Major Changes in the Industrial Relations Code, 2020

 

Provision

Current laws

IR Code, 2020

Remarks

Coverage

Applicability of the Standing Orders Act is for establishments having 100 or more employees. In some states it has been 50 or even less employees.

 

Applies to an industrial establishment wherein 300 or more workers, are employed, or were employed on any day of the preceding twelve months.

For New establishment it is useful.

It is more helpful to attract more investments

Definition

Sec.2(S)" workman" means any person (including an apprentice) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and for the purposes of any proceeding under this Act in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched in connection with, or as a consequence of, that dispute, or whose dismissal, dischasrge or retrenchment has led to that dispute, but does not include any such person--

(i)                  

(ii)                

(iii) who is employed mainly in a managerial or administrative capacity; or

(iv) who, being employed in a supervisory capacity, draws wages exceeding Rs. 10,000/pm or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.

 

 

 

 

Sec 2 (zr) "Worker" means any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms  of  employment  be express  or implied,  and includes …

and for the purposes of any proceeding under this Code in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched or otherwise terminated in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute, but does not include any such person—

(i)   

(ii)   

(iii)    who is employed mainly in a managerial or administrative capacity; or who is employed in a supervisory capacity drawing wage of exceeding Rs. 18,000 per month or an amount as may be notified by the Central Government from time to time:

Provided that for the purposes of Chapter III (Trade Unions), Worker …  means all persons employed in trade or industry

Any person drawing wages exceeding Rs.18,000 per month in the  supervisory capacity are not workers

Fixed

Term Employment

As per certified standing orders of GPL, we have included the term “Fixed Term Employee” in view of that we are already engaging Retainers / Consultants for fixed term. The relevant provision is reproduced below:

 

IV (G) Fixed Term Employee:

Fixed term employee is a person taken for employment for fixed term of duration, depending upon requirement of the Company. Such employee has no right for regularization of services and not entitled for retrenchment compensation as such

Sec 2 (o): "fixed term employment" means the engagement of a worker on the basis of a written contract of employment for a fixed period:

 

Provided that—

his hours of work, wages, allowances and other benefits shall not be less than that of a permanent worker doing the same work or work of similar nature;

 

he shall be eligible for all statutory benefits available to a permanent worker proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statute; and

he shall be eligible for gratuity if he renders service under the contract for a period of one year;

‘fixed term employment’, which may allow employers the flexibility to hire workers for a fixed duration on need basis and which is not permanent nature.

 

A clause has been added that termination of the service of Fixed term employee before completion of tenure would not amount to retrenchment

Recognition of Negotiating Union

 

No such provision

Sec 14 (2): Wherever there is only one Trade Union of workers registered under the provisions of this Chapter is functioning in an industrial establishment, then, the employer of such industrial establishment shall, subject to such criteria as may be prescribed, recognize such Trade Union as sole negotiating union of the workers.

 

In case of a single trade union in an industrial establishment, the employer shall recognise the said union as the sole negotiating union of the workers

Conciliation Of An Industrial Dispute

 

·       The commencement of conciliation proceedings shall be deemed to hold commenced on the day of 1st meeting.

·       Conciliation proceedings should not prolong for more than 2 years.

 

Dispute will be resolved in the prescribed time limit

Industrial Tribunal and

Labour Court

 

Exist  in current laws

·       Labour Court concept omitted

·       Industrial tribunal will deal all industrial disputes

·       Industrial tribunal will headed by two members out of one is an administrative member and the other is Judiciary member

Structural change 

Prohibition of Strike

 and Lockout

22. Prohibition of strikes and lock-outs.—(1) No person employed in a public utility service shall go on strike in breach of contract—

(a) without giving to the employer notice of strike, as hereinafter provided, within six weeks before striking; or

(b) within fourteen days of giving such notice; or

(c) before the expiry of the date of strike specified in any such notice as aforesaid; or

(d) during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings.

 

Section 62 (1): No person employed in an industrial establishment shall go on strike, in breach of contract—

(a)              without giving to the employer notice of strike, as hereinafter provided, within sixty days before striking; or

(b)            within fourteen days of giving such notice; or

(c)           before the expiry of the date of strike specified in any such notice; or

(d)            during the pendency of any conciliation proceedings before a conciliation officer and seven days after the conclusion of such proceedings; or

(e)          during the pendency of proceedings before a Tribunal or a National Industrial Tribunal and sixty days, after the conclusion of such proceedings; or

(f)         during the pendency of arbitration proceedings before an arbitrator and sixty days after the conclusion of such proceedings, where a notification has been issued under sub-section (5) of section 42; or

·       during any period in which a settlement or award is in operation, in respect of any of the matters covered by the settlement or award.

Prohibits strikes and lock-outs in all industrial establishments without giving notice of 14 days.

 

Concerted Casual Leave amounts to Strike

Did not exist

The concerted casual leave on a given day by fifty per cent or more workers employed in an industry amounts to strike

New rule 

Grievance redressal Committee

The employer in relation to every industrial establishment in which 50 or more workmen are employed or have been employed shall provide for, a Grievance Settlement Authority for settlement of industrial disputes connected with an individual workman employed in the establishment.

Sec 4 (1): Every industrial establishment employing 20 or more workers shall have one or more Grievance Redressal Committees for resolution of disputes arising out of individual grievances.

 Lower threshold

Works Committee

Any industrial establishment where 100 or more workmen employed or have been employed on any day in the preceding twelve months, the appropriate Government may by general or special order require the employer to constitute in the prescribed manner a Works Committee consisting of representatives of employers and workmen engaged in the establishment

Sec 3 (1): In the case of any industrial establishment in which one 100 or more workers are employed or have been employed on any day in the preceding twelve months, the appropriate Government may by issuing general or special order, can advise the employer to constitute a Works Committee,

 

Retrenchment,

Lay-off

and Closure

Permission required for industrial establishments where 100 or more workers are employed

Permission required for industrial establishments where 300 or more workers are employed

 Relaxed norms

Composition of offences

Not there in old laws

Employer can apply to the inspector for compound of offences charged on him.

 New rule


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