The settlement means to arrive at a peaceful decision and it will be in writing as an agreement between the parties regarding the Industrial dispute. Section 2(xxv) defines Settlement as a settlement arrived at in the course of conciliation proceeding and includes an agreement between an employer and his worker arrived at otherwise than in the course of any conciliation proceedings, where such agreement is in writing, has been signed by the parties thereto and a copy thereof has been sent to the director of labor and the conciliator. The industrial dispute settlement procedure is divided into three steps,

(i) Negotiation

(ii) Conciliation

(iii) Arbitration