Abstract

• The Settlement of Labour Dispute Law was enacted in 2012 and the labour dispute resolution process becomes prominent among employers and workers because it provides a fair and well structured way to address their grievances. Moreover, it includes exact time limitations to resolve the disputes efficiently within a short period, which can minimize the disruption of the workplace and promote workplace sustainability. The purpose of this research is to explore whether the resolution process is an effective mechanism for the workers or not, to highlight the need of exact provisions regarding the employment contract, to find a solution of reducing labour disputes. This study is based on the analytical review on the Settlement of Labour Dispute Law, 2012 including its amendment law and cases as well as the reports of the Ministry of Labour. The law provides the framework for resolving disputes through negotiation, conciliation, arbitration and legal adjudication. Most of the disputes received by the Arbitration Council are disputes on dismissal. The worker may seek remedy through the arbitration process only when the term of employment contract expired whereas during the term of the employment contract, the worker may seek remedy through legal adjudication or other relevant departments. Since the arbitration process is a process of social justice and the dispute settlement bodies have the right to decide to reinstate the worker under Article 25 of the Settlement of Labour Dispute Rules, 2012, the dispute on dismissal should be settled by the resolution process. It will be more beneficial for the workers if the disputes on dismissal can be resolved by arbitration.