Meaning and Concept of Award
An Award is the final determination of an industrial dispute by a Labour Court, Industrial Tribunal, or National Tribunal. The term is defined under Section 2(b) of the Industrial Disputes Act, 1947. An award includes interim or final determinations relating to industrial disputes and outlines the rights and obligations of employers and workmen. The objective of an award is to bring an industrial dispute to a lawful conclusion through adjudication. Awards are binding in nature and aim to promote industrial peace by providing authoritative resolution to disputes. Once pronounced, an award has legal force and must be complied with by the parties concerned.
Procedure and Publication of Award
After adjudication, the award is submitted to the appropriate government, which is required to publish it under Section 17 of the Industrial Disputes Act, 1947. Publication gives the award legal sanctity and public notice. As per Section 17A, an award becomes enforceable on the expiry of thirty days from the date of its publication, unless the government declares otherwise on public grounds. During this period, the government may modify or reject the award in limited circumstances. The procedure ensures transparency and allows governmental oversight before the award becomes enforceable.
Binding Nature and Legal Effect
An award is binding on all parties to the industrial dispute under Section 18 of the Industrial Disputes Act, 1947. In certain cases, awards may also bind successors, heirs, and even future employees. Non-compliance with an award can attract penalties under Section 29 of the Act. Courts have consistently held that awards must be implemented in letter and spirit to maintain industrial discipline. The binding nature of awards ensures certainty and stability in industrial relations and prevents recurrence of disputes over the same issues.
Real-Time Practical Example
A workman is illegally dismissed from service without following due procedure. The dispute is referred to the Labour Court, which after hearing both parties, passes an award directing reinstatement with partial back wages. The award is published by the government and becomes enforceable after thirty days. The employer is legally bound to comply with the award. This example demonstrates how an award resolves disputes and provides enforceable relief under labour law.
Mnemonic to Remember Award
Mnemonic: “F.A.B.E.”
F – Final decision
A – Adjudication result
B – Binding on parties
E – Enforceable after publication
This mnemonic helps recall the key features of an award during examinations.
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