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Unit 5: Industrial Disputes Act

The arbitrator shall investigate the dispute and submit to the Government the Arbitration Award Notes
signed by him.
Where an industrial dispute has been referred for arbitration and notification has been issued, the
Government may by order prohibit the continuance of any strike or lock-out in connection with
such dispute, which may be in existence on the date of reference.
The arbitration award which is submitted to the Government and becomes enforceable, is binding
on all parties to the agreement and all other parties summoned to appear in the proceedings as
parties to ‘dispute. Such an award is also binding on all, employees at the time of award, or to
be employed subsequently even if they are not party to the initial agreement. If the arbitration
agreement is not notified in the Official Gazette under Sec. 10A, it is applicable only to the parties
who have agreed to refer the dispute for arbitration.

Arbitration Award is enforceable in the same manner as the adjudication award of Labour Court
or Industrial Tribunal.
Arbitration is an alternative-to adjudication and the two cannot be used simultaneously. It is
voluntary at the discretion of the parties to a dispute. Arbitrator is a quasi-judicial body. He is an
independent person and has all the attributes of a statutory arbitrator. He has wide freedom, but
he must function within the limit of his powers. He must follow due procedure of giving notice
to parties, giving fair hearings, relying upon all available evidence and documents. There must
be no violation of the principles of natural justice.

Acceptance of Arbitration

Voluntary arbitration has been recommended and given place in law by the Government.
Experience, however, shows that although the step has been strongly pressed by the Government
for over thirty years it has yet to take roots. During the last decade not even 1% of the disputes
reported were referred for arbitration. The National, Commission on Labour examined the
working of arbitration as a method of settling disputes, and found that it was yet to be accepted
by the parties, particularly by the ‘employers, unreservedly. The main hurdles noticed yet are:
l z Choice of suitable arbitrator acceptable to both parties.
l z Payment of-arbitration-fees-Unions can seldom afford to share such costs equally with
management.
Apart from these, it appears that arbitration under the Act is not correctly understood by the
employers and trade unions. When arbitration is suggested, the impression often is that matter is
to be left to the sole decision of an individual who can act in any manner he likes. The sanctity of
the decision by an arbitrator is also held in doubt. The fact that law covers voluntary arbitration,
and places it almost parallel to adjudication, is not appreciated or known widely.
!

Caution Undoubtedly an arbitrator can give a decision more promptly and enjoys greater
freedom since he is not bound by fetters of law and procedure. He is also not required
to only interpret the technicality and meaning of statutory provisions. He is required in
fact to decide the issue on grounds of natural justice and fair play to both the parties.
Arbitration if accepted voluntarily and not under any duress or pressure, should provide a
more wholesome answer. It, however, is for the parties to give a trial to this measure.

5.4.3 Adjudication

Unlike conciliation and arbitration, adjudication is compulsory method of resolving conflict.
The Industrial Disputes Act provides the machinery for adjudication, namely, Labour Courts,
Industrial Tribunals and National Tribunals. The procedures and powers of these three bodies

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