Modi govt approves code for Fixed-Term employment: 5 points to know

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Published: November 21, 2019 4:26:50 PM

Industrial Relations Code 2019: PM Narendra Modi-led Union Cabinet has given its approval for introduction of the Industrial Relations Code, 2019 in the Parliament.

 Industrial Relations Code, 2019Union Cabinet has approved Industrial Relations Code, 2019.

Industrial Relations Code 2019: PM Narendra Modi-led Union Cabinet has given its approval for introduction of the Industrial Relations Code, 2019 in the Parliament. On becoming a law, the code will allow companies to engage workers on fixed-term contract of any duration. The government has prepared the draft Code on Industrial Relations after simplifying and rationalising relevant provisions of three Central Labour Acts: The Trade Unions Act, 1926; The Industrial Employment (Standing Orders) Act, 1946; The Industrial Disputes Act, 1947. Here are five points to know about the code:

1. The Industrial Relations Code provides for 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.

2. The code will 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.

3. The code says that re-skilling fund is to be utilised for crediting to workers in the manner to be prescribed.

4· The code provides for the definition of Fixed Term Employment and that it would not lead to any notice period and payment of compensation on retrenchment excluded.

5. The code also provides for vesting of powers with the government officers for adjudication of disputes involving penalty as fines thereby lessening the burden on tribunal.

Industrial Relation Code Bill is the third code under labour reforms. The government wants to codify 44 central labour laws into four broad codes.

The Parliament has already approved the Code on Wages. The Labour Ministry will further push the Code on Occupational Safety, Health and Working Conditions Bill in the Budget session. The Code on Social Security is in the pre-legislative stage.

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