The Industrial Relations Code Bill, 2019 Introduced in Lok Sabha

The Minister of State (I/C) for Labour and Employment Shri Santosh Kumar Gangwar on November 28, 2019 introduced The Industrial Relations Code Bill, 2019 in the Lok Sabha .

Objectives

  • The Bill aims to consolidate and amend the laws relating to trade unions, conditions of employment in industrial establishment or undertaking, investigation and settlement of industrial disputes.
  • The draft code on Industrial Relations has been prepared after amalgamating, simplifying and rationalizing the relevant provisions of following three Central Labour Acts viz: The Trade Unions Act, 1926, The Industrial Employment (Standing Orders) Act, 1946 and The Industrial Disputes Act, 1947.
  • The Union Cabinet approved the Industrial Relations Code, 2019 on November 20, 2019.

Benefits:

  • Setting up of two-member tribunal (in place of one member) introducing a concept that some of the important cases will be adjudicated jointly and the rest by a single member resulting speedier disposal of cases.
  • To impart flexibility to the exit provisions (relating to retrenchment etc.), for which, the threshold for prior approval of appropriate Government has been kept unchanged at 100 employees, but added a provision for changing ‘such number of employees’ through notification.
  • The re-skilling fund is to be utilised for crediting to workers in the manner to be prescribed.
  • Definition of Fixed Term Employment and that it would not lead to any notice period and payment of compensation on retrenchment excluded.
  • Vesting of powers with the government officers for adjudication of disputes involving penalty as fines thereby lessening the burden on tribunal.

Written by