Industrial Relation Code 2020

The Industrial Relation Code 2020 got Presidential Assent on 28th September 2020. Basically, it merges and amends the laws involving trade unions; conditions of employment in the industrial establishment/ undertaking, and investigation & settlement of industrial disputes. Notably, the Industrial Relation Code 2020 will be effective from a date yet to be notified. The present article summarizes the key highlight of the same.

List of Acts subsumed in the Industrial Relation Code 2020

Following Acts will be incorporated in the Industrial Relation Code 2020-

• The Trade Union Act, 1926;
• The Industrial Employment (Standing Orders) Act, 1946; and
• The Industrial Disputes Act, 1947.

Also Read: New Labour Codes 2025

Trade Union

• Seven or more members of the trade union can apply for the registration of the trade union under the Industrial Relation Code 2020.
• The application for registration of the trade union shall be made to the Registrar along with the following documents-
  • Copy of rules of the Trade Union.
  • Copy of resolution of the members of the Trade Union adopting the rules.
  • Copy of resolution authorizing the applicant to make an application for the Trade Union.
  • A specified declaration.
• If satisfied with the application, the Registrar may issue an order registering the Trade Union.
• The provisions of the following Acts shall not apply to any registered Trade Union-
  • The Co-operative Societies Act, 1912.
  • The Societies Registration Act, 1860.
  • The Companies Act, 2013,
  • The Multi-State Co-operative Societies Act, 2002.
  • Any other corresponding law concerning to co-operative societies.

Standing Orders

• It applies to all the industrial establishment having three hundred or more workers.
• The employers of the applicable industrial establishment are required to prepare standing orders on the following matters-
  • Classification of workers (like permanent, fixed-term employment, temporary etc.).
  • Manner of intimating the workers the periods/ hours of work, paydays, holidays and wage rates.
  • Attendance and late coming.
  • Shift working.
  • Procedure and authority which may grant leave/ holidays.
  • Termination of employment and notice thereof.
  • Closing and reporting of sections, temporary stoppage of work and rights/ liabilities of employer/ workers.
  • Suspension/ dismissal for misconduct.
  • Liability to search.
  • Redressal of workers against unfair treatment/ wrongful exactions by the employers.
• Cases, wherein, the employer adopts a model standing order of the Central Government. Then, such standing order shall be deemed to have been certified.
• Any other standing order certified under the code can be modified only after the expiry of six months from the date of which the standing order came into operation.

Strikes and Lock-outs

• The person employed in the industrial establishment cannot go on strike-
  • Without giving notice of strike to the employer within sixty days before striking; or
  • Before the expiry of the date of the strike mentioned in the notice; or
  • Within a period of fourteen days from the date of giving notice; or
  • During the pendency of any conciliation proceedings and seven days after completion of conciliation proceedings; or
  • During the pendency of tribunal proceedings and sixty days after completion of such proceedings; or
  • During the pendency of arbitration proceedings and sixty days after the conclusion of such proceedings; or
  • During the period in which a settlement/ award is in operation.
• The employer in the industrial establishment cannot lock-out any worker-
  • Without issuing a notice of lock-out to the workers within sixty days before lock-out; or
  • Within fourteen days from the date of issuing such notice; or
  • Before the expiration of date of the lock-out mentioned in the notice; or
  • During the pendency of tribunal/ national industrial tribunal proceedings and sixty days after completion of such proceedings; or
  • During the pendency of any conciliation proceedings and seven days after completion of conciliation proceedings; or
  • During the pendency of arbitration proceedings and sixty days after the conclusion of such proceedings; or
• Any lock-out declared due to an illegal strike or a strike declared due to an illegal lock-out shall not be deemed to be illegal.

Formation of Industrial Tribunals

• The Industrial Relation Code 2020 provides for the formation of one or more industrial tribunals and also a national industrial tribunal for deciding the industrial disputes.
• Each industrial tribunal shall have two members – one shall be a judicial member and other shall be an administrative member.
• Each national industrial tribunal shall also have two members. One will be a judicial member and another one will be an administrative member.

Lay-off, retrenchment and closure

• The worker (been in continuous service for more than one year) shall not be retrenched unless-
  • The employer issues one month notice to the worker mentioning the reason for retrenchment.
  • At the time of retrenchment, the worker is paid compensation equal to fifteen days average pay.
• The employer who intends to close down the undertaking should serve notice at least sixty days before the intended date of closure.

Worker Re-skilling Fund

• The Industrial Relation Code 2020 introduces setting up of a new fund called worker re-skilling fund.
• The fund will consist of the following-
  • The employer’s contribution equal to an amount of fifteen days of wages last drawn by the worker immediately prior to the retrenchment;
  • Any other prescribed contribution.
• The fund will be utilized for crediting to the account of the retrenched worker an amount equal to fifteen days wages last drawn. Such amount should be credited within forty-five days of the retrenchment.