Submitted to – Dr Nagesh Sawant

Submitted by- Mohd Humayun Rahman

Labour and Industrial Laws II Assignment 2

Summer term
URN 2018-B-08081999
Industrial Relations Code, 2020

INTRODUCTION
One of the four main labour codes that make up the Central Government's largest reform effort
in decades is the Industrial Relations Code. It includes three main core laws that relate to the
settlement of labour disputes and collective bargaining agreements, namely:
1. The Industrial Disputes Act, 1947
2. The Trade Unions Act, 1926
3. Industrial Employment (Standing Orders) Act, 1946
The aforementioned laws were passed with various goals in mind, but their general area of
interest is the same. The Industrial Dispute Act of was created to give employees a legal defence
against unfair termination, downsizing, and layoffs that violate the text of the law. Additionally,
by reducing the opportunity for unauthorised strikes and lockouts and sanctioning abusive labour
practises, it aimed to promote good labour relations. As a result, it included a system for
resolving disputes and limitations on layoffs, downsizing, and lockouts to make sure that
collective bargaining may happen in a friendly environment.
The Industrial Relations Code, 2020 offers a larger framework to safeguard workers' rights to
form unions and to lessen conflict between the regulations for resolving labour disputes need to
be provided for employers, employees, and other parties.

SCOPE & APPLICABILITY

The Code is intended to streamline and reform the rules governing unions, employment
conditions in industrial establishments, and sleek the resolution of workplace issues. The
following areas are governed by the code:
• Registration of Trade Union
• Cancellation of Trade Union
• Alteration of Name of Trade Union
• Formation of Work Committee
• Incorporation of a Registered Trade Union
• Recognition of Negotiating Union
• Preparation of Standing Order
• Register of Standing Order
• Constitution of Industrial Tribunal
• Illegal Strikes and Lock-outs
• Procedure for Retrenchment and Re-employment
of Retrenched Worker
• Compensation to Workers in case of Transfer of
Establishment
• Prohibition of Lay-off
• Closure of an Industrial Establishment
OBJECTIVE
• The Code, which promotes straightforward labour reforms and makes doing business easier
while protecting the rights of companies and employees.

• The Code's goal is to realise industrial peace and harmony as the ultimate goal in settling labour
disputes and to boost industry development by fostering harmony and a cordial relationship
between employers and employees.

KEY DEFINITIONS
• The term "industry" refers to any organised activity carried out in conjunction with an
employer for the purpose of producing, supplying, or distributing goods and Services aimed at
fulfilling human desires or needs, regardless of whether or not:
1. Any cash has been invested for the purpose of carrying out such an activity.
2. Such an activity is carried out with the intent to make any gain; but does not include:
3. Institutions run or controlled by non-profits that are mostly or entirely dedicated to providing
charitable, social, or philanthropic services
4. Every action taken by the relevant government that relates to its constitutional powers,
including all initiatives taken by the central government's ministries dealing with space
exploration, atomic energy, and defence research.
5. Any other activity as may be notified by the Central Government.
• Employer is defined as a person who hires one or more employees or workers, directly or
indirectly, on their own behalf or on behalf of another person in his establishment, and where the
establishment is operated by any department of the Central Government or the State
Government, the authority designated by the head of that department in this regard, or the head
of the department if no authority is so specified, and with respect to an establishment operated by
a local authority, the chief executive of that authority, and includes:

1. When a person has been designated as a manager of an establishment that is a factory.

2. The manager of the factory.
3. With regard to any other establishment, the owner of ultimate authority over the affairs of that
establishment or, in cases where those affairs are under the control of a manager or managing
director, that manager or managing director; contractors; and the legal representative of a
deceased employer.
• Employee refers to someone hired by an industrial business to perform any skilled, semi-
skilled, or manual labour that is not an apprentice under the Apprentices Act of 1961.
Unskilled, manual, operational, supervisory, managerial, administrative, technical, or clerical
work for hire or reward, whether the terms of employment are express or implied, as well as a
person who has been declared an employee by the relevant government, but excludes any
members of the Union's armed forces.

• Worker refers to any individual, excluding an apprentice, engaged in manual, skilled,

technical, operational, clerical, or supervisory work for hire or reward, whether the terms of
employment are express or implied, and includes working journalists. It also includes any such
person who has been fired, let go, retrenched, or otherwise terminated in connection with or as a
result of that dispute, or whose firing, letting go, or retrenchment has sparked that dispute, but it
excludes any such person:
I. those who are covered by the Air Force Act of 1950, the Army Act of 1950, or the Navy Act of
1957.
II. those who work as police officers or as an officer or other prison employee.
III. who works primarily in a managerial or administrative capacity.
IV. who works in a supervisory capacity and receives a salary that exceeds eighteen thousand
rupees (INR 18,000) per month or any other amount the Central Government may from time to
time notify.
• Any group, whether temporary or long-term, established primarily to control the relationships
between employees and employers, employees and other employees, or employers and
employers, or to impose restrictions on the conduct of any trade or business is referred to as a
trade union. This definition also includes any federation of two or more trade unions.
• Retrenchment is the term used to describe when an employer terminates a worker's
employment for any reason other than to inflict punishment.

Discipline may include, but is not limited to:

I. the worker's voluntary retirement
II. When a worker reaches superannuation age, they must retire.
III. The worker's employment was terminated because the employer's employment contract was
not renewed.
• Standing orders means orders relating to matters set out in the First Schedule.

REGISTRATION OF TRADE UNION

• Any trade union with seven or more members may apply for registration with the Authority in
accordance with the Trade Union Rules by listing their names.
• To qualify for registration, the Trade Union must have at least 10 percent of the workforce, or
100 workers, whichever is fewer, as members on the application date.
• A registered trade union must continue to represent at least 10% of employees, or 100
employees, whichever is fewer.
• The proposed name of the trade union must be changed if it is the same as an already registered
trade union, as requested by the Registrar of Trade Unions.
• A recognised trade union must be an organisation with perpetual succession, a common seal,
and the authority to own property.

CONSTITUTION OF WORK COMMITTEE

Industrial establishments with 100 or more employees during the course of a year may be
required to form a work committee to promote safety measures for securing and maintaining
civil relationships between the employer and employees.

RECOGNITION OF NEGOTIATING TRADE UNION

• A negotiating union or council must exist for a registered trade union to engage in negotiations
with the Industrial Establishment's employer.
• If there is only one trade union representing employees registered in a certain industrial
establishment, the employer of that establishment must recognise that trade union as the only one
authorised to represent employees in negotiations.
• If there are multiple trade unions representing registered employees in an industrial
establishment, the employer will recognise the trade union representing at least 51 percent of
those employees on the muster roll as the sole bargaining union.

GRIEVANCE REDRESSAL COMMITTEE

Any industrial establishment with 20 or more employees must form one or more grievance
redressal committees, each with a maximum of 10 members, to handle individual grievance
cases.

STANDING ORDERS
Any industrial establishment that employs 300 or more people on any given day over the course
of a year is required to create standing orders on the following topics:

• Worker classification
• How to inform employees about their work schedules, vacations, pay periods, and pay rates
• Working on shift
• Attendance
• Holiday and leave policies and procedures
• The need to enter the property through specific gates and the potential for searches.
STRIKES AND LOCK-OUTS
Strikes and lockouts are illegal for anyone working in an industrial establishment and constitute a
breach of contract:
• without providing the employer with 60 days' notice prior to any strikes or lockouts
• fourteen days after providing such notice
• before the strike or lockout date mentioned in any such notification expires
• seven days after the conclusion of any conciliation procedures before a conciliation officer and
while they are still ongoing
• for a period of 60 days following the conclusion of arbitration proceedings before an arbitrator

CHANGE IN THE CONDITIONS OF SERVICE

The affected employees must get notification from the employer of any changes to the following
terms of employment:
• Wages, damages, and other compensation
• Any contribution made or due by the employer to a pension or provident fund or for the benefit
of employees under any currently in effect law
• Work and relaxation periods in hours
• Paid time off and holidays
• the beginning, changing, or termination of a shift that does not follow established orders
• a division based on grades
• the cessation of any accustomed favour, advantage, or change in behaviour
• the addition of new rules or modifications to existing ones, excluding those that are specified in
standing orders;
• Any increase or decrease in the number of people employed or to be employed in any
occupation, process, department, or shift that is not caused by events over which the employer
has no control is likely to result in layoffs. This includes rationalisation, standardisation, or
improvement of plant or technique.
RETRENCHMENT
• Specifies how to lay off employees and hire them back once they've been laid off.
• The employer must provide three months' notice of the layoff or pay the affected employee in
place of the notice period.
• In cases where an employee is laid off and the firm plans to hire someone within a year of the
layoff, the laid-off employee who is an Indian citizen will have the opportunity to apply for
reemployment.

LAY-OFF
A layoff occurs when a company is unable to hire a worker for a variety of reasons, such as a
scarcity of coal, power, or broken gear.
A non-seasonal industrial business (such as a mine, a factory, or a plantation) with 50 to 300
employees is obligated to:
• Give a laid-off employee 50% of their basic earnings and dearness allowance.
• Provide the laid-off employee with one month's notice or pay for the notice period.
• Prior authorisation from the federal or state government is needed before any non-seasonal
industrial firms with at least 300 employees lay off, retrench, or close.
• Non-seasonal industrial establishments with at least 300 employees are required to obtain prior
clearance from the federal or state government before making any layoffs, reductions in force, or
closures.

CLOSURE
• If an employer plans to close an industrial establishment, they must provide the government 60
days' notice.
• A provision for workers who have been employed continuously for at least a year to receive
compensation in the event of closure.

EXEMPTIONS
According to the Code, any new institution or a class of new establishments may be excused
from all or some of the Code's requirements if it is in the public interest.

Critical Analysis
An important piece of legislation in India, the Industrial Relations Code, tries to control how
employers and employees interact in the organised sector of the economy. Numerous topics are
covered, such as collective bargaining, the establishment and recognition of trade unions, and the
resolution of disputes. The Code's provisions are anticipated to have a substantial impact on both
the general operation of the organised sector of the economy and the rights and obligations of
employers and employees. To promote a positive and fruitful climate for industrial relations, it is
crucial for all parties involved to be aware of the Code's requirements and to abide by them.
The Way Forward
India's New Labour Codes mark a significant revision to the nation's labour regulations. India's
businesses are anticipated to gain from the detanglement of labour laws and compliances. The
four labour codes were passed with the intention of harmonising and streamlining the existing
labour laws and improving its applicability and efficacy in the modern economic and social
environment. Organisations must make sure they are in conformity with the new laws once the
codes are put into effect. It will be vital to closely monitor the codes' implementation and make
sure that any problems or difficulties are resolved as soon as they occur. Although it may seem
difficult, your organisation doesn't have to struggle to keep on top of these reforms. HR leaders
in organisations will be required to lead this implementation.
Conclusion
Only when there is harmony and peace in the workplace, and only when there is a union within
the industry, can an industry grow. Any industry or location of employment should have a union.
So that the needs of the country can be addressed and the economy can prosper, an industry must
continue to do its task. The national economy may also be impacted if there is a lack of
coordination or a disagreement between the employers and the employees. As a result, it is
critical that unions exist in every workplace. Effective communication between employees and
management is facilitated by the union. They give employees particular support so they may
speak up on a tiny stage and bring up a problem they are having at work. Additionally, it makes
sure that all employees—men and women—are safe and are not subjected to any unfavourable or
hostile behaviour.
As a conclusion, I believe that having a labour relations code is crucial to protecting the interests
of the employee so that they do not feel mistreated and do not have to worry about the workload
or losing their position to someone else. Although there are rules to safeguard the rights of
workers and employers, labour law has always been significant legislation that has not received
the recognition it deserves for a very long time. As a result, the new 2020 Labour Relations Code
has aided in protecting workers' rights and preserving workplace harmony.