Code on

Industrial
Relations 2020

PGDM IMT G
The Industrial Relations Code 2020

The Industrial
Relations Code (14
chapters, 104
sections, 3 schedules)

The Industrial
The Trade Unions Act Employment The Industrial
1926 (Standing Orders) Act Disputes Act 1947
1946
 Rationale behind the IR Code
Protecting fixed-term employees, that is,
Streamlining the dispute resolution
mechanism.
Initiating a re-skill fund for retrenched
employees.
those employees who have been
contracted to work for a specific period
of time.
Enforcing strict penalties to avoid non-
compliance.
Ensuring implementation of standing
orders by large industrial establishments.
Enabling a business-friendly environment
as the Code provides for a single
negotiating body and greater flexibility to
employers to make operational decisions.
This may prevent industrial disputes, for
example, from being mediated by
multiple stakeholders and intervened
into by vested interests.
Applicability

IDA applies to “workmen” – a person who

is employed to do any manual, unskilled,
skilled, technical, operational, clerical,
supervisory work for hire or reward but
excludes a person who is employed-
• Mainly in a managerial or administrative
capacity
• In a supervisory capacity and draws a
salary exceeding INR 10,000/month
The IRC 2020 will apply to “workers”-
include
• Journalists
• Sales promotion employees
• Persons employed in a supervisory
capacity and earning less INR 18,000/
month
 Preliminary

• Definitions

• Average pay
• Employee
• Employer
• Fixed term employment
• Industry
• Industrial dispute
• Lay-off
• Lock-out
• Retrenchment
• Standing orders
• Strike
• Trade Union
• Wages

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 Apprentices can no longer raise
industrial disputes

White-collar employees can form trade

Employee unions and seek recognition
and worker
Sales personnel and working journalists
can raise industrial disputes and claim
rights plus benefits under the Code
 Bi-Partite Forums

• Works committee

• Grievance Redressal Committee

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Bipartite forums

As per ID Act, appropriate

government can order an industrial
establishment with 100 or more Promote amicable relations between
workmen to constitute a works employer and workmen
committee comprising of employer
and workmen representatives

Works committee is mandated to Resolve differences

Grievance settlement authority

(industry employing 50 or more
workmen); Reduced to 20 under the
code; cut-off period of 1 year to
resolve grievance
 Trade Unions

• Registrar Trade Unions

• Criteria for Registration
• Application for registration, alteration of name
and procedure
• Registration of Trade Union and cancellation
• Communication to TU and change in its
registration particulars
• Incorporation of a registered Trade Union
• Recognition of negotiating union or negotiating
council
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Standing Orders

• Application
• Making model of
standing orders
• Preparation of draft
standing orders
• Register of standing
orders
Notice of Change

• No Change in the conditions of service shall effect such

change

• without giving to the workers likely to be affected by such change

a notice in such manner as may be prescribed of the nature of the
change proposed to be effected; or

• within twenty-one days of giving such notice

Voluntary Reference of Disputes to
Arbitration
 Mechanism for Resolution of Industrial
Disputes

• Conciliation Officers
• Industrial Tribunal
• National Industrial Tribunal
• Procedure and powers of

• Conciliation officer
• Tribunal and national tribunal

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 Strikes and Lock-outs

• Prohibition of strikes and lock-outs

• Illegal strikes and lock-outs
• Prohibition of financial aid to illegal
strikes and lock-outs
• Rights of workers laid-off for
compensation
• Retrenchment

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 The Code further expands the definition
to include a situation where 50% or
more workers go on mass casual leave
on any day
The Code requires workers of all
Strikes and industries to provide 60 days’ advance
notice before proceeding on strikes.
lock-outs
Employers are required to provide 60
days’ notice before imposing a lock-out
Special Provisions Related to Lay-
off, Retrenchment and Closure

• Prohibition of lay-off
• Conditions precedent to retrenchment
of workers
• Procedure for closing down an
industrial establishment
 IDA requires industrial establishment
with 100 or more workers to obtain
prior permission from the
government for lay off, retrenchment
or closure of industrial undertaking
Lay-off,
Retrenchment
IRC increased this threshold to 300 or
and Closure more workers
Worker Re-skilling
Fund & Unfair
Labour Practices
 • The IDA requires employers to give a
retrenched workman who is a citizen of India
the opportunity to offer themselves for re-
Preference employment
for Re-
Employmen • This obligation to give preference for re-
employment is retained in respect of
t workers under the IRC 2020 but will be
limited to within one year from the
retrenchment
Offences and Penalties