Conciliation is a type of ADR where the settlement is made out of court. There is no involvement of the court in the whole arbitral proceedings. The dispute is settled by a neutral third party, who is the conciliator. The conciliation process is voluntary as it is on the mutual discretion of the parties to choose conciliation as a method of resolving their dispute with the assistance of the conciliator, also the proposal is not binding upon the parties. They are free to follow or not follow the proposal givenby the conciliator. 

Participation by a third party in a industrial dispute between management and its employees in order to bring them together to resolve their differences is termed mediation or conciliation.

★ In 2006, Government of Bangladesh enacted Bangladesh Labour Act 2006 to settle industrial disputes and to promote industrial peace and establish a harmonious and cordial relationship between labour and capital. 

★ Section 33 of The Labour Act 2006 prescribes the procedure for filing of a complaint by a worker. Section 33 was intended by the Parliament to allow the parties to resolve the matter amicably, before filing the dispute to the court. 

Conciliation: if the party receiving communication fails to arrange a meeting within lifteen 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.