Industrial Disputes Act 1947 > Section 5

Section 5 of Industrial Disputes Act 1947: Board of Conciliation

Section 5 empowers the appropriate Government, as occasion arises, to constitute a Board of Conciliation by notification in the Official Gazette for promoting the settlement of an industrial dispute. It also regulates the Board's composition, representation of the parties and its ability to act when members are absent or a vacancy exists.

Section 5 - Boards of Conciliation

What Is a Board of Conciliation?

A Board of Conciliation is one of the authorities provided under Chapter II of the Industrial Disputes Act, 1947. Unlike a permanent adjudicatory forum, Section 5 permits the appropriate Government to constitute a Board as occasion arises for the purpose of promoting settlement of a particular industrial dispute.

Meaning of Appropriate Government and Independent Person

The expression "appropriate Government" is defined in Section 2(a) and determines whether the Central Government or a State Government exercises the relevant statutory power. Section 2(i) explains when a person is regarded as independent for purposes of appointment to a Board, Court or Tribunal under the Act.

Composition of the Board

The Board consists of a chairman and either two or four other members. The chairman must be an independent person. The remaining members represent the parties in equal numbers, preserving balanced representation. A representative is ordinarily appointed on the recommendation of the party represented. If a party does not make its recommendation within the prescribed time, the appropriate Government may itself appoint a person to represent that party.

Quorum, Absence and Vacancies

Section 5(4) permits a Board with the prescribed quorum to act despite the absence of its chairman or another member, or a vacancy in its membership. There is an important exception: if the appropriate Government notifies the Board that the services of the chairman or another member have ceased to be available, the Board cannot act until the replacement chairman or member has been appointed.

Duties of the Board under Section 13

The Board's substantive conciliation duties are dealt with in Section 13. Where an industrial dispute has been referred to a Board under the Act, the Board must endeavour to bring about a settlement. It investigates the dispute and matters affecting its merits and the right settlement of the dispute, and may take appropriate steps to induce the parties to reach a fair and amicable settlement.

If settlement is reached, the Board sends its report together with a memorandum of settlement signed by the parties. If no settlement is reached, it sends a report setting out the proceedings, steps taken, relevant facts and circumstances, findings, reasons, and recommendations for determination of the dispute. Section 13 also prescribes the statutory period for submission of the report, subject to the extensions permitted by that provision.

Board of Conciliation and Conciliation Officer

A conciliation officer under Section 4 is appointed to mediate in and promote settlement of industrial disputes and may have continuing territorial or industry-based jurisdiction. A Board under Section 5 is constituted as occasion arises and has a chairman plus representatives of the parties. Both mechanisms aim at settlement rather than adjudication.

Official Legal Sources

• India Code - Industrial Disputes Act, 1947
• Ministry of Labour and Employment - Industrial Disputes Act, 1947
• Ministry of Labour and Employment - Industrial Disputes Act reference copy

For a specific dispute, also verify the applicable rules, Gazette notification, State amendments and the law in force for the relevant period.