Key Provisions: The Industrial Relations Code, 2020 significantly impacts how trade unions function and their role in industrial relations, aiming to balance workers’ rights with economic productivity.
- Formation and Recognition of Unions: Trade unions play a vital role in advocating for workers’ rights. For a trade union to be recognized, at least 10% of the workers or 100 employees, whichever is less, must be its members.
- Collective Bargaining: The recognized trade union has the right to engage in collective bargaining with the employer on behalf of the workers. The Industrial Relations Code ensures that only a representative union, supported by the majority of workers, is authorized to negotiate, leading to clearer, less fragmented representation.
- Dispute Resolution: Trade unions often lead the process in resolving industrial disputes, representing workers in conciliation, arbitration, or litigation processes.
- Worker Participation: The code mandates that in large industrial establishments (with more than 300 workers), trade unions be consulted on decisions related to layoffs, retrenchments, and working conditions.
- Strikes and Lockouts: The code introduces a mandatory 60-day notice period before a union can declare a strike, giving businesses time to address grievances and avoid abrupt disruptions. For public utilities, this notice is essential to allow for government intervention.
Impact on Businesses:
- Strikes and Lockouts: With stricter regulations on strikes, including the notice period and the prohibition of strikes during arbitration or litigation, businesses can avoid sudden operational halts.
- Collective Bargaining: Trade unions ensure that businesses negotiate fairly on wages, working conditions, and other employment terms. However, they also give businesses clarity, as only recognized unions can represent workers.
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It is important to note that labour laws can be complex and subject to change. Please consult with lawyer to ensure that you are complying with all applicable laws and regulations.