Key Provisions

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
key_provisions-3.txt · Last modified: 2026/03/07 14:27 by compliance_manager

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