FAQ's
What is fixed-term employment and what benefits does it include?
Fixed-term employment is hiring workers for a specified duration through a written contract. Workers get the same wages and benefits as permanent employees. They are entitled to pro-rata gratuity after completing at least one year of service.
What is a negotiating union vs. negotiating council?
A negotiating union is a trade union with 51% or more workers as members, giving it sole bargaining rights. A negotiating council is formed when no single union has 51% membership - unions with 20%+ members form the council with representation proportional to their membership. Recognition is valid for 3 years (extendable up to 5 years as per Section 14(6)). Recognition is now a statutory right, not employer discretion.
When are standing orders required?
Standing orders are mandatory for industrial establishments employing 300 or more workers. Employers must prepare draft standing orders within six months of the Code's commencement. They govern conditions of employment including work hours, leave, termination procedures, and disciplinary actions.
What notice is required for strikes/lockouts?
A 14-day advance notice is required before commencing any strike or lock-out. This now applies to ALL industrial establishments (previously only public utility services). Strikes and lock-outs are prohibited during pending conciliation/mediation proceedings and for 7 days after conclusion, during arbitration proceedings and for 60 days after award.
What is the re-skilling fund?
The re-skilling fund is created from employer contributions of 15 days' wages per retrenched worker, to be paid within 45 days of retrenchment. The fund is used to provide training and re-skilling opportunities to workers who have been retrenched.
How does retrenchment compensation work?
Retrenchment compensation is 15 days' average wages for each completed year of continuous service. For establishments with 300+ workers, prior government permission is required.
What changed about the worker definition?
The wage threshold for supervisory workers has increased from ₹10,000 to ₹18,000 per month. Additionally, sales promotion employees and working journalists are now explicitly included as workers. Apprentices under the Apprentices Act continue to be excluded.