Authorities under Industrial Relations code, 2020
Authorities under Industrial Relations code
Authorities under the Industrial Relations Code, 2020
100+
Workers
Triggers the mandatory constitution of a Works Committee for internal dialogue.
2
Years
The new limitation period to raise a dispute regarding termination of a worker.
3
Laws Subsumed
The IR Code, 2020 consolidates the Industrial Disputes Act, Trade Unions Act, and Standing Orders Act.
1. The Works Committee: Internal Harmony
As the first line of dispute prevention, the Works Committee is a mandatory bipartite forum in establishments with 100 or more workers. Its primary role is to foster harmonious relations through dialogue on matters of common interest, focusing on workplace conditions and welfare.
Shows the equal, bipartite composition of the Works Committee, ensuring balanced representation.
2. Conciliation: Guided Mediation
When internal talks fail, a neutral Conciliation Officer is appointed by the government to mediate. This officer investigates the dispute and helps parties reach a legally binding settlement. They possess specific powers to aid their inquiry, mirroring those of a Civil Court.
Key powers vested in Conciliation Officers to facilitate a fair and thorough investigation.
3. Adjudication: The Tribunals
For disputes that remain unresolved after conciliation, the IR Code provides a formal two-tier adjudicatory system. These Tribunals hear cases referred by the government and deliver legally binding awards. Their structure and jurisdiction are designed to handle disputes of varying scales and importance.
| Feature | Industrial Tribunal | National Industrial Tribunal |
|---|---|---|
| Constitution | Constituted by the appropriate government. Comprises a Judicial and an Administrative Member. | Constituted by the Central Government for specific high-stakes disputes. |
| Jurisdiction | Adjudicates disputes on a wide range of matters like wages, dismissal, strikes, and standing orders. | Hears disputes involving questions of ‘national importance’ or affecting establishments in multiple states. |
| Scope | Handles the majority of industrial disputes within a state or specific industry. | Has overriding jurisdiction; matters referred to it cannot be heard by any other tribunal. |
| Function | Passes legally binding ‘awards’ that determine the final resolution of the dispute. | Similar to Industrial Tribunals, it passes final and binding awards on matters of national scale. |
4. Court of Inquiry: Fact-Finding
The government may appoint a Court of Inquiry for any matter relevant to a dispute. Its sole purpose is fact-finding, not adjudication. It investigates the circumstances and submits a detailed report, which helps inform subsequent government action or legal proceedings.
5. Limitation Period: A Key Change
A significant reform in the IR Code is the introduction of a time limit. Any dispute related to an individual worker’s dismissal, discharge, or retrenchment must be raised within **two years** of the termination date. This ensures timely resolution and prevents dated claims.
The Dispute Resolution Pathway
This flowchart illustrates the typical progression of an industrial dispute under the IR Code, 2020, from its inception to its final resolution through the established authorities.
Industrial Dispute Arises
A difference of opinion between employer and worker(s).
Works Committee (If applicable)
Internal discussion to resolve the issue amicably.
Conciliation Officer
Mediation by a neutral third party to reach a settlement.
Settlement Reached
A legally binding agreement is signed. Dispute is resolved.
Failure of Conciliation
No agreement reached. Officer submits a failure report.
Govt. Reference to Tribunal
The appropriate government may refer the dispute for adjudication.
Tribunal Adjudication
The Industrial or National Tribunal hears the case and passes a final, binding award.
A Path to Resolution: Voluntary Arbitration
The Code promotes voluntary arbitration as a streamlined, mutually agreed-upon alternative to formal adjudication. This process allows employers and workers to resolve disputes more efficiently.
Parties agree to refer the dispute to an arbitrator.
The agreement is signed and sent to the government.
The arbitrator investigates and submits an award.
The award becomes legally binding and enforceable.
Maintaining Stability During Proceedings
The Code establishes clear rules to maintain the status quo and prevent victimization during conciliation or tribunal proceedings. While employers have rights to take disciplinary action, these are balanced with safeguards for workers, especially when the issue is connected to the dispute.
This chart illustrates the degree of employer freedom of action. For misconduct connected to a dispute, actions like dismissal require prior approval and payment, signifying greater restriction.
Recovery of Money Due
Workers have a defined mechanism to recover money owed by an employer under a settlement or award. A timely application is crucial for the process.
Workers generally have a one-year window to file for recovery, though delays may be permitted with sufficient cause.
Defining Boundaries: Unfair Labour Practices
The Code explicitly lists prohibited “unfair labour practices” to ensure fair conduct. Engaging in these actions is illegal for both employers and trade unions.
Prohibited for Employers
- Interfering with or coercing workers in their right to organize.
- Dominating or financing any trade union.
- Discriminating against workers for filing charges.
- Refusing to bargain in good faith with the recognized union.
- Recruiting workers during a legal strike.
Prohibited for Workers & Unions
- Advising or instigating an illegal strike.
- Coercing workers to join a union.
- Engaging in acts of force or violence.
- Refusing to bargain in good faith with the employer.
- Willfully damaging employer’s property.
Other Key Provisions
Notice of Change
Employers must provide notice to workers before making specified changes to service conditions.
Confidentiality
Sensitive information shared during proceedings must be kept confidential upon request.
Offences & Penalties
Fines and imprisonment are prescribed for violations like illegal strikes or unfair practices.
