Cabinet approves Industrial Relations Code Bill, 2019

Union Cabinet, chaired by Prime Minister Narendra Modi on Wednesday, has given its approval for introduction of the Industrial Relations Code Bill, 2019 in Parliament.

It is aimed at 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, reads an official statement.

It 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.

The re-skilling fund is to be utilised for crediting to workers in the manner to be prescribed, the statement added.

Other benefits include the definition of Fixed Term Employment and that it would not lead to any notice period and payment of compensation on retrenchment excluded.

It is also aimed at vesting of powers with the government officers for adjudication of disputes involving penalty as fines thereby lessening the burden on the tribunal.

The draft code on Industrial Relations has been prepared after amalgamating, simplifying and rationalizing the relevant provisions of three Central Labour Acts - The Trade Unions Act, 1926; The Industrial Employment (Standing Orders) Act, 1946; and The Industrial Disputes Act, 1947.