Key Provisions

Expanded definition includes supervisory employees up to a higher wage threshold.

• Includes persons in supervisory capacity drawing wages up to Rs. 18,000 per month (increased from Rs. 10,000)
• Includes sales promotion employees
• Includes working journalists
• Excludes persons in managerial or administrative capacity
• Excludes persons employed in police or armed forces
• •Excludes apprentices under Apprentices Act, 1961

Recognition of trade unions for collective bargaining is now a legal right.

• •Negotiating Union: Trade union with 51% or more workers as members
• •Recognition is now statutory, not at employer's discretion
• •Negotiating Council: Where no union has 51%, unions with 20%+ form council
• •Council representation proportional to membership
• •Three-year recognition period (may be mutually extended up to five years as per Section 14(6))
• •Only negotiating union/council can collectively bargain

Rules governing conditions of employment in industrial establishments.

• •Mandatory for industrial establishments employing 300 or more workers
• •Employers must prepare draft standing orders within six months of the Code's commencement as per Section 30(1)
• •Covers classification, shift work, attendance, leave, termination

14-day notice now required for ALL establishments, not just public utilities.

• •14 days' advance notice required for strike or lock-out
• •Applies to ALL industrial establishments (major change)
• •Previously only public utility services required notice
• •Prohibition during conciliation/mediation and 7 days after conclusion
• •Prohibition during arbitration proceedings and 60 days after award

Conditions under which lay-off does not attract compensation.

• •Power shortage
• •Natural calamity
• •Mine-specific: Fire, flood, excess of inflammable gas, explosion
• •Government permission required for 300+ worker establishments
• •Lay-off compensation: 50% of basic wages + DA

Provisions governing workforce reduction with higher threshold.

• •Government permission required for establishments with 300+ workers (changed from 100)
• •60 days' notice for closure of undertaking
• •Retrenchment compensation: 15 days' wages per year of service
• •Fixed-term expiry NOT retrenchment
• •Re-employment preference for retrenched workers

Fund for training retrenched workers.

• •Employer to contribute 15 days' wages per retrenched worker
• •Fund used for re-skilling retrenched workers
• •Contribution to be made within 45 days of retrenchment
• •Government to frame re-skilling utilization rules

Multi-tier system for industrial dispute resolution.

• •Works Committee: For matters of mutual interest (100+ workers)
• •Grievance Redressal Committee: Internal resolution (20+ workers)
• •Conciliation Officers: Government-appointed mediators
• •Industrial Tribunals: State-level adjudication (2-member)
• •National Industrial Tribunal: For disputes of national importance

Two-member tribunal for adjudication of disputes.

• •Consists of Judicial Member and Administrative Member
• •Balanced composition for technical and legal expertise
• •Jurisdiction over industrial disputes