Section 12 of the Industrial Disputes Act 1947 - Duties of Conciliation Officers
Section 12 sets out the statutory duties of a conciliation officer when an industrial dispute exists or is apprehended. It governs the commencement and conduct of conciliation proceedings, efforts to secure a fair and amicable settlement, settlement and failure reports, possible reference for adjudication and the time for submitting the report.
- A conciliation officer may hold proceedings where an industrial dispute exists or is apprehended.
- Conciliation is mandatory where the dispute concerns a public utility service and a notice under Section 22 has been given.
- The officer must investigate the dispute without delay and try to bring about a fair and amicable settlement.
- If settlement is reached, a report and signed memorandum of settlement are sent to the appropriate Government or authorised officer.
- If settlement fails, the officer sends a full failure report stating the steps taken, relevant facts and reasons for failure.
- The appropriate Government considers the failure report and may refer the dispute for adjudication.
- If the Government does not make a reference, it must record and communicate its reasons to the parties concerned.
- The Central provision requires the Section 12 report within fourteen days, subject to the statutory mechanism for a shorter period or agreed extension.
Section 12(1) - When conciliation proceedings are held
What is a public utility service?
Section 2(n) defines public utility service. It includes specified services and industries such as railway service and certain transport, postal, telegraph or telephone services, industries supplying power, light or water to the public, public conservancy or sanitation systems, and industries specified in the First Schedule which the appropriate Government may declare to be public utility services in accordance with the Act.
Section 22 notice and its relevance to Section 12
Section 22 imposes special restrictions on strikes and lock-outs in public utility services. Where the statutory notice contemplated by Section 22 has been given and the dispute relates to a public utility service, Section 12(1) makes the holding of conciliation proceedings mandatory.
Section 12(2) - Duty to investigate and promote settlement
The conciliation officer must, without delay, investigate the dispute and all matters affecting its merits and the right settlement of the dispute. The officer may take such steps as considered fit to induce the parties to reach a fair and amicable settlement. Conciliation is therefore directed toward settlement between the parties rather than adjudication of the dispute by the conciliation officer.
Section 12(3) - When a settlement is reached
If a settlement of the dispute, or of any matter in dispute, is reached during conciliation, the conciliation officer must send a report to the appropriate Government or an officer authorised by it, together with a memorandum of settlement signed by the parties to the dispute.
Meaning of settlement
Section 2(p) defines settlement to include a settlement arrived at in the course of conciliation proceedings and also a written agreement between employer and workmen arrived at otherwise than in conciliation where the statutory requirements concerning signing and forwarding copies are satisfied. A settlement reached in conciliation has the binding effect prescribed by Section 18.
Section 12(4) - Failure report when no settlement is reached
If no settlement is reached, the conciliation officer must, as soon as practicable after closing the investigation, send a full report to the appropriate Government. The report must set out the steps taken to ascertain the facts and circumstances and to bring about settlement, a full statement of those facts and circumstances, and the reasons why, in the officer's opinion, settlement could not be achieved.
Section 12(5) - Government consideration and reference
After considering the failure report under Section 12(4), if the appropriate Government is satisfied that there is a case for reference to a Board, Labour Court, Tribunal or National Tribunal, it may make the reference. If it decides not to make a reference, it must record and communicate its reasons to the parties concerned. Section 10 contains the principal statutory provisions governing reference of industrial disputes.
Section 12(6) - Time for the report
Under the Central provision, a report under Section 12 must be submitted within fourteen days from commencement of the conciliation proceedings or within a shorter period fixed by the appropriate Government. The proviso permits extension, subject to approval of the conciliation officer, for a period agreed in writing by all parties to the dispute.
Who is a Conciliation Officer?
Section 4 empowers the appropriate Government to appoint, by notification in the Official Gazette, such number of persons as it thinks fit to be conciliation officers charged with the duty of mediating in and promoting settlement of industrial disputes. A conciliation officer may be appointed for a specified area, specified industries in a specified area, or one or more specified industries, permanently or for a limited period.
Meaning of industrial dispute
Section 2(k) defines industrial dispute as a dispute or difference between employers and employers, employers and workmen, or workmen and workmen, connected with employment or non-employment, terms of employment or conditions of labour of any person. Section 2A separately deems qualifying disputes connected with an individual workman's discharge, dismissal, retrenchment or termination to be industrial disputes.
Meaning of appropriate Government
Section 2(a) identifies the appropriate Government for different categories of industrial disputes. Depending on the industry, establishment and statutory category, it may be the Central Government or the State Government. This is important under Section 12 because settlement and failure reports are sent to the appropriate Government, and the reference decision under Section 12(5) is made by that Government.
Conciliation officer's procedural powers
Section 11 supplements Section 12. Among other matters, it permits a conciliation officer, for statutory purposes, to enforce attendance and call for and inspect relevant documents, with the specified powers of a Civil Court under the Code of Civil Procedure, 1908. These powers support the investigation and settlement functions performed under Section 12.
State amendment - West Bengal
The source page records West Bengal Act 57 of 1980 amending Section 12(6) in its State application. It substitutes a requirement linked to completion of conciliation proceedings within sixty days for the Central fourteen-day wording and inserts a six-month ceiling in the proviso concerning the agreed extension. The applicable West Bengal text should be checked where the dispute is governed by that State amendment.
Practical sequence under Section 12
The statutory sequence is generally: existence or apprehension of an industrial dispute; commencement of conciliation where applicable; investigation and efforts to obtain settlement; a settlement report if the parties resolve the dispute or a failure report if they do not; consideration of the failure report by the appropriate Government; and, where the statutory requirements are met and the Government decides to do so, reference for adjudication under the Act.
Official sources
Refer to the Industrial Disputes Act, 1947 on India Code and the Ministry of Labour and Employment Industrial Relations FAQ for official information on conciliation and industrial dispute procedure.
The applicable State amendments, notifications and rules should be checked for the establishment, industry, State and relevant date of the dispute.