The resolution of disputes culminates in statutory awards or bilateral settlements, which hold absolute binding authority.
1. Award vs. Settlement (Section 2(b) & Section 18)
- Award (Section 2(b)): An interim or final determination of any industrial dispute by a Labour Court, Industrial Tribunal, or National Tribunal, and includes an arbitration award under Section 10A.
- Binding Nature (Section 18):
- A bilateral settlement (not in conciliation) binds only the parties to the agreement.
- A settlement reached in conciliation, or an adjudicatory award, binds all parties, all future successors of the employer, and all workmen employed in the establishment at the time or in the future.
2. The Shield of Section 11-A
Introduced in 1971 to cure the lack of appellate powers, Section 11-A grants Labour Courts and Tribunals the power to review the merits of domestic inquiries:
- If a workman is discharged or dismissed, the Tribunal may set aside the order if it finds the punishment disproportionate.
- The Tribunal has power to direct reinstatement of the workman on such terms as it thinks fit, or award a lesser punishment in lieu of discharge.
3. Judicial Review
Statutory awards are not immune to judicial scrutiny. They can be challenged under Article 226/227 (Writ of Certiorari before High Courts) and Article 136 (Special Leave Petition before the Supreme Court) on grounds of error of law, violation of natural justice, or perversity.