Lawstreet Journal

Settlement Between Workmen & Management Not Binding U/S 18 Industrial Disputes Act If Not Sent To Prescribed Authorities: Rajasthan High Court

Lawstreet Journal 6 Apr 2022 3:46am

Image courtesy: Lawstreet Journal Judiciary Settlement Between Workmen & Management Not Binding U/S 18 Industrial Disputes Act If Not Sent To Prescribed Authorities: Rajasthan High Court

Given the "unequal bargaining power" between an employer and its employees under the Industrial Disputes Act, 1947, the Rajasthan High Court has ruled that the settlement reached between them must be sent to the State Government, the Labour Commissioner, and the conciliation officer concerned for review.

It went on to say that until this criterion is met, the settlement cannot be considered binding on the parties under Section 18(1) of the Industrial Disputes Act, 1947.

While granting the petition, Justice Arun Bhansali made the following observation:

"The provisions are not without reason, inasmuch as on account of unequal bargaining power between the workmen and the management, in case a mutual settlement is arrived at the same becomes binding under the provisions of Section 18 (1) of the Act and, therefore, to ensure that the agreement arrived at is examined by the authority i.e. the Labour Commissioner and the conciliation officer, the same is required to be sent to them and entered in the register of settlement maintained by the conciliation officer."

In this regard, the court noted that there is no indication in the agreement or respondents' reply that the disputed agreement was ever sent to the Labour Commissioner of Rajasthan and/or the conciliation officer, and that it was entered in the register maintained under Rule 75 of the Rajasthan Industrial Disputes Rules, 1958.

The court also decided that the petitioners would be entitled to semi-permanent and permanent status from the date of their initial appointment, as well as… Continue Reading...


Tagged: Rajasthan High Court  
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