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A Note on Industrial Relations Code, 2020.

Gopal Krishna Roy¹, Amaresh Dubey¹

¹Centre for the Study of Regional Development, School of Social Sciences, Jawaharlal Nehru University, New Delhi, 110067 India.

The Indian Journal of Labour Economics : the Quarterly Journal of the Indian Society of Labour Economics

|June 7, 2022

Summary

This summary is machine-generated.

The Industrial Relations Code (IRC) 2020 increased the worker threshold for employment protection to 300, affecting 7.07% of factories and 15.97% of workers. This change reverts to earlier legislation, impacting labor regulations.

Keywords:

India Industrial relations Labour law Labour policy Organised manufacturing

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Area of Science:

Labor Economics
Industrial Relations Law
Socio-legal Studies

Background:

The Industrial Relations Code (IRC) of 2020 is a significant piece of legislation in India.
It consolidates and amends laws relating to trade unions, conditions of employment, and industrial disputes.
Understanding its impact on employment protection is crucial for businesses and workers.

Purpose of the Study:

To analyze the changes in employment protection provisions within the IRC 2020.
To compare the IRC 2020 with the Industrial Disputes Act (IDA) 1947 and its amendments.
To quantify the impact of the revised factory-size threshold on affected factories and workers.

Main Methods:

Comparative analysis of legislative provisions between IRC 2020 and IDA 1947 (including 1976 and 1982 amendments).
Quantitative assessment using data from the Annual Survey of Industries (ASI) 2017-2018.
Calculation of the percentage of factories and workers affected by the change in the threshold-size for employment protection.

Main Results:

The IRC 2020 reinstates the factory-size threshold for employment protection to 300 or more workers, reverting from the 1982 IDA amendment's 100-worker limit.
An estimated 7.07% of factories and 15.97% of workers are impacted by this threshold adjustment.
The change significantly alters the scope of employment protection against layoffs, retrenchments, and closures.

Conclusions:

The IRC 2020's revised threshold has a substantial quantitative impact on Indian industrial establishments and their workforce.
The relevance of employment protection legislation, especially during the pandemic, necessitates careful consideration.
Discretionary use and potential temporary expansion of IRC employment protection provisions may be warranted based on economic conditions.