Industrial Relations Act, 2020: Salient Features
- Saptaparni Raha
- Aug 28, 2022
- 2 min read
Written by Saptaparni Raha, Lawyer
Introduction:
The president of India gave his assent to three labour codes, namely, the Industrial Relations Code, the Occupational Health and Safety Code, and the Code on Social Security, on September 28, 2020. The Industrial Relations Code subsumes and amends the Industrial Dispute Act, the Trade Union Act, and the Industrial Employment Act.
Salient Features:
This code includes journalists and other newspaper employees under section 2(f) of the Miscellaneous Provisions Act, 1955; sales promotion employees mentioned under section 2(d) of the Sales Promotion Employees ( Condition of Service) Act are also included. A worker is a person who is employed in a supervisory capacity drawing less than 18,000 or any amount per month notified by the central government.
As per the multiple state government notifications, fixed-term employment is given a statutory basis as opposed to the current scheme. They are also eligible to receive gratuity on a pro-rata basis if they render service for a period of one year under any contract of employment.
The code applies to such establishments where there are 300 employees, and the appropriate government has the power to exempt any industrial establishment or class thereof for all or any of the provisions of the code.
The code mandates that if in any establishment there is more than one trade union, the status of sole negotiating union would be given to those who have 51% of the employees as their members.
There would be a negotiating council where there is no single union that meets the 51% threshold.
With regards to layoffs and retrenchment, Section-65 applies to industrial establishments that do not come under Chapter X of the Code, which is essentially Chapter VB of the Industrial Disputes Act, 1947. According to this code, it would apply to establishments where there are more than 50 workers employed on average per working day.
If in any establishment there are less than 300 workers, they need to take prior permission from the government for layoff, retrenchment, and closure.
Conclusion:
The National Industrial Tribunal established under this code is the ultimate authority on industrial disputes. The central government is empowered to refer any dispute to it if the government believes that the dispute is a question of national importance.
References:
Ashima Obhan & Bambi Bhalla. (2020). The Industrial relations code, 2020. retrieved from https://www.mondaq.com/india/employee-benefits-compensation/994748/the-industrial-relations-code-2020
Madhu Damodaran & Animay Singh. (2020). The Industrial Relations Code,2020: Analysis. retrieved from https://www.simpliances.in/blog/the-industrial-relations-code-2020-an-analysis/
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