Comparison of existing laws with the Code
Provision Current laws Industrial Relations Code, 2019
Definitions Industrial Disputes Act, 1947 Retains the definition for ‘strike’ but also includes casual leave
(IDA): ‘Strike’ refers to the stoppage of on a given day by 50% or more workers as a strike.
work by persons employed in any industry Defines “Industry” as any systematic activity for the production,
acting jointly, or a refusal to continue to supply or distribution of goods and services. The definition
work or accept employment. excludes: (i) sovereign functions of the government, (ii)
‘Industry’ means any business, trade, domestic services, (iii) charitable services, and (iv) other
undertaking, manufacture or calling of notified activities.
employers, and includes any service, Retains the definition of ‘retrenchment’ but termination due to
employment or industrial occupation of ill-health is not considered retrenchment.
workers. Retains the definition of ‘worker’ but excludes apprentices.
‘Retrenchment’ is the termination of service Also changes the wage ceiling of supervisory workers from Rs
of a worker for any reason other than 10,000 per month to Rs 15,000 per month.
disciplinary action. It does not include ‘Wages’ refers to any remunerations including; (i) basic pay, (ii)
certain grounds, such as retirement, or dearness allowance, and (iii) retaining allowance. Bonus,
termination due to ill-health. conveyance allowance, and overtime pay, etc. not included.
‘Workman’ refers to any person (including Definition of ‘fixed term employment’ introduced. It refers to
an apprentice) employed in any industry to workers hired for a fixed period who enjoy the same
do work for hire or reward. Excludes certain entitlements and benefits as are available to permanent workers.
categories of workers including persons in a
managerial or advisory role, or persons
employed in a supervisory role earning
wages of more than Rs 10,000 per month.
‘Wages’ refers to monetary remuneration
including; (i) dearness allowance, (ii) value
of house accommodation, and (iii) travel
concession. Excludes bonus, gratuity, and
contributions for benefits.
Registration of Trade Unions Act, 1926: A union will be Same criteria and conditions continue to apply for trade unions.
Provision Current laws Industrial Relations Code, 2019
Trade Unions registered only if at least 10% of all the
workers or 100 workers, whichever is less,
are members of the Union on the date of the
application.
Negotiating No provision. Trade Union with at least 75% of the workers as members will
Union/Council be the sole negotiating union. In case no Union has at least 75%
of workers as members, a negotiating council will be formed
consisting of representatives of Unions that have at least 10% of
workers as members. For every 10% of total workers as
members, one representative will be included.
Strikes and lock- IDA: For public service utilities, strikes or The same provisions on strikes and lock-outs have been
outs lock-outs cannot be conducted unless a notice extended to all establishments. The validity period of the notice
of 14 days is provided. The notice is valid has been amended from six weeks to 60 days.
for a maximum of six weeks.
Lay-off, IDA: Factories, mines or plantations in Same provision retained but the appropriate government may
retrenchment which 100 or more workers are employed are change this limit (of 100) by notification.
required to take permission of the central or
state government before laying off or
retrenching workers.
Worker re-skilling No provision. The fund will consist of contributions from employers equal to
fund the 15 days’ wages of every retrenched worker, and
contributions from other sources prescribed by the appropriate
government. It shall be utilised as prescribed, within 45 days of
retrenchment.
Model standing Standing Orders Act, 1946: Applies to Applies to establishments employing 100 or more workers.
Provision Current laws Industrial Relations Code, 2019
orders establishments employing 100 or more Central government will draft model standing orders.
workers. The appropriate government may Employers must consult the trade unions or negotiating
specify model standing orders. Employers union/council before submitting the orders to the certifying
will submit draft standing orders to the officer.
certifying officer based on the model orders.
Bodies dealing IDA: Provides for Courts of Enquiry, Labour Provides for Industrial Tribunals and National Industrial
with Industrial Courts, Industrial Tribunals and National Tribunals. Industrial Tribunals to consist of a Judicial member
Disputes Industrial Tribunals. Tribunals to consist of and an Administrative member.
judicial member. Either party to a dispute can approach the Tribunal. However,
Only the appropriate government can make a only the central government can make a reference to the
reference to a Labour Court or Tribunal, and National Industrial Tribunal.
the central government to the National
Tribunal.
