If dispute could not be prevented on voluntary basis and do arise, steps have to be taken for their settlement. Industrial Dispute Act 1947 as amended in 1982 provides several provisions for settling the disputes. Various methods and provision are for resolving disputes.

More important of them are as follows:

1) Arbitration

2) Conciliation

3) Collective Bargaining

4) Code of Discipline

5) Grievance Procedure

6) Adjudication

7) Consultative machinery

1) Arbitration: it is a procedure in which a neutral third party studies the bargaining situation listen to both the parties and gathers information and then make recommendation that are binding the parties. It is effective because established by the parties themselves and the decision is acceptable to them and relatively expeditious when compared to courts or tribunals. Delays are cut down and settlements are speeded up. But it has some weakness also are it is expensive. The expenditure needs to be shared by the labour and the management and judgment become arbitrary if there is a mistake in selecting the arbitrator.

2) Conciliation: It is a process by which representatives of workers and employees are brought together before a third party with a view to persuading them to arrive at an agreement by mutual discussion between them. The third party may be one individual or a group of people. The alternative name for the third party is mediators. The conciliation officer can be appointed by the central and state government to mediate in all disputes brought to his notice. The officer enjoys the power of civil courts. He can call and witness disputing parties on oath and interpret the facts of the case. He is expected to give judgment within 14 days of the commencement of the conciliation proceedings. His judgment is binding on all the parties to the disputes. When the conciliation officer fails to resolve the disputes between the parties, the government can appoint a Board of Conciliation. It is not a permanent Board. It consists of a chairman and two or four other members nominated in equal numbers by the parties to the disputes.

3) Collective Bargaining: it is a process by which employers on the one hand and representative of the employees on the other, attempt to arrive at agreements covering the conditions under which employees will contribute and be compensated for their services. We already discuss on it.

4) Code of Discipline: The code of discipline evolved by the Ministry of Labour and Employment. The code of discipline defines duties and responsibilities of employers and workers. The objectives of promoting constructive co-operation between their representatives at all levels, avoiding stoppage as well as litigation, securing settlement of grievance by mutual negotiation, conciliation and voluntary arbitration, facilitating the growth of trade union and eliminating all forms of coercion and violence of Industrial Relation.

5) Grievance Procedures: A grievance may be understood as an employee’s dissatisfaction or feeling of personal injustice relating to his or her employment relationship. There are some condition which may give rise to a grievance are like a violation of law, a violation of the intent of the parties as stipulated during contract negotiation , a violation of company rules, a change in working conditions or past company practices and a violation of health and /or safety standards.

It is resolved by set procedure :

• How the grievance will be imitated? 
• The number of steps in the process. 
• Who will represent each party? 
• The specified number of working days within which the grievance must be taken on the next step in the hearing.

6) Adjudication: it is means a mandatory settlement of an industrial dispute by a labour court or a tribunal. Whenever an industrial dispute remains unresolved by the conciliation officer and the board of conciliation, the matter is referred in a court of inquiry. A court of inquiry may consist of one independent person or such numbers of independent persons as the appropriate government may think fit and submit its report to the government within six months from the date of the commencement of the inquiry. If settlement is not arrived at by the efforts of the above machinery, three types of semi-judicial bodies are formed i.e. labour court, industrial tribunals and national tribunals. 

• Labour Court shall consist of one person only to be appointed by the appropriate government. Labor court for adjudication of industrial disputes relating to disputed orders of the employers. e.g. dismissal, discharge and suspensions of employees, application and interpretation of standing orders, withdrawl of any concession or privilege, legality or otherwise of any strike or lockout etc. 
• Industrial Tribunals: the tribunals will consist of one person of the rank of a high court judge by state government. This tribunals solve out the disputes relating to wages, hour of work and rest, intervals, leave with pay, holidays, compensatory and other allowances, bonus, profit sharing, provident fund, retrenchment, gratuity and etc. 
• National Tribunal: National Tribunals are set up by the Central Government for the adjudication of the industrial disputes which involves the question of national importance or which affect industrial establishment situated in more than one state. It gives decisions on matters referred to it by the Central Government which matter is referred to the national tribunal by the central government, the labour courts and industrial tribunals are barred from entertaining such disputes and if any such dispute is before labour court or tribunals. Shall be deemed to be quashed.

7) Consultative Machinery: It is set by the government to resolve disputes. The main function of this machinery is to bring the parties together for mutual settlement of differences in a spirit of co-operation and goodwill. Consultative machinery operates at the plant, industry, state and the national level. At the plant level, there are works committees and joint management councils being bipartite in character and at the industry level there are wage boards and industrial committees.