Awards and Settlement Under Industrial Disputes Act, 1947 (2023)

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 ofSettlementorAwardby 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.


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 anyLabour Court,Industrial TribunalorNational Industrial Tribunaland includes an arbitration award made under section 10A.

According to section 2(b) of the Industrial Dispute Act, 1947, definition of award has two parts. The first part covers a determination, final or interim, of any industrial dispute. The second part takes in a determination of any question relation to an industrial dispute. Thus, both the part of definition assumes the existence of an industrial dispute, actual or apprehended.

  • An Award is an interim or final determination of anindustrial dispute.
  • It is an Interim or final determination of any question relating to such dispute.
  • Such interim or final determination is made by any Labour Court, Industrial Tribunal or National Industrial Tribunal.
  • Award (Judgement) of Arbitrators under section 10A is an Award.

Form of Report or Award:

The section 16 of Industrial Dispute Act provides for procedure that, the report of board or Court shall be in writing and shall be signed by all the members of the Board or Court, as the case may be, to be followed. The award of a Labour Court or Tribunal or National Tribunal shall be in writing and shall be signed by its Presiding Officer.

Publication of Award:

The section 17 of the act mentions about publication procedure of the award decided after the due course. The clause (1) of the section states: Every report of Board or Court together with any minute of dissent recorded therewith, every arbitration and every award of a Labour Court, Tribunal or National Tribunal shall within a period of thirty days from the date of its receipt by the appropriate Government, be published in such manner as the appropriate Government thinks fit. The second clause of the same section provides for immunity against any legal proceedings, thus avoiding any further delay, to the award finalised.

(Video) What is Award? | Section 2(b) of Industrial Disputes Act | When does Award become enforceable?

Commencement of Award:

Commencement of award is described under section 17-A of the act. According to Section 17A, an award (including an arbitration award) shall become enforceable on the expiry of the thirty days from the date of its publication under section 17. But if the Central Government is of opinion, in any case where the award has been given by National Tribunal will be inexpedient on public grounds affecting economy or social justice to give effect to the whole or any part of the award the appropriate Government, or as the case may be, the Central Government may, by notification in the Official Gazette, declare that the award shall not become enforceable on the expiry of the said of thirty days.

Enforcement of an Award:

An award may be enforced of the following ways:

  • The aggrieved party may apply to Appropriate Government for prosecuting the defaulting party under section 29 or section 31 of this Act.
  • Where any money is payable by the employer to a workman, the workman may move the Appropriate Government for recovery of the money due to him under award.
  • The party in whose favour the award has been granted may file a suit and obtain a decree, which shall be enforced by execution under the provisions of the Civil Procedure Code.


According to Section2(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.

(Video) Industrial Disputes Act 1947 ( In Hindi ) Part 10 ( Award /Settlement )

The common mechanisms for settlement of disputes under the Industrial Dispute Act,1947 are conciliation and mediation. Conciliation is the procedure in which there is an involvement of a third party who provides assistance to the parties in dispute to carry out negotiation between them.

Section 4 of the Industrial Dispute Act, 1947 lays down the function of a conciliation officer which is to create a kindred atmosphere within the industry which will help the parties to settle the disputes between them. This is a function with an administrative nature and not a judicial one. A conciliation officer is required to hold proceedings, carry out investigations regarding the dispute in a fair manner to help the parties arrive at a settlement.

Common Points of Awards and Settlement

Persons bound by the Award and settlement:

Following are the person bound by any award decided, under section 18:

  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 under this Act or arbitration award in a case where a notification has been issued under sub section (3-A) of section 10-A or an award of a Labour Court, Tribunal or National Tribunal which has become enforceable shall be binding on—

(a) All parties to the industrial dispute;

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(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) 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, which the dispute relates on the date of the dispute and all persons who subsequently become employed in that establishment or part.

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.

Period of operation of settlement and Award:

(Video) Awards and Settlement (PART 1) (IDA, 1947) (5th Semester)

The section 19 speaks about the period for which settlement and award will be binding upon the parties to the concerned industrial dispute. 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. 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 expire 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.

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 17-A. Provided that the appropriate Government may reduce the said period and fix such period as it thinks fit.


What is Award in industrial dispute Act? ›

Meaning of Award Section 2(b) of the Industrial Disputes Act, 1947 defines an award as, " interim or final determination of any industrial dispute or of any question relating thereto by any Labour Court.

What are the method of settlement of industrial disputes? ›

The three methods for settlement of industrial disputes are as follows: 1. Conciliation 2. Arbitration 3. Adjudication.

Which is correct order of settlement of industrial disputes? ›

The best way of resolving disputes is by means of collective bargaining which symbolises plurality of workmen working in the industry. If collective bargaining fails, then other mechanisms of settlement involve conciliation, arbitration and voluntary arbitration.

What are the 3 causes of industrial disputes? ›

Major causes of industrial disputes are wages, bonus, working conditions, trade unions, Retrenchment, working conditions, etc. Industrial disputes are classified as interest disputes, grievance or rights disputes, disputes over unfair labour practices, and recognition disputes.

What award settlement means? ›

Stipulated Finding and Award and Compromise and Release are the two type of workers' compensation settlements. A Stipulated Finding and Award is an agreement which reaches the same decisions that a judge would make after a trial. A Compromise and Release completely closes the case.

What is the difference between a settlement and an award? ›

Unlike Awards, settlements are negotiated, cannot be involuntarily awarded, and both sides must agree to the amount. Settlements are paid in a lump sum (unless the settlement is very large).

What are 3 ways to settle a dispute? ›

There are three commonly used methods of resolving disputes without going to court:
  1. negotiation.
  2. mediation.
  3. arbitration.
Aug 25, 2022

What are 4 ways of settling disputes? ›

The most common ADR methods are negotiation, mediation, conciliation, arbitration, and private judging.

What are the major forms of dispute settlement? ›

There are many types of dispute resolution processes, but arbitration; mediation; and negotiation are the three most common types of alternative dispute resolution. Negotiation is the least formal type of ADR.

What is settlement of industrial disputes 1947? ›

The Industrial Dispute Act, 1947 came into existence in April 1947 . It was enacted to make provisions for investigations and settlement of industrial dispute and to ensure fair wages and other safeguards to the workers.

What is the most important instrument for the settlement of disputes? ›

Arbitration and settlement of disputes by International Law have become two very important modes of settlement of disputes today.

How many stages are there in the dispute settlement procedure? ›

There are three main stages to the WTO dispute settlement process: (i) consultations between the parties; (ii) adjudication by panels and, if applicable, by the Appellate Body; and (iii) the implementation of the ruling, which includes the possibility of countermeasures in the event of failure by the losing party to ...

What is the most common industrial dispute? ›

Unfair labour practices disputes are the most common industrial disputes. These disputes occur due to unfair labour practices exercised by employers against their employees. 'Unfair labour practices' are enumerated in Schedule V of the Industrial Disputes Act, 1947.

What are the impact of industrial dispute? ›

Demerits of bad industrial relations can be expressed as under: Effect on Workers: (i) Loss of wages, (ii) Physical injury or death on account of violence during labour unrest, (iii) Excesses by employers, (iv) Economic losses, (v) Bitterness in relations, (vi) Adverse affect on career.

What are the main issues of industrial disputes? ›

Causes of industrial disputes can be broadly classified into two categories: economic and non-economic causes. The economic causes will include issues relating to compensation like wages, bonus, allowances, and conditions for work, working hours, leave and holidays without pay, unjust layoffs and retrenchments.

What is the award amount? ›

Awarded Amount means the amount payable to the Contractor under the Contract.

What happens when you take a settlement? ›

Settling a debt means you have negotiated with the lender and they have agreed to accept less than the full amount owed as final payment on the account. The account will be reported to the credit bureaus as "settled" or "account paid in full for less than the full balance."

What is the purpose of the award to the plaintiff? ›

Award to Plaintiffs means the requested award to Lead Plaintiffs to compensate them for their time and contributions to the Action, and for their reasonable costs and expenses (including lost wages), directly related to Lead Plaintiffs' representation of the Settlement Class in the Action.

Does settlement mean you get the money? ›

Settlement is the process of paying the remaining sale price and becoming the legal owner of a home. At settlement, your lender will disburse funds for your home loan and you'll receive the keys to your home. Generally, settlement takes place around 6 weeks after contracts are exchanged.

What is the money called when you win it in a lawsuit? ›

Any type of financial award won by a plaintiffs personal injury attorney, handed down from a judge or jury in a lawsuit, will be called compensation.

What makes a settlement? ›

A settlement is a colony or any small community of people. If a bunch of people build houses on the moon together, they'll have the first lunar settlement. A settlement is also the resolution of something such as a lawsuit. One kind of settlement is a place where people live.

How do you win a dispute? ›

To win a chargeback dispute as a merchant, you must have evidence that is compelling enough to persuade the cardholder's bank to reevaluate the case. Depending on the reason for the chargeback, your evidence needs to prove you: verified the identity of the shopper. processed the transaction correctly.

What are the two 2 options or processes when you want to resolve disputes? ›

While the two most known forms of ADR are arbitration and mediation, negotiation is almost always attempted first to resolve a dispute. Negotiation allows the parties to meet in order to settle a dispute.

How do you negotiate an out of court settlement? ›

Here are some key things to keep in mind.
  1. Put the issue into perspective. Before you do anything else, it helps to put the issue in perspective. ...
  2. Keep good records. ...
  3. Appeal to a sense of fairness. ...
  4. ACAS and/or Judicial Mediation. ...
  5. Assume the best and keep your cool. ...
  6. Figure out how to settle a case out of Court.

What are 5 ways a labor dispute can be resolved? ›

A labor dispute is a disagreement between an employer and employees regarding the terms of employment.
  • 1.1 Publicity.
  • 1.2 Collective bargaining.
  • 1.3 Mediation.
  • 1.4 Arbitration.

What are the steps to resolve the disputes? ›

Eight steps to effective conflict management
  1. Be aware. Conflict can arise at any time. ...
  2. Be proactive. Prevention and early resolution are the most effective. ...
  3. Seek to understand all sides of the issue. ...
  4. Initiate dialogue. ...
  5. Know when to ask for help. ...
  6. Assess your options. ...
  7. Take action. ...
  8. Reflect on the situation.

What is a formal process to settle disputes? ›

Litigation is generally thought of as the process of resolving rights-based disputes through the court system, from filing a law suit through arguments on legal motions, a discovery phase involving formal exchange of information, courtroom trial and appeal.

Why is dispute settlement important? ›

Dispute settlement is a very important tool for any business. It portrays the quickest and most effective way of resolving disputes. Dispute settlement is also important in the case of international business transactions, which is why we find it absolutely necessary to have a strong dispute settlement team.

What are the main features of Industrial Dispute Act 1947? ›

The main features of the Industrial Dispute act are:
  • Strikes and lockouts are illegal while the conciliation and adjudication process is in progress.
  • An agreement of the parties to the issue or the State Government can submit any industrial dispute to an industrial tribunal.

What is an example of peaceful settlement of disputes? ›

Mediation, conciliation and good offices are three methods of peaceful settlement of disputes by which third parties seek to assist the parties to a dispute in reaching a settlement. All involve the intervention of a supposedly disinterested individual, State, commission, or organization to help the parties.

What is the peaceful settlement of disputes and conflicts? ›

Peaceful settlement of international disputes is a fundamental principle of international law of a peremptory character. It is formulated as such in the UN Charter (Article 2.3), and developed in UNGA Resolution 2625 (XXV) on Principles of International Law concerning Friendly Relations and Co-operation among States.

How long does a dispute resolution take? ›

Decisions are given within 30 days of the hearing date. All decisions are final and binding. An arbitrator may make minor corrections or clarify a decision; however, no one can change the outcome of an original decision – not even an arbitrator.

How does the dispute settlement body work? ›

The DSB has authority to establish dispute settlement panels, refer matters to arbitration, adopt panel, Appellate Body and arbitration reports, maintain surveillance over the implementation of recommendations and rulings contained in such reports, and authorize suspension of concessions in the event of non-compliance ...

What is the final stage in the dispute resolution process? ›

Stage 6: Closure. If the parties reach an agreement, the mediator will likely put its main provisions in writing and ask each side to sign the written summary of the agreement.

What are the 4 types of industrial disputes? ›

Industrial disputes can be classified into four major types, known as interest disputes, grievance disputes, unfair labour practices disputes and recognition disputes.

What benefits are provided under Industrial Disputes Act, 1947 for employers? ›

Objectives of the Industrial Disputes Act, 1947

The provision for payment of compensation to the workman on account of closure or lay off or retrenchment. The procedure for prior permission of appropriate Government for laying off or retrenching the workers or closing down industrial establishments.

What is an example of industrial dispute? ›

Types of Industrial Disputes: Strikes, Lockouts, Picketing, Gherao, Lay Off, Retrenchment and Boycott.

What is the impact of industrial dispute on society? ›

Industrial Dispute – 5 Negative Impacts: Disruption in Production and Services, Impact on Employers, Impact on Workers, Impact on Society & Impact on National Economy. An industrial dispute can never be said to be a good choice.

Who are affected by industrial disputes? ›

“The term 'industrial dispute' means “any dispute or difference between employers and employers or between employers and workmen, or between workmen and workmen, which is connected with the employment or nonemployment or the terms of employment and conditions of employment of any person”.

What are the main causes of industrial disputes How can they be resolved? ›

Among other causes that lead to disputes are failure of employers to recognise trade unions, conflict between rival unions for representation, insult to trade union leadership by the employer, introduction of rationalisation in the factory, the fear of retrenchment of workers, sympathetic strikes with fellow employees ...

What are the methods of settlement of industrial disputes? ›

The three methods for settlement of industrial disputes are as follows: 1. Conciliation 2. Arbitration 3. Adjudication.

What does award mean in arbitration? ›

An arbitration award (or arbitral award) is a determination on the merits by an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of law.

What is an award in terms of employment? ›

Awards (modern awards) are legal documents that outline the minimum pay rates and conditions of employment.

What is award as used in arbitration? ›

Most arbitration practitioners would agree that one of the most crucial aspects of the arbitration process is the recognition and enforcement of the arbitral award, wherein the courts in the jurisdiction of implementation grants the issued award the authority and legitimacy analogous to that of a judgment rendered in a ...

What does award mean in law? ›

In law, an award is a sum of money that a court decides should be given to someone. ...

What happens after arbitration award? ›

Instead, if a party wins in the arbitration and the other party does not do what the award says, the winning party may go to court to “confirm” the arbitration award. Under AAA rules, parties to AAA cases agree that the arbitration award can be entered as a judgment in any federal or state court with jurisdiction.

How does an arbitrator decide the award? ›

The choice will depend on a number of factors, including: the legal and factual basis of the dispute; the technical expertise required; the location of the parties; the experience of the arbitrator(s). Decisions based on these factors can only be made by the parties and their counsel on a case-by-case basis.

What are the four types of awards? ›

Bharat Ratna- 1st degree of honour. Padma Vibhushan- 2nd degree of honour. Padma Bhushan- 3rd degree of honour. Padma Shri- 4th degree of honour.

What are the three types of awards? ›

These awards are further divided into four types: Bharat Ratna. Padma Vibhushan. Padma Bhushan.
There are mainly four categories;
  • Civilian awards.
  • Gallantry awards.
  • National Sports Awards.
  • Literatures award.

What are awards examples? ›

Educational awards
  • Scholarships.
  • Academic achievements.
  • Dean's list or honor roll.
  • Fellowships or grants.
  • School leadership roles.
  • High GPA.

What is arbitral award and its types? ›

An arbitration award is the award granted by the arbitrator in their decision. This award can be money one party has to pay to the other party. It can also be a non-financial award, such as stopping a certain business practice or adding an employment incentive.

What is the importance of arbitral award? ›

The award given by the arbitrator is equivalent to a decree of a court of law and the same can be executed directly, without making it a decree of the court. Arbitral awards enjoy much greater international recognition than judgments of national courts.

What is an arbitral award and how it is enforced? ›

It provides that an award shall be enforced once the time for making an application to set aside the award under Section 34 of the Act has expired. Such award shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908, in the same manner as if it were a decree of the court.

What is the purpose of awards? ›

An awards ceremony makes people feel that their work is valued. It shows approval and gratitude for each person's good job, and it makes people aware that good work will be rewarded. It shows others, such as the general public and other staff members, that you're aware of outstanding accomplishments.

What is considered an award? ›

Generally speaking, an academic honor or award is any major achievement you've made and been recognized for in some way. The form of recognition can range from an actual object, such as a trophy or plaque, to prize money, a title, or verbal recognition.

Who receives an award? ›

The recipient is often an individual, such as a student or athlete, or a representative of a group of people, be it an organisation, a sports team or a whole country. The award item may be a decoration, that is an insignia suitable for wearing, such as a medal, badge, or rosette (award).


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