Industrial Relations Code of 2020

It is combination of mentions below acts:

The Trade Unions Act, 1926
The Industrial Employment (Standing Orders) Act, 1946
The Industrial Disputes Act, 1947

Objective:

The Trade Unions Act of 1926, the Industrial Employment (Standing Orders) Act of 1946, and the Industrial Disputes Act of 1947 are the three main labour laws that the Industrial Relations Code of 2020 seeks to modernize and combine. It aims to streamline the industrial relations regulatory framework, encourage harmonious employer worker relations, strengthen dispute resolution procedures, and make doing business in the manufacturing and industrial sectors easier.

Applicability

The relationship between employers and employees in industrial establishments is governed by the Industrial Relations Code, 2020, which is applicable throughout India. It applies to businesses that engage in any commercial, industrial, or service-related activity where workers are paid. Trade unions, employment conditions, dispute resolution, layoffs, retrenchment, and establishment closure are all covered by the Code.

Exceptions

Threshold exemption for establishments with less than 300 workers from approval for lay-off, retrenchment, and closure and Armed forces, police, and prison service excluded.

Key Provisions:

Single Law for IR Matters as Three earlier laws—Trade Unions Act, Industrial Employment (Standing Orders) Act, and Industrial Disputes Act are merged into one code to simplify compliance.
Fixed Term Employment Recognised Employers can hire fixed term workers with the same wages and benefits as permanent workers, without needing contract labour.
Higher Threshold for Layoff/Closure Approval Factories, mines, and plantations with 300 or more workers must seek government approval for layoff, retrenchment, or closure
Standing Orders Mandatory at 300+ Workers Establishments with 300 or more employees must prepare Standing Orders covering service conditions. Smaller units are exempt unless notified.
Grievance Redressal Committee Every establishment with 20 or more employees must have a grievance committee with equal representation for women (as applicable).
Reskilling Fund Introduced Employers must contribute 15 days’ wages to a “Reskilling Fund” for every retrenched worker to support their transition.
Strikes and Lockouts – Notice Required Employees must give 14 days’ notice before any strike, and the same rule applies to lockouts by employers. No strike during conciliation or tribunal proceedings.
Trade Union Recognition A trade union with 51% workers as members becomes the “Negotiating Union.” If no single union has 51%, a Negotiating Council is formed.
Faster Dispute Resolution The code aims for quicker settlement of disputes through simpler procedures and time bound processes.
Stronger Penalties as Penalties for illegal strikes, lockouts, and unfair labour practices are increased.