The effect of the Industrial Relations Code, 2020 on the workers’ right to strike remains to be seen. 35 of 2020 >> The Industrial Relations Code, 2020 No. [7]. Reviews, Monthly Policy Note that while examining the provision on mandatory linking of Aadhaar for registration of unorganised workers (in the 2019 Bill), the Standing Committee noted the government’s assurance that this provision will be re-examined.3, Recommendations of the Standing Committee. Employment under written contract. One Nation Senator Malcolm Roberts. The question is why such a general safety requirement is not provided for all workers. The 2020 Bill makes the following changes for such workers: The 2019 Bill permitted the appropriate government to exempt any establishment or class of establishment from any provisions of the Code. In such a case, the employer may file a case in the civil court for seeking remedy against the orders passed by the Inspector. PRS is an independent, not-for-profit group. 8: “Industrial Relations Code, 2019”, Report No. It made several recommendations towards expanding coverage.3  While the 2020 Occupational Safety Bill incorporates the recommendations of the Committee (provides for a social security fund for unorganised workers and adds separate chapters for migrant and plantation workers), the 2020 Social Security Bill does not address them. “Report on Conditions of Work and Promotion of Livelihoods in the Unorganised Sector”, NCEUS, August, 2007. The Industrial Disputes Act, 1947 contained similar provisions, however they were applicable only to public utility services. The Bill also creates provisions for unorganised workers. Provisions on gig workers and platforms workers are unclear. The Standing Committee has submitted its report on all three Bills. Code should provide a framework to achieve universal social security for all workers with firm entitlements and within a defined time frame. This data has been collated without regard to the objectives or opinions of those who may receive it. Standing Committee recommendations not addressed. The laws have now passed the lower house and are currently under consideration by the Senate. The Standing Committee on Labour examined similar provisions in the 2019 Bill and recommended: (i) expanding the definition of “unorganised workers” to include gig and platform workers, (ii) making the definition of “gig worker” more specific to avoid misinterpretation, and (iii) expanding the definition of “platform worker” to enable inclusion of future models of work.3  The 2020 Bill only incorporates the last recommendation. Further, the Bill specifies additional leave for sales promotion employees. There is a need for a clear-sighted understanding of all the effects of technical change at the workplace. In case no trade union meets these criteria, a negotiating council will be formed with representatives of unions that have at least 20% of the workers as members. It is unclear as to why the central government should continue to exercise jurisdiction over an establishment in which it does not own controlling stake (even in cases where it has sold its entire stake). It states that the awards passed by a Tribunal will be enforceable on the expiry of 30 days. [4],[5]   However, low numeric thresholds may create adverse incentives for establishments sizes to remain small, in order to avoid complying with labour regulation.4,5  To promote the growth of smaller establishments, some states have amended their labour laws to increase the threshold of their application. For all other workers covered under the Bill, the minimum leave and maximum work hours are prescribed through rules. The 2020 Bill on Industrial Relations provides the government with the power to exempt any new industrial establishment or class of establishment from any or all of its provisions if it is in public interest. The Industrial Relations Code, 2020 is one of four Labour Codes that forms a part of the Central Government’s largest reform scheme in decades. Sources:  Contract Labour Act, 1970; Industrial Disputes Act, 1947; Notification GSR 976(E), Ministry of Labour and Employment, October 7, 2016, Notification GSR 235(E), Ministry of Labour and Employment, March 16, 2018; 2020 Bill; PRS. On the other hand, some have argued that basic provisions for enforcement of wages, provision of social security, safety at the workplace, and decent working conditions, should apply to all establishments, regardless of size.2,4  Towards, this the 2020 Bill on Occupational Safety states that the applicability thresholds (of 10 or above) will not apply in those establishments in which hazardous or life-threatening activities (as notified by the central government) are being carried out. Pradesh, Uttar There is also a provision made for the establishment for the constitution of a negotiating council where there is no single union that meets the 51% threshold as mentioned above. [8], B.2 Key Issues in the Industrial Relations Code, 2020, Strikes and lock-outs may become difficult for all establishments. However, it does not define the term ‘establishment’. However, the Bill defines a list of non-core activities where the prohibition would not apply. Mandatory linking with Aadhaar may violate Supreme Court judgement, The 2020 Bill mandates an employee or a worker (including an unorganised worker) to provide his Aadhaar number to receive social security benefits or to even avail services from a career centre. Pradesh, Analytical For instance, Rajasthan has increased the threshold of applicability of the Factories Act, 1948, from 10 workers to 20 workers (if power is used), and from 20 workers to 40 workers (if power is not used). Ewin Hannan. Benefits, such as pension and medical insurance, continue to be mandatory only for establishments with a minimum number of employees (such as 10 or 20 employees). Posted 29 m minutes ago Sat Saturday 6 Mar March 2021 at 4:15am. The opinions expressed herein are entirely those of the author(s). PART A: Comparison of key provisions of the 2019 Bills and 2020 Bills. In the case of a factory, employer means the occupier of a factory, i.e., the person with ultimate control over the affairs of the company. However, certain functions and powers should not be delegated to the government. Puttaswamy Vs. Union of India, Supreme Court, Writ Petition (Civil) 494 of 2012, September 26, 2018. The Central Government amalgamated the existing labour laws, namely, the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946 ("SO Act"), and the Industrial Disputes Act, 1947 ("ID Act"), under a new legislation enacted as 'the Industrial Relations Code, 2020' ("Code") on September 29, 2020.This Code will come into effect from a date to be notified by the Central … The Bill on Industrial Relations applies to all establishments, with separate thresholds for layoffs, retrenchment and closure, and for requirement of standing orders. DIR invites the public to participate in important rulemaking, meetings, forums, and training events. This document has been prepared without regard to the objectives or opinions of those who may receive it, PRS Legislative Research is licensed under a Creative Commons Attribution 4.0 International License. In the Industrial Relations Code Bill, 2020, the government has proposed to introduce more conditions restricting the rights of workers to strike, alongside an increase in the threshold relating to layoffs and retrenchment in industrial establishments having 300 workers from 100 workers or more at present — steps that are likely to provide more flexibility to employers for hiring and firing workers … The effectiveness of the union and its officials and the extent to which the officials can and do control the activities of supervisors within the company. Then we discuss some of the significant issues to consider regarding the three Bills. ... B.2 Key Issues in the Industrial Relations Code, 2020 . Further, under the 2019 Bill, the government could notify schemes for unorganised sector workers (such as home-based and self-employed workers), gig workers, and platform workers. The 2020 Bill defines a ‘worker’ as any person who work for hire or reward. This book, originally published in 1986 and based on extensive original research, examines the changes in industrial relations which the new technology of the 1980s caused, analysing the implications for the workforce and the reactions of the management and trade unions to the challenges. Applying this principle, the Court has struck down the mandatory linking of bank accounts with Aadhaar. Every factory would generate employment, and public interest could be interpreted broadly. For unorganised sector establishments (which fall outside the purview of labour laws), the National Commission for Enterprises in the Unorganised Sector (NCEUS) made several recommendations to address the social security and minimum conditions of work for both agricultural and non-agricultural workers and suggested two Bills – one for each sector. Is the Apprentices Act Applicable to Your Business? Puttaswamy Vs. Union of India, Creative Commons Attribution 4.0 International License. It also includes self-employed workers. Move to a decentralised mechanism with: (i) national authority chaired by the Prime Minister, (ii) central board for managing the scheme, (iii) state boards for delivery and implementation, and (iv) local committees for identification and registration of beneficiaries. Table 3 below sets out the general provisions in the Bill applicable to all workers and the additional special provisions applicable to specific categories of workers and establishments under the Bill. Further, the Bill does not restrict the type of work in which fixed term workers may be hired. This code is as said at the beginning itself to achieve “ease of doing business” but not “easing of friction between employer and employee/union”. The 2020 Bill clarifies that the Code will apply to contract labour engaged through a contractor in the offices of the central and state governments (where the respective government is the principal employer). Report No. Union of India vs. The industrial relations changes would be part of a set of IR reforms introduced to Parliament before Christmas, Morrison said in a speech to the Business Council of Australia. PRS is an independent, not-for-profit group. The Employment Act does cover the basics of employer-employee obligations, but it doesn’t actually cover all employees in Malaysia—it’s specifically for employees in West Malaysia and Labuan … While examining the 2019 Social Security Bill, the Standing Committee on Labour had noted that the Bill delegates various aspects for rule-making by the government, especially in relation to defining the entitlements, benefits and contributions under the Bill.3  It suggested that the Ministry review all such instances of delegation in the Bill. Gig workers refer to workers outside the “traditional employer-employee relationship”. The central government has stated that there are over 100 state and 40 central laws regulating various aspects of labour such as resolution of industrial disputes, working conditions, social security and wages. Thus, globalization brought major changes in policy in India. Any Rule should also remain within the scope of the delegating Act. Thus, establishments falling under this provision are required to obtain prior permission of the Government for lay-off, retrenchment and closure. Now,the policy was tilted towards employers. Strikes are also prohibited during the pendency of conciliation proceedings as well as within 7 days of the conclusion of such proceedings. The Bill requires prior notice before a strike or a lock-out, which has to be shared with the conciliation officer within five days. An Industrial Tribunal will consist of two members: (i) a Judicial Member, who is a High Court Judge or has served as a District Judge or an Additional District Judge for a minimum of three years; and (ii) an Administrative Member, who has over 20 years of experience in the fields of economics, business, law, … The International Labour Organisation (2005) notes that only 10% of its member states had exempted micro and small enterprises from labour regulation altogether. The 2020 Bill requires all persons to give a prior notice of 14 days before a strike or lock-out. Further, fixed term contracts are negotiated directly between the employer and employee and reduce the role of a middleman such as an agency or contractor. 4: “Occupational Safety, Health and Working Conditions Code, 2019”, Standing Committee on Labour, Lok Sabha, February 11, 2020; Report No. “There won’t be sweeping praise from the union movement, and businesses … However, the Bill does not define the term ‘contractor’. ... Industrial relations hold a high significance in the context of human resource management about … However, much cooperation may be sought as an organizational objective, some conflict will always remain. This notice is valid for a maximum of 60 days. Drop your thoughts in the comments below. Statement of Objects and Reasons, The Occupational Safety, Health and Working Conditions Code, 2020. However, certain changes have been brought in with a view to promote ease of doing business, reducing compliance burdens, and modernizing the legal framework surrounding the regulation of industrial relations in India. The Standing Committee while examining an identical provision in the 2019 Bill had recommended that the restriction on strikes should only apply to public utility services.3, Power to government to modify or reject tribunal awards. Similarly, the Bill defines the term “industrial establishment” to mean an establishment in which industry is carried on. Similarly, the introduction of sole negotiating union and negotiating council shall reduce the amount of time taken in reaching amicable settlements with employees. This can be seen in the scheme of authorities set up under the Act, while the bi-partite fora are internal dispute resolution mechanisms, the Conciliation Officers and Industrial Tribunals are external forums. The introduction of curbs on strikes during the pendency of litigation and alternative dispute resolution mechanisms will definitely ensure industries continue functioning without repeated stoppage of work.