Year-Long Conciliation Efforts by the CLC (Central), Ministry of Labour & Employment, Lead to Tripartite Settlement Paving the Way for Reinstatement…
A yearlong pending industrial dispute concerning the removal from service and reinstatement of an…
A yearlong pending industrial dispute concerning the removal from service and reinstatement of an employee of Karnataka Grameena Bank, Ballari, has been amicably resolved through sustained conciliation efforts by the Office of the Assistant Labour Commissioner (Central), Hubli, under the Office of the Chief Labour Commissioner (Central), Ministry of Labour & Employment, Government of India. A tripartite Memorandum of Settlement was arrived at on 9th October 2026 between the Management of Karnataka Grameena Bank and Ms. Jangam Reshma during conciliation proceedings conducted by Shri M. Ramanathan, Assistant Labour Commissioner (Central) and Conciliation Officer, Hubli, in accordance with the applicable provisions of the Industrial Relations Code, 2020, and the Industrial Relations (Central) Rules, 2026.
The industrial dispute was raised through the Samadhan Portal of the Ministry of Labour & Employment on 13 September 2025, seeking reinstatement of Ms. Jangam Reshma following her removal from service by the Management of Karnataka Grameena Bank vide order dated 9 December 2024. The matter was subsequently taken up for conciliation by the Office of the Assistant Labour Commissioner (Central), Hubli, leading to a settlement between the parties.
Through sustained conciliation efforts by the Office of the Assistant Labour Commissioner (Central), Hubli, and nine rounds of joint discussions over a period of more than one-year, constructive engagement between the parties led to a favourable outcome for the employee. The Bank's Appellate Authority, following sustained conciliation efforts, modified the original penalty of removal from service to reinstatement, paving the way for the employee to resume employment with the Bank. The employee's reinstatement was ultimately secured through an amicable settlement arrived at through constructive dialogue and effective conciliation. Under the terms of the Memorandum of Settlement, the Management has agreed to take the necessary administrative steps to issue the formal reinstatement and posting order. The employee is required to report for duty within 15 calendar days of receipt of the formal order, in accordance with the terms of the settlement. The employee's livelihood concerns and family circumstances were also considered during the conciliation proceedings, enabling the parties to arrive at a mutually acceptable resolution and providing a pathway for her return to employment in accordance with the agreed terms.
The successful settlement, achieved after more than one year of sustained conciliation efforts and nine rounds of joint discussions, marks a significant outcome in the effective disposal of the industrial dispute.This settlement also highlights the role of the Industrial Relations Code, 2020, and the applicable rules in facilitating the amicable resolution of industrial disputes through a structured conciliation mechanism that serves the interests of both employers and employees. Further,the intervention of the Ministry of Labour & Employment through the Office of the Chief Labour Commissioner (Central) and the Office of the Assistant Labour Commissioner (Central), Hubli, has facilitated the employee's reinstatement pathway and continuity of regular employment with the Bank following her removal from service. This outcome underscores the importance of persistent conciliation, constructive dialogue and timely intervention in safeguarding employees' livelihoods, resolving long-pending industrial disputes and promoting industrial peace and harmonious employer–employee relations.
