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Latest Highlights on the Industrial Relations Code Bill, 2020

calendar06 Oct, 2020
timeReading Time: 2 Minutes
The Industrial Relations Code Bill, 2020

Three Codes related to Labour Law was passed by the Parliament. The Industrial Relations Code Bill, 2020 was introduced in the Lok Sabha on 19th September and on 22nd September, 2020 Lok Sabha passed three bills. To be more precise, the Industrial Relations Code Bill, 2020 have replaced three laws. Those are as follows:-

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

Read our article:Occupational Safety, Health and Working Conditions Code, 2020 – Overview

Efforts of the Government in Industrial Relations Code Bill, 2020

Efforts of the Government for promptly resolving disputes of the workers with relation to Industrial Relations Code Bill, 2020 –

Industrial Relations Code Bill, 2020
  • Proviso for two members instead of one in the Industrial Tribunal. In case one member is absent then work can still be undertaken by the other member smoothly.
  • Proviso with respect to take the matter straight to the Tribunal in case the dispute is not resolved by mediation party. Now, the cases are being referred to the Tribunal by the proper Government channel.
  • After recognizing Fixed Term Employment[1], workers have the option of Fixed Term Employment as a substitute for contract labour. Under this, the workers will have the benefits of working hours, social security, salary and other welfare benefits like any normal employee.

Purpose for Better and Effective Involvement of Trade Unions

  • With the purpose of better and effective involvement of Trade Unions, a clause for “Negotiating Council” and “Negotiating Union” has been made for undertaking conciliation on any dispute. Resolving disputes through conversation will be assisted and workers will be able to get their rights.
  • Less time would be required for resolving their disputes by going to the Tribunal.
  • Provision has been inserted to give recognition to Trade Unions at Central and State level. The recognition will be given to the labour laws for the first time. After giving recognition to the Trade Unions, it will be able to contribute more positively and more efficiently at the Central as well as State level.
  • Provision has been inserted with relation to ‘RE-Skilling fund’ introduced for the first time. The aim of this fund will be to re-skill the worker who has been fired from their employment, so that they can easily get employed again. For this purpose, workers will be given 15 days salary within 45 days.                 


The amendments and alteration in the Industrial Relations Code Bill, 2020 have been conceptualized according to the changing scenario over the years. With these changes there will promotion of peaceful and harmonious industrial relations in the country which will lead to growth of employment, industry, income, balanced regional development and will more disposal income in the workers hands. The committee further stated that these path breaking reforms in the country will help India to attract the Foreign Direct Investment as well as domestic investment from the businessman. It will bring total transparency in the system. “India will become favorite investment destination in the whole world”, the committee further added.    

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