New Labour Laws Explained (Part 1): Industrial Relations Code 2020

The Parliament recently passed three major bills related to labour laws. They are :Industrial Relations Code Bill 2020.Social Security Code Bill, 2020.Occupational Safety, Health and Working Conditions Code Bill, 2020.In this part, we will explain the Industrial Relations Code 2020 and the major changes brought by it.Industrial Relations Code, 2020.The Industrial Relations Code(hereinafter 'the Code') seeks to amalgamate and combine three major laws governing employee-employer relationship, after making some key amendments to the provisions.The Code consolidates the following central enactments and repeals them :Trade Unions Act, 1926 Industrial Employment (Standing Orders) Act, 1946 Industrial Disputes Act, 1947Some notable changes brought by the Code are :Definition of 'Industry' : Section 2(p) The code mostly retains the definition of 'industry' given in Section 2(j) of the Industrial Disputes Act, 1947(hereinafter 'ID Act'), except for some changes.The ID Act specifically exempts from the definition the following : hospitals or dispensaries, educational, scientific, research or training institutions, khadi or village industries, any activity, being a profession practised by an individual or body or individuals, if the number of persons employed by the individual or body of individuals in relation to such profession is less than ten, and any activity, being an activity carried on by a co-operative society or a club or any other like body of individuals, if the number of persons employed by the co-operative society, club or other like body of individuals in relation to such activity is less than ten.These specific exemptions are not there in the definition of 'industry' in Section 2(p) of the Code Bill.The definition has specifically excluded institutions owned or managed by organisations wholly or substantially engaged in any charitable, social or philanthropic services; sovereign functions; domestic services.Definition of 'industrial dispute' expanded : Section 2(q)The definition of 'industrial dispute' has been expanded to include dispute arising out of discharge, dismissal, retrenchment or termination of workers.Definition of 'strike' expanded : Section 2(zk)The new Code Bill expands the definition to 'strike' to include "the concerted casual leave on a given day by fifty per cent. or more workers employed in an industry".Definition of 'worker' expanded : Section 2(zr)The definition of worker has been expanded to include working journalists as defined in clause (f) of section 2 of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 and sales promotion employees as defined in clause (d) of section 2 of the Sales Promotion Employees (Conditions of Service) Act, 1976.Also, persons employed in supervisory role drawing less than Rs 18,000 per month(or any amount as notified by the Central Government) are brought under the definition of 'worker'.Under the ID Act, this limit is Rs.6500 per month.Protection for 'Fixed Term Employment(FTE)' : Section 2(o)The Code incorporates provisions for 'Fixed Term Employment'.It states that workers on a fixed term are eligible for all statutory benefits available to a permanent worker proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statute.Further, fixed-term employees will be eligible for gratuity if they render service under the contract for a period of one year.Definition of 'employer' expanded: Section 2(m)The Code provides for an expanded definition of 'employer' under Section 2(m) to include 'contractor', 'legal representative of deceased employer' etc.As per the definition, 'employer' means :Head of the department Occupier of the factory Manager of the factory under clause (f) of sub-section (1) of sec 7 of the Factories Act. The person who, or the authority which has ultimate control over the affairs of the establishment and where the said affairs are entrusted to a manager or managing director, such manager or managing director;Contractor; and Legal representative of a deceased employerThreshold workers-limit for framing Standing Orders increased: Section 28As per the Code, an industrial establishment needs to comply with the requirement of adopting Standing Orders only if it has 300 or more workers (Clause 28).Under the existing law, this threshold is 100.Standing Orders need to be framed in relation to matters specified in the Schedule such as (i) classification of workers, (ii) manner of informing workers about work hours, holidays, paydays, and wage rates, (iii) termination of employment, and (iv) grievance redressal mechanisms for workerIf the employer prepares and adopts model standing order of the Central Government with respect to the matters relevant to the employer's industrial establishment, then the model standing order would be deemed to be certified....

New Labour Laws Explained (Part 1): Industrial Relations Code 2020

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