Industrial Relations Code, 2020- Part 1
- 1. CS Meenakshi Jayaraman Industrial Relations Code, 2020 Part I
- 3. 3 Legends used in the Presentation Code Industrial relations code CG Central Government GRC Grievance Redressal Committee MD Managing Director SG State Government TU Trade Union
- 4. 4 Presentation Schema Labour Codes Framework of Industrial Relations Code, 2020 Bi-partite Forums Trade Unions
- 5. Labour Codes 5 To consolidate and amend various laws into one single code - Labour Code To minimise the burden of employer from complying with various Acts and thus to reduce the due diligence work of the authorities To facilitate ease of doing business To amend the erstwhile laws to meet the requirements of today’s world To replace multiple registrations, licenses into one
- 6. Statutes repealed 6 Inter-state Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979 Mines Act, 1952 Contract Labour (Regulation & Abolition) Act, 1970 Plantation Labour Act, 1951 Building and other Construction Workers Act, 1996 Factories Act, 1948 Dock Workers (Safety, Health & Welfare) Act, 1986 Working journalist and other news papers employees Act, 1955 Sales Promotion Employees Act, 1976 Motor Transport Workers Act, 1961 Working journalist (Fixation of rates of wages) Act, 1958 Beedi and Cigar Workers (Conditions of Employment) Act, 1966 Cine Workers and Cinema Theatre Workers Act, 1981
- 7. Framework of Industrial Relation Code, 2020 7
- 8. 8 Industrial Relation Code, 2020 is an Act to consolidate and amend all laws relating to trade union, conditions of employment in industrial establishment or undertaking, investigation and settlement of industrial disputes and for matters connected therewith / incidental thereto Applicability of the code - To whole of India Lok Sabha passed the bill on 22nd September, 2020 Rajya Sabha passed the bill on 23rd September, 2020 Received President’s assent on 28th September, 2020
- 9. 9 Chapters of the Act I- Preliminary II- Bi-partite Forums III- Trade Unions IV- Standing Orders V- Notice of change in conditions of service VI- Voluntary reference of disputes to arbitration VII- Mechanism for resolution of Industrial disputes VIII- Strikes & lock-outs IX- Lay-off / Retrenchment / closure X- Special provisions relating to the above in certain establishments XI- Worker re-skilling fund XII- Unfair labour practices XIII- Offences & penalties XIV- Miscellaneous
- 10. Definitions 10 Employer means a person who employs any person, on his behalf / on behalf of any person, in his establishment and where the establishment is carried on by any department of CG / SG, the authority specified by the head of the department in this behalf / where no authority is so specified, the head of the department, and in relation to an establishment carried on by a local authority, the chief executive of that authority, and includes,— (i) in relation to an establishment which is a factory, the occupier of the factory and where a person has been named as a manager of the factory (ii) in relation to any other establishment, the person who / the authority which has ultimate control over the affairs of the establishment and where the said affairs are entrusted to a manager / MD, such manager / MD (iii) contractor and (iv) legal representative of a deceased employer Industry dispute means any dispute / difference between employers and employers / between employers and workers / between workers and workers which is connected with the employment / non-employment / the terms of employment / with the conditions of labour, of any person and includes any dispute / difference between an individual worker and an employer connected with / arising out of discharge, dismissal, retrenchment / termination of such worker
- 11. Contd. 11 Industrial establishment / undertaking – in which any industry is carried on. Where several activities are carried on in an establishment and only one / some of such activities is / are an industry/ies, then – if unit carrying on such activity is severable from other units, such unit and if it is not severable, the entire establishment will be deemed to be industrial establishment / undertaking Trade Union means any combination, whether temporary or permanent, formed primarily for the purpose of regulating the relations between workers and employers or between workers and workers, or between employers and employers, or for imposing restrictive conditions on the conduct of any trade or business, and includes any federation of two or more Trade Unions
- 12. Chapter II- Bi-partite Forums 12
- 13. 13 Applicability: If > 100 workers are employed / have been employed in any day of preceding 12 months Authority to make general / special order: Appropriate Government may require the employer to constitute the Committee Composition: Representative of employers and workers engaged in the establishment *Condition: Representatives of workers should not be < Representatives of employer Works Committee Grievance Redressal Committee Works Committee
- 14. 14 Applicability: > 20 workers are employed Rationale for GRC: For resolving disputes arising out of individual grievances Composition: Maximum: 10 - Representative of employer = Representative of workers - Must involve adequate representatives of women workers Grievance Redressal Committee (GRC) Selection of Representative of Workers: If the establishment has any Trade Union (TU), it has to be consulted Rationale for Works Committee: To promote measures for securing and preserving amity and good relations between the employer and workers and to comment on matters of their common interest / concern and endeavour to compose any material difference of opinion
- 15. Illustration 15 No. of Workers Female Workers 200 Male Workers 300 Ratio: 2:3 Assume the GRC has 10 members 5 members – representing employer 5 members – representing workers Out of 5 representatives, at least 2 shall be women workers
- 16. Contd. 16 Selection of Chairperson: Representative of employer and workers alternatively on rotational basis every year. • Procedure for filing any dispute: • Aggrieved worker shall file an application within 1 year from the date on which cause of action of such dispute arises • Within 30 days of application, GRC has to complete the proceedings • Decision will be based on the majority view of the Committee • Application to Tribunal: Within 1 years from the date on which cause of action to the dispute arises and after the expiry of 45 days from the date of making an application to the Conciliation officer of the Appropriate Government • Conciliation: Aggrieved by the decision of GRC or where it is not resolved, worker can file an application for conciliation through TU within 60 / 30 days respectively
- 17. Illustration 17 Assume the GRC has 10 members 5 members – representing employer 5 members – representing workers Condition 1: Decision has to be based on the view of majority Condition 2: More than ½ of the members representing workers must agree to the decision Scenario 1: No. of persons having the same view = 7 No. of members representing workers= 3 Decision will be agreed Scenario 2: No. of persons having the same view: 6 No. of members representing workers =1 No decision arrived by GRC
- 18. Comparison 18 Particulars Works Committee Grievance Redressal Committee No. of workers > 100 workers > 20 workers Committee 1 committee to be constituted 1 or more GRC can be constituted Provision for chairperson No such provision Chairperson will be the representative of worker / employer – rotational basis Applications for Conciliation and Tribunal - Worker can make applications Composition of Committee Members representing workers can be more than the members representing employers Composition of representatives shall be equal
- 19. Chapter III - Trade Unions 19
- 20. 20 Respective SG has power to appoint and prescribe duties for Registrar of TU and other persons as additional, joint and deputy registrar of TU who shall be deemed to be the Registrar for the purpose of the code Requirements for registration of TU Composition: Any 7 / more members* may by subscribing their names to the rules of TU and by otherwise complying with the provisions of the Code can apply for registration *Trade union of workers shall not be registered unless at least 10% / 100 workers (whichever is less) is employed / engaged in the industrial establishment as members of TU on the date of application This composition shall be maintained at all time Application shall not be invalid: After making application and before registration, if not more than ½ of the total number of persons applied have ceased to be members of TU / given notice to Registrar for dissociating themselves from the application
- 21. 21 Name, objects, utilisation of general fund, members list, inspection of members list, admission of ordinary members, subscription amount, benefits, fines, meetings, election of officers, safe custody of funds, annual audit etc. has to be provided in the constitution / rules of TU Applications to Registrar Every application shall be accompanied by a declaration, rules and resolutions. If the TU is a Federation / Central Organisation, resolutions adopted by members of each members has to be submitted If TU is in existence > 1 year before making application for registration - a statement of assets and liabilities also be annexed Registrar may call for additional information and require alteration of the name of TU if it is identical / nearly resembles an existing name of TU and he shall refuse registration until such alteration is made
- 22. Registration of TU 22 On satisfying the requirements, Registrar will register the TU by entering in a register and issue a certificate of registration (conclusive evidence) TU’s registered under TU Act, 1926 having valid registration will be deemed to be registered under this Code if, it submits a statement that it is constituted in accordance with the Code TU shall be a body corporate with perpetual succession & common seal to acquire and hold properties and to sue and be sued in its name
- 23. Cancellation of registration of TU 23 On voluntary application by TU* / Any contravention by the TU / If composition of TU is not in accordance with the Code – the Registrar shall withdraw / cancel registration (60 days previous notice stating the grounds of such action shall be given by Registrar to TU) *No notice will be sent Registration shall also be cancelled by the order of Tribunal
- 24. 24 Appeal to Tribunal When a TU can go for appeal? Refusal for registration / Cancellation of registration Appeal after the limitation period Tribunal may entertain such appeal on showing sufficient reasons for delay Parties concerned will be given opportunity of being heard before passing any order and Tribunal will forward a copy of order to the Registrar
- 25. Communication 25 Communications and notices shall be sent to the Head office address as entered in the register maintained by the Registrar Where composition of TU falls below the statutory threshold or for any change in the particulars since the time of registration shall be informed to the Registrar From Registrar to TU From TU to Registrar
- 26. 26 Non-applicability of Acts Societies Registration Act, 1860 Co-operative Societies Act, 1912 Multi State Co-operative Societies Act, 2002 Companies Act, 2013 Any other corresponding law relating to co-operative societies for the time being in force in any State Following Acts shall not be applicable to a registered TU Registration of TU under the Acts shall be void
- 27. Negotiating Union / Council 27 Term: 3-5 years from the date of recognition / constitution Facilities shall be provided to the negotiating union / council For negotiating with the employer on such matters- • > 1 TU registered under this Code: TU having 50% / more workers on the muster roll shall be recognized as the sole negotiating union of workers • > 1 TU- If no TU has 50% / more workers, employer shall constitute a negotiating council consisting of representatives of TUs which have the support of not less than 20% of total workers on the muster roll of the industrial establishment and such representation shall be 1 representative for each 20% and for the remainder after calculating the membership on each 20% • Industrial establishment having 1 TU: Employer must recognise such TU as the sole negotiating union of workers
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