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Cabinet approves the Industrial Relations Code Bill, 2019

Nov 20, 2019: The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for introduction of the Industrial Relations Code, 2019 in the Parliament.

Benefits:

• Setting up of two-member tribunal (in place of one member) introducing a concept that some of the important cases will be adjudicated jointly and the rest by a single member resulting speedier disposal of cases.
• To impart flexibility to the exit provisions (relating to retrenchment etc.), for which, the threshold for prior approval of appropriate Government has been kept unchanged at 100 employees, but added a provision for changing ‘such number of employees’ through notification.

• The re-skilling fund, is to be utilised for crediting to workers in the manner to be prescribed.
• Definition of Fixed Term Employment and that it would not lead to any notice period and payment of compensation on retrenchment excluded.
• Vesting of powers with the government officers for adjudication of disputes involving penalty as fines thereby lessening the burden on tribunal.

Background:

The draft code on Industrial Relations has been prepared after amalgamating, simplifying and rationalizing the relevant provisions of following three Central Labour Acts:

i. The Trade Unions Act, 1926
ii. The Industrial Employment (Standing Orders) Act, 1946
iii. The Industrial Disputes Act, 1947


Source: PIB, Ministry of Labour & Employment

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