Labour Law

Prevention and Settlement under IR Code,2020

Infographic: India’s Industrial Relations 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.

3
Erstwhile Labor Laws Subsumed
14
Day Mandatory Strike Notice For All
45
Day Conciliation for Individual Disputes

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.

1. Dispute Arises

A difference emerges between employer and worker(s).

2. Conciliation

Mediation by a Conciliation Officer. For individual dismissals, this must conclude within 45 days.

3a. Settlement

A mutually agreed solution is reached and the dispute is resolved.

3b. Adjudication

If conciliation fails, the dispute is referred to an Industrial Tribunal for a binding award.

This guide is for informational purposes only and does not constitute legal advice.

Leave a Reply

Your email address will not be published. Required fields are marked *