INDIA Law and Practice Contributed by: Anshul Prakash, Kruthi N Murthy and Deeksha Malik, Khaitan & Co
9.3 Costs While the relevant judicial authority may, at its discre - tion and depending upon the facts and circumstances of the case, award attorneys’ fees to the prevailing employee, there is no statutory entitlement/right in this regard.
The common law principles of class action suits or representative litigation are found in the ID Act, which permits and facilitates collective bargaining by employees/workers (whether through a trade/labour union or otherwise). 9.2 Alternative Dispute Resolution Disputes between employers and employees may be subject to arbitration. In fact, the ID Act provides that the employer and non-managerial employees may agree to refer industrial disputes to arbitration (as per the procedure prescribed under the ID Act) before approaching the labour courts. The parties may agree to refer disputes arising between employers and managerial employees to arbitration in accordance with the Arbitration and Conciliation Act 1996, provided that the agreement containing the arbitration clause is adequately stamped. However, subjecting employee disputes to arbitration proceed - ings in India is uncommon given the personal nature of the contract as opposed to commercial agreements, and as the costs involved in arbitration proceedings mostly tend to exceed the litigation costs in employee disputes in India. Accordingly, arbitration clauses are typically not included in employment agreements in the ordinary course and are largely restricted to key executive and founders agreements.
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