Page 24 - Plastics News October 2020

New Labour Laws Explained (Part 1): Industrial Relations Code 2020

The Industrial Relations Code 2020 is seen as one that
would energise industry and spur economic activity. It
aims to free employees from the constraints of earlier
labour laws. The Industrial Relations Code combines the
features of three erstwhile laws. These are – the Trade
Unions Act, 1926, the Industrial Employment (Standing
Orders) Act, 1946, and the Industrial Disputes Act, 1947.
The Parliament recently passed three major bills related
to labour laws, they are: Industrial Relations Code Bill
2020, Social Security Code Bill, 2020 and Occupational
Safety, Health and Working Conditions Code Bill, 2020.
Industrial Relations Code, 2020
The Industrial Relations Code (hereinafter 'the Code')
seeks to amalgamate and combine three major laws owned or managed by organisations wholly or
governing employee-employer relationship, after substantially engaged in any charitable, social or
making some key amendments to the provisions. philanthropic services; sovereign functions; domestic
The Code consolidates the following central enactments services.
and repeals them, they are; Trade Unions Act, 1926 Definition of 'industrial dispute' expanded: Section
Industrial Employment (Standing Orders) Act, 1946 and 2(q)
the Industrial Disputes Act, 1947
The definition of 'industrial dispute' has been expanded
Some notable changes brought by the Code are: to include dispute arising out of discharge, dismissal,
Definition of 'Industry': Section 2(p) The code mostly retrenchment or termination of worker.
retains the definition of 'industry' given in Section 2(j) of Definition of 'strike' expanded: Section 2(zk)
the Industrial Disputes Act, 1947(hereinafter 'ID Act'),
The new Code Bill expands the definition to 'strike' to
except for some changes.
include "the concerted casual leave on a given day by
The ID Act specifically exempts from the definition the fifty per cent or more workers employed in an industry".
following:
Definition of 'worker' expanded: Section 2(zr)
a. Hospitals or dispensaries, educational, scientific,
research or training institutions, khadi or village The definition of worker has been expanded to include
working journalists as defined in clause (f) of section 2 of
industries,
the Working Journalists and other Newspaper Employees
b. Any activity, being a profession practised by an (Conditions of Service) and Miscellaneous Provisions Act,
individual or body or individuals, if the number of 1955 and sales promotion employees as defined in clause
persons employed by the individual or body of
(d) of section 2 of the Sales Promotion Employees
individuals in relation to such profession is less than (Conditions of Service) Act, 1976.
ten,
Also, persons employed in supervisory role drawing less
c. And any activity, being an activity carried on by a co- than Rs. 18,000 per month (or any amount as notified by
operative society or a club or any other like body of the Central Government) are brought under the
individuals, if the number of persons employed by definition of 'worker'. Under the ID Act, this limit is
the co-operative society, club or other like body of
Rs.6500 per month.
individuals in relation to such profession is less than
ten Protection for 'Fixed Term Employment (FTE)':
Section 2(o)
d. And any activity, being an activity carried on by a co-
operative society or a club or any other like body of The Code incorporates provisions for 'Fixed Term
Employment' It states that workers on a fixed term are
individuals, if the number of persons employed by
the co-operative society, club or other like body of eligible for all statutory benefits available to a
individuals in relation to such activity is less than permanent worker proportionately according to the
ten. period service rendered by him even if his period of
employment does not extend to the qualifying period of
These specific exemptions are not there in the definition employment required in the statute. Further, fixed-term
of 'industry' in Section 2(p) of the Code Bill.
employees will be eligible for gratuity if they render
The definition has specifically excluded institutions service under the contract for a period of one year.

October 2020 24 Plastics News