Govt. seeks comments on draft IR Code rules

News: Union Labour and Employment Ministry has published the draft rules framed under the Industrial Relations Code,2020.



  • Industrial Relations Code combines and simplifies relevant provisions of three Central Labour Acts: Trade Unions Act,1926, the Industrial Employment (Standing Orders) Act,1946 and the Industrial Disputes Act, 1947.


Key Highlights of the Draft Rules:

  • Exit provisions relating to retrenchment and others: Firms with 300 or more workers are required to seek approval from the government before 15-day notice for lay-offs, 60-day notice for retrenchments and 90-day notice for closure.
  • Electronic Methods of Communication: The rules propose electronic methods for most communication including maintenance of an electronic register for standing orders for all industrial establishments among others.
  • Rules on Strike: The notice of strike has to be signed by the secretary and five elected representatives of the registered trade union and given to the employer, with a copy sent to the Chief Labour Commissioner (Central) electronically or otherwise.
  • Reskilling Fund: The rules also proposed establishing a re-skilling fund for retrenched workers.Employers would have to electronically transfer an amount equal to 15 days of the last drawn wages of the retrenched workers or worker into an account maintained by the government within 10 days of the retrenchment.
    • The fund so received shall be transferred by the Central Government to each worker or workers‘ account electronically within 45 days of receipt of funds from the employer and the worker shall utilize such amount for his re-skilling.