industrial relations changes

All establishments with ten or more workers must register with the appropriate government. Therefore, the central and the state government have wide discretion in providing exemptions from these Bills. Strikes and lock … For example, record-keeping obligations for work-related accidents in the US only apply to establishments with at least 10 employees or in “low hazard” industries. These may include bathing spaces, canteens, and first aid boxes. Worker Under the Occupational Safety Health and Working Conditions Code, ABOUT [17]. This includes a list of 11 works including: (i) sanitation workers, (ii) security services, and (iii) any activity of intermittent nature even if that constitutes a core activity of an establishment. Code continues with the existing fragmented structure for delivery of benefits. Further, some of the Committee’s recommendations on the 2019 Occupational Safety, Health and Working Conditions (OSH) Code, 2019, also applied to the 2019 Bill. Benefits, such as pension and medical insurance, continue to be mandatory only for establishments with a minimum number of employees (such as 10 or 20 employees). The central government has stated that there are over 100 state and 40 central laws regulating various aspects of labour such as resolution of industrial disputes, working conditions, social security and wages. Employers opted for workforce reduction, introduced policies of voluntary retirement schemes and flexibility in workplace also increased. The NCL recommended that: (i) the social security system should apply to all establishments, (ii) the existing wage ceilings for coverage should be removed, and (iii) there should be a functional integration of the administration of existing schemes. [14]  A large numbers of workers may continue to be excluded. The Standing Committee on Labour (2020) had examined the 2019 Bill with similar provisions and recommended that the Code should provide a framework for achieving universal social security within a definite time frame.3  It made several recommendations for expanding the coverage of establishments, employees, and types of benefits. For example, appointment letters are not issued, social security benefits are absent, work hours are not regulated by the employer, and the driver may choose to work for a competitor taxi aggregator. A public utility service includes railways, airlines, and establishments that provide water, electricity, and telephone service. [1]  The Second National Commission on Labour (2002) found existing legislation to be complex, with archaic provisions and inconsistent definitions. In this regard, the 2nd National Commission on Labour (2002) had recommended a separate law for small scale units (having less than 20 workers) with less stringent provisions for conditions such as payment of wages, welfare facilities, social security, retrenchment and closure, and resolution of disputes. There is also a provision made for the establishment for the constitution of a negotiating council where there is no single union that meets the 51% threshold as mentioned above. Table 1: Comparison between fixed term employment, permanent employment and contract labour. It subsumes three major Central laws that relate to industrial dispute settlement and collective bargaining arrangements, namely:-, c.     Industrial Employment (Standing Orders) Act, 1946. These circumstances are when: (i) the central or state government is a party to the dispute in appeal, or (ii) the award has been given by a National Tribunal. B.3 Key Issues in the Code on Social Security, 2020, The 2020 Bill replaces nine laws related to social security. [2]   To improve ease of compliance and ensure uniformity in labour laws, it recommended the consolidation of central labour laws into broader groups such as: (i) industrial relations, (ii) wages, (iii) social security, (iv) safety, and (v) welfare and working conditions. Further, it enables the state government to exempt any new factory from its provision in the interest of creating more economic activity and employment. The Standing Committee has submitted its report on all three Bills. Industrial relations, also called organizational relations, the behaviour of workers in organizations in which they earn their living.. Scholars of industrial relations attempt to explain variations in the conditions of work, the degree and nature of worker participation in decision making, the role of labour unions and other forms of worker representation, and the patterns of cooperation and conflict resolution that … In 2019, the Ministry of Labour and Employment introduced four Bills to consolidate 29 central laws. For example, ‘employer’ is defined to include a contractor. Required fields are marked *. Pradesh, Uttar 1979 – Unpaid maternity lea… Move to a decentralised mechanism with: (i) national authority chaired by the Prime Minister, (ii) central board for managing the scheme, (iii) state boards for delivery and implementation, and (iv) local committees for identification and registration of beneficiaries. Pradesh, Madhya 35 of 2020. Industrial Relations: The Realm of Change. The 2020 Bill empowers the state government to exempt any new factory from the provisions of the Code in order to create more economic activity and employment. However, certain changes have been brought in with a view to promote ease of doing business, reducing compliance burdens, and modernizing the legal framework surrounding the regulation of industrial relations in India. Report of the National Commission on Labour, Ministry of Labour and Employment, 2002, http://www.prsindia.org/uploads/media/1237548159/NLCII-report.pdf. Pradesh, Bills Based on terms negotiated with the contractor. The Industrial Employment (Standing Orders) Act, 1946 aimed at providing standardized terms and conditions of work to all workmen in a particular establishment. However, it also includes additional provisions that apply to specific type of workers such as those in factories and mines, or as audio-visual workers, journalists, sales promotion employees, contract labour and construction workers. Thus, leading to negotiations on multiple fronts with stakeholders having diverse interests. Among the controversial changes, announced late last year, is a proposal to give bosses more power to apply to the Fair Work Commission to approve agreements that would normally fail the better off overall test. 3. There is a need for a clear-sighted understanding of all the effects of technical change at the workplace. In such cases, the council is constituted of representatives from the various unions provided they have at least 20% of employees as its members. #IRCode2020 #LabourCodes #3LRPartner #GovindRajNS This video explains the changes and new provisions brought in the IR Code 2020. It has been argued that the application of labour laws based on the number of employees is desirable to reduce the compliance burden on infant industries and to promote their economic growth. With regards to the law on trade unions, the Code mandates that where there is more than one trade union in an establishment, the status of sole negotiating union will be given to the one that has 51% of the employees as its members. “Towards an optimal regulatory framework in India”, Implementation Group, Planning Commission, 12th Five Year Plan. While examining the 2019 Social Security Bill, the Standing Committee on Labour had noted that the Bill delegates various aspects for rule-making by the government, especially in relation to defining the entitlements, benefits and contributions under the Bill.3  It suggested that the Ministry review all such instances of delegation in the Bill. [8], B.2 Key Issues in the Industrial Relations Code, 2020, Strikes and lock-outs may become difficult for all establishments. PRS is an independent, not-for-profit group. It also specifies that working journalists cannot be made to work more than 144 hours in four weeks (i.e. The 2020 Bill states that the central government may, by notification, apply the Code to any establishment (subject to size-threshold as may be notified). Is the simplified scheme of dispute resolution under the Act necessary in light of the already overburdened judicial system? Often, the legislature enacts a law covering the general principles and policies, and delegates detailed rule-making to the government to allow for expediency and flexibility. B.4 Key Issues in the Code on Occupational Safety, Health and Working Conditions, 2020, Rationale for some special provisions unclear. The 2019 Bill excluded mines from the definition of a factory. The GRC tools like risk management, regulatory compliance and audit softwares optimize business performance. PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. 4. https://www.simpliance.in/blog/the-industrial-relations-code-2020-an-analysis We summarise these recommendations below and the extent to which the 2020 Bill incorporates these recommendations: The 2020 Bill also defines the term ‘employer’ to mean a person who employs any persons and specifically includes certain categories of workers. By political reporter Jade Macmillan. The Economic Survey (2018-19) noted that increased thresholds for certain labour laws in Rajasthan resulted in an increase in growth of total output in the state and total output per factory.5  Note that the Bill on Occupational Safety makes similar changes to the size to the thresholds for factories - from 10 workers to 20 workers (if power is used), and from 20 workers to 40 workers (if power is not used). These terms are also used in the remaining three labour Codes, i.e., on Occupational Safety and Health, Wages and Social Security. However, the Bill largely retains the current set up and does not fully implement these recommendations. The Conciliation Officers are given 45 days to resolve a dispute by sending a report and a memorandum of settlement signed by the parties to the appropriate Government. Conciliation proceedings will start immediately and strikes or lock-outs will be prohibited during this period. Similarly, the introduction of sole negotiating union and negotiating council shall reduce the amount of time taken in reaching amicable settlements with employees. Reports, Meet our Therefore, the two Bills contain different provisions on gratuity for fixed term workers and it is not clear whether a fixed term employee with a contract of lesser than one year will be entitled to gratuity under the Code on Social Security, 2020. The Industrial Disputes Act, 1947 aimed to provide workers with a mechanism that gives them relief against layoffs, retrenchment and wrongful dismissal that is against the letter of the law. Fixed term employment is given statutory basis as opposed to the current scheme wherein it was introduced vide notifications by multiple State Governments. Note that the Factories Act, 1948 permitted exemptions from its provisions only in cases of public emergency, and limited such exemption to three months. Most of the medium and small industries in India employs 50 to 100 or 200 but not 300 and above. The effect of the Industrial Relations Code, 2020 on the workers’ right to strike remains to be seen. The notification and the order will be tabled in the legislature. [11]  We discuss below the pros and cons of introducing fixed term employment. Introduction On 28 th November 2019, with an aim to codify 44 central labour laws into four broad codes as well as to increase India’s appearance over Ease of doing business, the Labour and Employment Minister, Shri Santosh Kumar Gangwar introduced the Labour Code on Industrial Relations 2019 in the Lower … Morrison said the changes would be pragmatic and realistic rather than ideological. However, there may be some overlap between their definitions. This threshold is marked decrease from the 75% threshold that was set in the 2019 Bill. [14]. 8: “Industrial Relations Code, 2019”, Standing Committee on Labour, Lok Sabha, April 23, 2020; Report No. Address lack of portability by issuing cards with unique social security number to enable portability. Under the 2020 Bill, gratuity is payable if the employee has served a continuous period of five years. While the Code on Wages, 2019 has been passed by Parliament, Bills on the other three areas were referred to the Standing Committee on Labour. No explicit provision for portability of benefits. [16]. Fixed term employment may allow employers the flexibility to hire workers for a fixed duration and for work that may not be permanent in nature. Provisions on gig workers and platforms workers are unclear. Employment may be prohibited in certain cases, e.g., if similar work is carried out by regular workmen. File Attached: Download The file (444.12 KB) Start Date to End Date: Tuesday, October 6, 2020 - 18:30 to Sunday, October 31, 2021 - 18:30. 35 of 2020 >> The Industrial Relations Code, 2020 No. The rationale for differential treatment with regard to working conditions between working journalists and sales promotion employees on the one hand, and all other workers on the other hand, is unclear. The need for Industrial Relations reform in Australia is clear, as employers endure an intense scrutiny of their workforce practices by regulators, unions, the media and the Courts. However, the rationale for mandating special provisions for other workers is not clear. Fellows, Session The Bill mandates different schemes for all these categories of workers. Code should provide a framework to achieve universal social security for all workers with firm entitlements and within a defined time frame. In this note, we first compare some significant changes made in the 2020 Bills as compared to the 2019 versions. Change in employee strength: The 2019 Bill provided that once an establishment is covered under the provisions related to standing orders, these provisions will continue to apply even if its employee strength reduces below the threshold (100 workers) at any time thereafter. Now,the policy was tilted towards employers. Laws and Regulations. Committees, Andhra Pradesh, Analytical With regards to layoffs and retrenchment, Section-65 applies to industrial establishments that do not come under Chapter-X of the Code which is essentially Chapter-VB of the Industrial Disputes Act, 1947. It also includes self-employed workers. Federal politics is again shaping up for a bruising battle on industrial relations, with the government sticking by controversial proposals and setting up a 2021 brawl with the union movement. Definition: Industrial relations is that field of study which analyzes the relationship among the management and the employees of an organization at the workplace and also provides a mechanism to settle down the various industrial disputes.This concept evolved in the late 19th century because of the industrial revolutions. Industrial relations or employment relations is the multidisciplinary academic field that studies the employment relationship; that is, the complex interrelations between employers and employees, labor/trade unions, employer organizations and the state.. The question is whether such a provision would violate the principle of separation of powers between the executive and the judiciary, since it empowers the government to change the decision of the tribunal through executive action. The industrial worker which had migratory character has now stabilized in industrial centres and has got an urban taste.

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