The Industrial Relations Code
2020
1. Acts Repealed
1) The Trade Unions Act
2) The Industrial Employment (Standing Orders) Act
3) The Industrial Disputes Act
2. Clause 2(p) – “Industry”
"industry" means
• any systematic activity
• carried on by co-operation between an employer and worker
(employed directly or through any agency including a contractor)
• for the production, supply or distribution of goods or services with a
view to satisfy human wants or wishes – not being spiritual or
religious in nature
whether or not, —
(i) any capital has been invested for the purpose of carrying
on such activity; or
(ii) such activity is carried on with a motive to make any gain
or profit
However the definition excludes –
Institutions owned or engaged in
• Charitable, Social, or philanthropic service,
• Domestic service
and any other activity notified by the Central Government.
3. Clause 2(q) – “Industrial Dispute”
Includes individual dispute and collective
disputes
4. Clause 2(o) - “Fixed term employment”
Providing for engagement for a fixed period but ensuring hours
of work, wages, allowances and other benefits not less than that
of a permanent workman doing same or similar work. Also
eligible for proportionate statutory benefits without applying
qualifying period of employment required in the statute and
gratuity if he renders service for a period of one year.
5. Clause 2(zh) – “Retrenchment”
Excludes termination on completion of tenure of
fixed term employment
6. Clause 2(zr) - Worker
Excludes Apprentice as defined under Clause 2(aa) of Apprentice
Act,
Includes Working journalists and Sales Promotion employees
But excludes person employed mainly in a managerial or
administrative capacity or who is employed in supervisory
capacity drawing wage of exceeding Rs.18,000/- per month or
an amount notified by the Central Government from time to time.
7. Clause 2(zk) – “Strike”
Includes concerted casual leave on a given day by
fifty per cent or more workers employed in an
industry
8. Clause 62 – Strike and Lockout
No person can go on strike, in breach of contract
[a] Without giving employer notice of strike within 60 days before
striking.
(b) Within 14 days of giving such notice.
(d) During pendency of conciliation proceedings and 7 days after
its conclusion.
(e) During the pendency of proceedings before a Tribunal and 60
days after its conclusion.
9. Clause 63
Strike/lock-out is illegal if there is contravention of Clause 62 or
contravention of order made under 42(7).
42(7) – prohibition of strike and lock out by Government order
while referring industrial dispute.
10. Clause 2(zq) – “Wages”
Includes only basic pay, dearness allowance and retaining
allowance.
Excludes various allowances provided it does not exceed one-half
or such other percent as notified by the central government.
The amounts which exceed one-half or the percent so notified is
deemed to be a remuneration.
11. Clause 6(4) – Registered trade Union
A registered trade union should at all times have
not less than 10% of the workers or 100
workers, whichever is less
12. Clause 14 – Negotiating union or
Negotiating council
Clause 14(2) – If there is only one registered trade
union of workers functioning in an industrial
establishment, it shall be recognized as a sole
negotiating union subject to criteria prescribed.
Clause 14(3) – If more than one trade union are
functioning, the trade union having 51% or more
workers support that trade union, it shall be
recognized as the sole negotiating union.
Clause 14(4) – In the event of more than one trade
union, and no trade union has 51% of workers,
negotiating council which has the support of not less
than 20 per cent of the total workers shall have one
representative for each twenty per cent.
Clause 14(6) – Recognition granted to the trade
union or to the negotiating council is valid for 3 years
from the date of recognition or constitution or such
period mutually decided not exceeding 5 years
13. Clause 2(zm) – “Trade Union Dispute”
Disputes relating to trade unions arising between two
or more trade unions or between members of trade
union inter se.
14. Clause 22(2)
No civil court other than Tribunal has the power to
entertain any suit in relation to dispute concerning
trade unions and the members.
15. Clause 40 - Notice of change with regard to
matters in III Schedule
40(c) – No notice shall be required for effecting change in case
of emergent situation requiring change of shift or shift working
otherwise than (except) in accordance with standing orders, in
consultation with Grievance Redressal Committee
40(d) – If such change is affected in accordance
with orders of Appropriate Government or in
pursuance of any Settlement or Award.
16. Clause 60 – Conciliation
Conciliation Proceeding is deemed to have commenced on the
first meeting held by conciliation officer after receipt of notice of
strike or lock-out.
60(2)(b) – Conciliation proceedings deemed to have concluded on
failure of conciliation recorded by conciliation officer
17. Clause 53
Conciliation proceedings can be held in respect of an industrial
dispute which arose within 2 years. The Conciliation Officer in the
event of failure of settlement should send a report within 45 days to
the appropriate government. A concerned party can make an
application to the Tribunal in respect of matters not settled within 90
days of receipt of the failure report.
18. Clause 4(10)
Notwithstanding anything contained in Clause 53, a worker
who is discharged, etc. may make an application directly to the
Tribunal for adjudication of the dispute after expiry of 45 days
from the date he made the application to the conciliation officer
and the Tribunal shall adjudicate the said dispute. However,
under Sub-section (11), the application should be made to the
Tribunal before expiry of 2 years from the date of discharge,
etc.
19. Clause 44
Formation of Industrial Tribunals with a single
member for two members consisting of a Judicial
member and an Administrative member.
20. Clause 47
Decision of the Tribunal should be by consensus of
the members. In the event of split between two
members, the issue to be referred to another
judicial member.
21. Clause 50(2)
The Tribunal may in the interest of justice
grant interim relief to the worker during the
pendency of the dispute.
22. Clause 77 - Special provisions relating to lay
off, Retrenchment and Closure
Applicable to industrial establishment (excluding establishment
of seasonal character or in which work is performed only
intermittently) in which not less than 300 workers or any such
higher number notified by the Appropriate Government
employed on an average per working day in the preceding 12
months would lay-off, retrench or effect closure without prior
permission of the appropriate government.
23. Clause 83 - “Workers Re-skilling Fund”
The management should contribute an amount equivalent
to fifteen days’ wages last drawn (or any such days
notified by the central government) for every retrenched
worker in case of retrenchment only
24. Clause 97 – Civil Court
Civil court jurisdiction in respect of any matter under the
provisions of this code is barred.
Interpretation based on Supreme Court judgment in the
case of Premier Automobiles reported in 1975 (2) LLJ
445 no longer exists.
25. Schedule II
Item 5 in respect of unfair labour practice by
workers includes “willful go-slow”.
Observations
26. Clause 2(j)
Any proceeding is deemed to be conciliation
proceedings – restrictions imposed under
Clause 90 regarding approval and
permission will be wide spread.
27. Clause 2(f)
Definition of Lay-off – outdated
28. Clause 77 to 80
Permission to lay-off, retrench and closure – increasing
the minimum number of worker to 300 is of no
consequence.
Permission/Approval should be granted by the Industrial
Tribunal
29. Formation of Industrial Tribunal
consisting of two judges
30. Lack of power of grant of injunction by
the Industrial Tribunal.
31. Continued restrictions on the
management under Section 40 [old
section 9A] and 90 [old section 33]
hampering managerial powers.
32. The discretion of the Government to decline
collective dispute has been taken away. Therefore,
there is likelihood of large number of collective
disputes on trivial demands made by trade unions.
The Code on Wages 2019
1. Acts Repealed
1. Payment of Wages Act, 1936,
2. Minimum Wages Act, 1948,
3. Payment of Bonus Act, 1965 and
4. Equal Remuneration Act, 1976
2. Clause 2(g) – “Contact Labour”
“Contract Labour” includes Inter State
Migrant Worker and is deemed to be a
worker
3. Clause 2(k) – “Employee”
Fixation of salary limit is left to the
Appropriate Government.
4. Clause 2(v) – “Same work or work of
similar nature”
Work in respect of which skill, effort, experience
and responsibility are the same.
5. Clause 3 – Gender discrimination
No discrimination on the ground of gender in the matter
relating to wages when the “nature of work is same or
similar”.
No discrimination on the ground of sex in respect of
condition of employment.
6. Clause 4
Authority to decide any dispute in respect of
“work of same or similar nature”
7. Clause 9 – Floor Wages
Fixation of Floor Wages based on minimum living
standards of a worker in respect of different
geographical areas.
8. Rule 11 – Manner of fixing Floor
Wage
Minimum living standards including the food,
clothing, housing, etc.
9. Clause 6 – Minimum Wages
Minimum wages fixation based on skill, geographical
area, arduousness of work, etc
Clause 9
The minimum wages fixed under Section 6 shall not be
less than floor wages.
10. Clause 13
While fixing minimum rates of wages, to fix
hours of work for a normal working day
11. Rule 3 – Criteria for fixation of minimum wages
a) Spouse and two children
b) A net intake of 2700 calories per day per consumption unit
c) 66 meters cloth per year per standard working class family
d) House rent expenditure of 10% of food and clothing
expenditure
e) Fuel, electricity and miscellaneous item expenditure to
constitute 20 percent of minimum wages
f) Children education, medical requirement, recreation and
expenditure on contingencies at 25 percent of minimum wage.
(Criteria recommended in Reptakos Brett judgment of Supreme
Court followed)
12. Clause 29 - Bonus
Disqualification from receiving bonus includes
dismissal for conviction for sexual harassment
13. Clause 38
An employee found guilty of misconduct causing
financial loss could lose bonus to that extent in
respect of that accounting year
14. Clause 46
Fixation of bonus or eligibility of bonus and
application of the Code in respect of bonus to
an establishment is deemed to be industrial
dispute
15. Clause 45 - Jurisdiction of Authorities
Claims regarding minimum wages, payment of wages
including fines and deductions, bonus claims and dispute
on “work of same or similar nature” to be decided by
the Authority appointed by the appropriate government.
16. Clause 49
Any person aggrieved by the order of the
Authority may prefer an appeal to the
Appellate Authority
17. Observation
Appointment of Authorities, Appellate Authorities has
not served the purpose. Claims under this code
should be straightaway adjudicated by the Industrial
Tribunal.
The Occupational Safety,
Health and Working Conditions
Code 2020
1. Acts Repealed
1. The Factories Act
2. The Plantations Labour Act
3. The Mines Act
4. The Working Journalists (Condition of Service) Act
5. The Working Journalist Fixation of Rates of Wages
Act
6. The Motor Transport Workers Act
7. The Beedi and Cigar Workers Act
8. The Contract Labour (R & A) Act
9. The Sales Promotion Employees Act
10. The Inter-State Migrant Workmen Act
11. The Cine Workers and Cinema Theatre Workers Act
12. The Dock Workers Act
13. The Building and Other Construction Workers Act
[Link] 2(m) – “Contract Labour”
A worker employed in or in connection with the
work of an establishment and hired through
contractor including interstate-migrant worker.
3. Clause 2(n) – “Contractor”
“Contractor” means a person who undertakes to
produce a given result to the establishment, other than
mere supply of goods or articles to the establishment
through contract labour or
Supplies contract labour as a mere human resource and
includes a sub-contractor
4. Clause 45 - Applicability
❑Applies to every establishment in which 50 or more contract
labour employed on any day preceding twelve months.
❑Applies to every non-power supply contractor employing 50 or
more contract labour on any day preceding twelve months.
❑Not applicable to establishment where work is of intermittent
or casual nature.
5. Clause 47 (2)
License for contract labour to be
“work specific license”
6. Clause 54 – Absence of license
Contract Labour engaged through a contractor
without obtaining license is deemed to be in
contravention of the provision of the Code and
would attract penalty under Clause 94 or 97
7. Clause 2(zf) – Inter-state migrant worker
❑A person recruited directly by the Employer or indirectly
through a contractor in one State for employment in
establishment in another State or
❑A person who has come on his own from one State and
obtained employment in an establishment in another State
❑And draws wages not exceeding Rs.18000/- per month.
8. Clause 59 – Applicability
Applies to every establishment in which ten or
more inter-state migrant workers employed on
any day preceding twelve months.
9. Clause 2(zs) – “Occupier”
Excludes an independent Director within the
meaning of sub-section (6) of Section 149 of
the Companies Act.
10. Clause 2(zzg) - “Serious bodily injury”
“Serious bodily injury” means any injury involving
permanent loss of any part of a body including
permanent loss of sight or hearing or any
permanent physical incapacity.
11. Clause 14(2)
An employee on apprehension of serious bodily injury,
death or imminent danger to health may bring it to
the notice of the employer directly or through member
of the safety committee and also to Inspector-cum-
Facilitator
12. Clause 60
An employer/contractor in the case of serious bodily
injury to an interstate migrant worker should report it
to the specified authority and next kin of the worker.
Duty to provide suitable conditions of work, to extend
benefits under ESI Act, EPF Act and medical checkup.
13. Clause 2(p) – Core activity
Core activity of an establishment means any
activity for which the establishment is set up
including activity which is essential or
necessary to such activity.
Exceptions - Establishments which are not set up for activities
1. Sanitation work including sweeping, cleaning, dusting and collection
and disposal of all kinds of waste.
2. Watch and ward services including Security
3. Canteen and catering services
4. Loading and unloading operations
5. Running hospitals, educational and training institutions, guest
houses, clubs, etc.
6. Courier services
7. Civil and constitutional work including maintenance
8. Gardening and maintenance
9. Housekeeping and laundry
10. Transport service including ambulance.
11. Any activity of intermittent nature.
14. Clause 57 – Prohibition of core activities
Employment of contract labour in core activities is prohibited
Exceptions
1. If the normal functioning of the establishment is such that the activities
ordinarily run through contractor or
2. If the activity do not require full time workers for long hours
3. Sudden increase in volume of work in the core activity needing
accomplishment in a specified time.
15. Clause 6(f) – Appointment letter
The employer should issue letter of
appointment to every employee on his
appointment.
16. Clause 13 – “Duties of Employees”
To take reasonable care of his health and safety and of other
persons, comply with safety and health requirements, cooperate
with the employer in meeting statutory obligations, report any
unsafe or unhealthy situation, not to willfully misuse or neglect
safety appliance, not to willfully endanger himself.
17. Clause 14
Every employee has a right to obtain information from
the employer relating to his health and safety. He is
also entitled to represent to the Inspector-cum-
Facilitator if he is not satisfied with the response of the
employer.
18. Clause 89
Worker employed in a hazardous process on
reasonable apprehension or likelihood of
imminent danger to his life or health can bring it
to the notice of Inspector-cum-Facilitator.
19. Clause 25 – “Hours of work”
8 hours in a day and period of hours
fixed by the Government
20. Clause 27 - OT
Worker could be required to work overtime
only with his consent.
Appropriate Government to prescribe the
total number of hours of overtime
21. Clause 32 – Leave wages
Every worker is entitled for leave with
wages provided he has worked for 180
days or more in a calendar year.
22. Clause 43 – Woman worker
Woman worker entitled for all types of work in all
establishments
Woman worker can be employed from 7 p.m. to 6
a.m. with her consent and subject to conditions
prescribed by the Government relating to safety,
holidays and working hours.
23. Clause 44
The Employer to provide adequate safeguards for
employment of women in such operations which is
considered to be dangerous for her health and
safety.
24. Clause 103 – Fine Amount
In the case of an accident or dangerous occurrence
resulting in death, or serious bodily injury, for which the
Court imposes fine on the employer, it may direct that out
of the fine amount not less than 50% should be given as
compensation to the legal heir of the victim or to the
victim.
The Code on
Social Security 2020
1. Acts Repealed
1. The Employees' Compensation Act,
2. The Employees' State Insurance Act,
3. The Employees' Provident Funds and Miscellaneous
Provisions Act,
4. The Employment Exchanges (Compulsory Notification of
Vacancies) Act
5. The Maternity Benefit Act
6. The Payment of Gratuity Act
7. The Cine-Workers Welfare Fund Act
8. The Building and Other Construction Workers’
Welfare Cess Act
9. The Unorganised Workers Social Security Act,
2008.
[Link] 2 (28) - “Employment Injury”
“Employment injury” includes accident occurring or
occupational disease contracted within or outside the
territorial limits of India for the purpose of Employees
State Insurance Corporation and Employees
Compensation
3. Clause 34
An accident is presumed to have arisen in the
course of employment in the absence of
evidence to the contrary.
4. Clause 2(35) – “Gig Worker”
“Gig Worker” means a person who performs a
work arrangement and earns from such activity
outside traditional employer-employee
relationship.
5. Clause 2(60) – “Platform work”
“Platform work” means a work arrangement
outside a traditional employer-employee
relationship by using online platform
6. Clause 2 (61) - “Platform worker”
“Platform worker” means a person
engaged in platform work
7. Clause 45 - ESI
The Central Government may frame a scheme
for unorganised workers, gig workers and
platform workers and members of their
families.
8. Clause 141 – Social Security Fund
The Central Government to constitute Social
Security Fund for social security and welfare of
unorganized workers, platform workers or gig
workers
9. Clause 114 - Social Security Scheme
The Government may formulate social security scheme
for gig workers and platform workers relating to
disability, maternity, old age, etc. with funds funded by
central government, state government or from
aggregators or from corporate social responsibility fund
within the meaning of Companies Act, 2013.
10. Clause 42 – ESI contribution
If the employer fails to pay contribution and the corporation pays
the benefit to the employee, it shall recover from the employer,
after providing due opportunity, the capitalised value of the
benefit paid to the employee after adjusting the payment of
contribution and interest or damages. The said amount may be
recovered as arrears of land revenue.
[Link] 43 - ESI
If incidence of sickness among the insured person is excessive
by reason of insanitary working conditions or neglect of health
regulations in the factory or lodgings occupied by the insured
person, then the corporation may send a claim for payment of
extra expenditure amount incurred by the Corporation and
after due enquiry determine the amount of extra expenditure
12. First Schedule
The provisions of the ESI Act is applicable to an
establishment wherein hazardous or life
threatening occupation (as notified by the
Central Govt.) is carried on even with a single
employee.
13. Clause 53 – Gratuity
Gratuity is payable on termination of contract
period under fixed term employment for which
continuous service of 5 years is not necessary.
14. Clause 125 – Limitation period
In respect of dispute arising under Employees Provident
Fund and Employees State Insurance Corporation, no
proceedings could be initiated after the expiry of a period of
five years from the date on which the dispute is alleged to
have arisen or the alleged due from an employer.
15. Clause 23 – PF Appeal
An appeal may be preferred to the Tribunal within sixty
days on deposit of 25% of the amount determined with
the concerned social security organization.
The Tribunal may decide the appeal within a period of 1
year from the date of filing of appeal.
16. Observation
Clause 42 claiming from the employer capitalized
value due to non-payment of contribution and
clause 43 claiming extra expenditure due to
insanitary condition is harsh and excessive.
HIGHLIGHTS
The Industrial Relations Code 2020
[Link] term employment.
[Link] and Lockout.
[Link].
[Link] of trade unions.
[Link] reference on Industrial Disputes.
[Link] Court jurisdiction ousted.
7. Interim relief to workman during
pendency of dispute.
8. Continued compulsion of permission for
layoff retrenchment and closure.
9. Division Bench of tribunals.
10. No power of injunction to Industrial
Tribunal.
The Code on Wages 2019
11. Inter State migrant workmen deemed
to be contract workman.
12. Same or similar nature of work –
equal pay for equal work.
13. Fixation of minimum wages as per
Reptakos Brett decision of Supreme
Court.
The Occupational Safety, Health and
Working Conditions Code 2020
14. Duties of employees
15. Over time with the consent of employee worker
The Code on Social Security 2020
16. Gig and platform workers.
17. Levy of capitalized value collection from employer.
18. Extra expenditure claimed from employer due to
sickness caused because of insanitary working
conditions.
19. Gratuity for fixed term employment without 5 years
limitation.
20. 5 years limitation for EPF demand by organization.
21. CONTINUED QUASI-JUDICIAL POWERS VESTED WITH AUTHORITIES
Thank You
S. RAVINDRAN
Senior Advocate
