Introduction

The Industrial Disputes Act, 1947 was aimed towards providing the workers a path that would help them get a relief against wrongful dismissal, layoffs, and related matters. The Trade Unions Act, 1926 was brought into force to focus on the working conditions, safety, and better wages for the workers, while ensuring a fair share in the profits of the company and lastly, to educate the workers regarding their right to form associations and to protect themselves. The last puzzle piece in the Code is the Industrial Employment (Standing Orders) Act, 1946 which only aimed towards standardizing the working conditions of the workers.

The Code was brought into existence to bring about better laws for protecting the rights of the workers and their unions, while ensuring that the disputes do not result is what can turn out to be a stormy incident. Before the enactment of the Industrial Relations Code, 2020, the country had a plethora of rules governing the functioning of industrial disputes, working conditions, social security, and wages. The new regulation is a step ahead to untangle the disputes between the various State laws. Besides this, the Code also ensures that the words and phrases are well defined and compiled under a single regulation. The division of the law under various categories such as (i) industrial relations; (ii) wages; (iii) social security; (iv) safety; and (v) welfare and working conditions, brings about a proper understanding of the regulation for the general public.

Analysis

As stated above, an important facet of the Code is the definitions that provide for better understanding. Focusing on the provisions dealing with 'Trade Unions', the Act defines 'trade unions' to be a group – not necessarily permanent in nature, which has been formed to regulate the relations between workers and their employers, however, restricting their interference in matters that are born out of any agreement or arrangement between the employers' and/or the employees.

It is not a hidden fact that India has among the highest number of trade union strike rates in the world. It was therefore necessary to restrict such possibilities, which in a lot of cases, are unnecessary. The industrial establishments shall be receiving a fourteen day notice prior to any call of strike. While doing so, special attention has been given to recognizing of the trade unions. The code ensures that only registered trade unions indulge in negotiations with the business entities and industrial establishments. Furthermore, only one trade union shall be functioning with one industrial establishment, unlike the older times when multiples trade unions would come together and focus on one single entity. In a situation that more than one trade union is registered, the one having atleast 51% of the support of the muster roll, shall be considered as the negotiator. However, the major concern that goes behind the role is the fact that there is nothing more than mere registration that goes into appointment of a negotiator. Another aspect is the recognition of Central and State Trade Unions by the Centre and respective State Authorities, without providing for any criteria or procedure for the same.

Mentioned previously is the instance where there exists the possibility of having more than one trade union involved in an industrial matter. This gives rise to a situation of disputes amongst the trade unions. Such a dispute, as defined in the Code, can also arise between members of a trade union. These matters shall be dealt with by the Industrial Tribunal only and the civil courts shall have no jurisdiction over such disputes. The issue revolving around the section is total bar of civil courts and any appeal shall lie with only those authorities that are appointed by the government. Besides, no guidelines have been provided for the same, neither have been any regulations formulated for the same till date.

Apart from focusing on trade unions, the Code brings about grievance redressal mechanism which is a mandate for every industrial establishment under Section 4 of the Code. The establishment shall have equal numbers of employers and workers to certify that equal opportunity is given to both the parties and the principles of fairness is brought into play. Matters of lay-offs, retrenchments and closure are also taken into consideration under the Code–

  • A notice period of sixty days is to be issued to the government before complete closure of an establishment alongside providing for compensation to the affected workers', who have been in complete service for a minimum period of one year;
  • Non – seasonal establishments are to pay 50% of the basic allowance to the workers and a prior notice of one month. Furthermore, a non-seasonal establishment having over 300 employees shall be required to take approval from the Centre or State government before closure, lay-off or retrenchment.
  • Retrenchment of workers shall require a three month notice and also provides for procedure for re-employment of retrenched workers.

The above analysis brings us to the improvement in the jurisprudence of the Labour Laws in India, which was long overdue. Trade unions have been playing a significant role in the betterment of the unequal relationship shared between the employees and the employers. The advancements brought forward in the working of these unions have brought with it, a legal backing to the steps taken towards the well-being of the workers. Lastly, the Code has very correctly, brought in it, the concept of 'fixed term' employees which had been missing in the previous laws and has taken a positive approach by removing the inequalities that prevailed amongst the employees in terms of wages and working hours alongside recognizing term contracts and settlement options. The old regime nevertheless, provided for a better collective bargaining, where state abstention and state intervention was provided for, as opposed to the new Code, which abandons the same and links it to the deregistration of trade unions.

Conclusion & Suggestions

Though it cannot be conclusively stated that the strike rate and lockouts have reduced drastically since the formulation of the Code, it however, provides for a better approach towards handling the matters – both internal and external. Apart from the grievance redressal mechanism and negotiation unions, the Code provides for alternate dispute resolutions such as conciliation mechanism. The Code seems to be a step towards bettering the conditions of the industries in India, however, they do suffer from major loopholes which require major changes as analyzed above. Matters of sexual harassment, which is a stagnant issue, has not been spoken of in the Code and there is a dire need for changing the scenario. The fixed term contracts and recognition of such employees do not come with regulations on such contracts and tenure, which again, might end up bringing the uneducated masses of the workers' under the grip of their employers. A positive outlook, on the other hand, is the multiple approvals and notices mandated by the Code, which shall prove to be beneficial in the coming future. The question pertaining to the effect of the Code on the call of strikes, despite the various provisions, continues to be a matter of concern. To sum up, the Code is a mix of few positives, but bigger loopholes in terms of drafting and unrealistic approach undertaken in the industrial jurisprudence. A simple cut – copy – paste from past legislations, without proper arrangement vitiates the very essence of the Code – simplification of labour laws in the country.

An Analysis Of The Industrial Relations Code, 2020

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