Key Provisions
Definition of Worker - Expanded
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
Negotiating Union - Statutory Right
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
Standing Orders
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
Strikes and Lock-outs - Universal Notice
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
Lay-off Provisions
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
Retrenchment and Closure
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
Re-skilling Fund
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
Dispute Resolution Mechanism
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
Industrial Tribunal
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