Internal I.docx - INTERNAL ASSESSMENT-I LABOUR & EMPLOYMENT...

INTERNAL ASSESSMENT-I
LABOUR & EMPLOYMENT
LEGISLATIVE COMMENTARY
SUBMITTED BY:
Pratiyusha Mahapatra
BBA.LLB
Year-IV
Div- ‘A’
PRN-18010126070
WORD COUNT:1510

THE INDUSTRIAL RELATIONS CODE, 2020
INTRODUCTION AND BACKGROUND
Labour Welfare is a subject under the Concurrent List of the Constitution
1
. Therefore,
Central and State legislatures regulated aspects of labour & employment with over 100 state
and 40 central laws which contained archaic provisions and inconsistent definitions, that
necessitated simpler compliance and uniformity by consolidating central labour laws into
broader groups viz. industrial relations, wages, social security, safety, welfare and working
conditions. In 2019, the Ministry of Labour & Employment introduced 4 Bills to consolidate
29 central laws one of which was the Industrial Relations Code, 2020
2
that was notified in
Sept 2020 and shall replace the Trade Unions Act, 1926
3
, the Industrial Employment
(Standing Orders) Act 4 , 1946 and the Industrial Disputes Act, 1947 5 .
In the background of the unprecedented slump that the Indian economy is weathering on
account of the Covid- 19 pandemic and the resulting lockdowns, it was rather imperative to
revamp labour laws that gave businesses a leeway to adapt with competitive global markets.
SCOPE AND IMPORTANCE
The scope of labour related enactments is determined by the definitions of terms viz.
'employer,' 'worker/workman/employee/person employed' under the legislation in question.
This Code additionally defines 'industry' which encapsulates all aspects relating to Trade
Unions, conditions of employment in Industrial establishment and sleek settlement of
industrial disputes, and regulates the following aspects:
 Registration, cancellation and alteration of names, incorporation of Trade Unions
 Formation of Work Committee, preparation and registration of Standing Order
 Constitution of Industrial Tribunal and illegalising strikes and lockouts
 Procedure for Retrenchment, re-employment of retrenched worker
1 art 246, sch.VII, List III, INDIA CONST 1950.
2 Industrial Relations Code, 2020, No. 35, Acts of Parliament.
3 Trade Unions Act, 1926, No.16, Acts of Parliament.
4 Industrial Employment (Standing Orders) Act, 1946, No. 20, Acts of Parliament.
5 Industrial Disputes Act, 1947, No.14, Acts of Parliament.

 Compensation in case of transfer of establishmen, its closure and prohibition of lay-
off. The Code is significant in view of:
- Its legislative intent to safeguard the rights of employers and workers by providing
easy labour reforms that facilitates ease of Doing Business
- Its object of realizing industrial peace, harmony, and a cordial relationship between
employers and workers in resolving industrial disputes.
ANALYSIS AND INTERPRETATION
This Code retains many features from the 3 superseded laws and alongside introduced the
following provisions that bear significant workers' rights:
i. Coverage of the law
 The landmark apex court ruling in Bangalore Water Supply Board 6 is envisaged in
S.2(p) of the Code that denotes 'industry' as “ any systematic activity carried on with
co-operation between an employer and workers for the production, supply or
distribution of goods or services with a view to satisfy human wants irrespective of
whether any capital has been invested or it is carried on for any gain.