1

01/27/2022
Naresh Kumar Pinisetti
 Protective Labour Laws in Select Developing 2
Countries

01/27/2022
• Emphasis on welfare measures
preceded economic growth in India –
Gunnar “An inquiry into the Poverty
of Nations”

• There is practically no link between

output and remuneration and hiring
and firing is restricted –
PC Mahalanobis(1969)

The Center for Business Research – Labour Regulation Index (CBR-LRI) of

Cambridge University; Indian Labour Laws offer highest protection to the
workers among all the countries in the world
 3
Scenario in Developed Countries

01/27/2022
• France steamrolled Labour Reforms
in 2016
• Firms were given right to negotiate
on a 46 hours week
• Firms given freedom to reduce pay
• Laws eased conditions to retrench
people in downturns
• Regulations on holidays and special
leaves were eased
• Touted as a litmus test for
Emmanuel Macron

Source: The Center for Business Research – Labour Regulation Index (CBR-
LRI) of Cambridge University
 4

01/27/2022
The Industrial Relations Code,
2020

Key Changes in Law

&
Impact on Industry
 5
Code on IR – Evolution

2002 2019 2020 Sept’ 2020 Way Forward

Second National Government of Govt. claimed The Code on
Commission on Labour IR is passed • Rules are to
India came out that that 74%
proposes Four Codes: by Parliament be framed
with Draft Code of the
and received under the
1. The Code on Wages on IR etc., proposals of
the assent of Code on iR
2. The Occupational (except Code on Parliamentary • Govt to
Safety, Health & Wages) and the Committee President of
India. implement –
Working conditions same were were included
Published in 1st April ‘21
Code referred to a in the final
3. The Code on Social Parliamentary Codes Gazette
Security Committee
4. The Code on
Industrial Relations 01/27/2022
 6
Code on Industrial
Relations
 The Code replaces the following 3
laws:
 The Industrial Disputes Act,
1947
 The Trade Unions Act, 1926
 The Industrial Employment
[Standing Orders] Act, 1946
 The Industrial Relations Code
2020, is applicable to whole of
India

01/27/2022
Definitions – Appropriate 7
Government

Appropriate Government – Public Sector

Undertakings:
 Even if the holding of the Central Government
reduces to less than 51% equity in that public
sector undertaking after commencement of this
Code, the appropriate government will continue
to be the Central Govt.
 In respect of contractors engaged in an
establishment, where the appropriate
government is Central Govt., the same principle
will apply to such contractors

01/27/2022
 8
Definitions - Employer

Employer:
 Means a person who employs, whether directly or
through any person, or on his behalf or on behalf of any
person one or more employee or worker in his
establishment……
 The definition of ‘Employer’ includes a contractor.
However, the term ‘Contractor’ is not defined in the
Code as in the case of the other 3 Codes where a
contractor is defined as a person:
 Who deliver work using contract labour
 Supplies manpower through contract labour

01/27/2022
Reasons for not defining ‘Contractor’?
Outsourcing
Certain activities/services are outsourced instead
of carrying them out through an in-house
department or employees handle them. E.g., Toll
Manufacturing, Payroll, Fabrication, Customer
Service, IT etc.,
Hiring another agency or an individual to
perform tasks, handle operations or provide
services that are either usually executed or had
previously been done by the company's own
employees. For e.g., Maintenance, House
Keeping, Canteen, Operations, Bagging of
Product etc.,
Definitions – Fixed Term 10
Employment
Fixed Term Employment
Means the engagement of a worker based on a written
contract for a fixed period:
 Provided that-
a) his hours of work, wages, allowances and other benefits
shall not be less than that of a permanent worker doing
same work or work of similar nature
b) he shall be eligible for all statutory benefits available to a
permanent worker, proportionately, according to the period
of service rendered, even if he does not complete the
required qualifying period
c) he shall be eligible for gratuity if he renders service under
the contract for a period of one year;
01/27/2022
 11
Definitions – Industry &
Industrial Dispute
Industrial Dispute:
Industrial Dispute includes individual dispute and collective
disputes
Industry
 Means any systematic activity carried on by co-operation
between an employer and worker (whether such worker is
employed by such employer directly or by or through any
agency, including a contractor) for the production, supply or
distribution of goods or services ….. …
 But does not include—
 institutions owned or managed by organizations wholly
or substantially engaged in any charitable, social or
philanthropic service

01/27/2022
CSR Activities of Organization 12
- Impact
In view of the exclusion of establishments involved in
charitable and philanthropic activities from the purview
of the definition of ‘industry’ two kinds of situations will
emerge:
 Companies which are carrying out their CSR activities
through an inhouse department will fall under the
definition of ‘industry’ and the provisions of this Code
will apply to them
 In case of companies which are carrying out their CSR
activities through a separate Trust or an NGO, the
provisions of this Code will not apply to such Trust or
NGO

01/27/2022
 13
Definitions - Worker

Worker
 Means any person employed in any industry to do any
manual unskilled, skilled….. ….. Sales Promotion
employees
 But does not include any such person –
iii. who is employed mainly in a managerial or
administrative capacity or
iv. who is employed in a supervisory capacity drawing
wages of exceeding 18,000/- per month. [ earlier Rs.
10,000] – can be revised by Govt. from time to time
 The term ‘Employee’ is also defined under the Code –
Chapter III (Trade Unions) – ‘worker’ means all
persons employed in trade or industry

01/27/2022
 14
Definitions - Worker

 The definition of ‘Worker’ now includes Sales

Promotion Employees in order to nullify the
judgement of Apex Court in Sandoz Case (1995)
where the Medical Representative and Sales
Promotion employees were held to be not falling
with the definition of workman under the ID Act

 Post the implementation of this Code, the Sales

Promotion employees as defined under the Sales
Promotion Employees Act, 1976 will fall within
the definition of ‘worker’ under this Code

01/27/2022
 15
Definition - Wages

Wages
 Means all remuneration whether by way of salaries, allowances or otherwise
expressed in terms of money …… be payable to a person employed in respect
of his employment and include:
 (i ) basic pay ( ii ) dearness allowance and ( iii ) retaining allowance if any (PART
A)
 But does not include: (PART B)
a) any bonus payable under any law for the time being in force, which does not form
part of the remuneration payable under the terms of employment;
b) the value of any house-accommodation, or of the supply of light, water, medical
attendance or other amenity or of any service excluded from the computation of
wages by a general or special order of the appropriate Government;
c) any contribution paid by the employer to any pension or provident fund, and the
interest which may have accrued thereon; 01/27/2022
 16
Definition – Wages
contd….
Wages:
d) any conveyance allowance or the value of any travelling concession;
e) any sum paid to the employed person to defray special expenses entailed
on him by the nature of his employment;
f) House Rent Allowance
g) Remuneration payable under any award or settlement between the
parties or order of a court or Tribunal
h) any overtime allowance
i) any commission payable to the employee
j) any gratuity payable to the employee on the termination of the employee
k) any retrenchment compensation or other retirement benefit payable
 PART A should be 50% of the total of PART A+B (a to i). If not the
balance from PART B should be added to reckon the same as Wages 01/27/2022
Definition of Wages – 17

Implications contd….

 The definition of Wages in all the 4 codes is the same and the
implications are :
 Minimum Wages cannot be bifurcated as earlier
 All monthly paid allowances + Employer PF contributions, Gratuity
etc., should constitute at least 50% of the total monthly remuneration.
 Govt. may revise this criteria from time to time
 In this Code, the implications are:
 The interpretation of ‘wages’ of Rs.18,000 for supervisory staff to be
outside the scope of ‘worker’
 Subsistence allowance would go down
 Layoff Compensation will increase (Basic + DA)
 Retrenchment & Closure compensation may be lower based on the
salary structure of the worker
01/27/2022
 18

01/27/2022
Industrial
Disputes
 Grievance Redressal 19
Committee

 Industrial Establishments employing 20 or more workers

shall have one or more Grievance Redressal Committees
for resolution of disputes arising out of individual
grievances. [old]
 The total number of members of the Grievance
Redressal Committee shall not exceed TEN. [earlier 6]
 Number of representatives of workers in GRC should
not be less than that of employers – Representation of
women workers in proportionate to the total women
workers
 The Chairperson of the GRC shall be selected on
rotation basis from among employer and worker
representatives
01/27/2022
 20
Grievance Redressal
Committee contd…

 An application to GRC can be made by an aggrieved

worker within one year of the cause of action arose
 The GRC should complete the proceedings within
30 days of the receipt of the application
 The decision of GRC on the application should be
based on majority view provided that more than half
of the worker members have agreed to such decision
[NEW]
 In case more than half of the worker members have
not agreed to the decision, it is deemed that no
decision has been arrived at by the committee
[NEW]
01/27/2022
 21
Grievance Redressal
Committee contd…

 The worker, whose grievance is not redressed, may,

within 60 days from the date of decision, file an
application for the conciliation of such grievance,
through the Trade Union, to the Conciliation Officer
[NEW]
 Any worker may make an application directly to the Tribunal
for adjudication of the dispute referred to therein after the
expiry of 45 days from the date he has made the application to
the Conciliation Officer. [NEW]
 The employer, in consultation with Grievance Redressal
Committee, in emergent situation, may make change of shift or
shift working otherwise than in accordance with the standing
orders [NEW]

01/27/2022
 22
Reference of Disputes by Govt.

 Board of Conciliation, Court of Inquiry and Labour

Courts have been abolished in the Code
 Industrial Disputes will now be adjudicated by
Industrial Tribunal
 Section 10 of ID Act, 1947 – Reference of disputes by
Govt. to Labour Court is now withdrawn
 Section 10A of ID Act, 1947 – voluntary reference of
disputes to arbitration – publication in official gazette is
dropped
 Only in cases where disputes are to be referred to the
National Tribunal, the Central Government will refer
the industrial dispute.
01/27/2022
 23
Strikes and Lockouts

 Strike includes concerted Casual Leave on a given day

by 50% or more workers employed in an Industry.
 The earlier concept of notice of strike/lockout in a
Public Utility Service is dropped
 Now all industrial establishments are covered under 14
days’ notice for strike or lock-out and notice expires in
60 days.
 If an employer receives notice of strike or a notice of
lock-out is issued, the employer shall within 5 days
thereof report to Appropriate Government.
 “Willful Go Slow” included in the Unfair Labour
Practice on the part of workers
01/27/2022
 24
“Go Slow” Defined

 ‘Go Slow’ means an occasion when more than one

worker in an industrial establishment conjointly work
more slowly and with less effort than usual to try to
persuade the employer of the establishment to agree to
higher pay of better service conditions or such other
demand
 The term ‘usual’ shall mean:
 Where the standard has been specified for a worker for
his work either daily, weekly or monthly basis, such
work; and
 Where no such standard has been specified, such rate of
work which is the average of work in the previous three
months calculated on daily or weekly or monthly bases,
as the case may be

01/27/2022
 25
Conciliation Proceedings

 Where any industrial dispute exists or is apprehended

or a notice of strike or lockout has been given,
Conciliation Officer shall hold conciliation
proceedings.
 Conciliation proceeding shall be deemed to have
commenced on the date on which first meeting is held
after receipt of notice of strike or lockout.
 Conciliation Officer shall not hold any proceedings
relating to dispute after 2 years from the date on which
such dispute arose
 There was no time limit prescribed previously for
raising industrial disputes

01/27/2022
 26
Conciliation Proceedings
contd…

 Conciliation Officer shall send the report within 45 days or

within such shorter period as may be fixed by the
Appropriate Govt. Where notice of strike or lockout is
received shall send the report within 14 days.
 Time may be extended as may be agreed by the parties to
the dispute.
 Any party to the dispute may make an application to the
Tribunal within 90 days from the date of report of the
Conciliation Officer.

01/27/2022
 Escalation of Disputes to Tribunal 27

Grievance raised by Union or

Worker before Grievance
Redressal Committee

Grievance not redressed/not

satisfied with the decision of
GRC

Can approach Conciliation

Officer within 60 days of
decision

Can approach Tribunal within Can approach Tribunal after 45

90 days of report of days when the matter is in
Conciliation Officer conciliation
01/27/2022
Encourages increased 28
Adjudication c k
u i
f orq –
ul e d
y l aw
r ha f an
o e
v se o
t
no the u
i s
 A workman aggrieve by the decision
s t i ceof Grievance
a t is
Redressal Committee may approach h old?
f ju tes wConciliation
m o u o r
t
Officer through the trade union
y e
s f dis p ew
s n
Within 45 daysIf tofhe approaching
a l o

r e ss the Conciliation
Officer, the workerred can approach a Tribunal for
adjudication of the dispute/grievance
 Piled up cases before the Industrial Tribunal are a great
concern and it takes years for the courts to pass an
award

01/27/2022
 29
Industrial Tribunal

Industrial Tribunal shall consist one Judicial Member and One

Administrative Member.
 Two-member bench shall entertain and decide cases relating to
–
a) application and interpretation of standing orders
b) discharge or dismissal of workers
c) illegality or otherwise of a strike or lockout
d) retrenchment of workers and closure of establishment
e) Trade Union disputes
 In case there is no consensus, the Govt. will refer the matter to
another judicial member and thereafter the majority decision
will be final

01/27/2022
 30
Industrial Tribunal
contd…

 The Two Member Industrial Tribunal Bench may grant

interim relief in cases relating to
 an industrial dispute involving discharge or dismissal or
otherwise termination, of the worker during the pendency of
the industrial dispute.
 Other matters can be heard and decided by a single
Judicial Member or single Administrative Member of the
Tribunal.
 The Administrative member should be of a level of Joint
Secretary in Tribunal
 In a National Tribunal should be at least the level of
Secretary with experience of handling labour related
matters 01/27/2022
Payment of Wages 31
pending proceedings in a
higher court
 The meaning of ‘full wages last drawn’ in case of
appeal by employer to High Court or Supreme Court
against the orders of Tribunal in view of the definition
of ‘wages’ in this Code
 The provision for payment of wages to workers
during pendency of proceedings before a higher court
should have been left to the discretion of the court
before whom the proceeding is pending without
prescribing the same in the Code
 Second National Commission of Labour
recommended that this issue should be left to be
decided by High Court or Supreme Court before
which the proceeding is pending

01/27/2022
 32
Provisions pertaining to Layoff,
Retrenchment & Closure

 Industrial establishment in which less than 300 workers

or such higher number of workers as may be notified by
the Appropriate Government, are not required to take
permission from the appropriate Government at the time
of Layoff, Retrenchment and Closure of the undertaking
 No State Government will have the right to reduce the
threshold limit in this case from the stipulated number of
workers of 300
 The threshold under Chapter VB of Industrial Disputes
Act, 1947 was 100 workmen which is now increased to
300

01/27/2022
 33
Retrenchment

 Retrenchment does not include:

iv. termination of service of the worker as a result of
completion of tenure of fixed term employment
 Compensation – 15 days average pay, or average pay of such
days as may be notified by the appropriate Government, for
every completed year of continuous service or part thereof in
excess of six months.
 Re-employment of Retrenched worker:
 Where any worker is retrenched and the employer
proposes to take into his employment, any person within
one year of such retrenchment, he shall give an
opportunity to the retrenched worker.
 There was no such time limit prescribed for
reemployment of retrenched worker in the Industrial
Disputes Act previously 01/27/2022
 34
Closure of an Industrial
Establishment

 In case of Industrial establishments employing below 300

workers, two months’ notice shall be given to the workers
before closing down an establishment
 The appropriate Government may, if it is satisfied, that an
extraordinary situation such as natural calamities or the like
exist, may direct that the two months’ notice shall not apply
 Where an undertaking engaged in mining operations is
closed down by reason of exhaustion of minerals, no notice
or compensation is required – if alternate employment is
provided at a place located within a radius of 20 kilometers
from such undertaking

01/27/2022
 35
Contradictory Provisions
o k s
e b o
 While the IR Code permits industrial establishments
atu t der
employing less than 300 workmen to retrench workmen st u n
t e
h nded
without seeking permission from government, the provisions
of erstwhile Sec. 9A (Notice in case of changeon
n
in oServicexte
i si t y e
Conditions)are retained in the IR Code (Chapter
p r ov i bi l i
V – Sec.40))
 Schedule III of IR Code stipulates t h ithat lex teshould
s an femployer r X
in g e thestandardization
give 21 days notice in case rationalization, h ap or
i n
tatechniques
improvements in planteor t C
ga which is likely to lead to
R n e
will
retrenchment
 When such notice is given, the trade union will obviously raise
an industrial dispute and the matter will ultimately end up
among the long pending matters before Tribunal
 The Second National Commission on Labour recommended
dropping of item 10 and 11 of this Schedule for the same
reason

01/27/2022
 36
Parle – A Case Study on Closure

01/27/2022
 Govt. of Karnataka accorded permission to
close Parle’s Bangalore Unit in September
2013 on grounds of continued industrial unrest
from 2007 resulting in serious loss
 Parle paid closure compensation and gratuity
to all the workmen
 The trade union approached the High Court
challenging the permission accorded by the
Karnataka Govt to close the unit
 The company is now neither able to run the
plant smoothly nor close it down on grounds of
being unviable
 37
Worker Reskilling Fund
 The Appropriate Government shall set up a fund to be
called the Worker Re-Skilling Fund
 The employer shall contribute 15 days wages of the
worker/s who have been retrenched from the services to be
paid to the Govt.
 Contributions to be made from other sources to the Fund as
may be notified
 The said amount shall be credited by the Govt. to the
account of the worker within 45 days
 Though the purpose of this fund is not very clear from the
Code, it is clarified that the said amount will be credited to
the account of the worker upon his taking up a skill
development course in order that he learns a new skill to
become employable once again

01/27/2022
 38

01/27/2022
Trade Unions
 39
Trade Union Registration

 Any 7 members may apply for registration of a Trade Union

subject to the following:
 The membership of the trade union is 10% or 100 whichever is
less at the time of making the application
 In case less than 50% of the 7 applicants have ceased to be
members and disassociated with the trade union before the
registration, the Registrar shall still go ahead and register the
trade union
 However, a registered trade union shall always continue to
have not less than 10% (min.7) or 100 whichever is less
 The above provisions appear to contradict with each other
and needs explanation once the Rules are framed by the
Govt.

01/27/2022
 40
Trade Unions

 Withdrawal of Trade Union Registration Certificate:

 If the members in a Trade Union falls below ten percent of
total workers (min.7) or one hundred workers, whichever is
less:
 The Trade Union shall inform the Registrar if the members
of such Trade Union falls below ten percent (min. 7) of total
workers or one hundred workers, whichever is less.
 Non-Registration or Cancelation of Trade Union:
 The Trade Union can prefer an appeal to the Tribunal
 Dissolution of Trade Union:
 Dissolution of a Trade Union can be done by an application
signed by seven members and the Secretary of the Trade
Union, provided it is in accordance with the rules of the Trade
Union.
01/27/2022
 41
Trade Union Disputes

 Trade Union dispute means any dispute relating to Trade Union

arising between two or more Trade Unions or between the
members of a Trade Union inter se

 One or more workers who are members of the Trade Union or

Trade Union can make an application for adjudication to the
Tribunal regarding registration, administration or management
or election of office bearers of the Trade Union

01/27/2022
 42
Negotiating Council

Recognition of a Negotiating union or Negotiating

Council:
 Where there is only one Registered Trade Union, the
employer shall recognize such Trade Union as sole
negotiating union of the workers.
 Where more than one Registered Trade Union of workers is
functioning, the Trade Union with support of 51% or more
workers on the muster roll shall be the sole negotiating union
of the workers.
 If no such Trade Union has 51% or more, the employer shall
constitute a negotiating council consisting of representatives
of such registered Trade Unions which have support of not
less than 20% of the total workers, shall be one representative
for each 20%. 01/27/2022
 43
Negotiating Council
 The recognition of the Trade Union or the Council shall be
valid for a period of 3 years or maximum 5 years as may be
mutually decided by the employer and the Trade Union.
 Any agreement by the majority of the representatives of the
negotiating council shall be valid.
 Questions to ponder over:
 What would be the situation in case the single trade
union have only very few members enrolled as
members?
 What is the status in case of a multi-union scenario,
where no trade union has the support of at least 20% of
the workers?
 How do managements deal with a negotiating council
with representatives from trade unions with diverse
ideology and objectives?
01/27/2022
 44
Central & State Level Trade
Unions
 The Central Govt. is vested with the authority to
recognize a Trade Union or Federation of Trade
Union as Central Level Trade Union, in case it is
expedient to do so, by following the process to be
prescribed for purposes to be specified

 Similarly the State Govt. may recognize a Trade

Union or Federation of Trade Union as State Level
Trade Union for purposes to be mentioned by
following the prescribed procedure

 In case of any dispute on the above, it shall be

decided by an authority to be specified for this
purpose
01/27/2022
 45
Conditions on Trade
Unions – Points to ponder

 Notwithstanding the debate on the perils of outsiders

as office bearers in trade unions, the IR Code permits
their continuance as before
 Trade unions which instigate or call for an illegal
strike should qualify for deregistration as a deterrent
from indulging in such a misadventure
 Threshold for registration for trade unions could
have been enhanced to reduce the multiplicity of
trade unions and the resultant inter-union rivalry

01/27/2022
 46

01/27/2022
Standing
Orders
 47
Applicability of Standing
Orders
 Standing Orders shall apply to Industrial Establishment
wherein 300 or more workers are employed (previously 100)
 Till the date on which the standing orders are certified under
the Code, the model standing orders shall be deemed to be
adopted in that establishment.
 Where an employer adopts model standing orders of the
Central Government, such model standing orders shall be
deemed to have been certified under these provisions.
 The existing certified standing orders will be deemed as
certified standing orders under this Code, in so far as not
inconsistent with the provisions of the Code.
 If any question arises as to the application or interpretation
of the standing orders, the concerned parties may apply to
the Tribunal, to decide the question
01/27/2022
Standing Orders – Other 48

Provisions

 A group of employers in similar establishments may submit a

joint draft standing orders for certification.
 The employer shall prepare draft standing orders, within a
period of 6 months.
 On receipt of the draft, the Trade Union or the negotiating
union or council and where there is no Trade Union the
representatives of the workers, shall be given an opportunity
of being heard and decide the matter.
 Certifying Officer shall complete the process within 60 days
and send the certified standing orders within 7 days
thereafter.
 In case the Certifying Officer do not certify the standing
orders within 60 days, they are deemed to be certified

01/27/2022
Disciplinary Proceedings - 49
Suspension Pending Enquiry

 The Code prescribes that the investigation and inquiry

into the charges levelled against a suspended worker
should be completed within 90 days from the date of
suspension
 No change in the provisions on payment of
subsistence allowance @50% of wages for the first 90
days and @75% of the wages for the period beyond
90 days in case the delay in completion of the
proceedings is not attributable to the worker
 However, the States are now precluded to provide for
more beneficial subsistence allowance through State
amendments, as earlier

01/27/2022
 Standing Orders – Questions to 50

Ponder
 How do industrial establishments with less than 300
workers, classify the matters like acts of misconduct,
process of disciplinary action, penalties like suspension,
stoppage of increment, discharge, dismissal etc.?
 Irrespective of the fact that there are no Standing Orders
stipulated for such establishments, the principles of
natural justice are to be complied with while initiating
disciplinary action against an errant worker
 It is desirable that industrial establishments with less than
300 workers develop the terms and conditions of
employment and a Code of Conduct and include the same
as part of the appointment letter and obtain the
acknowledgement of the worker to protect their interests
01/27/2022
 51
Exemption from the Code

 Where an Appropriate Govt. is satisfied that in any

establishment (s) adequate provisions exist to fulfil
the objects of this Code, it may exempt such
establishment(s) from all the provisions of this Code
either conditionally or unconditionally

 Where the Appropriate Govt. is satisfied that it is

necessary to exempt any new establishment (s) in
the public interest from all or any of the provisions
of this Code, it may do so for such period as may be
notified

01/27/2022
 52
Offences & Penalties

 Appropriate Govt. will appoint an Officer not below

the rank of Under Secretary or equivalent rank in State
Govt. for holding enquiry for the purpose of imposing
penalties for violations under this Code
 Power to compound any offence punishable with fine
and or imprisonment will rest with a Gazetted Officer
 Compounding can be done on payment of 50% of
maximum fine in case of an offence for which only fine
is specified
 Compounding can also be done on payment of 75% of
maximum fine for which fine and imprisonment is
specified

01/27/2022
 Offences and Penalties under the Code 53
Nature of Violation Penalty
Resorting to Layoff, Retrenchment or Closure Fine of Rs. One Lakh subject to a maximum Rs.10
without permission Lakhs

Repeat of the offence of Layoff, Retrenchment of Fine of Rs. 5 Lakhs subject to a maximum of Rs.20
Closure without permission Lakhs and imprisonment for 6 months or with both

Non-payment of Layoff, Retrenchment or Closure Fine of Rs. 50,000 subject to a maximum Rs.2
compensation to workers Lakhs

Repeat of offence in failure to pay Layoff, Fine of Rs. 1 Lakh subject to a maximum of Rs.5
Retrenchment or Closure compensation Lakhs and imprisonment for 6 months or with both

Resorting to Unfair Labour Practices as mentioned Fine of Rs. 10,000 subject to a maximum Rs.2
in Second Schedule Lakhs

Repeat of an offence involving Unfair Labour Fine of Rs. 50,000 subject to a maximum of Rs.5
Practice Lakhs and imprisonment for 3 months or with both

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 Offences and Penalties under the Code
Nature of Violation
Failure of Trade Union to give notice or send any
statement under the Code
Trade Union providing false details to the Registrar
of Trade Unions
Failure of employer to provide draft Standing
Orders within 6 months
Any contravention of the provisions of Standing
Orders
Worker joining an illegal strike
Employer resorting to an illegal lock-out
54
Penalty
Fine of Rs. 1,000 subject to a maximum Rs.10,000
Fine of Rs. 2,000 subject to a maximum Rs.20,000
Fine of Rs. 50,000 subject to a maximum Rs.2
Lakhs and Rs.2,000 per day for continuing the
offence
Fine of Rs. 1 Lakh subject to a maximum of Rs.2
Lakhs
Fine of Rs. 1.000 subject to a maximum Rs.10,000
and imprisonment for one month or with both
Fine of Rs. 50,000 subject to a maximum of Rs.1
Lakh and imprisonment for one month or with both
01/27/2022
 Offences and Penalties under the Code
Nature of Violation
For instigating an illegal lock-out
Financing an illegal strike
Any person who commits a breach of the terms and
conditions of Settlment
Any contravention of the provisions of Standing
Orders
Wrongful disclosure of information
Any other violation under the Code
55
Penalty
Fine of Rs. 10,000 subject to a maximum Rs.50,000
and imprisonment for one month or with both
Fine of Rs. 10,000 subject to a maximum Rs.50,000
and imprisonment for one month or with both
Fine of Rs. 50,000 subject to a maximum Rs.2
Lakhs and Rs.2,000 per day for continuing the
offence
Fine of Rs. 20.000 subject to a maximum Rs.2
Lakhs and imprisonment for 3 months or with both
Fine of Rs. 20.000 and imprisonment for one month
or with both
Fine of Rs. One Lakh
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Thank you for your kind attention