Skip to content

CS Professional · Labour Laws and Practice · Law of Industrial Relations

A settlement is reached in conciliation proceedings at Narmada Plastics between the company and its workers on shift allowances. Six months later, new workers join the establishment and the company is sold to a new owner. Under the Industrial Relations Code, 2020, who is bound?

The settlement binds the employer's successors and assigns in respect of the establishment, and all workers employed on the date of the dispute as well as those who later join. A conciliation settlement is not limited to the signatories.

  1. AOnly the workers who signed the settlement
  2. BOnly the employer and the signatory workers, not the successor
  3. CThe employer's successor and assigns, and workers employed on the date of dispute and those who later become employedCorrect
  4. DOnly persons summoned as parties by the officer

Explanation

A settlement in conciliation binds all parties to the dispute, and where a party is an employer, his heirs, successors or assigns in respect of the establishment. Where a party is composed of workers, it binds all persons employed on the date of the dispute and all who subsequently become employed. So the successor owner and the new joiners are bound.

Did you get it right without looking?

One question tells you little. A timed set on Law of Industrial Relations shows your real accuracy, how long you take and where you lose marks.

Practise Law of Industrial RelationsFree diagnostic mock

More Law of Industrial Relations questions