Introduction of Industrial Relations Code, 2020 has subsumed three Central Labor Acts: The Trade Union Act, 1926, The Industrial Employment (Standing Orders) Act, 1946 and The Industrial Dispute Act, 1947. The objective is to have a broader framework for the settlement of an industrial dispute and protect the rights of workers. The provisions in the Code relating to lay-off, closure, retrenchment, industrial dispute, recognition of trade union are retained from the existing laws. 

Code introduces a new concept of Negotiating union/council[1]. States that where an industrial establishment has a single trade union the employer shall recognize it as the sole negotiating union of the workers. Where there are multiple trade unions, the union having 51% membership of the workers on the muster roll of the establishment shall be recognized as the negotiating union. And in case multiple trade unions and none are having 51% membership, the employer shall constitute a negotiating council including representatives of such trade unions, having a minimum of 20% of the total workers.

An establishment having 100 or more workers during the preceding 12 months may be required to form a Work Committee[2] to promote measures for securing sensible relations between the employer and workers. And one or more Grievance Redressal Committee[3] to be constituted where an establishment having more than 20 workers, for dispute resolution arising out of individual grievances. It should have equal representation of employers and workers.

Code provides that an establishment having 300 or more workers any day preceding 12 months shall apply for a standing order[4].

The definition of 'Strike' was modified. On a given day 50 % or more workers are on causal leaves will be considered a strike. No worker can go on strike without giving 14 days prior notice. It will be valid for up to 60 days. Code prohibits going on strike during or up to 7 days after the conciliation proceeding. During or 60 days after the proceeding before tribunal or arbitrator. And in duration which a settlement or an award is in operation. Similar restrictions are imposed for the Lock-out by the employers[5].

Provisions of Lay-off and Retrenchment[6] do not apply to an establishment. That has less than 50 workers per working day or to a seasonal establishment. And workers who have completed one year of service and lay-off. Employers are required to give them 50% of basic wage and dearness allowance. And in the case of being retrenched 15 days wages per year of continuous service. The factories, mines, and plantation where there are more than 300 workers, it must take permission from the appropriate Government before lay-off, retrenchment, and closure.

Code introduces a Re-skilling fund[7] for the workers retrenched. The fund shall consist of the contribution from employers and from other sources as may be prescribed. Code has given the power to the Government to reject or modify Tribunal awards on public grounds of affecting the national economy or social justice. The Code also introduced various new definitions like Fixed Term Employment, Employee, and Workers under definition clause.


Click to read, The Industrial Relations Code, 2020


About the Author: This Law Notes is prepared by Mr. Naveen Toppo, a 5th-year law student at the National University of Study and Research in Law, Ranchi and is an intern at MyLawman. He can be reached at naveennusrl@gmail.com

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[1]Section 14 The Industrial Relations Code, 2020

[2] Section 3 The Industrial Relations Code, 2020

[3] Section 4 The Industrial Relations Code, 2020

[4] Section 28 The Industrial Relations Code, 2020

[5] Section 62 The Industrial Relations Code, 2020

[6] Section 65-82 The Industrial Relations Code, 2020

[7] Section 83 The Industrial Relations Code, 2020