of both the parties.
COURTS OF INQUIRY(Section 6)
The appropriate Government may, as occasion arises, by notification in

the Official Gazette, constitute a Court of Inquiry for inquiring into any
matter appearing to be connected with or relevant to an industrial
dispute. Such a Court may consist of one or more independent persons,
according as the Government may appoint. Where it consists of more
than one member, one of them shall be appointed as Chairman. The
Court having the prescribed quorum may act even if the Chairman or a
member is absent; but not if the services of the Chairman have ceased to
be available, and no other Chairman has been appointed. The Court shall
inquire into the matters referred to it and report thereon to the appropriate
Government within 6 months from the commencement of the inquiry.
ADJUDICATION
 The ultimate remedy for the settlement of an industrial dispute is its

reference to adjudication by labour court or tribunals when conciliation
machinery fails o bring about a settlement.
 It consists of settling disputes through intervention by the third party
appointed by the government. The law provides adjudication to be
conducted by the Labour Court, Industrial Tribunal or National Tribunal.
 A dispute can be referred to adjudication if both the employer and the
recognised union agree to do so.
 A dispute can also be referred to adjudication by the Government even if
there is no consent of the parties in which case it is called ‘compulsory
adjudication’.
However, there are two situations when it is obligatory for the
appropriate government to make a refernce to adjudication. These
situations are:
i.When both the parties to a dispute applying the prescribed manner

either jointly or seperately,for a reference, the appropriate
government has to refer the dispute to adjudication provided it is
satisfied that the persons applying represent the majority of each
party
ii. when the disputes relates to a public utility service and a notice of
strike or lockout according to law has been given,the appropriate
government has to make a reference to adjudication.
MADE BY:
ADITI OBEROI
SHILPA KAPOOR
MEENAL
SHILPI PAUL

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GRIEVANCE SETTLEMENT

MACHINERY UNDER THE

2. This neutral party intervenes in the dispute situation upon

3. The Conciliator simply assist the disputing parties in

5. Under the Act, conciliation is compulsory in all disputes in

6. With a view to expediting conciliation proceeding, time

7. The Act prohibits strike and lock-out during the pendency

2. Conciliation Officers are charged with the duty of holding

2. A Board shall consist of a Chairman and two or four other members.

3. The Chairman is to be an independent person and other members

5. A Board, having a quorum, may act notwithstanding the absence of

2. Voluntary arbitration refers to getting the disputes settled

3. The process of arbitration saves time and money of both the

4. For the purpose of reference of a dispute to arbitration, the

6. Nothing in the Arbitration Act, 1940 shall apply to

7. The appropriate Government shall, within 14 days from the

8. The parties are free to appoint one or more arbitrators but in

9. The provision for Voluntary arbitration was made because of

The appropriate Government may, as occasion arises, by notification in

 The ultimate remedy for the settlement of an industrial dispute is its

i.When both the parties to a dispute applying the prescribed manner

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