Page 165 - DMGT516_LABOUR_LEGISLATIONS

Labour Legislations

Notes 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:
1. Choice of suitable arbitrator acceptable to both parties.
2. 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.
Undoubtedly an arbitrator can give a decision more promptly and enjoys greater freedom since
he is not bound by fetters of law and procedure.

7.4.3 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
are similar as well as provisions regarding commencement of award and period of operation of
awards. Under the provisions of the Act, Labour Courts and Industrial Tribunals can be constituted
by both Central and State Governments, but the National Tribunals can be constituted by the
Central Government only, for adjudicating disputes which, in its opinion, involve a question of
national importance or of such a nature that industrial establishments situated in more than one
State are likely to be affected by such disputes.
1. Labour Court: It consists of one person only, who is also called the Presiding Officer, and
who is or has been a judge of a High Court, or he has been a district judge or an additional
district judge for a period not less than three years, or has held any judicial office in India
for not less than seven years. Industrial disputes relating to any matter specified in the
Second Schedule of the Act (Appendix-III) may be referred for adjudication to the Labour
Court. (Section 7).
2. Industrial Tribunal: This is also one-man body (Presiding Officer). The Third Schedule of
the Act mentions matters of industrial disputes which can be referred to it for adjudication
(Appendix-IV). This Schedule shows that Industrial Tribunal has wider jurisdiction than
the Labour Court. The Government concerned may appoint two assessors to advise the
Presiding Officer in the proceedings. (Section 7 A).

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