Code of Discipline

A code of discipline has been laid down to maintain the harmonious relationship and promote
industrial peace.It aims to secure the settlement of disputes and grievances by a mutually
agreed procedure.It specifies various obligations for the management and the workers with the
objective of promoting cooperation between their representatives.

The code is applicable to –

1. All Central Organizations of Employers and workers

2. Insurance industry.

3. The State Bank of India.

4. The Reserve Bank of India.

Basic objective of code of discipline-

Maintain peace

Eliminate all forms of coercion, violations of rules and regulations governing industrial
relations.

Avoid stoppage of work in industry.

Facilitate a free growth of trade unions

Provisions in the Code of Discipline:

All central organizations of employees and workers have voluntarily accepted the ‘Code of
Discipline’ applicable in Indian Industry. This code of Discipline applied both to the public as
well as the Private sector.

According to the Code of Discipline, it is Mandatory-

 Each grievance should be promptly redressed by legal means and through the normal
channels. There should be no direct, arbitrary or unilateral action on either party.
 To avoid litigation, lock-outs and strikes (sit-down and stay in) intimidation,
victimization or delaying tactics should be avoided.
 Unfair practices like negligence of duty, damage to property and physical stress should
be discouraged.
 Management should give workers the freedom to form trade unions.
 Management should promptly implement awards, agreements, settlements and policy
decisions.
 The trade unions should function in a democratic fashion and discourage violence,
casteism, communalism, provincialism, intimidation or personal deformation in inter-
union dealings.

A machinery for implementation and evaluation has been set up at the center and state level to
ensure that the obligations outlined in laws, agreements and the code of Discipline are observed
by both management as well as labor.