Industrial Relation code 2020

Introduction 

The industrial relation code 2020 is the landmark legislation in India that aims to regulate and promote industrial relations with providing and safeguarding the rights of labors. This was introduced on 28 November, 2019 in the Lok Sabha and passed by it on 22 September, 2020. It received President’s assent on 28 September, 2020 and on 29 September, 2019, and was published in the Gazette of India. This code consolidates and amends three existing labor laws: the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946 and Industrial Disputes Act, 1947.

The complex and archaic procedures including poor working conditions led to the formation of this code. The necessity of proper disputes resolution process is underscored by the experiences of notable labor disputes, such as the Maruti Suzuki strike (2014), and the Noida worker strike (2019), highlighted the need for effective mechanism to address the sufferings of workers and prevent prolonged industrial conflicts.

Key Definitions

- The Industrial Relation Code 2020 also known as IR 2020 has 104 sections and 3 schedules. It was formulated on the report released by the National Commission on labor.

- Under this code, strike is defined as a situation when more than 50% of the workers take casual leave on a particular day together.

- Employer means a person who employees people on his behalf or someone’s other.

- An employee is defined as a worker who is employed in an establishment and is entitled to receive wages or other remuneration for their work.

- Worker is defined as a person who works in an establishment doing some skilled, unskilled, operational or mechanical work on hiring or for reward.

- Industry is an establishment where systematic process is held for the production and supply of goods.

- Wages includes remuneration, allowances including any money an employer is capable of getting for the work he has done which is due for the same.

- Industrial dispute means difference between the employers and employers or between employers and workers or between workers and workers which can results in dismissal of someone.

 

Main Provisions

According to section 3 of this code, Works committee shall be established in an industry where 100 or more workers were working in the preceding 12 months which shall constitute representatives of employers and workers in equal number. A Grievances Redressal Committee shall also be made in an establishment employing 20 or more workers, comprising equal members from employer’s side and of workers, and the total no. of members should not exceed ten, under section 4 of this code.

A trade union must have a minimum of 10% of the total number of workers in the establishment or 100 workers, whichever is less, to be eligible for registration. Then the state government shall appoint Deputy Registrar, an Additional registrar and joint registrar of trade unions to perform such functions which the state government may notify through notification under section 5 of this code.

The state government shall recognize as a negotiating union or negotiating council out of the trade unions present in an establishment having 51% muster rolls registered under it or more, for negotiating with the employer of industrial establishment and if there is only one trade union present there , then the same shall be recognized as the negotiating council.

Chapter VI (section 43) of this code gives right to the employer and workers to voluntary refer the dispute to arbitration through a legal agreement. In case the number of arbitrators is even, an umpire shall be appointed whose decision shall be final when the arbitrators are evenly distributed in their choices. While chapter VII mentions that there shall be an Industrial tribunal or more for dispute resolution which is headed by the two officers, out of which one has to be a judicial member and the other one shall be an administrative member. Section 44 demands appointment of conciliation officers by the appropriate government for promoting settlement of industrial disputes. One or more National tribunals has to be established by the Central government for the adjudication of industrial disputes of national importance and shall appoint as many officers in consultation with the judicial member of the same who is also presided by an administrative member appointed by the central government.

According to section 62, if the workers’ union wants to go on a strike or on a lock-out, they are required to give a notice to the industry establishment of 14 days minimum prior to the strike. If the strike is in contravention to the provisions of section 62, that will be considered as an illegal strike or lock-out which will make the workers liable to imprisonment and fines

In T.K. Rangarajan v. Government of Tamil Nadu (2003), the Supreme Court held that the employees have no fundamental right to resort to strike. Further, there is prohibition to go on strike under the Tamil Nadu Government Servants’ Conduct Rules, 1973.

The Supreme Court in Delhi Police v. Union of India (1986) upheld the restrictions to form association by the members of the non-gazetted police force after the Police Forces (Restriction of Rights) Act, 1966, and the Rules as amended by Amendment Rules, 1970,came into effect.

Conclusion

Undoubtedly, the Indian government has showed its concern regarding the bad conditions of labors by enacting the 4 codes but that is the half way towards providing solution because their enforcement is the real pathway. Labor and industrial law is the subject matter of concurrent list which means both central and state government can make rules on this subject. This came as the reason of delaying the implementation because in every state the economic condition and working conditions are different as well as the demands of workers. India’s 28 states and 8 union territories are expected to finalize and pre-publish the harmonized draft rules for the four labor codes by March 2025 including the code on wages, Code on Social Security, Code on Occupational Health Safety, subsume 29 central labor and industrial laws. Earlier, the deadline of publishing of the draft was supposed to be 1 April, 2021 then 2022 and eventually from 1 April 2023.Though the new deadline has not been officially announced. Some trade unions also have opposed this code by showing its concern on job security and rights of labors. The implementation of this code will led to the emergence of new Industrial era. 

( The author of this legal article is Sara Tyagi, a 3rd-year student (6th semester) at Bhagat Phool Singh Mahila Vishwavidyalaya. )