Industrial Relations Code, 2020: Comparison of Old & New Law

The Industrial Relations Code, 2020 is a landmark legislative reform introduced by the Government of India to consolidate and simplify India's complex framework of labour laws. It brings together three major enactments:

• The Trade Unions Act, 1926
• The Industrial Employment (Standing Orders) Act, 1946
• The Industrial Disputes Act, 1947

The aim is to create a more transparent, modern, and business-friendly system that also protects the rights of workers. Let's explore the comparison between the old and new laws on three critical themes:

1. Trade Unions: Streamlines the Recognition and Operation of Trade Unions

Old Laws

Under the Trade Unions Act, 1926, while trade unions could be registered, there was no statutory requirement for employers to recognize any particular union as a negotiating agent. In cases where multiple unions existed, it often led to inter-union rivalry, diluted bargaining power, and confusion in collective negotiations.

New Law (IR Code, 2020):

The Code introduces a structured and mandatory process for union recognition. It provides that:

• A union with 51% or more membership among workers will be recognized as the sole negotiating union.
• If no union has 51% membership, a negotiating council will be formed with proportional representation from all registered unions.

This change ensures greater clarity and efficiency in collective bargaining and reduces unnecessary workplace disputes. Reference:

• Section 14, Industrial Relations Code, 2020
• Ministry of Labour and Employment, Government of India Labour Code Portal

2. Strikes and Lockouts: Introduces Regulations Requiring Prior Notice for Strikes and Lockouts

Old Law:

According to the Industrial Disputes Act, 1947, only workers in public utility services (like water, power, transport) were required to give 14 days' prior notice before going on strike. Workers in other sectors could call a strike without notice, leading to sudden shutdowns and economic losses.

New Law (IR Code, 2020):

The Code extends the requirement of prior notice to all industries, not just public utilities. Key provisions include:

• 14 days' notice required before any strike or lockout.
• Strikes/lockouts are prohibited:
  • During the pendency and seven days after conciliation.
  • During and 60 days after tribunal proceedings.
  • During the operation of any settlement or award.

These provisions introduce industrial discipline and accountability, providing employers time to resolve issues and avoid economic disruption. Reference:

• Section 62, Industrial Relations Code, 2020
• Press Information Bureau, Government of India, Labour Reforms Press Release

3. Dispute Resolution: Establishes Mechanisms for Resolving Industrial Disputes Efficiently

Old Law:

The Industrial Disputes Act, 1947 provided for resolution through Labour Courts and Industrial Tribunals. However, the process was often delayed, fragmented, and expensive, with cases pending for years.

New Law (IR Code, 2020):

The Code promotes a more streamlined dispute resolution process through:

• Conciliation Officers for early, informal settlements.
• National and State Industrial Tribunals with both Judicial and Administrative members.
• Simplified procedures and time-bound decisions.

It also encourages conciliation before litigation, thus reducing the burden on courts and ensuring quicker justice. Reference:

• Chapter VI, Sections 44–55, Industrial Relations Code, 2020
• PRS Legislative Research Report on Labour Codes (https://prsindia.org)

Conclusion

The Industrial Relations Code, 2020 represents a progressive step towards a unified, simplified, and modern labour law system in India. It ensures:

• Greater transparency and predictability in trade union operations.
• Regulated industrial actions that minimize economic disruption.
• Faster dispute resolution, benefiting both employers and workers.

By bridging gaps in the older laws and aligning with the dynamic needs of the economy, this Code lays a strong foundation for industrial harmony and sustainable employment practices.
References:

• The Industrial Relations Code, 2020. Bare Act Text
• PRS Legislative Research – Summary of the Industrial Relations Code: PRS India -https://prsindia.org/billtrack/the-industrial-relations-code-2020
• Ministry of Labour and Employment, Labour Reforms Overview: Labour Code Portal - https://labour.gov.in/labour-codes
• Press Information Bureau: PIB Labour Codes Press Note - https://pib.gov.in/PressReleasePage.aspx?PRID=1651947