The Industrial Relations Code Bill, 2019

 

For: Preliminary & Mains

Topics covered: 

• The Industrial Relations Code Bill, 2019

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News Flash

The Union Cabinet approved The Industrial Relations Code Bill, 2019, which proposes to amalgamate The Trade Unions Act, 1926, The Industrial Employment (Standing Orders) Act, 1946, and The Industrial Disputes Act, 1947.

 

Aim

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.

 

Key Highlights

• 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 in 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 the tribunal.
• Under the Code, the ministry has amended the definition of “strike” to bring “mass casual leave” within its ambit, while suggesting that a union will be recognised only if it has the support of 75 percent or more workers. Besides, the requirement of a notice period of 14 days has been incorporated for strikes and lockouts in any establishment.
• The Code also proposes setting up of a “re-skilling fund” for the training of retrenched employees. The retrenched employee would be paid 15 days’ wages from the fund within 45 days of retrenchment. An industrial establishment will have to contribute an amount equal to 15 days’ wages or such other days as may be notified by the central government, to this fund for every worker retrenched.

 

 

Importance of the bill

The most important aspect of the Bill is that it presents the legal framework for ushering in the concept of ‘fixed-term employment’ through contract workers on a pan-India basis. Currently, companies hire contract workers through contractors. With the introduction of fixed-term employment, they will be able to hire workers directly under a fixed-term contract.

 

Source: Indian Express

 

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