Dear Sirs,
I am working in the IR section of a Public Sector Utility. Recently, during a tribunal judgement, there was a reference to a "Agreement" and a "Settlement". Could anyone please enlighten me on the difference between the two as per legal parlance and ID Act.
If a Agreement with the workers mention it as a "Agreement" and not a "Settlement" or "Memorandum of Settlement", does this Agreement hold any legal value in future course.
Thanks in anticipation.
JayDG
From India, Purulia
20I am working in the IR section of a Public Sector Utility. Recently, during a tribunal judgement, there was a reference to a "Agreement" and a "Settlement". Could anyone please enlighten me on the difference between the two as per legal parlance and ID Act.
If a Agreement with the workers mention it as a "Agreement" and not a "Settlement" or "Memorandum of Settlement", does this Agreement hold any legal value in future course.
Thanks in anticipation.
JayDG
From India, Purulia
Dear JayDG,
Agreement is a consensus reached between the management and employees but not supported by any union,even though union may exist and employee may be members( Majority). MoM also has the same meaning. However agreement reached between union and management under ID Act as defined in para 2(p) requires to be signed by five elected leaders/union rep. and management and subsequently registered with local authorities i.e Assistant Labour Commissioner. This agreement may be / may not be reached during conciliation proceedings.
The above is based on my personal experience and dealing. Please refer a good consultant in case you need to take some critical decision.
Thanks,
MSJ
From India, New Delhi
Agreement is a consensus reached between the management and employees but not supported by any union,even though union may exist and employee may be members( Majority). MoM also has the same meaning. However agreement reached between union and management under ID Act as defined in para 2(p) requires to be signed by five elected leaders/union rep. and management and subsequently registered with local authorities i.e Assistant Labour Commissioner. This agreement may be / may not be reached during conciliation proceedings.
The above is based on my personal experience and dealing. Please refer a good consultant in case you need to take some critical decision.
Thanks,
MSJ
From India, New Delhi
Thanks MSJ for your prompt respose. I believe an "Agreement" can be between the Management & the Union/(s). Same for an "Settlement" but its supported by a third party - Ex. ALC or vetted in the Tribunal by the Court.
My Question really is : Can all agreements termed as "Agreement" & not a "Settlement" be disputed in court ? What then is the legal validity of such an agreement ? Will such an Agreement stand in a court or tribunal ?
From India, Purulia
My Question really is : Can all agreements termed as "Agreement" & not a "Settlement" be disputed in court ? What then is the legal validity of such an agreement ? Will such an Agreement stand in a court or tribunal ?
From India, Purulia
Dear Jay DG,
An agreement can be contested in an court and has no legal validity. As agreement reached during the course of conciliation or other wise and registers by ALC cannot be contested in court / tribunal. If settlement is not comprehensive, other points or demands can be raised and need to be settled..
Thanks,
MSJ
From India, New Delhi
An agreement can be contested in an court and has no legal validity. As agreement reached during the course of conciliation or other wise and registers by ALC cannot be contested in court / tribunal. If settlement is not comprehensive, other points or demands can be raised and need to be settled..
Thanks,
MSJ
From India, New Delhi
Thanks MSJ.
I found that this question did crop up earlier in this site and was not answered properly.
https://www.citehr.com/66584-differe...agreement.html
The ID Act defines "Settlement" as :
1[(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) 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[(3)] A settlement arrived at in the course of conciliation proceedings under this Act 4[or an arbitration award in a case where a notification has been issued under sub-section (3A) of section 10A] or 5[an award 6[of a Labour Court, Tribunal or National Tribunal] which has become enforceable] shall be binding on—
(a) all parties to the industrial dispute;
(b) all other parties summoned to appear in the proceedings as parties to the dispute, unless the Board, 7[arbitrator] 8[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, to which the dispute relates
on the date of the dispute and all persons who subsequently become employed in that establishment or part.
Simply put, an agreement with the stamp of approval of any legislation (court / tribunal etc) becomes an settlement. Some interesting points here are :
An agreement is binding to the parties of that agreement. Say, I have Unions A, B, C & D and A, B & C are the majority recognised Unions and I make an Agreement with A, B & C - then that Agreement is not binding on D. However, if that Agreement is an Settlement, it becomes beinding on even Union D.
The question however remains - Calling all/some Agreements as Agreement and not Settlement can be confusing, to, as its territory or domain. Hence, it even becomes a dispute when an Agreement is an Agreement or a Settlement.
Thanks All.
From India, Purulia
I found that this question did crop up earlier in this site and was not answered properly.
https://www.citehr.com/66584-differe...agreement.html
The ID Act defines "Settlement" as :
1[(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) 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[(3)] A settlement arrived at in the course of conciliation proceedings under this Act 4[or an arbitration award in a case where a notification has been issued under sub-section (3A) of section 10A] or 5[an award 6[of a Labour Court, Tribunal or National Tribunal] which has become enforceable] shall be binding on—
(a) all parties to the industrial dispute;
(b) all other parties summoned to appear in the proceedings as parties to the dispute, unless the Board, 7[arbitrator] 8[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, to which the dispute relates
on the date of the dispute and all persons who subsequently become employed in that establishment or part.
Simply put, an agreement with the stamp of approval of any legislation (court / tribunal etc) becomes an settlement. Some interesting points here are :
An agreement is binding to the parties of that agreement. Say, I have Unions A, B, C & D and A, B & C are the majority recognised Unions and I make an Agreement with A, B & C - then that Agreement is not binding on D. However, if that Agreement is an Settlement, it becomes beinding on even Union D.
The question however remains - Calling all/some Agreements as Agreement and not Settlement can be confusing, to, as its territory or domain. Hence, it even becomes a dispute when an Agreement is an Agreement or a Settlement.
Thanks All.
From India, Purulia
Dear Jay DG,
That was fine on your part to collect all the relevant information. Thanks.Your post has given more clarity to the issue. Its difficult at times to remember different clause, however practical working makes you aware of such things and one take necessary precautions.
Thanks again.
MSJ
From India, New Delhi
That was fine on your part to collect all the relevant information. Thanks.Your post has given more clarity to the issue. Its difficult at times to remember different clause, however practical working makes you aware of such things and one take necessary precautions.
Thanks again.
MSJ
From India, New Delhi
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