WHAT  HAS CHANGED IN INDUSTRIAL RELATIONS CODE, 2020 ?

The Central Government has notified four  labour codes with effect from 21.11.2025.  One of them is Industrial Relations Code,2020. It consolidates three earlier labour laws- (i) The Trade Union Act, 1926 (ii) The Industrial (Employment Standing) Orders Act, 1946 (iii) Industrial Disputes Act, 1947. This is not only a  consolidation exercise but some new features have also been introduced.

INTRODUCTION OF INDUSTRIAL TRIBUNAL & NATIONAL INDUSTRIAL TRIBUNAL

Adjudicatory authorities in earlier regime were Labour Courts, Industrial Tribunal and National Tribunal. Now, under Industrial Relations Code classification of Labour Court and Industrial Tribunal has been done away with and relaced with Industrial Tribunal. Industrial Tribunal consists of two members- judicial member and administrative member.  Issues related with the applications and interpretation of standing orders, discharge or dismissal of workmen, illegality of strike or lockout, retrenchment of workmen and closure and trade union disputes have to be decided by benches consisting of Judicial member and administrative member and other disputes have to be decided by either judicial member or administrative member sitting singly. There is also provision of National Industrial Tribunal for determining questions of national importance or questions of such a nature that industrial establishments situated in more than one state are likely to be interested.

CHANGE IN MODE OF REFERENCE

In earlier regime most of industrial disputes firstly went to conciliation officer and in case of failure were referred by appropriate government to the Labour Courts.  Under the Industrial Relation Code Conciliation proceedings before the Labour Court continue to be the same as was in earlier regime but in case of failure, a party can directly approach the Industrial Tribunal within 90 days. Thus, delay caused due to time taken in reference will now be effectively reduced.

DOING AWAY WITH COURT OF INQUIRY AND BOARD OF CONCILIATION

Court of Inquiry and Board of Conciliation were also machinery of resolution of disputes under the Industrial Disputes Act. These machineries were hardly being used and have been done away with.

EXPANSION OF SCOPE OF ‘INDUSTRY”

The scope of definition of “industry” has been expanded and clarified. Now Industry includes all systematic activity carried on by co-operation between an employer or worker for production, supply, or distribution of goods and services with a view to satisfy human wants or wishes. It is immaterial whether any capital has been invested for purpose of carrying on such activity or such activity is carried on with a motive to make any gain or profit. Institutions engaged in charitable, social and philanthropic service; sovereign functions of government and domestic service have been excluded.

EXPANSION OF SCOPE OF “WORKER”

The definition of “workman” has been replaced with gender neutral term s “worker”. The scope of definition of “worker”   has also  been expanded. Workers now explicitly includes working journalists and sale promotion employees.

REGULATION OF STRIKE AND LOCKOUT

Regulation of strike and lock out has been made applicable to all industrial establishment. In the earlier regime these provisions were only applicable to public utility services. Thus, right to strike of workers as well right of lock out by employers have been  curtailed.

RELAXATION IN PRIOR PERMISSION OF APPROPRIATE GOVERNMENT IN CASES OF LAY-OFF, RETRENCHMENT AND CLOSURE

In earlier regime, prior permission in case of lay-off, retrenchment and closure were required if industrial establishment was employing more than 100 workers. Now this limit has been relaxed up to 300 workers.

INTROUDUCTION OF FIXED TERM EMPLOYMENT

The concept of fixed term employment has also been introduced. Hours of work, wages, allowances of such workers cannot be less than that of permanent worker. Such worker has been made eligible for all statutory benefits. Such worker has also been made eligible for gratuity also if he renders service for one year.

RECOGNITION OF NEGOTIATING UNION OR NEGOTIATING COUNCIL

If more than one union is in existence, the Code provides for recognition of trade union for negotiation with employers as negotiating union if such union is having on its muster roll fifty one percent of workers.  In case no trade union has fifty one percent representation, a negotiation council has to be created by the employer having trade unions representing more than twenty percent of workers.

RELAXATION IN APPLICABLITY OF STANDING ORDERS

In earlier regime, standing orders were applicable in industrial establishments having more than 100 workers. This limit has been relaxed and now standing orders have been made applicable in establishments where more than 300 workers are employed.

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