7 Most Important Difference between Settlement and Award are listed below:
Settlement:
1. Sec. 2 (p) defines “Settlement”.
2. A settlement is arrived as a result of conciliation.
3. It resembles a “Gentlemen-Agreement”.
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4. Both the parties come to a conclusion by mutual agreement, and sign on the Settlement Agreement.
5. The Conciliation Officer settles the disputes between the parties in an amicable manner
6. Both the parties must sign on settlement.
7. A settlement would become an Award.
Award:
1. Sec. 2 (a) defines “Award”
2. An Award is a decision of the Arbitrator, Labour Court or Industrial Tribunal.
3. It resembles the Judgment of a Court.
4. It is passed by Arbitrator, Labour Court or Industrial Tribunal. Its decision may be positive on one side and negative on another side. There is no mutual consent between the parties. However, the Award consists binding force upon the parties
5. The Arbitrator, Labour Court or Industrial Tribunal resolves the problem hearing the arguments from both sides.
6. The parties need not sign.
7. An Award would not become a Settlement. A Settlement may precede the Award.