New Labour

Codes 2020

Comparison of New Labour Codes with Previous Acts

Part- 1 : Previous Acts and Code on Industrial Relations
 New Labour Codes, 2020
2. Labour Code on
1. Labour Code on 3. Labour code 4. Labour Code on social
Occupational Safety,
Industrial Relations on Wages security
Health and Working
Conditions
Minimum Wages Employees’ Provident Fund
Trade Unions Act,
Act, and Miscellaneous Provisions
1926, Factories
Act,
Act, • Payment of
Wages Act,
Industrial
• Payment of Employees’ State Insurance
Employment
Bonus Act, Corporation Act,
(Standing Orders) Mines Act
Act, 1946, and • Equal
Remuneration
Act. Maternity Benefits
Industrial Disputes Dock Workers (Safety, Act,
Act, 1947. Health and Welfare) Act.

Building and Other

Construction Workers Act and
the Employees’ Compensation
Act

www.successtree.in
 Previous Acts Code on Industrial
Relations
Applicability Every industrial Every industrial establishment
establishment
Non- Persons employed in a Persons employed in a
Employees managerial or managerial or administrative
administrative capacity, capacity, or in a supervisory
or in a supervisory capacity with wages exceeding
capacity with wages Rs 18,000/-
exceeding Rs 10,000/-
(Industrial Dispute Act,
1947)
www.successtree.in
 Previous Acts Code on Industrial
Relations
Restrictions Without notice of 14 Notice of 14 days before a
& days and Strike within strike or lock-out. This notice
Prohibitions 6 weeks. is valid for a maximum of 60
Strikes and No such restriction on days.
Lockouts for industrial Applies to all industrial
Public Utility establishments other establishment irrespective of
Services then Public Utility Public Utility Services.
Services.
(Trade Union Act,
1926)
www.successtree.in
 Previous Acts Code on Industrial
Relations
Applicability Applies to all the All industrial establishment
of Standing industrial with 300 workers or more
Order establishments (within must prepare standing orders
India) with an on the matters listed in a
engagement of more Schedule to the Code.
than a hundred
workmen
(Industrial Dispute Act,
1947)

www.successtree.in
 Previous Acts Code on Industrial
Relations
Closure, lay- For Industrial IRC 2020 provides that
off and establishments in prior permission will be
retrenchment
which not less than required for
100 workmen are establishments with at
employed least 300 workers
(Industrial Dispute
Act, 1947)

www.successtree.in
 Previous Acts Code on Industrial
Relations
Notice for One month’s notice One month’s notice (or
Retrenchment (industry employing equivalent wages) and 15 days’
less than 50 workers), wages for every year of
3 Months’ notice continuous service.
(Industry employing
not less than 100
workers) in writing
indicating the reasons
for retrenchment.

www.successtree.in
 Previous Acts Code on Industrial
Relations
Negotiating Trade unions must have The trade union having more
Union and membership of at least than 51% of the workers as
Council 10% or workers or 100 members would be recognised
workers, whichever is as the sole negotiating union.
lesser, to be registered. Negotiating council will be
(Trade Union Act, formed consisting of
1926) representatives of unions that
have at least 20% of the
workers as members.

www.successtree.in
 Negotiating Union and Council

Sole If there were more than one registered trade union of

workers functioning in an establishment, the trade union
Negotiating having more than 51% of the workers as members would
Union: be recognised as the sole negotiating union.
In case no trade union is eligible as sole negotiating union,
Negotiation a negotiating council will be formed consisting of
Council: representatives of unions that have at least 20% of the
workers as members.

Note that trade unions must have membership of at least 10% or workers
or 100 workers, whichever is lesser, to be registered.

www.successtree.in
 Previous Acts Code on Industrial
Relations
Provisions on fixed The Contract Labour (Regulation Refers to workers employed for a
term employment and Abolition) Act, 1970 Prohibit fixed duration based on a contract
employment of contract labour
in some cases including where:
signed between the worker and the
employer.
(i) the work is of a perennial
nature, or
(ii) the work performed by
contract workers is necessary for
the business carried out by the
establishment, or
(iii) the same work is carried out
by regular workmen in the
establishment.

www.successtree.in
Comparison between fixed term employment, permanent employment and contract labour
Feature Fixed Term Employee
• Employment under written
contract. No contractor or
Type of agency is involved.
employment
• On the payroll of the
establishment.
• Stipulated fixed term.
• Employment lapses on
completion of term, unless
Term renewed.
• No notice is required to be
given for retrenchment.
Nature of work • Not specified.
Permanent Employee Contract Labour
• Employment directly • Engaged in an
under a written establishment through
contract. a contractor or agency.
• On the payroll of the • Not on the payroll of
establishment. the establishment.
• Employed on a
permanent basis • Based on terms
• Notice has to be given negotiated with the
for termination of contractor.
employment.
• Employment may be
prohibited in certain
• Hired for routine work. cases, e.g., if similar
work is carried out by
regular workmen.
Next Session:
Code on
Occupational
Safety, Health
and Working
Conditions, 2020