Tightened Trade Union norms by the implementation of Industrial Relations Code, 2020

An Industrial Relations Code (IRC 20) is a part of the labor legislation consolidations, in terms of the advice of the Second National Commission on Labour, 2002. It consolidates and amends the laws concerning Trade Unions, conditions of employment in the industrial establishment, or undertaking investigation and settlement of commercial disputes. The Lok Sabha passed the bill on 22nd September 2020 and therefore the Rajya Sabha passed it on 23rd September 2020. It had been assented by the President on 28th September 2020. the economic Relations Code Bill, 2020 proposed for amalgamating, simplifying, and rationalizing the relevant provisions of those three Acts:

• Trade Unions Act, 1926
• Industrial Employment (Standing Orders) Act, 1946
• Industrial Disputes Act, 1947

Salient features of the Act:

• The definition of "Worker" has been revised to incorporate persons in supervisory capacity getting wages up to 18,000 rupees per month.
• The concept of "Re-skilling fund" has been introduced. 
• Registered trade unions could also be recognized by the Centre/State as per necessity. 
• The concept of Negotiating union and Negotiating Trade Councils has been introduced to streamline negotiations with the employer.
• The definition of "Strike" includes casual leave taken by quite 50% of the workers on a given day. the union needs to give notice 14 days before happening strike.
• Employees can raise an industrial dispute with the concerned employer within two years.
• Provisions concerning Standing Orders apply to industrial establishments with quite 300 employees only.
• An establishment with less than 300 workmen is often laid-off, retrenched, closed without government approval.
• Concept of Fixed-term employees: The IR Code introduces a replacement provision for "Fixed-term employment" which suggests and refers to the engagement of a worker on the idea of a written contract of employment for a hard and fast period. Such a person is going to be eligible for all the advantages provided to a permanent worker, and also to all or any the statutory benefits available for a permanent worker. The person also will be eligible for the gratuity if he renders his service for 1 year.

Trade Union 

The IRC 20 provides for a replacement concept of negotiating union or negotiating council in an industrial establishment. As per the said provision:

• For one union, the employer will recognize its union because of the sole negotiating union.
• For multiple trade unions, the union has 51% membership of workers on the roll who are going to be called the negotiating union.
• When there are many trade unions and none of them has the 51% membership criteria, then the one negotiating union chosen by the employer shouldn't have but 20% of the members.

Strikes and Lockouts

According to the IRC 20, "Strike" means a casual leave on a given day by 50% or more workers working in the same industry. No person employed can continue a strike without giving a 14 days' notice to an employer before a strike. This sign shall be lawful for a all-out of 60 existences. Similarly, without giving 14 days prior notice, no employer can lock out any employee. This sign will be lawful for a all-out of 60 existences. Further, IRC 20 prohibits strikes and lock-outs:

• During and up to 7 days after conciliation proceeding.
• During and up to 60 days after proceedings before a tribunal or arbitrator.
• During any period during which a settlement or a gift is operational.

Employers are required to report back to the acceptable government and conciliation officer within 5 days from receiving or giving notice of a strike or lock-out.

Standing Orders

IRC 20 provides that the provisions concerning standing orders shall apply to establishments having had 300 or more employees on any day of the preceding 12 months. An employer shall be required to organize the draft standing orders, basis the model order of the Central Government within 6 months from the date of commencement of the Code in consultation with the recognized negotiating unions or members of the negotiation council concerning an equivalent. an equivalent shall be certified by the certifying officer.

Re-Skilling Fund

- IRC 20 Provides for the fixing of a "Re-Skilling fund" for the workers retrenched from the economic establishment by the employer. The fund shall contain the subsequent amounts:

• Contribution of the employer, like 15 days wages as last drawn by the worker immediately before being retrenched.
• Contribution from other sources as may be prescribed.

Lay-Off and retrenchment

 IRC 20 defines lay-off, the inability of an employer due to shortage of coal or power, material or breakdown of machinery, accumulation of fabric, or natural calamity from giving employment to a worker whose name is on the roll and has not been retrenched.

Retrenchment refers to the termination of service of a workman for any reason aside from disciplinary action. It doesn't include retirement, non-renewal of contract, or completion of tenure of fixed-term employment, or termination on the bottom of continued ill-health.

The provisions on lay-off and retrench under IRC 20 don't apply to the industrial establishment with less than 50 workers per working day or seasonal industrial establishment.

Disputes concerning termination of individual workers

Employers are required to offer to each worker who has completed at least one year of continued service,

• 50% of basic wages and dearness allowance if he's laid off, and
• one month's notice ( or equivalent wages) and 15 days' wages for each year of continuous service for such period to a worker who has been retrenched.

Further, Factories, mines, and plantation which have 300 or more workers must take prior permission of the acceptable government before lay-off, retrenchment, and closure.

Constitution of tribunals

The IR code provides for the constitution of 1 or more industrial Tribunals and national industrial Tribunals to decide on industrial disputes.

The industrial Tribunals shall be found out in situ of the prevailing multiple adjudicating bodies under the ID act like the court of inquiry, board of conciliation, labor courts. Every industrial Tribunal shall contain two members to be appointed by the acceptable government out of whom one shall be judicial members and therefore the other, an administrative member in situ of just one judicial member presently.

- Further, the central government could also constitute one or more National industrial tribunals for the adjudication of commercial disputes which, within the opinion of the central government, involve questions of nationwide rank or are of such a Countryside that manufacturing founding located in extra than one state are probable to must an attention in, or sorrow from such arguments. The National industrial Tribunals shall also contain two members to be appointed by the central government.

Grievance Redresser Mechanism

 IRC 20 Provides that each industrial establishment employing quite 20 employees must have one or more Grievance Redresser committees for resolution of disputes arising out of individual grievances. The committee should contain an equal number of members representing the employees, and workers on a rotational basis per annum. The amount of grievances redresser committees cannot exceed 10 and there must be adequate representation of girls workers within the said committee and will not be but the proportion of girls employed within the industrial establishment.

Disputes concerning termination of individual workers

IRC 20 Classifies any dispute about discharge, dismissal, Retrenchment, or otherwise termination of the service of private work to be an industrial dispute. The worker may apply to the economic Tribunals for adjudication of the dispute. The workers may apply to the tribunal 45 days after the appliance for the conciliation of the dispute was made.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Consulting & Governance shall not be responsible for any errors caused due to human error or otherwise.