Conciliation is the process of intervention in collective bargaining by a neutral third party knowledgeable in effective negotiation procedures. This third party is called a “Conciliator.” This person helps employers and trade unions reach a collective agreement, but has no authority to make decisions.

Conciliation is a voluntary process in which a professional facilitator assists employers and employees to resolve disputes when their own unassisted efforts have not succeeded. The process can be described as a facilitated search for agreement between disputing parties.

If the party receiving communication fails to arrange a meeting within fifteen days or if the parties fail to do a settlement through negotiation within one month from the date of the first meeting for negotiation, any of the parties can apply to the conciliator within fifteen days from the expiry of the said fifteen days. The conciliator shall proceed to conciliate the dispute within ten days from the receipt of such dispute. The conciliator shall be such a person who is appointed by the government by notification in the official gazette for a specific area or any industrial establishment. The conciliator shall call a meeting of the parties to the dispute for the purpose of bringing about a settlement. If the parties reach a settlement, it shall be recorded in writing and signed by both the parties and a copy shall be forwarded by the conciliator to the government.

If the conciliator fails to settle the matter within thirty days from the date of the receipt of the dispute, it shall be deemed that the conciliation proceeding fails. If the conciliation proceeding fails, the conciliator shall try to persuade the parties to refer the dispute to the arbitrator. If the parties do not agree to refer the dispute to the arbitrator, the conciliator shall issue a certificate to the parties within three days that the proceedings have failed.