Page 25 - Plastics News October 2020

Definition of 'employer' expanded: Section 2(m) establishments: Sections 62&63
The Code provides for an expanded definition of As in the case for notice for a strike, the notice period for
'employer' under Section 2(m) to include 'contractor', lock-out has also been made applicable to all industrial
'legal representative of deceased employer' etc. As per establishments. Under the ID Act this was applicable
the definition, 'employer' means: only to public utility services.
1. Head of the department Threshold employee-limit for prior government
2. Occupier of the factory permission for retrenchment, lay-off, Closure
increased: Chapter IX & X
3. Manager of the factory under clause (f) of sub-
section (1) of sec 7 of the Factories Act Under the ID Act, establishments with more than 100
workers needed the prior permission of the government
4. The person who, or the authority which has ultimate
to retrench workers The Code has waived this
control over the affairs of the establishment and requirement for establishments with less than 300
where the said affairs are entrusted to a manager or workers. Prior permission of the appropriate
managing director, such manager or managing
government for retrenchment, lay-off or closure is
director
necessary only in industrial establishments such as
5. Contractor mines, factories and plantations which employ more
6. Legal representative of a deceased employer than 300 workers. Such prior permission is not necessary
if the lay-off is due to shortage of power, natural
Threshold workers-limit for framing Standing Orders
increased: Section 28 calamity, and in the case of a mine, such lay-off is due to
fire, flood, excess of inflammable gas or explosion
As per the Code, an industrial establishment needs to (Clause 78).
comply with the requirement of adopting Standing
If the appropriate government does not respond to the
Orders only if it has 300 or more workers (Clause 28).
Under the existing law, this threshold is 100. application seeking permission within 60 days, the
permission will be deemed to have been granted.
Standing Orders need to be framed in relation to matters Industrial Tribunals: Chapter VII
specified in the Schedule such as (i) classification of
workers, (ii) manner of informing workers about work The Code sets up Industrial Tribunal consisting of a
hours, holidays, paydays, and wage rates, (iii) Judicial Member and an Administrative Member, in place
termination of employment, and (iv) grievance redressal of only Judicial Member who presently presides the
mechanisms for worker. Tribunal. For certain specified cases, the matters will be
decided by the two-member Tribunal and the remaining
If the employer prepares and adopts model standing shall be decided by single -member Tribunal as may be
order of the Central Government with respect to the provided for in the rules. Industrial Tribunals replace
matters relevant to the employer's industrial
establishment, then the model standing order would be existing multiple adjudicating bodies like the Court of
Inquiry, Board of Conciliation and Labour Courts.
deemed to be certified. Otherwise, the industrial
establishment may seek certification of only those Reference system for disputes abolished: Chapter VII,
clauses which are different from the model standing Section 46
orders. The Code removes the reference system for adjudication
Notice period for strike made applicable to all of Industrial Disputes, except the reference to the
establishments: Sections 62&63. National Industrial Tribunal for adjudication. The
Central Government may, by notification, constitute one
The Code prohibits strikes in all industrial or more National Industrial Tribunals for the
establishments without prior notice of 14 days to the adjudication of industrial disputes which, in the opinion
employer. Under the ID Act, the requirement of prior
notice of strike was applicable only to 'public utility of the Central Government, involve questions of national
importance or are of such a nature that industrial
services' such as railways, transportation,
establishments situated in more than one State are likely
posts/telegraph/telecommunication, and other notified
services. This means that 'flash strikes' are no longer to be interested in, or affected by, such disputes.
possible in establishments. Voluntary reference to Arbitration allowed: Section
42
Also, the code increases the validity of the notice of
strike to 60 days from the existing 6 weeks. Further, the The Code provides for resolution of disputes between
time period of arbitration proceedings has been included the employer and the employee through arbitration on
in the period during which a legal strike is impermissible. the basis of a written agreement. Such arbitration will
be governed by the procedure under the Code. Nothing
Notice period for lock-out made applicable to all

October 2020 25 Plastics News