Describe the salient features of Industrial Relations Code, 2020.

 Salient Features of the Industrial Relations Code, 2020:

The Industrial Relations Code, 2020 is a significant labour law reform introduced by the Government of India to consolidate and amend the existing laws related to industrial relations in the country. The Code aims to streamline and modernize labour laws, provide flexibility to employers, and protect the rights and interests of workers. It amalgamates three key labour laws: the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947. Here, we will discuss the salient features of the Industrial Relations Code, 2020:

1. Simplification and Consolidation: One of the primary objectives of the Industrial Relations Code, 2020 is to simplify and consolidate the existing labour laws related to industrial relations. By bringing multiple laws under a single umbrella, the Code aims to provide clarity and ease of compliance for both employers and workers.

2. Recognition of Trade Unions: The Code recognizes the role and importance of trade unions in representing the interests of workers. It provides for a simplified process of trade union registration and lays down the conditions for recognition of trade unions by employers.

3. Single Window for Grievance Redressal: The Code establishes a single, unified authority called the Industrial Relations Code Tribunal to address disputes and grievances related to industrial relations. This tribunal will replace multiple labour courts and industrial tribunals, streamlining the dispute resolution process.

4. Fixed Term Employment: The Code introduces the concept of fixed-term employment, which allows employers to hire workers on a fixed-term basis for specific projects or seasonal work. This provides flexibility to employers and enables them to respond to fluctuating business demands.

5. Ease of Layoff: The Code introduces provisions that simplify the process of laying off workers or closing down establishments in certain circumstances. It aims to strike a balance between the interests of employers and workers by allowing for reasonable termination of employment while safeguarding workers' rights.

6. Grievance Redressal Committees: The Code mandates the establishment of Grievance Redressal Committees in establishments employing 20 or more workers. These committees will address individual grievances and ensure a speedy resolution of workplace issues.

7. Enhanced Threshold for Retrenchment: The Industrial Relations Code, 2020 increases the threshold for retrenchment, making it applicable to establishments employing 300 or more workers, as compared to the previous threshold of 100 workers under the Industrial Disputes Act, 1947.

8. Compulsory Arbitration: The Code introduces the provision of compulsory arbitration for resolving disputes in establishments employing 300 or more workers. This aims to expedite the resolution of disputes and avoid prolonged litigation.

9. Prohibition of Strike and Lockout during Conciliation Proceedings: Under the Code, strikes and lockouts are prohibited during the conciliation proceedings and for a period of sixty days after the conclusion of such proceedings. This ensures that conciliation efforts are given a fair chance to resolve disputes amicably.

10. Revamping of Standing Orders: The Code introduces provisions for the revamping of standing orders, which specify the terms and conditions of employment in an establishment. The objective is to update and modernize these orders to align with changing business dynamics.

11. Redefining Workman: The Industrial Relations Code, 2020 redefines the term "workman" to include supervisors drawing wages up to a certain limit. This change aims to extend labour protection to a wider section of the workforce.

12. Single License for Establishments: The Code introduces the concept of a single license for establishments, which simplifies the compliance process for employers by eliminating the need to obtain multiple licenses under different labour laws.

13. Prohibition of Employment of Children: The Code reinforces the prohibition of employing children in any form of labour, ensuring the protection and welfare of the young population.

14. National and State Advisory Boards: The Code establishes National and State Advisory Boards to advise the government on matters related to industrial relations, ensuring stakeholder representation and feedback.

15. Reskilling Fund: The Industrial Relations Code, 2020 mandates employers to contribute a certain percentage of their annual payroll to a reskilling fund. This fund will be used to provide training and skill development opportunities for workers.

16. Recognition of Online Platforms: The Code recognizes the concept of online platforms for employment and gig work and extends relevant protections and rights to workers engaged in such platforms.

17. Prohibition of Strikes and Lockouts in Public Utility Services: The Code prohibits strikes and lockouts in public utility services, ensuring the continuity of essential services for the public.

18. Prohibition of Lockouts during Pendency of Proceedings: The Code prohibits employers from declaring a lockout during the pendency of conciliation or arbitration proceedings, promoting a cooperative approach to dispute resolution.

19. Exit Policy for Employers: The Code introduces an exit policy for employers, which allows them to close down establishments with a specific number of workers without seeking prior government approval.

20. Transfer of Industrial Disputes: The Code allows the transfer of industrial disputes from one tribunal to another with the consent of the parties involved, facilitating effective resolution.

21. Fixing of Wages and Bonus: The Code empowers the government to fix the minimum wages, dearness allowance, and bonus for workers, providing a mechanism for standardizing remuneration.

22. Effective Implementation: The Industrial Relations Code, 2020 emphasizes effective implementation and enforcement of its provisions to ensure that the intended benefits reach both employers and workers.

Conclusion: The Industrial Relations Code, 2020 is a significant labour law reform that aims to simplify and consolidate existing laws related to industrial relations in India. By recognizing the importance of trade unions, providing for fixed-term employment, introducing grievance redressal committees, and enhancing the threshold for retrenchment, the Code seeks to strike a balance between the interests of employers and workers. With the establishment of a single Industrial Relations Code Tribunal, the resolution of disputes is expected to be more efficient and streamlined. However, the effective implementation of the Code and its impact on the labour market and industrial relations will depend on the cooperation and collabouration of all stakeholders involved.

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