INDUSTRIAL RELATIONS CODE: 2020
Industrial Relations Code is one of the three major bills (Industrial Relations Code, Social Security Code Bill, 2020 and Occupational Safety, Health and Working Conditions Code Bill, 2020) related to labor laws that the government passed on 22rd September, 2020. It is anticipated that Industrial Relations Code, 2020 will unify and amend the laws relating to Trade unions, Conditions of employment in Industrial establishment or undertaking, investigation and settlement of industrial disputes. Therefore, Industrial Relations Code fortify the following central enactments and repeals them:
- Industrial Disputes Act, 1947
- Industrial Employment (Standing Orders) Act, 1946
- Trade Unions Act, 1947
With the Industrial Relations Code, several exemptions have been ruled out in the definition of ‘industry’ as propounded in the Industrial Disputes Act, 1947 like hospitals/dispensaries, khadi/village industries, educational institutions etc. and only institutions that are owned and managed by any charitable organisations that provide domestic services or performs sovereign functions are exempted as per the definition mentioned in the new bill. Adding to this, all the conflicts arising out of discharge, dismissal, retrenchment or termination of workers have been included in the definition of ‘industrial dispute’
Industrial Relations Code sought to update the definition of ’strike’ to bring ‘mass casual leave’ under its jurisdiction. In case more than 50% workmen of an industry take casual leave then it will be treated as a strike.
Moreover, this new code seeks to restrict the rights of workers to strike. Following the new code, a worker cannot go on strike without providing 60 day notice and also not while proceedings are taking place before the National Industrial Tribunal and therefore all the industrial establishments have been brought under the jurisdiction of Industrial Relations Code as under Industrial Disputes Act, this was applicable only to public utility services.
Under the Industrial Disputes Act, 1947, institutions with more than 100 workers required a prior permission of the government to cut back its workers. But the new bill empowers the institutions/establishments with up to 300 workers to cut back their workers without having a prior permission from government to do so.
Under this new code, any person recruited in supervisory role drawing less than Rs. 18,000/month or any amount as notified by the Central Government is defined under the definition of ‘worker’. Whereas, in Industrial Dispute Act, 1947 the limit was Rs. 6500/month. Workers that work on fixed term basis are entitled for all the statutory benefits that are available to a permanent worker and gratuity also if they render service under the contract for a period of one year.
Submitted by
Divyanshu Kaushal
Student Reporter, INBA