Conciliation in Bangladesh is a structured dispute resolution process in which a neutral conciliator assists the parties in reaching a mutually acceptable settlement. Governed by Chapter VII (Sections 63-81) of the Arbitration Act 2001, conciliation in Bangladesh is closely related to mediation but involves a more active role for the conciliator, who may propose solutions to the parties. Conciliation settlements under the Arbitration Act 2001 have the same effect as arbitral awards and are enforceable as such.
Legal Framework for Conciliation in Bangladesh
Chapter VII of the Arbitration Act 2001
Chapter VII of the Arbitration Act 2001 (Sections 63-81) provides the comprehensive legal framework for conciliation in Bangladesh. It covers the commencement of conciliation proceedings, the appointment and role of the conciliator, the conduct of proceedings, the settlement agreement, and its enforceability. Section 80 provides that a settlement agreement reached through conciliation has the same effect as an arbitral award on agreed terms and is enforceable as such.
The Labour Act 2006
The Labour Act 2006 establishes conciliation as the first step in resolving collective labour disputes. If conciliation fails, the dispute proceeds to arbitration under the Act.
The Conciliation Process in Bangladesh
Commencement
Conciliation proceedings commence when one party sends a written invitation to the other party to conciliate. If the other party accepts, the proceedings commence. If the other party rejects the invitation, there can be no conciliation.
Appointment of the Conciliator
The parties agree on a sole conciliator or, for complex disputes, a panel of three conciliators. The conciliator must be impartial and independent.
Conduct of Proceedings
The conciliator holds joint and separate sessions with the parties. Unlike a mediator, the conciliator may make proposals for settlement and express views on the merits of the parties’ positions. The proceedings are confidential.
Settlement Agreement
If the conciliation results in a settlement, the parties sign a settlement agreement. Under Section 80 of the Arbitration Act 2001, the settlement agreement has the same effect as an arbitral award on agreed terms and is enforceable as such.
TRW Law Firm: Conciliation Services in Bangladesh
TRW Law Firm provides expert legal advice and representation in conciliation proceedings across Bangladesh. Contact TRW at tahmidurrahman.com or visit tahmidur.com.
Frequently Asked Questions
What is the difference between conciliation and mediation in Bangladesh?
In conciliation, the conciliator plays a more active role — making proposals for settlement and expressing views on the merits. In mediation, the mediator facilitates negotiations without imposing solutions. Both processes are confidential and voluntary.
Is a conciliation settlement enforceable in Bangladesh?
Yes. Under Section 80 of the Arbitration Act 2001, a conciliation settlement has the same effect as an arbitral award on agreed terms and is enforceable as such.
Can I use conciliation for a commercial dispute in Bangladesh?
Yes. Conciliation under Chapter VII of the Arbitration Act 2001 is available for all commercial disputes. It is particularly useful for disputes where the parties want a more active role for the third-party neutral than mediation provides.
Related articles: Alternative Dispute Resolution in Bangladesh | Arbitration Lawyer in Bangladesh | Commercial Arbitration in Bangladesh
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Contact TRW Law Firm
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