UNDERSTANDING THE INDUSTRIAL RELATIONS CODE, 2020

Kaviya

The Parliament recently passed three labour codes viz. Industrial Relations Code, 2020 ; The Occupational Safety, Health and Working Conditions Code, 2020 and the Code on Social Security, 2020 to simplify the voluminous labour legislations. The new labour codes are expected to have a transformative impact on labour relations in India. These were adopted based on the recommendations of the Second National Commission on Labour (2002).

The Industrial Relations Code, 2020 replaces three existing labour laws viz.

1. The Industrial Disputes Act, 1947

2. The Trade Unions Act, 1926

3. The Industrial Employment (Standing Orders) Act, 1946

Salient Features:

• The code provides for registration and recognition of trade unions.

• In Industrial establishments having trade unions, there shall be a negotiation union for negotiating with the employer.

• The code prohibits unfair labour practices including restricting formation of trade unions, damage to employer’s property, etc.

• Companies employing up to 300 workers will not be required to frame rules of conduct for workmen employed in industrial establishments.

• The Central Government shall prepare model standing orders for classification of workers, termination of employment, etc., based on which all industrial establishments with at least 300 workers shall prepare standing orders.

• In case of lay-off, non-seasonal industrial establishments with 50 to 300 workers must pay 50% of basic wages and dearness allowance.

• Workers in factories will have to give a notice at least 14 days in advance to employers if they want to go on strike.

• Every industrial establishment employing 20 or more workers will have one or more Grievance Redressal Committees

• Employers and workers may opt for voluntary arbitration of industrial disputes through a written agreement. Government may appoint officers to mediate and promote settlement of industrial disputes.