In force · As amended up to 2026-08
18. Persons on whom settlements and awards are binding.-2*[(1) A
settlement arrived at by agreement between the employer and workman
otherwise than in the course of conciliation proceeding shall be binding
on the parties to the agreement.
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(2) 3*[Subject to the provisions of sub-section (3), an arbitration
award] which has become enforceable shall be binding on the parties to the
agreement who referred the dispute to arbitration.]
4*[(3)] A settlement arrived at in the course of conciliation
proceedings under this Act 5*[or an arbitration award in a case where a
notification has been issued under sub-section (3A) of section 10A] or 6*[an
award 7*[of a Labour Court, Tribunal or National Tribunal] which has become
enforceable] shall be binding on--
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(a) all parties to the industrial dispute;
(b) all other parties summoned to appear in the proceedings as
parties to the dispute, unless the Board,
5*[arbitrator,] 8*[Labour Court, Tribunal or National
Tribunal], as the case may be, records the opinion that they
were so summoned without proper cause;
(c) where a party referred to in clause (a) or clause (b) is an
employer, his heirs, successors or assigns in
respect of the establishment to which the dispute
relates;
(d) where a party referred to in clause (a) or clause (b) is
composed of workmen, all persons who were employed in the
establishment or part of the establishment, as the case may
be, to which the dispute relates on the date of the dispute
and all persons who subsequently become employed in that
establishment or part.
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1. Ins. by Act 46 of 1982, s. 11 (w.e.f. 21-8-1984).
2. Ins. by Act 36 of 1956, s. 13 (w.e.f. 7-10-1956).
3. Subs. by Act 36 of 1964, s. 9, for "An arbitration award" (w.e.f.
19-12-1964).
4. S. 18 renumbered as sub-section (3) of that section by Act 36 of
1956, s. 13 (w.e.f. 7-10-1956).
5. Ins. by Act 36 of 1964, s. 9 (w.e.f. 19-12-1964).
6. Subs. by Act 48 of 1950, s. 34 and Sch., for "an award which is
declared by the appropriate Government to be binding under sub-
section (2) of section 15".
7. Ins. by Act 36 of 1956, s. 13 (w.e.f. 10-3-1957).
8. Subs. by s. 13, ibid., for "or Tribunal" (w.e.f. 10-3-1957).
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19.Period of operation of settlements and awards.
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Source: India Code