THE INDUSTRIAL RELATIONS CODE, 2019: HIGHLIGHTS 

The Minister of Labour and Employment, Mr. Santosh Kumar Gangwar introduced the Industrial Relations Code in the Lok Sabha on November 28, 2019. The Code is aimed at strengthening the industrial relations in India by combining the three laws i.e. Trade Unions Act, 1926, the Industries Disputes Act, 1947 and the Industrial Employment (Standing Orders) Act, 1946.

The Code allows seven or more members to get registered as a trade union with a membership of at least 10% or 100 workers. The Central and the state governments have been empowered to recognise any trade unions as central or state trade unions respectively. The Code enlists activities such as restricting workers from forming trade unions, establishing employer sponsored trade union of workers, and coercing workers to join trade union under the category of unfair labour practices.

Further, the Central government shall prepare a model standing order for matters like classification of workers, manner of informing workers about hours of work, holidays, paydays, and wage rates, termination of employment, suspension for misconduct, and grievance redressal mechanisms for workers. The model standing offer shall act as guide for all industries with at least 100 workers who would have to prepare a standing offer on all matters listed under the Code. The Code states that the employers in industries with at least 100 workers would have to take permission from the central government before laying off the workers in mines, factories and plantations. However, the central as well as the state government can change the minimum number of workers required under this provision through a notification.

The Code has also paved the way for arbitration as a means to resolve the industrial disputes between the employer and the workers and allows the central and the state government to appoint conciliation officers to mediate the industrial disputes. The Code allows the central and the state governments to recognise the trade unions as central and state trade unions respectively. It also aims to set up the National Industrial Tribunal comprising of a Judicial Member, who has been a High Court Judge and an Administrative Member, who has been a Secretary in the central government.