The Industrial Arbitration Panel (IAP) was established by the Trade Disputes Act of 1976. It is a court of original jurisdiction in Trade Dispute matters. The IAP used to be an adhoc body established to make provisions for the settlement of trade dispute. In 1969, its adhoc status ceased with the promulgation of Decree N0. 53 – Trade Disputes (Emergency Provisions) (Amendment) (N0.2) which established the Industrial Arbitration Tribunal (IAT) as a standing body. As a result of the Law, the IAT became an establishment with duties of adjudicating trade disputes in both public and private sectors of the economy. Its present nomenclature of Industrial Arbitrations Panel was introduced in the Trade Disputes Act of 1976.

The Panel is constituted of a Chairman, vice Chairman, and at least ten members appointed by the Minister of Labour and Productivity. Out of the ten members, two shall be persons nominated by organizations representing the interests of employers and another two from organizations representing the interests of workers.