Setting Up of Business, Industrial and Labour Laws · The Industrial Relations Code, 2020

Machinery for Dispute Resolution under the Industrial Relations Code, 2020

Updated 11 October 2026 · Fact-checked

The Industrial Relations Code, 2020 settles industrial disputes through conciliation officers, voluntary arbitration, Industrial Tribunals and the National Industrial Tribunal. Conciliation tries to bring a settlement. Arbitration needs a written agreement. Tribunals adjudicate and give awards. In answers, state the forum, its power, who is bound and your conclusion.

Understand Machinery for Dispute Resolution

An industrial dispute is a conflict between employers and workers, or among workers, about employment or working conditions. The Code gives a ladder of ways to settle it, so that strikes and lock-outs are not the first resort.

The first step is conciliation. A conciliation officer helps the parties reach a settlement. A conciliation proceeding is deemed to start on the date of the first meeting held by the officer after receiving the notice of strike or lock-out (Section 60(1)). It ends when a memorandum of settlement is signed, when the officer records failure of conciliation, or when a reference is made to a National Industrial Tribunal during the conciliation.

Voluntary arbitration (Section 42) is the second route. The employer and the workers must agree in writing to refer the dispute to an arbitrator. The Arbitration and Conciliation Act, 1996 does not apply to these arbitrations. The arbitrator investigates and submits a signed award to the appropriate Government.

Adjudication is the third route. A Tribunal decides the dispute, and the National Industrial Tribunal handles disputes of national importance or those affecting establishments in more than one State (Sections 46 and 54). Tribunal and conciliation powers are in Section 49.

Section 57 then says who is bound. This is a favourite exam point, because the answer differs for a private settlement, an arbitration award and a conciliation settlement or tribunal award.

Key rules to remember

Procedure of the authorities (Section 49(1)): Arbitrator / conciliation officer / Tribunal / NIT follow the procedure they deem fit, subject to the Code and rules; They are not bound by a fixed procedure, but the Code and rules still apply.
Civil court powers (Section 49(3)): Conciliation officer, Tribunal and NIT: (a) enforce attendance and examine on oath; (b) compel production of documents and material objects; (c) issue commissions for examination of witnesses; (d) other prescribed matters; These are the powers of a civil court under the Code of Civil Procedure, 1908 when trying a suit.
Conciliation officer's own powers (Section 49(2) and (4)): Enter establishment premises after reasonable notice; enforce attendance; call for and inspect relevant documents; Entry is for inquiry into an existing or apprehended dispute. The officer may also inspect documents to verify implementation of an award.
Voluntary arbitration (Section 42): Written agreement by employer and workers → arbitrator(s) named → copy to appropriate Government and conciliation officer → signed award to Government; If the agreement names an even number of arbitrators, it must provide for an umpire. The umpire's award prevails if they are equally divided.
National Industrial Tribunal (Section 46): 2 members: 1 Judicial Member (is or has been a High Court Judge) + 1 Administrative Member (is or has been Secretary to Government of India or equivalent rank, with labour experience); Judicial Member presides; Constituted by the Central Government by notification.
NIT reference (Section 54): Central Government refers disputes of national importance or involving establishments in more than one State; The NIT must hold proceedings expeditiously and submit its award within the period specified in the order, or any extended period.
Who is bound (Section 57): Private settlement: parties to it. Arbitration award: parties who referred. Conciliation settlement / arbitration / Tribunal or NIT award (enforceable): all parties, parties summoned, successors, and all present and future workers; The award must have become enforceable. Summoned parties are excluded if the authority records that they were summoned without proper cause.
Commencement and conclusion before arbitrator or Tribunal (Section 60(3)): Starts on date of filing application or appeal, or date of reference; ends when the award becomes enforceable; Different from conciliation, which starts at the first meeting.

How to solve Machinery for Dispute Resolution questions

Use this method for any question on dispute machinery, whether it is theory, a short note or a case study.

1Identify the stage: conciliation, arbitration or adjudication by a Tribunal or the National Industrial Tribunal.
2Name the authority and its basis in the Code, such as Section 42 for arbitration, Section 46 or 54 for the NIT, Section 49 for powers.
3State the rule exactly: composition, trigger, procedure or powers, depending on what is asked.
4Apply it to the facts. Check the key condition, such as a written agreement, a dispute spanning more than one State, or an enforceable award.
5If binding effect is asked, use Section 57 and decide which clause applies to the person in the question.
6Check timing points, such as when proceedings begin or end under Section 60.
7Close with a clear conclusion in one sentence.

Quickest way: Forum-first shortcut

When to use it: Use this when you have little time and the question asks which forum applies or who is bound.

Ask: is there a written agreement to arbitrate? If yes, it is Section 42 arbitration.
Ask: does the dispute involve national importance or establishments in more than one State? If yes, it is the NIT.
Otherwise think of conciliation first and then a Tribunal.
For binding effect, ask whether the settlement came through conciliation or a private agreement. Conciliation is wider.
Write the section number and a one-line conclusion.

Common mistakes in Machinery for Dispute Resolution

Saying arbitration under the Code is governed by the Arbitration and Conciliation Act, 1996.
Students link the word arbitration with the general arbitration law.
Fix: Remember Section 42(8): nothing in the 1996 Act applies to arbitrations under that section.
Treating all awards and settlements as binding on everyone.
Section 57 has several sub-sections and students merge them.
Fix: Separate three cases: a private settlement binds only its parties, an arbitration award binds those who referred the dispute, and a conciliation settlement or Tribunal or NIT award binds the wider group in Section 57(3).
Writing that the NIT has three members or is presided over by the Administrative Member.
Confusion with other multi-member bodies.
Fix: The NIT has two members, one Judicial and one Administrative. The Judicial Member presides (Section 46).
Saying a conciliation officer has no civil court powers.
Students assume only Tribunals have such powers.
Fix: Section 49(3) and (4) give a conciliation officer civil court powers on attendance, examination on oath and production of documents.
Mixing up when proceedings begin.
Both conciliation and Tribunal proceedings are covered in Section 60.
Fix: Conciliation starts at the first meeting after notice of strike or lock-out. Arbitration or Tribunal proceedings start on filing or reference and end when the award becomes enforceable.
Using the Indian Penal Code or Code of Criminal Procedure as the current law.
Section 49 still carries old references in the text.
Fix: Quote the Code's wording only when asked about the deeming provisions, and use the Bharatiya Nyaya Sanhita and BNSS for current criminal law elsewhere.

Worked examples

Example 1

Sundaram Textiles Ltd, with plants in Tamil Nadu and Gujarat, has a dispute with its workers over a wage structure that affects both plants. Which authority can the Central Government use to adjudicate it, and how is that body constituted?

Show the solution

Provision: Section 54(1) lets the Central Government refer to a National Industrial Tribunal a dispute of national importance or one affecting establishments in more than one State.
Facts: the dispute affects plants in two States, so the condition is met.
Constitution under Section 46: the Central Government constitutes it by notification. It has two members, a Judicial Member and an Administrative Member.
The Judicial Member is or has been a High Court Judge and presides. The Administrative Member is or has been Secretary to the Government of India or holds an equivalent rank, with labour experience.
Under Section 54(2), the NIT must proceed expeditiously and submit its award within the period in the reference order or any extended period.

Answer: The Central Government can refer the dispute to the National Industrial Tribunal. It has two members, a Judicial Member who presides and an Administrative Member, and it must submit its award within the specified period.

Example 2

Bharat Steels Ltd and its workers' union signed a written agreement to refer a pay dispute to two arbitrators. Advise on what the agreement must contain, how the award is made, and whether the Arbitration and Conciliation Act, 1996 applies.

Show the solution

Provision: Section 42 governs voluntary arbitration. The employer and workers must agree in writing.
Even number: the agreement refers to two arbitrators, so it must provide for an umpire (Section 42(2)). The umpire acts if the arbitrators are equally divided, and the umpire's award prevails.
Form and copies: the agreement must be in the prescribed form and signed as prescribed. A copy goes to the appropriate Government and the conciliation officer.
Award: the arbitrators investigate and submit to the appropriate Government an award signed by all arbitrators (Section 42(6)).
Act of 1996: Section 42(8) says nothing in it applies to arbitrations under this section.

Answer: The agreement must name an umpire, follow the prescribed form, and be copied to the Government and the conciliation officer. The arbitrators submit a signed award to the Government. The Arbitration and Conciliation Act, 1996 does not apply.

Exam tips

Learn the composition of the National Industrial Tribunal as a short list: two members, qualifications, who presides.
Prepare a three-line comparison of conciliation, arbitration and adjudication. Examiners often ask for the difference.
Memorise the three tiers of Section 57, since binding effect is a common short-note topic.
Quote section numbers only for the ones you are sure of: 42, 46, 49, 54, 57 and 60.
In case studies, end with a clear conclusion that names the forum and its effect.

Practice questions from The Industrial Relations Code, 2020

Machinery for Dispute Resolution in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ProfessionalIndustrial Dispute Resolution: Conciliation, Tribunals and Arbitration

Machinery for Dispute Resolution: frequently asked questions

What is the difference between conciliation and arbitration under the Industrial Relations Code, 2020?

In conciliation, a conciliation officer helps the parties reach a settlement and may use civil court powers to get attendance and documents. Arbitration needs a written agreement of employer and workers, and the arbitrator gives an award. The Arbitration and Conciliation Act, 1996 does not apply to arbitration under Section 42.

Who sits on the National Industrial Tribunal?

It has two members appointed by the Central Government: a Judicial Member who is or has been a High Court Judge, and an Administrative Member who is or has been Secretary to the Government of India or of equivalent rank. The Judicial Member presides (Section 46).

What powers does a Tribunal have?

Under Section 49, a Tribunal has civil court powers for enforcing attendance, examining on oath, compelling production of documents and issuing commissions. It can award costs and its awards are executed like civil court decrees.

Who is bound by a settlement or award?

It depends on the route. A private settlement binds its parties. An arbitration award binds the parties who referred the dispute. A conciliation settlement or an enforceable Tribunal or NIT award binds all parties, summoned parties, successors and present and future workers of the establishment (Section 57).