Salient features of the IR Code, 2020

1. The Industrial Relation Code, 2020(in short IR Code) received the assent of president on 28thSeptember, 2020.
2. The date from which this code would be enforced,has not been notified so far.The code will become law of the land from the date it is notified for its enforcement.
3. In this code, 3 enactments have been subsumed namely: (i) Trade Union Act; (ii)Industrial Employment Standing Order Act, & (iii)Industrial DisputesAct, 1947.
4. Sec. 2[b]-Appropriate government: Appropriate government of the contractor shall be decided on the basis of appropriate government of the Principal Employer.

*In case of dispute between contractor and contract labour in any establishment where such dispute arises, Central or State government, which has control over the establishment, shall be the appropriate government.

5. Sec. 2[l] - Employee: The definition is almost similar to the definition of workman given in Industrial Dispute Act, 1947, except that two new category of managerial & administrative has been introduced. Apprentice under the Apprenticeship Act, 1961 has been expressly excluded from the definition. Only members of the Armed forces of the union has been expressly excluded from the definition of employee.In place of “workman” as used in case of Industrial Dispute Act, 1947, the term “employee” and “worker” has been used in the IR code.
6. Sec. 2[m] - Employer: It has been clarified in the definition of employee that in relation to contract labour, the contractor shall be the employer.In case of death of employer, legal representative of deceased employer shall become the employer. Rest ingredients remain the similar to the definition of employer in Industrial Dispute Act, 1947.
7. Sec 2[o] - Fixed term employment: For fixed term employment a written contract has to be there.Service condition of such employee shall not be less favourable than the permanent workers doing the same work or work of similar nature. They will be eligible for all statutory benefits available to permanent workers in proportion to the period of service rendered by them.
8. Sec 2[p] - Industry: Definition of industry has been widened.Concept of industry as envisaged in constitution bench judgement of Bangalore

Water Supply, has been incorporated in the definitioni.e. any systematic activity carried on by cooperation between an employer and worker employed directly or indirectly, for production, supply, or distribution of goods, or services with a view to satisfy human wants or wishes[not being wants or wishes which are spiritual or religious in nature].

It means persons employed with a view to satisfy wants and wishes which are spiritual or religious in nature, shall not be considered to be employed in industry.For example workers employed in temples and other religious and spiritual organisations.

Profit motive is not relevant. Three type of institutions have been excluded from the definition of industry namely:

1. Institution wholly or substantially engaged in charitable, social or philanthropic service;
2. Any domestic service;
3. Any activity of appropriate government relating to sovereign functions including activities carried on by the department of Central Govt. dealing with defence research, atomic energy and space;
4. any other activity which may be notified by Central Government.

9. Sec. 2[q]- Industrial Dispute: Definition of Industrial dispute has been widened to include the dispute between individual worker and an employer connected with or arising out of discharge, dismissal, retrenchment or termination of service. Earlier this provision was incorporated by inserting section 2A in the Industrial Dispute Act 1947.

*Important to note that only worker and not employee can raise an industrial dispute.

10. ​Sec. 2[zf] -Registered trade union are required to be registered under this code.
11. Sec. 2[zh] -Retrenchment: Under the definition of retrenchment, five types of termination of employment have been excluded from the definition of retrenchment. Under the previous definition only four types of employment were excluded from the definition of Retrenchment. New category of termination of service which has been excluded from the definition of retrenchment is “termination of service of worker as a result of completion of tenure of fixed term employment”.It means termination of service of workers employed on “fixed term employment”shall not be retrenchment and no retrenchment compensation shall be payable in case of termination of a “fixed term employee”.
12. Sec. 2[zk]-Strike: It has been clarified in the definition of strike that if 50% or more workers absent on the basis of common understanding, this conduct of the workers shall be considered as Strike.
13. Sec. 2[zm] - Trade union dispute: A dispute between two or more trade unions or dispute between members of the trade union.
14. Sec. 2[zo] - Unfair labour practice: means practices specified in the second schedule.
15. Sec. 2[zq]-Wage: Some important changes have been made in the definition of wages. The common part of old & new definition is “All remuneration capable of being expressed in terms of money, which would be payable, if terms of employment expressed or implied were fulfilled, be payable to persons in respect of his employment or work done”.

Under the new definition, three components have been expressly included in the definition of wage namely (i) Basic Pay, (ii) D.A. & (iii) Retaining Allowance, if any.

(i) Value of house accommodation or supply light, water, medical attendance (ii) Travelling concession (iii) Any commission payable on promotion of sale, which were earlier part of the wages under the Industrial Disputes Act, 1947 have been expressly excluded from the definition of wages. In the definition 11 items specified have been expressly excluded from the definition of wages in order to eliminate anyambiguity.

16. Sec. 2[zr]-Worker: Working journalist, sales promotion employees, have been included in the definition of worker.Individual worker who has been dismissed, discharged or retrenched or otherwise terminated, and in relation to whom industrial dispute is pending, shall also be considered as worker for the purpose of chapter III relating to trade union.

For the purpose of worker under chapter III (Trade Union) of the IR code:

1. all persons employed in trade or industry;
2. unorganised workers as defined under clause 2(m) of the Unorganised Workers Social Security Act, 2008, have also been included.

Chapter III - Trade Union

Section 6- For registration of Trade Union: Minimum 10% of the workers or 100 workers, whichever is less, should be members of the Trade Union on the date of application. This percentage/number shall at all times be there in the Trade Union subject to a minimum of seven.

Section 9 -Cancellation of registration: There are three grounds for cancellation. Third ground is Registrar may on complaint regarding any Trade Union, that members in the Trade Union has fallen below 10% of the total workers or 100 whichever is less. This is a more clear provision than the provision in the Trade Union Act, 1926.

Section 14 -Recognition: There was no provision of recognition of Trade Union under the Trade Union Act, 1926. Section 14(1) make it obligatory to have negotiating union in the industrial establishments for negotiating with the employer on prescribed matters.

Section 14(2): When there is only one union in the establishment, employer shall recognize such Trade Union as sole negotiating union of workers subject to criteria prescribed.

Section 14(3): When more than one Trade Union of workers are registered under this code in any industrial establishment, union having 51% or more workers on the muster roll in the industrial establishment, supporting the union concerned, shall be recognized by the employer as the sole negotiating union of workers.

Section 14(4): When none of union registered in any industrial establishment has 51% or more of workers on the muster roll, supporting any Trade Union, in that case employer of the industrial establishment shall constitute negotiating council for negotiation on matters prescribed. Negotiation council shall consist of representatives of such registered Trade Union which have support of minimum 20% of the total workers. Number of representative from Trade Union shall depend on the percentage of membership of the Trade Union concerned. There shall be one representative for each 20% and for remainder membership shall be decided at the rate of one member on each 20%.

Order restraining APFC for coercive measure, until waiver application is disposed.

M/s. Al Madeena Foundation Vs. UOI

CMWP No. – 18266 of 2024, May 27, 2024

Petitioner challenged the order of Assistant Provident Fund Commissioner passed u/s. 7A by filing appeal u/s. 7-I along with stay & waiver application u/s. 7-O of EPF&MP Act. Submission of the Petitioner is that Appellate Authority, due to additional charge of three Labour Courts, is not getting time to do the hearing in this matter and on the other hand Recovery ...

Order against charitable hospital, for payment of gratuity stayed by H.C.

Shree Ram Luxmi Narain Marwari Hindu Hospital Vs. State of U.P.

CMWP No. 18687 of 2024, May 29, 2024

Petitioner challenged the order of Controlling Authority & Appellate Authority on the ground that charitable hospital is not covered u/s. 1 of the Payment of Gratuity Act as charitable hospital is neither a factory or Shops & Commercial Establishment nor Central Government has issued any notification for coverage under the Payment of Gratuity Act. ...

Award for reinstatement, stayed as requirement of S.6-N was complied.

Shree Arya Mahila Hitkarini Parishad Vs. State of U.P.

 CMWP No. 7120 of 2024 March 3, 2024

Hon’ble High Court stayed the award of Labour Court giving relief of reinstatement with back wages on the ground that once Petitioner retrenched after complying the procedure prescribed u/s. 6-N of the UPID Act. Labour Court cannot pass order for reinstatement for non-compliance of provisions of re-employment as the issue of re-employment ...

H.C. stays order of BOCW authority for not recording satisfaction for service of notice

PCP International Ltd. Vs. State of U.P.

CMWP No. 2675 of 2024, Feb. 21, 2024

PCP International challenged the exparte order passed by BOCW Authority under BOCW Cess Act, 1996 on the ground that no notice was served on the Petitioner. Hon’ble High Court observing that authority did not record any satisfaction regarding service of notice on the Petitioner before proceeding exparte. Hon’ble High Court on this ground stayed the ...

For modifying punishment Labour Court has to record a finding that punishment is wholly & shockingly disproportionate.

Hindalco Industries Ltd. Vs. State of U.P.

CMWP No. 32446 of 2019, Jan. 18, 2024

Labour Court after despite recording a finding that enquiry is fair & proper, modified the punishment of dismissal to stoppage of two annual increment and with 20% back wages to the workman. The Hon’ble High Court relying on the judgment of Apex Court held that for modifying the punishment after holding enquiry as fair & proper, Labour Court has to record a subjective ...

Reference order stayed as individual worker has no right to raise dispute for any matter not covered u/s. 2-A of UPID Act, 1947

The Indian Express Pvt. Ltd. Vs. Union of India,

 CMWP No. 21577 of 2023, July 17, 2023

Petitioner challenged the reference order on the ground that as per section 3 of Working Journalist Act, Industrial Disputes Act shall apply to Working Journalist. As per section 2A of Industrial Disputes Act individual worker has no right to raise any dispute other than discharge, dismissal & termination. In this case the Working Journalist raised the dispute ...

Labour Court has no jurisdiction when territorial jurisdiction notified by agreement

TV Today Network Ltd. Vs. State of U.P. ,

CMWP No. 35913 of 2023, Oct. 17, 2023

Hon’ble High Court relying on the judgment of SC in case of EST Carriers Vs. Frankfinn Aviation Services Pvt. Ltd. [(2020) 12 SCC 667] stayed the proceeding before Labour Court on the ground that when agreement specifically mentioned that agreement is subject to exclusive jurisdiction of court at Delhi, the Labour Court, Noida has no jurisdiction to entertain the ...

Reference order relating to Medical Representatives under UPID Act, stayed

Sanofi India Ltd. Vs. State of U.P.

Writ-C No. 40371 of 2023 November 11, 2023

Hon’ble High Court, Allahabad in a writ petition challenging the reference order issued by Deputy Labour Commissioner under UPID Act stayed the proceeding before Labour Court, on the ground (i) Medical Representatives are not covered within the purview of“deemed workmen” under UPID Act, as per provisions of Sales Promotion Employees (Condition of Service) Act, 1976,(ii) In this ...

DLC has no jurisdiction to adjudicate dispute u/s. 17(1) of Working Journalist Act.

Indian Express Pvt.Ltd Vs. UOI  Writ-C No. 659 Of 2023,  February 21, 2023  

The issue in this petition is, "whether Prescribed Authority under Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 can adjudicatea claim filed by workmen under Sec. 17(1) of Act, 1955?"

In the present case, controversy arose before Prescribed Authority that, whether or not employer has power to deduct the ...

Award u/s. 4-K, was stayed as establishment is covered under Working Journalist Act.

Living Media India Ltd. Vs. State of U.P.,

CMWP No. 16981 of 2022, June 14, 2022

Hon’ble High Court after noticing that award by Labour Court was delivered after 17 years of disengagement by giving relief of reinstatement with full back wages,on a reference u/s. 4-K of U.P. Industrial Disputes Act, 1947. Petitioner objected thatas establishment is governed by Working Journalist (Conditions of Service) & Misc. Provisions Act, 1955, the award cannot be passed. ...

Direction to decide waiver application u/s.7-O of EPF&MP Act, 1952 by independent application of mind.

Pepsico India Holding Pvt.Ltd Vs. EPF Appellate Tribunal

WRIT - C No. - 8935 of 2021.October 01, 2021

The petitioner challenged order dtd. 11/1/2021 passed by the appellate authority/EPF & MP Act passed u/s. 7-I of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, admitting the appeal of the petitioner subject to deposit of 50% of the dues.Shri Sunil Tripathi, learned counsel for the petitioner assailing the order dated 11/1/2021 ...

Exparte award without recording satisfaction regarding service of notice, stayed

Roche Diagnostic India Pvt. Ltd. Vs. State of U.P.:

CMWP No. 10176 of 2021, July 6, 2021

Hon’ble High Court having noticed that exparte award was passed by Labour Court without recording a finding regarding sufficiency of service of notice, therefore, stayed the award.

Award remitted for loss of confidence due to concealment of involvement in murder case.

Varun Beverages Ltd. Vs. State of U.P.

CMWP No. 26047 of 2021 Oct. 8, 2021

Petitioner challenged the award on the ground that employer lost the confidence as workman managed to get the employment by concealing the fact of involvement in murder case. When Petitioner came to know through newspaper that he was punished by life imprisonment, management loss the confidence for concealment of such vital information from management.However, the Labour Court ...

Punishing workman for charges without opportunity of defence is bad in law.

K P Singh Vs. State Of U P.

Writ - C 1907 of 1988 April 12, 2019

Once Tribunal found that certain incidents which were not subject matter of enquiry have been taken into consideration to impose punishment upon workman and punishment order amounts to colourable exercise, I find no justification on the part of Labour Court to uphold such an order. It is now well settled that an act and omission in respect whereto no charge-sheet has been issued and enquiry ...

Award based on non-rebuttal of documents by employer, is not justified.

Madhyanchal Vidyut Vitaran Nigam Ltd.Vs. State of U.P.

LAWS(ALL) 2023 5 74 May 19,2023 Writ-C No. 32520 Of 2016

I have heard learned counsel for the parties and perused the record. I find that award of the Labour Court is based upon the fact that the workman had produced certain documents establishing his work in the Organization and, in the opinion of the Labour Court the Department could not rebut the same. Certain certificates as well as attendance ...

Complaint u/s. 3(1)(X) of SC/ST Act by employee against Enquiry Officer, for incident not in public view, quashed by High Court.

K. P.Thakur Vs. State of U. P.and another.

February 18, 2020 Application U/S 482 No. - 40418 of 2012

The applicants, by application under Section 482 Cr.P.C., have invoked the inherent jurisdiction of this Court with prayer to quash the entire proceeding of Complaint Case No. 1577 of 2012, under Sections 323 , 504 , 506 I.P.C. and Section 3(1)(X) of the Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act , 1989, pending in the Court ...

Family is not in penury, no mandamus for compassionate appointment after a long time

 RAJ BALI Vs. Vice Chancellor, Benaras Hindu University

Writ - A 23036 of 2000 RAJ2018

This is an old matter of more than 20 years hence at this fag end any direction for compassionate appointment cannot be issued in favour of petitioner. Moreso, in 2000 when this writ petition was filed petitioner was 34 years of age and now must be above 52 years. Any relief of compassionate appointment at this stage and after such a long time with breach the very ...

Daily wagers have no vested right for regularisation.

Shiv Chandra Bahadur Vs. STATE OF U. P.

WRIT - A No. - 14539 of 2017November 27, 2018

Having considered the arguments raised by the learned counsel for the petitioners and the respondents, I have carefully perused the order impugned and also the judgment cited by the counsel for the parties. It is evident that the petitioners could not produce any documentary evidence of their engagement as daily wagers since before29.6.1991 before the Committee ...

State Government has power to delegate the power of reference u/s. 17(2) of Working Journalist Act, 1955.

Pradhan Prabandhank /Unit Head M/S Amar Ujala Vs. State Of U P

LAWS(ALL) 2018 5 606May,31,2018.

In nutshell, the submission on behalf of the petitioner is that the Deputy Labour Commissioner, under sub-section (1) of section 17 of the Act is an authority specified by the State Government only for the limited purpose of satisfying itself whether an amount under the Act is due to a newspaper employee from any employer and if it is satisfied that such ...

Candidate after appearing in the selection process, cannot challenge the result

Banaras Hindu University Vs. Krishna Rai

Special Appeal 24 of 2012).July 29, 2016

Sri V.K. Singh Senior Advocate, assisted by Sri Sunil Kumar Tripathi, Advocate representing Banaras Hindu University as well as Sri Ashok Khare, Senior Advocate, assisted by Sri Sidharth Khare, Advocate contended with vehemence that in the present case selection and appointment had been made strictly as per notification /publication and once petitioners/opposite party had ...

Section 5 of the Working Journalists Act being a special law will prevail over Section 4(6) of the Payment of Gratuity Act

Section 5 of the Working Journalists Act being a special law will prevail over Section 4(6) of the Payment of Gratuity Act which is a general law

Gandiv Hindi Daily Vs. State of U. P. CMWP No. 4388 of 2014, February 10, 2014

The main dispute between the parties is as to whether the respondent No. 4 being a working journalist shall be governed by the provision of Act of 1955 or the Act of 1972 for the purposes of computation and payment of ...

New reference order in supersession of previous reference order, is illegal.

A.B.C. Export Vs. State of U.P.

LAWS(ALL) 2008 7 256 HC Allahabad 01.07.2008

Deputy Labour Commissioner superseded the previous reference and amendment made in the reference order dated 8. 4. 2008 by the Labour Commissioner in the garb of amending aforesaid reference order. It appears that previous reference order has been amended by the Dy. Labour Commissioner by deleting the ...

Principles of Wage Fixation

WHAT ARE THE PRINCIPLES OF WAGE FIXATION

Hon’ble Supreme Court of India has laid down the following principles for wage fixation:

1. There is a minimum wage, which in any event must be paid, irrespective of the extent of profits, the financial condition of the establishment or even the availability of workmen to work at lower wages.
2. The wages must be fair i.e. sufficiently high to provide a family with basic standards of food, shelter, clothing, medical ...
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Spread Over under the Code on Wages Rules, 2020

Code on Wages Rules, 2020

Inconsistency between Rule 6(1) & Rule 6(2) regarding working hours: “Is Spread Over a thing of the Past”

Central government has framed rule 6, 7, 8 & 9 in connection with Section 13 of the Wage Code. Rule 6(1)  says that the normal working day of an employee shall comprise of Eight hours work and one or more ...

Payment of wages during lockdown - An alternate view

Payment of wages during lockdown - An alternate view The onset of the Covid-19 pandemic has brought about unprecedented challenges globally. Economic activity has come to a grinding halt and many industries are struggling to stay afloat. The Government of India, in the larger interest of safeguarding lives, imposed a nationwide lockdown from the night of March 24, 2020. The first phase was followed by an extension which is likely to last till May 3, 2020.

The objective of imposing a ...