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Paper ID:IJSREM67199

The Role of Labour Law Compliance in Reducing Industrial Disputes and Strengthening Employee–Employer Relations.

Stream/Area:

-

Subject:

-

Paper ID:

IJSREM67199

Volume:

10 |

9 |

Sep 2026

Pages:

1-8

Publication Frequency:

Monthly (12 issues per year)

DOI
Digital Object Identifier
10.55041/IJSREM67199

License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

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Authors

CCS

Chethan C S

Department of Management Studies (MBA),

Visvesvaraya Technological University, Centre for Post Graduate Studies, Muddenahalli, Chikkaballapur, , Karnataka State, India,

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Mentors

DBM

Dr. BINOY MATHEW

Department of Management Studies (MBA),

Visvesvaraya Technological University, Centre for Post Graduate Studies, Muddenahalli, Chikkaballapur, , Karnataka State, India,

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Abstract

Industrial disputes and labour law compliance are critical determinants of effective employee–employer relations and sustainable organizational performance. This study examines the relationship between labour law compliance, industrial disputes, and employee–employer relations through a comprehensive analysis of secondary data obtained from peer-reviewed journals, government publications, policy documents, and reports of national and international organizations. A descriptive and analytical research design was adopted, and the collected literature was examined using qualitative content analysis and thematic analysis. The findings indicate that effective compliance with labour laws promotes workplace fairness, strengthens employee trust, enhances organizational commitment, and significantly reduces the occurrence of industrial disputes. Conversely, inadequate compliance, ineffective grievance redressal mechanisms, poor communication, and unfair employment practices contribute to workplace conflicts and strained industrial relations. The study further highlights the importance of collective bargaining, trade unions, and transparent human resource policies in maintaining industrial harmony and improving organizational productivity. The study concludes that labour law compliance should be viewed as a strategic organizational practice rather than merely a statutory requirement. The findings provide valuable insights for employers, policymakers, and human resource professionals in strengthening industrial relations and fostering sustainable employment relationships.

KEYWORDS

Industrial Disputes; Labour Law Compliance; Employee–Employer Relations; Industrial Relations; Collective Bargaining.

Cite This Article

Chethan C S, Dr. BINOY MATHEW, "The Role of Labour Law Compliance in Reducing Industrial Disputes and Strengthening Employee–Employer Relations.," International Journal of Scientific Research in Engineering and Management, vol. 10, no. 9, pp. 1-8, Sep 2026. https://doi.org/10.55041/IJSREM67199

Full Article/Conclusion

Industrial relations remain a fundamental component of organizational success, as they directly influence workplace harmony, employee satisfaction, and long-term productivity. This study examined the relationship between industrial disputes, labour law compliance, and employee–employer relations through an analysis of secondary data obtained from scholarly publications, government reports, and institutional documents. The review demonstrates that labour law compliance is not merely a legal obligation but a strategic organizational practice that promotes fairness, transparency, and mutual trust within the workplace. Organizations that consistently comply with labour legislation are better positioned to minimize industrial disputes, improve employee morale, and create a positive work environment that supports sustainable growth.  The findings further reveal that industrial disputes are often the result of inadequate implementation of labour laws, ineffective grievance-handling mechanisms, limited employee participation, poor communication, and unfair employment practices. In contrast, organizations that adopt transparent human resource policies, encourage constructive collective bargaining, and maintain effective communication channels are more successful in strengthening employee–employer relationships and resolving workplace conflicts. The study also highlights the significant role of trade unions, management, and regulatory authorities in fostering cooperative industrial relations and ensuring compliance with labour legislation. Overall, this study concludes that effective labour law compliance is a key determinant of industrial peace and organizational sustainability. Strengthening compliance mechanisms, promoting ethical human resource practices, and encouraging collaborative workplace relationships can substantially reduce industrial disputes while enhancing employee commitment and organizational performance. The study contributes to the existing literature by integrating labour law compliance, industrial disputes, and employee–employer relations within a single analytical framework. It also provides valuable insights for policymakers, employers, human resource professionals, and labour administrators seeking to develop legally compliant and employee-centered workplaces. Future research may extend these findings through empirical investigations across different industries and organizational contexts to further validate the relationship between labour law compliance and industrial relations outcomes.

References

Ahsan, A., & Pagés, C. (2009). Are all labor regulations equal? Evidence from Indian manufacturing. Journal of Comparative Economics, 37(1), 62–75. https://doi.org/10.1016/j.jce.2008.09.001 Acharya, V. V., Baghai, R. P., & Subramanian, K. V. (2013). Labor laws and innovation. Journal of Law and Economics, 56(4), 997–1037. https://doi.org/10.1086/674606 Besley, T., & Burgess, R. (2004). Can labor regulation hinder economic performance? Evidence from India. Quarterly Journal of Economics, 119(1), 91–134. https://doi.org/10.1162/003355304772839533 Bhattacharjea, A. (2021). Labour market flexibility in Indian manufacturing: A critical survey of the literature. International Labour Review, 160(2), 197–217. Budd, J. W. (2021). Labor relations: Striking a balance (6th ed.). McGraw-Hill Education. Clibborn, S., & Hanna-Osborne, S. (2023). The employer perspective on wage law non-compliance: State of the field and a framework for new understanding. Industrial Relations: A Journal of Economy and Society, 62(4), 411–438. Dessler, G. (2020). Human resource management (16th ed.). Pearson. Dunlop, J. T. (1993). Industrial relations systems (Rev. ed.). Harvard Business School Press. (Original work published 1958) International Labour Organization. (2022). World employment and social outlook: Trends 2022. International Labour Office. International Labour Organization. (2024). World employment and social outlook: Trends 2024. International Labour Office.

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9/11/2026

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