Paper-401 Unit-1 Industrial Relation Code 2020 - Definitions
Industrial Relation Code 2020
Applicability
An Act to consolidate and amend the laws relating to
Trade Unions, conditions of employment in industrial
establishment or undertaking, investigation and
settlement of industrial disputes and for matters
connected therewith or incidental thereto.
Features
1. The Industrial Relation Code, 2020(in short IR Code)
received the assent of president on 28th September,
2020.
2. The date from which this code would be enforced,
has not been notified so far. The code will become
law of the land from the date it is notified for its
enforcement.
3. In this code, 3 enactments have been subsumed
namely:
(i) Trade Union Act;
(ii) Industrial Employment Standing Order Act,
(iii) Industrial Disputes Act, 1947.
4. Introduces the term Industrial Relations with the
intent to provide a broader framework for protecting
DR. M. K. RAVI, Advocate, Supreme Court Page 1
Paper-401 Unit-1 Industrial Relation Code 2020 - Definitions
the rights of workers, minimize frictions between the
employers and workers, redress and settle the
differences.
5. Provides for Fixed Term Employment enabling
such employees to receive the statutory benefits
such as ESI, PF, Bonus, Wages, including Gratuity like
that of a permanent worker other than the notice
period after the conclusion of a fixed period, and
retrenchment compensation.
6. Re-defines the term Industry as any systematic
activity carried on by co-operation between the
employer and worker (includes direct employment,
through agency and contractor), for production,
supply, or distribution of goods or services with a
view to satisfying human wants or wishes (except
wishes / wants of mere religious/spiritual nature)
whether or not: (i) any capital has been invested for
the purpose of carrying out such activity; or (ii)such
activity is carried on with a motive to make a profit or
gain. However, institutions owned or managed by
organizations wholly or substantially engaged in
charitable, social, or philanthropic services, the
activity of appropriate government constituting
sovereign functions, domestic services do not fall
under this definition.
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Paper-401 Unit-1 Industrial Relation Code 2020 - Definitions
7. Included the term Strike the concerted casual leave
by 51% or more workers employed in an industry and
the mandatory notice of 14 days is applicable not
only to public utility services but to all
establishments.
8. Expands the definition of worker which includes
persons getting wages up to Rs.18000.
9. Provides for constitution of a negotiating
union in an industrial establishment having
registered trade unions for negotiating with the
employer.
10. Has increased the threshold of the industrial
establishments from 100 to 300 workers and
mandates all such establishments to
prepare Standing Orders on: (i) classification of
worker, (ii) manner of informing workers about
working hours, holidays, paydays and wage rates, (iii)
suspension for misconduct, (iv) termination of
employment, and (iv) grievance redressal
mechanisms for workers.
11. Has introduced the concept of Re-skilling Fund to
provide training to the retrenched workers.
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Paper-401 Unit-1 Industrial Relation Code 2020 - Definitions
12. Mandates, employer to take prior approval from the
appropriate government in the event of lay-offs,
retrenchment or closure, any mines, factories,
plantations that are: (i) non-seasonal in nature, (ii)
having three hundred or more workmen.
13. Introduced stringent penalty provisions such as
contravention of provisions under lay-off,
retrenchment, closure by the establishment attracts
a fine of Rs. 1 Lakh to 10 Lakhs for the first offense,
and in the case of subsequent repeated offense the
fine shall be of Rs. 5 Lakhs to 20 Lakhs and/or
imprisonment up to 6 months.
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