Labor management relations are a dynamic socioeconomic process. Both parties, namely,
employer and employees, constantly strive to maximize their preferred values by
applying resources to institutions. In their efforts, they are influenced by and influence
others.1 In order to meet this situation, labor law seeks to evolve a rational synthesis
between conflicting claims of the employers and employees. For that purpose, Industrial
Adjudication plays a pivotal role in resolving the claims or industrial disputes. The
word ‘industrial dispute’ means any dispute or difference between employers and
employers, or between employers and workmen, or between workmen and workmen,
which is connected with the employment or non-employment or the terms of employment
or with the conditions of labor, of any person.2 The Industrial Disputes Act, 1947 provides
for the establishment of labor courts or industrial tribunals for adjudication of industrial
disputes in India. At the judicial level, the freedom of contract has been disregarded
and the process of collective bargaining has been substituted by industrial adjudication with the result that the process of settlement of disputes is no longer bilateral. Rather,
it has become multidimensional. The terms of employment are struck in the context of
law. Labor is represented by union as well as by the authority constituted under the
law to bring about a socioeconomic transformation. The adjudicatory authorities, viz.,
Labor Courts, Industrial Tribunals and National Tribunals, as provided under the
Industrial Disputes Act, are specialized Tribunals functioning outside the hierarchy of
ordinary courts and are entrusted with the task of adjudication of industrial disputes.
Although mainly they have to adjudicate upon the disputes that are referred to them
by the appropriate governments, in exceptional cases, the parties may also make
application to these bodies for adjudication of certain claims. The chief objective of the
Industrial Disputes Act is to ensure peaceful settlement of industrial disputes through
the compulsory adjudication method as an alternative to strikes and lockouts, which
are inherent in the process of collective bargaining. Compulsory adjudication may be
considered as the soul of the Industrial Disputes Act.
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