A memorandum of settlement of industrial dispute between employer and employee refers to an agreement laying down the terms and conditions based on which an industrial dispute is settled between them. The agreement is binding once it’s brought down in writing and is signed by all the parties.
A memorandum of settlement acts as a proof that the industrial dispute has been settled between the employer and employee. It makes sure that all the terms and conditions are followed by the parties once the settlement has been put in force as the same records all the terms and conditions and is binding on the parties once it is signed by them.
A memorandum of settlement must include the name of the parties entering into the agreement. It should also include the terms and conditions being settled between the parties. Any compensation in case a breach of any terms occur. The way of resolving disputes in case a dispute related to the settlement arises in future. Signature of the parties entering into the settlement and the witnesses.
DRAFT OF FORM FOR MEMORANDUM OF SETTLEMENT OF INDUSTRIAL DUSPUTE BETWEEN EMPLOYERS AND EMPLOYEES
Names of Parties
Short Recital of the Case
Terms of settlement
Signature of the parties
Board of Conciliation
1. Assistant Labour Commissioner (Central) . [Here enter the office address of the Assistant Labour Commissioner (Central) in the local area concerned].
2. Regional Labour Commissioner (Central) .
3. Chief Labour Commissioner (Central), New Delhi.
4. The Secretary to the Government of India, Ministry of Labour, New Delhi.
In case of settlements effected by ………………..
Board of Conciliation
In case where settlements are arrived at between the employer and his workmen otherwise than in the course of conciliation proceeding.
No specific documents are required in order to draft and execute a memorandum of settlement of industrial dispute between employer and employee. However, ID proofs of the parties in order to confirm the names and permanent addresses must be scrutinized. Documents evidencing fulfillment of any condition being the basis of the settlement between the employer and the employee must also be scrutinized.
There is no specific procedure applicable in the making of the memorandum of settlement. However, it is always recommended to consult a lawyer before drafting a memorandum of settlement with all the necessary details as stated above. Once the memorandum is drafted it should be thoroughly analyzed by the parties and should be executed as per the guidance received from the lawyer. The rules related to registration of the memorandum must also be followed while executing, as may be applicable as per the prevalent law.
A memorandum of settlement is a legal document that includes clauses stating the terms and conditions between the parties. It needs to be printed on a judicial / e-stamp paper of the correct value and signed by both parties. The agreement is required to be registered after stamping with proper value, as per State laws.
While drafting agreements, it is important to know as to what terminology should be used while drafting the same as a small ambiguity in the terms can also jeopardize the claim of the parties. This is why it is crucial to have a documentation lawyer to assist you in drafting an agreement. Being an expert in the area of documentation law, a documentation lawyer knows the nitty-gritty of the legal procedures and the requirements involved in drafting an agreement. With the experience attained in the field, he/she can guide you with the right advice while entering into an agreement and can make sure that such mistakes are eliminated that cannot be resolved even through further legal procedures.