Prevention and Settlement under IR Code,2020
Prevention and Settlement under Industrial Relations Code, 2020
A landmark consolidation to streamline labour laws, foster harmony, and enhance the business environment while safeguarding worker rights.
A Major Shift in Applicability
The code significantly raises the employee threshold for establishments requiring prior government permission for lay-offs, retrenchment, and closures, moving from 100 to 300 workers.
Redefining the “Worker”
The new definition expands the scope of “worker” while setting a clear wage ceiling for supervisory roles to be excluded, impacting who is covered under the code’s protections.
Excluded: Managerial/administrative staff and supervisors earning > ₹18,000/month.
The State’s Calibrated Role
The government acts as a multifaceted facilitator and regulator in industrial relations. Its key functions create a structured environment for preventing and settling disputes.
Dispute Machinery
Establishes Tribunals & appoints Conciliation Officers.
Conciliation
Prioritizes mediation to resolve issues amicably.
Adjudication
Refers failed conciliations to Tribunals for binding awards.
Strike Regulation
Mandates notice periods to prevent sudden disruptions.
Closure Regulation
Governs the process for lay-offs and closures in large firms.
Union Recognition
Empowers unions as official negotiating agents.
The Dispute Resolution Pathway
The code establishes a clear, time-bound process for resolving disputes, emphasizing conciliation first to encourage faster, more collaborative outcomes.
A difference emerges between employer and worker(s).
Mediation by a Conciliation Officer. For individual dismissals, this must conclude within 45 days.
A mutually agreed solution is reached and the dispute is resolved.
If conciliation fails, the dispute is referred to an Industrial Tribunal for a binding award.
