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Labour Code on Industrial Relations 2019

Topics Covered:

  1. Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

 

Labour Code on Industrial Relations 2019

 

What to study?

For Prelims: The labour code- key features.

For Mains: Need for and significance of the code.

 

Context: The Union cabinet has approved the Labour Code on Industrial Relations 2019.

The code will combine Industrial Disputes Act, 1947, the Trade Unions Act, 1926, and the Industrial Employment (Standing Orders) Act, 1946.

 

Key features of the bill:

  1. It seeks to allow companies to hire workers on fixed-term contract of any duration.
  2. The code has retained the threshold on the worker count at 100 for prior government approval before retrenchment, but it has a provision for changing ‘such number of employees’ through notification.
  3. It also provides setting up of a two-member tribunal (in place of one member) wherein important cases will be adjudicated jointly and the rest by a single member, resulting speedier disposal of cases.
  4. It has vested powers with the government officers for adjudication of disputes involving penalty as fines.

 

Implications:

While this means workers can be hired seasonally for six months or a year it also means that all workers will be treated at par with regular workers for benefits.

 

Background:

The industrial relations code is the third out of four labour codes that have got approval from the cabinet. The Labour Code on Wages has already been approved by Parliament in August while the Labour Code on Occupational Safety, Health and Working Conditions has been referred to the standing committee of labour. 

Sources: pib.