The Ministry of Labour and Employment released: (i) the Draft Industrial Relations (Central) Rules, 2020, and (ii) the Draft Industrial Relations (Central) Recognition of Negotiating Union or Negotiating Council and Adjudication of Disputes of Trade Unions Rules, 2021, to implement the provisions of the Industrial Relations Code, 2020.
The Industrial Relations Code, 2020 was passed by Parliament in September 2020 to replace three labour laws: (i) the Industrial Disputes Act, 1947, (ii) the Trade Unions Act, 1926, and (iii) the Industrial Employment (Standing Orders) Act, 1946
Some of the key features of the Draft Rules are:
The Draft Industrial Relation (Central) Rules, 2020
- Layoffs, retrenchment and closure: Factories, mines, and plantations with 300 or more workers need prior permission from the central government before laying off or retrenching workers, or before closing an establishment. The application must be made at least 15 days before the intended date of layoff, 60 days before the intended date of retrenchment, and 90 days before the intended date of closure.
- National Industrial Tribunals: The Draft Rules specify the composition of the search-cum-selection committees which will recommend members to the National Industrial Tribunals. The Committees will include: (i) the Chief Justice of India or a Supreme Court judge nominated by him (as Chairperson), (ii) a sitting member of the other National Industrial Tribunal (which will either be a judicial or administrative member), and (iii) Secretaries in the Ministry of Labour and Employment and the Department for Promotion of Industry and Internal Trade.
- Re-skilling fund: The Code proposed a re-skilling fund which will consist of contributions from employers, equal to 15 days (or as specified by the central government) of the last drawn wages of every retrenched worker. The Draft Rules provide that within ten days of retrenchment, employers will be required to transfer 15 days’ wages into an account maintained by the government. These funds will be transferred to workers within 45 days of receiving the amount from the employer.
- Constitution of Works Committee: The Code provides for the constitution of Works Committees in establishments with more than 100 employees to resolve conflicts between workers and employers. The Draft Rules state that the Works Committee will consist of up to 20 members. The Committee must have equal representation of various categories (such as shops, class of workers, and groups) in the establishment. The Committee must include: (i) a Chairman, (ii) a Vice-Chairman, (iii) a Secretary, and (iv) a Joint-Secretary among its office-bearers. The Committee must meet at least once in three months. The term of office for members of the Committee will be two years.
The Draft Industrial Relations (Central) Recognition of Negotiating Union or Negotiating Council and Adjudication of Disputes of Trade Unions Rules, 2021
- Recognition of the single trade union as the sole negotiating union: The Code provides for the single trade union in an establishment to be the sole negotiating union. The Draft Rules specify that, to be recognised as the sole negotiating union, the trade union must have at least 30% membership of total workers.
- Matters to be negotiated by a negotiation union/council: The Code provides for a negotiating union/council in industrial establishments to negotiate matters related to workers with the employer. The Draft Rules specify that the matters for negotiation by the negotiating union/council will include: (i) working shifts, (ii) wages (includes bonus, increment, and allowances), (iii) policies for promotion and transfer, and (iv) working conditions and standards
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