Economy News

INDUSTRIAL RELATIONS CODE BILL, 2019

Written by Talent KAS

Related Topic in KAS Prelims Syllabus:

Economy [Paper-II]: Industrial Policy

News

  • Union Cabinet chaired by the PM Modi has given its approval for introduction of the Industrial Relations Code, 2019 in the Parliament.
  • It proposes to amalgamate Trade Unions Act, 1926, Industrial Employment (Standing Orders) Act, 1946, and Industrial Disputes Act, 1947.

Key Features

  • The bill provides for setting up of a two-member tribunal (in place of one-member), thus introducing a concept that some of the important cases will be adjudicated jointly and the rest by a single-member resulting speedier disposal of cases.
  • It allows the companies to hire workers on fixed-term contract of any duration. Fixed-term employment means a worker can be hired for any duration, three months or six months or a year depending on season and orders.
  • The bill has proposed giving a legal framework for fixed-term employment through which contract workers serving a fixed-tenure will get equal statutory social security benefits as regular workers in the same unit.
  • The re-skilling fund is to be utilised for crediting to workers in the manner to be prescribed.
  • 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.
  • It means that there would be no need for Parliament approval. The threshold can be changed by executive order.
  • It also provides for vesting of powers with the government officers for adjudication of disputes involving penalty as fines thereby lessening the burden on tribunal.

Background

  • Union Labour Ministry has decided to amalgamate 44 labour laws into four codes – on wages, industrial relations, social security, and safety, health and working conditions.
  • While Parliament has already approved the Code on Wages, Labour Code on Occupational Safety, Health and Working Conditions has been referred to the Standing Committee of Labour.
  • The Code on Social Security is in the pre-legislative stage.
[Source: The Hindu, PIB]

 

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