Section 209 to 212 of the Labour Code, 2006 provides provisions regarding settlement of disputes by ADR.

Procedure to resolve Labor related disputes under ADR:

In labour Code there are 3 procedure by which a dispute can be settled through ADR which are:

(i)                 Negotiation

(ii)              Conciliation and

(iii)               Arbitration

This procedures are briefly discussed below:

(i)                  Negotiation: Sub Section (1), (2), (3), (4) of Section 210 provides the procedure of negotiation. If a dispute is likely between an employer and an employee, the employer or the CBA (Collective Bargaining Agent) shall communicate the same in writing to the other party. Within ten days the parties will try to resolve the matter by way of negotiation. If a settlement reached, a memorandum shall be recorded accordingly Section 210 (1), (2), (3) . Under sub-section 210(4) 30 days time is allowed to complete negotiation.

(ii)                Conciliation: Failing a negotiation under sub-section 210(1) and (2), any party  may report to the conciliator that the negotiation have failed and  request the conciliator in writing to conciliate the dispute and conciliator shall, on receipt of such request, proceed to conciliate in the dispute. Under section 210(6) the conciliator has ten days time for conciliation.

(iii)               Arbitration: If conciliation fails the conciliator shall try to persuade the parties to agree to refer to the dispute to an Arbitrator. In case the parties agree, they shall make a joint request in writing for reference of the dispute to an Arbitrator agreed upon by them. The arbitrator shall give his award within thirty days from the date on which the dispute is referred to him or within such period as may be agreed upon by the parties. The award of the arbitrator shall be final and no appeal shall lie against it. [section 210 (16)].

If no settlement is arrived by way of conciliation and the parties agree not to refer the dispute to an arbitrator, the conciliator shall within three working days of the failure of the conciliation proceeding, give certificate to the parties to the dispute to the effect that such proceedings have failed section 210(11). Within 15 days from the date of receipt of certificate under sub-section 210(11) the worker may go on strike or the employer may declare lock-out. However, the parties at dispute may, either before or after the commencement of a strike or lockout, make joint application to the Labour Court for adjudication of the matter. Again, if a strike or lock-out lasts for more than 30 days the government may prohibit such strike or lock-out and in that case the government must refer the dispute to the Labour Court.  [Section 211(1), (2) ,(3)].