Labor Law: Significant Principles In Labor Adjudication

Adjudication is a legal process of resolving a dispute by a third party, who is appointed by the government for this purpose. Usually, it is a judge or an authorized tribunal. The third party thoroughly reviews the circumstances and the evidences to settle the dispute.

The process of adjudication pertaining to industrial disputes was implemented to resolve the issues, thereby causing considerable industrial unrest. Under the provisions of the Industrial Dispute Act, 1947, there is adequate scope for the government to intervene in the process of adjudication pertaining to labor laws. However, the parties are referred for adjudication in case they are not satisfied with the decision awarded by the process of arbitration.

Labor Law: Top 3 Principles in Adjudication

The three most significant principles of adjudication of labor laws are:

Scope of  Reference cannot be Widened by the Tribunals

In a landmark case, Delhi Cloth General Mills Company v. Their Workmen, (1967) 2 LLJ 523 (SC), the disputes arose as to whether the workers are entitled to their wages during the period of lock-out and whether the act of strike or lock-out was justified. The Industrial Tribunal demanded the evidence of strike or lock-out from both the parties. The parties appealed against the matter before the Supreme Court. It was concluded that the tribunal cannot increase its scope and question the root cause on which the dispute was based i.e. the existence of a strike or lock-out. The tribunal was only authorized to review the circumstances leading to strike or lock-out and decide whether it is justified or not.

Confinement to the Matter Referred for Adjudication The adjudication shall be restricted to the matters referred for adjudication. The decision must be based on reasonable and justified material facts pertaining to the case. Evolution of general propositions or inflexible rules that has no relevance to the case must be avoided.

No Delays in Awarding Decision As laid down by the Supreme Court, a tribunal for labor disputes shall not make any delay in awarding a decision regarding a case. As such, delays may cause misery or put at risk the industrial peace. However, arriving at a decision without proper analysis of the facts is worthless.