The Industrial Relations Code, 2020
Introduction
The Industrial Relations Code, 2020 consolidates and amends the laws relating to tradeunions, conditions of employment in an industrial establishment or undertaking, andinvestigation and settlement of industrial disputes.
It amalgamates the following acts:
Trade Unions Act, 1926
The Industrial Employment (Standing Orders) Act, 1946
Industrial Disputes Act, 1947
- Standing order for all organisations wherein 300 or more workers or employees were employed
- Deemed certification in case of adoption of model standing order notified by the Central Government
- Electronic certification of standing orders
- Notice and compensation in case of change of control (whether by agreement or by change of law) except if the service remains uninterrupted and terms of employment remain unchanged
- Prior permission for layoff and retrenchment—threshold limit for seeking permission is 300 or more workers
- 60-days notice for intention to shut down the establishment, and compensation in case of closure
- This law supersedes any other inconsistent law—impact on financially stressed or liquidation cases
Provides for a re-skilling fund, wherein the employer is required to contribute 15 days of wages last drawn by the worker before retrenchment
Key considerations
- All mergers, acquisitions, and change of control transactions need specific evaluation
- Timelines for prior permission from appropriate government for layoff, retrenchment, or closure in case of more than 300 employees to be considered
For any enquiry, please reach out to us at:
in_labourcodes@pwc.com
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