1.

1 Historical reasons for the formation of combinations of workers, legal

impediments International Labour Organisation – its influence in bringing
changes in national legislations.

Formation of Combinations of Workers: Historical Reasons

The formation of combinations of workers, often in the form of trade
unions, has a rich history rooted in the Industrial Revolution. Workers came
together to protect their rights and improve working conditions. Key
historical reasons for the formation of such combinations include:
1. Exploitation of Workers: With the rise of industrialization, workers faced
long hours, poor wages, unsafe working conditions, and lack of job security.
These harsh conditions drove workers to form groups to demand better
treatment.
2. Lack of Legal Protection: In the early stages of industrialization, there were
few laws that protected the rights of workers. Workers had little recourse
against employers who violated their rights, making collective action
necessary.
3. Rise of Capitalism: The shift to capitalist economies increased the gap
between the rich and the poor. Workers, as a collective, needed to organize
to balance the power dynamic between themselves and the wealthy capital
owners.
4. Inspiration from Political Movements: Workers' movements were inspired
by broader political movements advocating for social justice, democracy,
and equality. The rise of socialism and communism also encouraged
workers to unite against capitalist exploitation.
5. Solidarity and Collective Bargaining: Individually, workers had limited
bargaining power. By coming together as unions, they could negotiate
better wages, working hours, and conditions through collective bargaining
agreements.

Legal Impediments to Workers' Combinations

Historically, many governments and employers were hostile to the idea of
workers forming combinations or unions. Some key legal impediments
faced by workers included:
1. Anti-Combination Laws: Early legal frameworks, such as the Combination
Acts in Britain (1799–1800), criminalized collective action by workers. These
laws were designed to prevent workers from organizing strikes and
negotiating wages collectively.
2. Suppression of Trade Unions: In many countries, trade unions were seen as
illegal conspiracies to disrupt economic order. Workers' associations were
banned, and union leaders were often prosecuted and imprisoned.
3. Absence of Labour Laws: The absence of labor laws in early industrializing
countries meant that there were no legal protections for workers forming
unions. Employers could easily dismiss workers for union activities without
consequences.
4. Violent Repression: Governments and private employers often resorted to
force to break strikes and union activities. Workers' protests and strikes
were frequently met with violence, further discouraging union formation.

International Labour Organization (ILO) and Its Influence

The International Labour Organization (ILO), founded in 1919 under the
League of Nations, has played a significant role in improving workers' rights
globally. The ILO’s primary objective is to promote social justice and
establish international labor standards. It has influenced national labor laws
and practices through conventions, recommendations, and supervisory
mechanisms.
Key Contributions of the ILO:
1. Setting International Labour Standards: The ILO develops conventions and
recommendations aimed at ensuring fair wages, safe working conditions,
non-discrimination, and the right to organize. Over 190 conventions have
been adopted, such as the Right to Organise and Collective Bargaining
Convention (No. 98) and the Freedom of Association and Protection of the
Right to Organise Convention (No. 87).
2. Encouraging National Labour Reforms: ILO conventions encourage countries
to reform national labor laws to align with international standards. Many
countries have amended their labor laws to provide better protections for
workers in line with ILO standards.
3. Technical Assistance and Capacity Building: The ILO provides technical
assistance to countries in the drafting and implementation of labor laws,
 ensuring that these laws adhere to international standards. It also provides
training programs to build the capacity of labor inspectors, union leaders,
and government officials.
4. Social Dialogue: The ILO promotes social dialogue between workers,
employers, and governments. This tripartite model encourages peaceful
resolution of disputes and contributes to better labor practices.
5. Influence on Indian Labour Laws: India has been significantly influenced by
the ILO in shaping its labor legislation. India has ratified 47 ILO conventions,
including those on working hours, child labor, and the right to organize and
bargain collectively.

Indian Industrial Relations Code, 2020: Relevant Sections

The Indian Industrial Relations Code, 2020, consolidates and simplifies
existing labor laws related to industrial disputes, trade unions, and
conditions of employment. It brings significant changes to workers' rights
and industrial relations.
Some key sections relevant to workers' combinations and union activities
are:
1. Section 14: Registration of Trade Unions
o This section outlines the requirements for registering a trade union in
India. A union must apply to the registrar and meet certain
conditions, such as having a minimum membership of 10% or 100
workers, whichever is less.
2. Section 17: Rights of Recognized Trade Unions
o This section details the rights of recognized trade unions, including
the right to represent workers in negotiations with the employer and
to participate in various consultative and decision-making bodies.
3. Section 62: Grievance Redressal Mechanism
o This section requires the establishment of a grievance redressal
committee in every industrial establishment employing 20 or more
workers. This provides workers a mechanism to voice their concerns
and resolve disputes at the workplace level.
4. Section 75: Right to Strike
o This section governs the right to strike. It mandates that workers
must give notice of a strike 14 days in advance in public utility
 services and other specified industries. Strikes during conciliation
proceedings are also prohibited.
5. Section 77: Lockouts
o This section deals with lockouts by employers. It imposes conditions
similar to those for strikes, requiring advance notice and prohibiting
lockouts during conciliation proceedings.
6. Section 86: Industrial Tribunal
o This section establishes industrial tribunals for the adjudication of
industrial disputes. The tribunal plays a key role in resolving disputes
between workers and employers and protecting the rights of workers.
7. Section 106: Recognition of Negotiating Union
o This section outlines the process for recognizing a union as the
negotiating agent for the workers in an establishment. The union with
a majority of members will be recognized as the sole negotiating
union.

Influence of the ILO on the Indian Industrial Relations Code

The Indian Industrial Relations Code reflects many of the ILO's principles,
such as:
 Right to Organize and Bargain Collectively: The code aligns with ILO
standards by providing a legal framework for the formation and registration
of trade unions and ensuring that workers have the right to negotiate.
 Promotion of Social Dialogue: By mandating grievance redressal committees
and establishing industrial tribunals, the code promotes peaceful
settlement of disputes and social dialogue, which is in line with the ILO’s
tripartite structure.
 Prohibition of Unjust Dismissals: The code provides protection against
unfair dismissal and ensures that termination of workers follows due
process, in alignment with ILO conventions on employment protection.
In conclusion, the ILO has been instrumental in shaping labor laws in India
and globally, promoting fair treatment, social justice, and the right to
organize for workers. The Indian Industrial Relations Code of 2020
incorporates many of the ILO’s guiding principles.
1.2 Trade Union, Registration and Recognition

Trade Union: Definition, Registration, and Recognition under the Indian

Industrial Relations Code, 2020
The Indian Industrial Relations Code, 2020 is a major piece of legislation
that consolidates and amends laws related to trade unions, industrial
disputes, and the terms of employment in industrial establishments. This
Code simplifies and updates several previous labor laws, including the Trade
Unions Act, 1926.

1. Definition of Trade Union

A Trade Union is an organized group of workers formed to protect and
promote the interests of its members, especially in negotiations related to
wages, working conditions, and other aspects of employment.
Section 2(zzn) of the Indian Industrial Relations Code, 2020, defines a
"Trade Union" as:
"A trade union" means any combination, whether temporary or
permanent, formed primarily for the purpose of regulating the relations
between workers and employers, or between workers and workers, or
between employers and employers, or for imposing restrictive conditions
on the conduct of any trade or business, and includes any federation of
two or more trade unions.
This definition highlights the role of trade unions in regulating relations
between workers and employers, aiming to safeguard the rights and
interests of the workforce.

2. Registration of Trade Unions

The process for registering trade unions is outlined in Chapter III (Trade
Unions) of the Indian Industrial Relations Code, 2020. Some key provisions
include:
Section 14: Registration of Trade Unions
 Application for Registration: Any trade union with a minimum of 10% or
100 workers, whichever is less, from an establishment or industry can apply
for registration. In every case, at least seven members must subscribe to
the application.
 Registrar of Trade Unions: The application for registration must be
submitted to the Registrar of Trade Unions, who is appointed by the
appropriate government.
 Required Information: The application must include the trade union's
name, the names and addresses of its members, and a copy of the union's
constitution and rules.
 Certificate of Registration: Upon verifying the application, the Registrar
issues a Certificate of Registration to the trade union, making it a legally
recognized entity.
Section 15: Cancellation of Registration
 The Registrar may cancel the registration of a trade union if it fails to
comply with statutory requirements, becomes defunct, or engages in
unlawful activities. A trade union also has the right to appeal this decision.
Section 16: Rights and Liabilities of Registered Trade Unions
 A registered trade union enjoys certain rights, such as the ability to enter
into collective bargaining, represent its members in legal proceedings, and
acquire or hold movable and immovable property.

3. Recognition of Trade Unions

Recognition of a trade union is crucial as it grants the union the official
status to represent workers in negotiations and industrial relations. The
Industrial Relations Code, 2020, makes provisions for recognizing trade
unions in an establishment or industry.
Section 19: Recognition of Trade Unions
 Negotiating Union: In an establishment where there is only one trade
union, that union is automatically recognized as the negotiating union.
 Negotiating Council: In establishments where there are multiple trade
unions, the union with the majority of workers as members will be
recognized as the negotiating union. If no single union commands a
majority, a negotiating council may be formed, comprising representatives
of various unions.
Section 20: Criteria for Recognition
 For a trade union to be recognized as a negotiating union, it must have a
membership of at least 51% of the workers employed in the establishment.
 Recognition of a trade union grants it the right to be the sole representative
of the workers in discussions with the employer regarding wages, working
conditions, and other matters related to industrial relations.
Section 21: Derecognition of a Trade Union
 A trade union may lose its recognition if its membership falls below the
required threshold or if it fails to comply with the provisions of the code.

4. Rights and Privileges of Recognized Trade Unions

Once recognized, a trade union enjoys several privileges under the
Industrial Relations Code, including:
 Exclusive Representation: A recognized trade union has the exclusive right
to represent workers in discussions related to employment conditions,
wages, and other labor matters.
 Right to Collective Bargaining: Recognized trade unions have the right to
engage in collective bargaining with employers on behalf of workers.
 Participation in Dispute Resolution: Trade unions are involved in grievance
redressal and dispute resolution mechanisms. They have the right to
represent workers in conciliation proceedings and before industrial
tribunals.
 Access to Information: Recognized trade unions can seek information from
employers regarding financial and employment matters to aid in
negotiations.

Summary of Key Sections under the Indian Industrial Relations Code,

2020:
Provision Section Details
Defines "Trade Union" as any
Definition of Section combination of workers or
Trade Union 2(zzn) employers formed for regulating
relations in industry.
Outlines the procedure for
Registration of Section
registering a trade union with the
Trade Union 14
Registrar.
 Provision Section Details
Cancellation of Section Provides the grounds for canceling
Registration 15 the registration of a trade union.
Provides criteria for recognizing a
Recognition of Section trade union as the sole negotiating
Trade Union 19 agent in establishments with
multiple unions.
Specifies the membership
Criteria for Section
threshold (51%) for a union to be
Recognition 20
recognized.
Outlines the conditions under
Derecognition of Section
which a trade union can lose its
Trade Union 21
recognition.
Grants rights such as collective
Rights of
Section bargaining, representation in legal
Recognized Trade
16 proceedings, and access to
Unions
information from employers.

The Indian Industrial Relations Code, 2020, simplifies the registration and
recognition process for trade unions and grants them significant rights to
engage in collective bargaining and dispute resolution. This modernization
aligns with international standards while addressing the need for more
efficient industrial relations in India.
4o

1.3 Immunities in trade disputes : Criminal and Civil

Immunities in Trade Disputes: Criminal and Civil
The Indian Industrial Relations Code (IRC), 2020 provides certain
immunities to registered trade unions and their members from civil and
criminal liabilities during trade disputes. These immunities are essential to
safeguard the rights of workers and their unions to organize, protest, and
 participate in industrial action without fear of legal reprisals. These
protections aim to facilitate the resolution of disputes while ensuring that
the activities of trade unions remain lawful and peaceful.
Below are the details of the civil and criminal immunities granted to trade
unions under the Indian Industrial Relations Code, 2020:

1. Civil Immunity
Civil immunity under the IRC, 2020, protects trade unions and their
members from lawsuits arising from actions taken in furtherance of a trade
dispute, provided these actions are within the legal boundaries of union
activity.
Section 25: Immunity from Civil Suits in Trade Disputes
Key Provisions:
 Protection from Tortious Liability:
o A registered trade union and its members are granted immunity from
liability for acts done in furtherance of a trade dispute. This means
that civil suits such as those for tortious interference with business,
defamation, or breach of contract cannot be brought against the
trade union or its members as long as the actions are related to a
lawful trade dispute.
 No Actionable Wrong:
o Any act done by a trade union or its members in contemplation or
furtherance of a trade dispute is not deemed actionable on grounds
of inducing another person to break a contract of employment or to
interfere with trade, business, or employment.
 Acts in Good Faith:
o To qualify for immunity, the acts must be performed in good faith and
without malicious intent. If actions exceed lawful boundaries or
involve coercion or violence, this immunity may not apply.
Purpose:
 The purpose of this section is to ensure that unions can take industrial
action such as strikes or protests without being burdened by potential civil
liabilities, so long as their activities are lawful and peaceful.

2. Criminal Immunity
 Criminal immunity shields union members from being prosecuted for
certain criminal acts that might otherwise be punishable under general
laws, provided the acts are conducted in connection with a trade dispute
and within the legal framework for collective action.
Section 26: Immunity from Criminal Prosecution
Key Provisions:
 Protection from Criminal Conspiracy Charges:
o Union members are protected from being prosecuted for the offense
of criminal conspiracy if their actions are carried out in the context of
a trade dispute. Typically, any agreement between two or more
persons to do an unlawful act may be prosecuted under Section 120B
of the Indian Penal Code (criminal conspiracy). However, when the
agreement is related to a lawful trade dispute and involves actions
that would otherwise be legitimate, the immunity applies.
 Non-Applicability to Violence or Coercion:
o Immunity is not extended to criminal acts involving violence,
coercion, or illegal activities. If union members engage in unlawful
acts such as physical violence, destruction of property, or other
criminal conduct, they lose the protection of this section.
 Lawful Trade Union Activities:
o The protection applies only to actions that are in furtherance of trade
disputes and are within the lawful scope of trade union activities,
such as organizing strikes, peaceful demonstrations, or negotiations
with employers.
Purpose:
 The aim of this provision is to prevent the misuse of criminal law against
union members participating in legitimate industrial actions, allowing them
to act without fear of criminal prosecution for actions that are non-violent
and lawful.

3. Combined Immunity: Civil and Criminal

Section 27: Immunity of Trade Union Office-Bearers
Key Provisions:
 Protection for Union Office-Bearers:
 o The Code provides immunity to office-bearers of trade unions from
being held personally liable for civil or criminal actions related to
union activities if such actions are carried out as part of their duties
in good faith.
 Safeguard for Union Leadership:
o This immunity is crucial to ensure that union leadership can perform
their functions—such as organizing strikes, representing workers in
disputes, and negotiating with employers—without facing personal
legal consequences.

4. Conditions for Immunities to Apply

To enjoy the immunities provided under the Indian Industrial Relations
Code, 2020, trade unions and their members must ensure that their
activities meet certain conditions:
 Lawful Activity:
o The activities in question must be lawful and directly related to an
industrial or trade dispute. Unlawful activities such as violence,
property damage, or coercion fall outside the purview of these
immunities.
 Peaceful Action:
o The Code encourages peaceful resolution of disputes and provides
immunities for non-violent activities such as strikes, protests, and
negotiations.
 Good Faith and Lack of Malice:
o Actions taken by the trade union or its members should be done in
good faith and with the intent of resolving disputes, not causing harm
or disruption outside the scope of the dispute.

Summary of Relevant Sections in the Indian Industrial Relations Code,

2020:
Section Provision Details
Section Civil Immunity Provides immunity from civil suits for
25 in Trade acts done in contemplation or
Disputes furtherance of a trade dispute,
 Section Provision Details
including tortious interference with
contracts or business.
Protects union members from criminal
Criminal
Section conspiracy charges if their actions are
Immunity in
26 lawful and in connection with a trade
Trade Disputes
dispute.
Provides immunity to trade union
Immunity for
Section office-bearers from personal liability
Trade Union
27 for actions taken in good faith related
Office-Bearers
to union activities.

Conclusion
The Indian Industrial Relations Code, 2020 grants significant civil and
criminal immunities to trade unions and their members, protecting them
from legal repercussions for lawful actions taken in the course of trade
disputes. These protections are designed to empower workers and unions
to engage in collective bargaining and industrial action without fear of
lawsuits or prosecution, as long as their activities remain within the bounds
of legality and non-violence.
4o

1.4 International Labour Organisation – its influence in bringing changes in

national legislation
International Labour Organisation (ILO) and Its Influence on National
Legislation
The International Labour Organisation (ILO), founded in 1919 as part of the
Treaty of Versailles, plays a critical role in promoting social justice and
internationally recognized human and labor rights. As a tripartite
organization, it brings together representatives from governments,
employers, and workers to set international labor standards, which
member countries, including India, are encouraged to implement.
 India, a founding member of the ILO, has been greatly influenced by its
conventions and recommendations in shaping national labor laws, including
the recent Indian Industrial Relations Code (IRC), 2020. The ILO’s emphasis
on workers’ rights, collective bargaining, and decent working conditions has
directly impacted Indian labor legislation.

Influence of ILO on Indian Labour Legislation

Key Areas Influenced by ILO:
1. Right to Form and Join Trade Unions:
o The ILO’s Convention No. 87 on Freedom of Association and
Protection of the Right to Organise (1948) emphasizes the right of
workers to form and join trade unions without interference. India’s
Industrial Relations Code, 2020, upholds these principles by
simplifying the procedures for the registration and recognition of
trade unions.
2. Collective Bargaining:
o The Right to Organise and Collective Bargaining Convention, 1949
(ILO Convention No. 98), aims to protect workers from anti-union
discrimination and promote collective bargaining rights. This has
influenced India’s laws on collective bargaining, providing
mechanisms for trade unions to negotiate on behalf of workers with
employers.
3. Protection from Unjust Dismissal:
o ILO standards emphasize job security and protection against unfair
dismissal. These principles are reflected in the IRC, 2020, which lays
down clear procedures for the termination of employment and
mandates proper compensation and notice periods for workers.
4. Grievance Redressal and Dispute Resolution:
o The ILO has long advocated for mechanisms that resolve workplace
disputes peacefully and effectively. The IRC, 2020, includes provisions
for establishing grievance redressal committees, promoting a
peaceful and systematic approach to resolving industrial disputes,
thereby preventing arbitrary action against workers.
5. Social Dialogue and Tripartism:
 o The ILO’s model of tripartite collaboration between the government,
employers, and workers has heavily influenced India’s industrial
relations system. The IRC, 2020, promotes social dialogue by
encouraging negotiations, conciliation, and tribunals as key
mechanisms for resolving industrial disputes.

Key Provisions of the Indian Industrial Relations Code, 2020, Influenced by

ILO Conventions
The Indian Industrial Relations Code, 2020 incorporates several elements
from ILO conventions and recommendations, aligning domestic law with
international labor standards.
1. Freedom of Association and Trade Union Rights
The ILO promotes the right of workers to freely associate and form trade
unions without government interference, as stipulated in ILO Convention
No. 87.
Relevant Sections under the IRC, 2020:
 Section 2(zzn): Defines a trade union as any organized group of workers
formed to regulate relations between workers and employers.
 Section 14: Provides for the registration of trade unions, making it easier
for workers to form and join unions.
 Section 19: Deals with the recognition of trade unions and ensures that the
majority union in an establishment is recognized for the purposes of
collective bargaining.
This alignment ensures that India adheres to ILO standards related to the
freedom of association.

2. Collective Bargaining
The right to collective bargaining, protected under ILO Convention No. 98,
is essential for ensuring fair negotiations between workers and employers.
Relevant Sections under the IRC, 2020:
 Section 19: Ensures that trade unions, once recognized, can act as the sole
negotiating body for workers in matters relating to wages, working hours,
and other terms of employment.
 Section 20: Specifies the criteria for recognition of a trade union and
establishes the negotiating council in cases where there are multiple
unions.
These sections support the ILO's commitment to collective bargaining by
ensuring that workers can negotiate terms and conditions of employment
through a recognized union.

3. Protection from Unjust Dismissal and Fair Working Conditions

ILO conventions emphasize that workers should not be dismissed arbitrarily
and should have secure working conditions, as noted in ILO Convention No.
158 (Termination of Employment).
Relevant Sections under the IRC, 2020:
 Section 62: Establishes a grievance redressal mechanism that allows
workers to address workplace grievances, including issues related to
wrongful termination, within a structured process.
 Section 75: Outlines the right to strike while setting rules for its legality,
ensuring that workers can protest against unfair dismissals or unsafe
working conditions without fear of reprisal.
These provisions reflect the ILO’s focus on job security and due process in
termination proceedings, ensuring that workers are protected from unjust
dismissals and have avenues to challenge unfair treatment.

4. Dispute Resolution Mechanisms

The ILO promotes the peaceful resolution of disputes through dialogue and
arbitration, avoiding the escalation of conflicts into strikes or lockouts.
Relevant Sections under the IRC, 2020:
 Section 86: Establishes the Industrial Tribunal to resolve industrial disputes.
The tribunal acts as a mediator and adjudicator, ensuring that disputes are
handled fairly and in accordance with the law.
 Section 61: Provides for the establishment of a conciliation officer to
mediate disputes between workers and employers before they escalate to
the level of strikes or litigation.
The inclusion of dispute resolution mechanisms, such as conciliation officers
and industrial tribunals, is in line with the ILO's advocacy for peaceful
conflict resolution.
 5. Social Dialogue and Tripartism
The ILO encourages tripartism—cooperation between the government,
employers, and workers—across all levels of industrial relations. This
promotes fair and inclusive decision-making processes.
Relevant Sections under the IRC, 2020:
 Section 106: Mandates the establishment of a negotiating union or
negotiating council, reflecting the ILO’s tripartite structure by ensuring that
workers’ voices are included in negotiations.
 Section 57: Provides for tripartite discussions at various levels for resolving
disputes and formulating policies. This section allows for the participation
of employers, workers, and government representatives in addressing
workplace challenges.
These provisions promote social dialogue and collaboration, echoing the
ILO’s tripartite model and fostering cooperation between the three key
stakeholders in labor relations.

Major ILO Conventions Ratified by India

India has ratified several important ILO conventions, which have influenced
its national legislation, including the IRC, 2020. Some of the most notable
include:
1. ILO Convention No. 87 (Freedom of Association and Protection of the Right
to Organise, 1948).
2. ILO Convention No. 98 (Right to Organise and Collective Bargaining, 1949).
3. ILO Convention No. 111 (Discrimination (Employment and Occupation),
1958).
4. ILO Convention No. 29 (Forced Labour, 1930).
5. ILO Convention No. 105 (Abolition of Forced Labour, 1957).
These conventions form the foundation for India’s labor reforms, including
those in the Indian Industrial Relations Code, 2020.

Conclusion
The International Labour Organisation (ILO) has had a profound influence
on shaping labor legislation in India, with many of its core principles
reflected in the Indian Industrial Relations Code, 2020. The IRC, 2020,
incorporates provisions on trade union rights, collective bargaining, fair
working conditions, and dispute resolution, aligning India’s legal
framework with international labor standards set by the ILO. This ensures
that workers’ rights are protected and that industrial relations in India are
harmonious, promoting social justice and economic stability.

2.1 ‘Industry’ – Conceptual Analysis

Conceptual Analysis of ‘Industry’ under the Indian Industrial Relations
Code, 2020
The term ‘Industry’ plays a crucial role in labor law, as it determines the
scope of various provisions governing industrial relations, dispute
resolution, worker rights, and employer obligations. The Indian Industrial
Relations Code (IRC), 2020, provides a clear and inclusive definition of what
constitutes an "industry." Understanding this concept is essential because it
defines which activities, organizations, and enterprises fall within the
purview of labor legislation, including those related to trade disputes,
collective bargaining, and workers’ rights.

1. Definition of Industry: Section 2(p) of the IRC, 2020

Section 2(p) of the Indian Industrial Relations Code, 2020 defines
‘Industry’ as:
**“Industry” means any systematic activity carried on by co-operation
between an employer and worker (whether such workers are employed by
such employer directly or by or through any agency, including a contractor)
for the production, supply, or distribution of goods or services with a view
to satisfy human wants or wishes (not being wants or wishes which are
merely spiritual or religious in nature), whether or not—
(i) any capital has been invested for the purpose of carrying on such activity;
or (ii) such activity is carried on with a motive to make any gain or profit,
and includes—
(a) any activity of the dock, pier, jetty, or wharf; (b) any activity relating to
promotion of sales or business or both carried on by an establishment,
but does not include—
(1) institutions owned or managed by organisations wholly or substantially
engaged in any charitable, social, or philanthropic service; or (2) any activity
 of the Government relatable to the sovereign functions of the Government
including all activities carried on by the departments of the Central
Government dealing with defence research, atomic energy, and space; (3)
any domestic service; and (4) any other activity as may be notified by the
Central Government.”**
This definition is broad and inclusive, aimed at covering a wide range of
industries and enterprises engaged in the production and distribution of
goods or services, irrespective of the profit motive. However, the definition
also provides some specific exclusions, such as certain government
activities, domestic services, and charitable organizations.

2. Key Elements of the Definition of ‘Industry’

The IRC, 2020, expands on the concept of industry by highlighting several
key elements:
a. Systematic Activity
 The term systematic activity refers to any organized or structured activity
carried out by an employer in coordination with workers. It includes not
only large industrial units but also smaller, organized operations where
workers and employers collaborate to produce goods or provide services.
b. Co-operation between Employer and Worker
 For an activity to be considered an industry, there must be cooperation
between an employer and workers. This includes workers directly
employed by the employer or through agencies or contractors. It recognizes
modern forms of employment, such as contract workers, and ensures that
such relationships fall under the scope of the IRC.
c. Production, Supply, or Distribution of Goods or Services
 The core function of an industry involves the production, supply, or
distribution of goods or services that cater to human needs or wants.
Whether the enterprise produces physical goods or provides services, it is
covered under the definition of an industry.
d. Human Wants or Wishes
 The definition emphasizes that the industry must cater to human wants or
wishes, but excludes activities that are solely spiritual or religious. This
ensures that industries focused on economic activities fall within the scope
of the IRC.
 e. Profit Motive Not Essential
 Unlike previous definitions that focused on commercial or profit-oriented
activities, the IRC explicitly states that whether or not the activity is carried
out for profit does not affect its classification as an industry. This means
that non-profit enterprises engaged in systematic economic activity can also
be considered industries under the law.
f. Inclusion of Sales Promotion Activities
 The IRC explicitly includes activities related to the promotion of sales or
business in the definition of an industry, thus bringing marketing, sales, and
related services into the ambit of industrial laws.

3. Exclusions from the Definition of ‘Industry’

While the IRC adopts a broad definition of ‘industry’, it also specifies certain
activities and organizations that do not fall within its scope. These include:
a. Charitable, Social, or Philanthropic Institutions
 Institutions that are wholly or substantially engaged in charitable, social, or
philanthropic services are excluded from the definition. These
organizations, typically non-profit, focus on social welfare rather than
economic activity and are exempted from being classified as industries.
b. Government Functions Related to Sovereign Activities
 Activities of the government that are linked to its sovereign functions, such
as defense, atomic energy, and space research, are explicitly excluded.
Sovereign functions refer to activities that are integral to the operation of
the state and its governance, as opposed to commercial or industrial
activities.
c. Domestic Services
 Domestic service is excluded from the definition of industry. This includes
individuals working in households providing personal services such as
cleaning, cooking, and caregiving, who are not considered part of industrial
establishments under the IRC.
d. Other Activities Notified by the Central Government
 The Central Government has the authority to notify additional activities
that are excluded from the definition of industry. This provision allows
flexibility in excluding certain sectors from labor regulations under specific
circumstances.
 4. Judicial Interpretation of ‘Industry’
The definition of ‘industry’ has been subject to considerable interpretation
by the judiciary, particularly by the Supreme Court of India. The courts have
played a key role in clarifying the scope of the term, especially in the
context of previous labor laws such as the Industrial Disputes Act, 1947.
A landmark case that shaped the interpretation of 'industry' was:
Bangalore Water Supply & Sewerage Board vs. A. Rajappa (1978)
 In this case, the Supreme Court provided an expansive interpretation of
‘industry’ and ruled that any systematic activity involving the cooperation
of employer and employee aimed at producing or distributing goods and
services falls under the term ‘industry.’
o Triple Test for Industry:
1. Systematic Activity: There must be an organized and
structured operation.
2. Cooperation between Employer and Employee: There must be
a clear employer-employee relationship.
3. Production/Distribution of Goods/Services: The activity must
be oriented towards satisfying human wants, irrespective of
profit motive.
This interpretation forms the basis of the current definition of ‘industry’ in
the IRC, 2020, aligning with the Bangalore Water Supply case, while
introducing certain exclusions.

5. Significance of the Definition of ‘Industry’ in IRC, 2020

The definition of ‘industry’ in the Indian Industrial Relations Code, 2020,
has significant implications:
 Wider Coverage: By including non-profit activities and organizations
involved in goods and services without a profit motive, the IRC covers a
broad range of enterprises and industries.
 Protection of Workers' Rights: The broad definition ensures that all
workers, whether in traditional factories or service-oriented industries,
have access to the protections offered under labor laws.
 Clarity in Exclusions: By specifically excluding charitable institutions,
domestic workers, and sovereign government functions, the IRC clarifies the
sectors not governed by industrial dispute laws.

2.2 Standing Orders

Standing Orders Under the Indian Industrial Relations Code, 2020

Standing Orders are an essential part of labor law, as they define the rules
and regulations governing the working conditions, terms of employment,
and behavior of employees in industrial establishments. The Indian
Industrial Relations Code (IRC), 2020 has consolidated and updated the
provisions related to standing orders, which were previously governed by
the Industrial Employment (Standing Orders) Act, 1946.
The purpose of standing orders is to ensure transparency, consistency, and
fairness in industrial relations by laying down clear guidelines on
employment terms, such as working hours, holidays, misconduct, and
disciplinary actions.

1. Definition of Standing Orders

Under the IRC, 2020, Standing Orders refer to the rules that regulate the
conditions of employment and address various aspects of industrial
relations, such as:
 Classification of workers (e.g., permanent, temporary, apprentice, etc.).
 Working hours, shifts, and holidays.
 Procedure for termination of employment or disciplinary action.
 Grievance redressal mechanisms.
 Code of conduct for employees within the workplace.

2. Provisions for Standing Orders in the IRC, 2020

The relevant provisions related to Standing Orders are covered under
Chapter IV of the Indian Industrial Relations Code, 2020, which deals with
the “Conditions of Service, etc., in Industrial Establishments”.
Key Sections under the IRC, 2020 related to Standing Orders:

Section 29: Matters to Be Covered by Standing Orders

 This section mandates that the standing orders must cover the following
matters for industrial establishments with 300 or more workers:
1. Classification of workers (e.g., permanent, temporary, apprentices,
probationers, etc.).
2. Manner of informing workers about work hours, shifts, holidays, and wage
rates.
3. Entry and exit procedures, attendance, and identity cards.
4. Termination of employment and notice periods.
5. Disciplinary actions, including suspension, dismissal, and penalties for
misconduct.
6. Grievance redressal mechanisms.
7. Any other matters as may be prescribed.
This section sets out the scope and content of standing orders, ensuring
that key aspects of employment terms are covered.

Section 30: Submission of Draft Standing Orders

 Industrial establishments covered under the IRC, 2020, must submit draft
standing orders to the Certifying Officer within a specified period (typically
six months from the commencement of the IRC or within six months of
establishing a new establishment).
 The employer must prepare the standing orders in consultation with trade
unions or representatives of workers to ensure fairness and inclusivity.
 The Certifying Officer is responsible for reviewing and certifying the draft
standing orders, ensuring they are in line with the IRC, 2020, and other
applicable labor laws.

Section 31: Certification of Standing Orders

 The Certifying Officer scrutinizes the draft standing orders submitted by the
employer, making sure that the provisions are fair and reasonable.
 The Certifying Officer may make modifications to the standing orders to
bring them in line with the law or consult the employer and employees
before making any changes.
 Once the draft standing orders are approved and certified, they become
binding on both the employer and the employees of the establishment.
 Section 32: Model Standing Orders
 The Central Government may issue Model Standing Orders that serve as a
reference for employers in drafting their own standing orders.
 In cases where the employer has not submitted standing orders for
certification, the Model Standing Orders prescribed by the government
automatically apply.
 These Model Standing Orders aim to provide a basic framework of rules
that can be applied across industries, ensuring consistency and fairness in
working conditions.

Section 33: Modification of Standing Orders

 After certification, the standing orders may be modified by the employer or
the workers, subject to approval by the Certifying Officer.
 Either party (employer or employees) can apply for a modification of
standing orders, especially in cases where there is a significant change in
working conditions, technology, or business processes.
 The modification process must involve consultation with workers or their
representatives.

Section 34: Interpretation of Standing Orders

 Disputes related to the interpretation or implementation of standing
orders may be referred to the Industrial Tribunal for resolution.
 The Tribunal has the authority to interpret the standing orders and resolve
any conflicts that may arise between the employer and the workers.

Section 35: Penalty for Non-Compliance

 If an employer fails to submit standing orders or comply with the Model
Standing Orders, they may be subject to penalties under the IRC, 2020.
 Non-compliance with the provisions of standing orders or failure to
implement them as certified can result in fines and other legal
consequences.

3. Key Features of Standing Orders Under the IRC, 2020

a. Applicability to Establishments with 300 or More Workers
 Under the IRC, 2020, standing orders are mandatory for industrial
establishments employing 300 or more workers.
 This is a significant change from the previous threshold under the Industrial
Employment (Standing Orders) Act, 1946, which applied to establishments
with 100 or more workers. The increase to 300 workers has been
introduced to give greater flexibility to smaller establishments, reducing
their compliance burden.
b. Simplified Certification Process
 The IRC, 2020, has streamlined the process for submitting and certifying
standing orders, making it faster and less cumbersome.
 Employers can submit standing orders electronically, and the Certifying
Officer is required to process and approve them within a specific
timeframe.
c. Consultation with Workers
 The IRC emphasizes the need for consultation with workers or their
representatives when drafting standing orders. This ensures that the terms
and conditions are fair and reflect the interests of both parties.
d. Flexibility for Amendments
 Employers and workers have the flexibility to modify standing orders in
response to changes in working conditions or business requirements,
subject to approval by the Certifying Officer.

4. Significance of Standing Orders in Industrial Relations

 Transparency: Standing orders ensure transparency by providing clear and
standardized rules governing the relationship between employers and
employees.
 Stability and Fairness: By formalizing the terms of employment, standing
orders prevent arbitrary actions by employers, thereby ensuring fair
treatment for workers.
 Dispute Resolution: Standing orders provide a framework for addressing
disputes related to working conditions, termination, misconduct, and other
employment issues, thus reducing the likelihood of industrial disputes.
 Uniformity: The use of Model Standing Orders provides uniformity across
industries, ensuring that all establishments follow basic guidelines for fair
and ethical employment practices.

2.3 Mechanism to dispute Resolution

 Mechanism for Dispute Resolution under the Indian Industrial Relations
Code, 2020
The Indian Industrial Relations Code (IRC), 2020 consolidates and updates
the provisions for resolving industrial disputes, which were previously
scattered across multiple labor laws. The Code lays out a clear mechanism
for resolving disputes between employers and workers, ensuring fairness,
efficiency, and a structured process for addressing grievances. The IRC,
2020, emphasizes mechanisms such as conciliation, arbitration, and
adjudication through Industrial Tribunals.
The main objective of the dispute resolution mechanism under the IRC is to
promote harmonious industrial relations and minimize industrial disputes.
The Industrial Relations Code, 2020 aims to ensure timely and amicable
resolution of disputes through various stages, from informal negotiation to
formal adjudication.

1. Types of Industrial Disputes under the IRC, 2020

An industrial dispute is defined under Section 2(q) of the IRC, 2020, as:
 Any dispute or difference between employers and employers, or between
employers and workers, or between workers and workers, which is
connected with the employment, non-employment, terms of employment,
or the conditions of labor of any person.

2. Mechanisms for Dispute Resolution under the IRC, 2020

The IRC, 2020, provides several mechanisms for resolving industrial
disputes:
a. Bipartite Negotiation (Section 4)
 Section 4 encourages employers and workers to resolve disputes at the
bipartite level through direct negotiation without the involvement of
external agencies.
 The employer and workers' union/representatives are encouraged to
resolve their issues mutually, thus avoiding formal dispute mechanisms.
 Bipartite forums, such as Works Committees, may also be used to facilitate
negotiations.
b. Grievance Redressal Committee (Section 4)
 Industrial establishments with 20 or more workers must constitute a
Grievance Redressal Committee (GRC) to resolve individual worker
grievances.
 The Grievance Redressal Committee allows workers to raise complaints
related to working conditions, pay, and other issues.
 The GRC must resolve grievances within 30 days.
 This committee provides an internal mechanism to resolve disputes at an
early stage.

3. Conciliation Mechanism
a. Conciliation Officer (Section 43)
 Section 43 of the IRC, 2020, provides for the appointment of Conciliation
Officers by the appropriate government.
 The Conciliation Officer acts as a mediator between the disputing parties
(employer and workers) and facilitates the negotiation process to reach a
settlement.
 Conciliation is the first formal step for resolving an industrial dispute that
could not be settled through bipartite negotiation.
 The Conciliation Officer has the authority to investigate the dispute and
make efforts to bring about a voluntary settlement.
b. Conciliation Proceedings (Section 45)
 If no settlement is reached through bipartite negotiation, the matter is
referred to the Conciliation Officer, who conducts conciliation proceedings.
 Section 45 states that conciliation proceedings must be conducted within
45 days, after which a report is submitted to the appropriate government.
 If a settlement is reached, a Memorandum of Settlement is signed and filed
with the authorities.
 If conciliation fails, the dispute may be referred to the Industrial Tribunal or
National Industrial Tribunal for adjudication.
c. Settlement through Conciliation (Section 44)
 Section 44 mentions that any settlement reached during conciliation
proceedings is binding on all the parties involved.
 The settlement is considered legally binding for both the employer and the
workers for the duration of the agreement.
 4. Voluntary Arbitration
a. Voluntary Arbitration (Section 46)
 Section 46 allows the disputing parties (employer and workers) to
voluntarily refer their dispute to an arbitrator without resorting to
adjudication by the Tribunal.
 The arbitrator could be a neutral individual or panel mutually agreed upon
by the parties.
 Voluntary arbitration provides a quicker and less formal method of
resolving disputes than adjudication.
 A reference to voluntary arbitration requires an agreement signed by the
employer and the workers.
b. Arbitration Award (Section 46(4))
 Once an arbitration award is made, it is binding on both parties for the
specified period.
 The award must be submitted to the appropriate government, which can
then publish it within 30 days.
 The award is treated as binding, and non-compliance may lead to legal
consequences.

5. Adjudication Mechanism
When conciliation or arbitration fails to resolve the dispute, or if the parties
prefer formal adjudication, the dispute may be referred to the following
authorities:
a. Industrial Tribunals (Section 51)
 Section 51 establishes Industrial Tribunals, which have the power to
adjudicate on industrial disputes.
 Industrial Tribunals are responsible for deciding disputes related to:
1. Wages, compensations, bonuses, and other financial aspects.
2. Working hours, shifts, holidays, and leave.
3. Employment terms, promotions, transfers, and dismissals.
4. Conditions of service and disciplinary actions.
 Industrial Tribunals are presided over by a person qualified to be a judge,
ensuring legal oversight of dispute resolution.
 The appropriate government may refer a dispute to an Industrial Tribunal
for adjudication either on its own or upon receiving a request from the
parties involved.
b. National Industrial Tribunal (NIT) (Section 53)
 Section 53 establishes a National Industrial Tribunal (NIT) to adjudicate
disputes of national importance or disputes involving establishments in
multiple states.
 The National Industrial Tribunal deals with disputes of a larger scale that
affect industries across regions or the country as a whole.
 The NIT is presided over by a judge of a High Court or a retired judge of the
Supreme Court.
c. Adjudication Process
 The adjudication process begins once the dispute is referred to an Industrial
Tribunal or National Industrial Tribunal.
 After hearing both parties, the Tribunal issues an award or decision.
 The award of the Tribunal is binding on all parties involved and has the
force of law.

6. Other Important Provisions for Dispute Resolution

a. Prohibition of Strikes and Lockouts (Sections 62-64)
 Section 62 and Section 63 regulate the procedures for strikes and lockouts.
 Workers are prohibited from going on strike without giving notice to the
employer.
 Similarly, employers are prohibited from imposing lockouts without prior
notice.
 These sections aim to prevent disruptions during dispute resolution
processes and promote peaceful negotiation and conciliation.
b. Power of Government to Refer Disputes to Tribunals (Section 53)
 The appropriate government (Central or State) has the power to refer
disputes to the Industrial Tribunals or National Industrial Tribunal when it
feels that the dispute has not been resolved through conciliation or
negotiation.

7. Binding Nature of Awards

a. Binding Effect of Awards (Section 56)
 The awards made by the Industrial Tribunals, National Industrial Tribunal,
or through voluntary arbitration are binding on the parties.
 These awards are enforceable under the law and apply to the employers,
workers, and other affected parties for the duration specified in the award.

8. Appeal Mechanism
a. Appeal to the Industrial Tribunal (Section 57)
 If a party is dissatisfied with an award issued by a Tribunal or arbitration,
they may appeal to a higher authority under the Industrial Tribunal.
 The Tribunal is empowered to review and make changes to the award based
on legal grounds or procedural errors.

2.3 Concept of Workman

Concept of "Workman" under the Indian Industrial Relations Code, 2020

The term “workman” is a foundational concept in labor law as it
determines who is entitled to the protections and benefits under various
labor legislations. The Indian Industrial Relations Code (IRC), 2020
consolidates the definition of "workman" and lays out the rights,
protections, and responsibilities applicable to this group of employees.
Understanding this term is key to comprehending the scope of the IRC,
2020.

1. Definition of Workman under IRC, 2020

The term "workman" is defined in Section 2(zr) of the Indian Industrial
Relations Code, 2020. The definition remains largely consistent with prior
labor laws but includes certain exclusions to clarify who is covered under
the term.
According to Section 2(zr) of the IRC, 2020:
 A "workman" means any person (including an apprentice) employed in any
industry to do manual, unskilled, skilled, technical, operational, clerical, or
supervisory work for hire or reward.
 The definition includes anyone who has been dismissed, discharged, or
retrenched in connection with, or as a consequence of, a dispute, or whose
dismissal, discharge, or retrenchment has led to the dispute.

2. Exclusions from the Definition of Workman

While the IRC, 2020 broadly defines "workman" to cover most categories of
employees, it explicitly excludes certain categories of employees from this
definition. The following persons are excluded from the definition of
"workman":
1. Persons employed in managerial or administrative capacity:
o Those who hold managerial, administrative, or decision-making roles
are not covered under the definition of "workman." This exclusion
aims to differentiate employees who have higher authority and
discretion in management roles from regular employees involved in
operational work.
2. Persons employed in a supervisory capacity and drawing wages exceeding
Rs. 18,000 per month or an amount as notified by the government:
o Employees who are employed in a supervisory role but whose wages
exceed Rs. 18,000 per month (or a higher amount, as notified by the
government) are also excluded from the category of "workman." This
is meant to distinguish senior supervisory staff from other
employees.
3. Members of the armed forces or any other similar categories.

3. Key Elements of the Definition

The definition of "workman" under the IRC, 2020, has several important
elements:
 Manual, Skilled, and Unskilled Work: Includes workers who are involved in
physical labor, either unskilled or skilled, like factory workers or laborers.
 Technical or Operational Work: Covers technical personnel and those
engaged in the operation of machinery or equipment.
 Clerical Work: Includes employees involved in office work, data
management, record-keeping, or other administrative tasks.
 Supervisory Work (with Limitations): Employees who are engaged in
supervisory roles may be considered workmen as long as their wages are
 below the threshold set by the law (Rs. 18,000 per month or as notified).
Those earning above the wage limit are excluded.

4. Significance of the Concept of Workman

The definition of "workman" is crucial for determining who qualifies for the
protections and benefits under the IRC, 2020. These protections include:
1. Right to raise industrial disputes: Only those classified as workmen can
raise disputes under the provisions of the IRC, 2020, such as disputes over
wage increases, wrongful termination, or changes in service conditions.
2. Protection against unfair labor practices: Workmen are entitled to
protection against unfair labor practices by employers, such as wrongful
dismissals, non-payment of wages, or poor working conditions.
3. Entitlement to benefits under standing orders: Workmen are subject to the
provisions of certified standing orders, which outline the terms of
employment, conduct, and working conditions in an industrial
establishment.
4. Grievance redressal mechanisms: The Grievance Redressal Committee,
under the IRC, 2020, is specifically designed to handle complaints and
grievances from workmen, thus ensuring they have a forum to resolve
workplace issues.
5. Protection during strikes and lockouts: The definition of "workman" helps
identify which workers are legally protected during strikes or lockouts,
ensuring that the legal provisions governing these actions apply to the
correct category of employees.

5. Legal Precedents and Interpretations

The judiciary in India has, over time, provided significant clarity on the
interpretation of the term "workman." Courts have examined the duties of
employees to determine whether they fall within the scope of "workman,"
particularly in cases involving disputes over managerial and supervisory
roles. The critical factor in such cases is often the nature of the employee’s
duties, rather than just their job title or designation.
For example, if an employee primarily performs clerical or operational tasks
despite being designated as a supervisor, they may still be classified as a
workman, provided they fall below the wage threshold.
 6. Conclusion
The concept of "workman" under the Indian Industrial Relations Code,
2020, plays a central role in shaping industrial relations and labor rights in
India. It helps define the scope of protections, dispute resolution
mechanisms, and legal entitlements for workers in various industries. By
setting clear inclusions and exclusions, the IRC ensures that the rights of
workers are protected, while also recognizing the unique roles of
managerial and supervisory employees. The threshold of wages (Rs. 18,000
per month) and the distinction between administrative/managerial and
operational roles further refine this concept to reflect the diverse nature of
employment in modern industries.

3.3 ‘ Strike’ & ‘Lockout’ Concept, Legality and Justification

Concepts of "Strike" and "Lockout" under the Industrial Relations Code
(IRC), 2020
The Industrial Relations Code (IRC), 2020, which consolidates previous
labor laws like the Industrial Disputes Act, 1947, governs key aspects of
industrial relations in India, including strikes and lockouts. Both strike (by
workers) and lockout (by employers) are critical actions taken during
industrial disputes. The IRC, 2020, establishes the framework for the
legality, procedures, and justification for these actions, aiming to balance
the rights of both employers and employees while maintaining industrial
peace.

1. Definition of Strike and Lockout under IRC, 2020

a. Strike (Section 2(zk))
According to Section 2(zk) of the IRC, 2020, a strike means:
 A cessation of work by a body of persons employed in any industry acting in
combination.
 It also includes a concerted refusal to continue to work or to accept
employment, as well as a refusal under a common understanding to work.
A strike usually occurs when workers collectively stop working to press their
demands, which can range from wage increases, better working conditions,
changes in employment terms, or other disputes with the employer.
 b. Lockout (Section 2(s))
A lockout is defined in Section 2(s) of the IRC, 2020, as:
 The temporary closing of a place of employment.
 The suspension of work.
 Refusal by an employer to continue to employ workers.
Lockouts are used by employers to counter workers' demands or strikes,
often as a defensive measure in industrial disputes. It involves shutting
down operations, preventing employees from working, and disrupting their
ability to earn wages.

2. Legality of Strikes and Lockouts under IRC, 2020

The IRC, 2020, introduces detailed conditions under which strikes and
lockouts can be declared legal or illegal. These provisions aim to ensure
that both parties follow a structured process of negotiation before resorting
to industrial actions.
a. Legality of Strikes (Section 62)
Section 62 of the IRC, 2020, outlines the conditions that must be met for a
strike to be legal. These conditions apply to both public utility services (like
transport, healthcare, etc.) and non-public utility services.
For a strike to be legal:
1. Notice Requirement:
o In the case of public utility services, workers must give a notice of
strike six weeks before striking.
o For non-public utility services, a similar notice requirement is
applicable.
2. Prohibition of Strike during Conciliation Proceedings:
o Workers cannot go on strike during ongoing conciliation proceedings
or within seven days after the conclusion of conciliation proceedings.
o Additionally, strikes cannot be initiated before the expiry of a 14-day
notice period after giving the strike notice.
3. Other Prohibitions:
o Workers are prohibited from striking during the period of any
settlement or arbitration award, or within 60 days after the
conclusion of such awards.
 o Strikes are also prohibited during the pendency of proceedings
before a Tribunal or a National Tribunal.
If any of these conditions are violated, the strike will be deemed illegal.
b. Legality of Lockouts (Section 63)
Section 63 of the IRC, 2020, mirrors the conditions for lockouts, ensuring
employers cannot arbitrarily shut down their workplaces:
1. Notice Requirement:
o Employers in public utility services must give a notice of lockout six
weeks in advance before implementing it.
o For non-public utility services, a similar notice period applies.
2. Prohibition of Lockout during Conciliation Proceedings:
o Employers are prohibited from declaring a lockout during the
pendency of conciliation proceedings or within seven days after their
conclusion.
o Lockouts cannot be declared within the 14-day period after the
notice is issued.
3. Other Prohibitions:
o Employers are prohibited from declaring a lockout during the
pendency of settlement or arbitration awards, or within 60 days
after their conclusion.
o Similarly, lockouts are prohibited during the pendency of cases before
Industrial Tribunals or National Tribunals.
Lockouts declared without meeting these conditions will be considered
illegal.

3. Justification of Strikes and Lockouts under IRC, 2020

a. Justified Strikes
For a strike to be considered justified, the following factors are generally
considered:
1. Genuine and Fair Demands:
o The demands raised by workers must be reasonable and reflect
genuine grievances, such as non-payment of wages, denial of fair
working conditions, etc.
 o Courts and tribunals often examine whether the employer's actions
led to the strike (such as ignoring workers' demands or violating labor
rights).
2. Following Legal Procedures:
o A strike is justified only if it follows the legal procedures laid down
under Section 62 of the IRC, 2020.
o If the workers have provided due notice and respected conciliation
proceedings, their strike may be justified.
3. Unfair Labor Practices:
o If the employer is found to be indulging in unfair labor practices (as
defined in Section 78), such as refusal to bargain in good faith,
victimization of workers, or other acts of suppression, the strike may
be justified.
b. Justified Lockouts
A lockout may be justified under the following circumstances:
1. Genuine Industrial Dispute:
o If an employer imposes a lockout in response to an industrial dispute
and the workers' demands are found to be unreasonable or
disruptive, the lockout may be justified.
2. Preventing Damage or Violence:
o If workers are engaging in violent activities or threatening to damage
the employer's property, a lockout may be justified as a protective
measure.
3. Following Legal Procedures:
o Employers must ensure that the legal procedures for declaring a
lockout, as per Section 63, are followed.
o If the lockout is declared with proper notice and during appropriate
circumstances, it may be deemed justified.

4. Consequences of Illegal Strikes and Lockouts

If a strike or lockout is declared illegal under the IRC, 2020, both employers
and workers face specific consequences:
a. Consequences for Workers (Illegal Strike):
 Workers who participate in an illegal strike may face disciplinary actions
from the employer, including suspension, termination, or other punitive
measures.
 Workers may also lose the right to wages during the period of the illegal
strike.
b. Consequences for Employers (Illegal Lockout):
 If a lockout is declared illegal, the employer may face legal penalties under
the IRC, 2020, including fines.
 Workers affected by an illegal lockout may have the right to seek
compensation for lost wages during the period of the illegal lockout.

5. Role of Tribunals and Conciliation in Strikes and Lockouts

The Industrial Relations Code, 2020, emphasizes the importance of using
conciliation and adjudication mechanisms to prevent strikes and lockouts
from escalating. The Industrial Tribunals and National Industrial Tribunal
play a critical role in resolving disputes where both parties fail to reach an
agreement through negotiation.
 Conciliation Officers under the IRC facilitate negotiations between workers
and employers to reach settlements and prevent strikes or lockouts.
 If conciliation fails, the dispute may be referred to an Industrial Tribunal for
adjudication.

6. Key Sections Related to Strikes and Lockouts

 Section 2(zk): Definition of Strike.
 Section 2(s): Definition of Lockout.
 Section 62: Conditions for the legality of strikes.
 Section 63: Conditions for the legality of lockouts.
 Section 78: Unfair labor practices that may justify strikes or lockouts.

3.2 ‘Layoff’ ‘Retrenchment’ & Closure

Lay-off, Retrenchment, and Closure under the Industrial Relations Code

(IRC), 2020
The Industrial Relations Code (IRC), 2020 consolidates the laws relating to
employment termination, business closures, and handling of industrial
 disputes, including the provisions for lay-off, retrenchment, and closure.
The IRC, 2020 aims to provide clarity on the employer’s rights and duties
while also ensuring fair treatment and compensation for workers.

1. Lay-off (Section 2(kkk) and Section 78)

a. Definition of Lay-off (Section 2(kkk)):
A lay-off refers to the temporary inability of an employer to provide
employment to workers due to reasons beyond their control. The reasons
may include:
 Shortage of raw materials.
 Breakdown of machinery.
 Natural calamities, such as floods or earthquakes.
 Financial difficulties.
 Other similar economic reasons.
Under Section 2(kkk) of the IRC, 2020, a lay-off occurs when a worker,
whose name appears on the muster roll of an industrial establishment and
who has not been retrenched, is refused work due to any of the reasons
mentioned above.
b. Compensation for Lay-off (Section 78):
According to Section 78 of the IRC, 2020:
 A worker who is laid off is entitled to compensation at the rate of 50% of
the total basic wages and dearness allowance for the period of lay-off.
 The entitlement to compensation is applicable only if the worker has been
continuously employed for at least one year prior to the lay-off.
Exceptions: Compensation is not payable if the lay-off is due to:
 A strike.
 An illegal lockout.
 Natural calamities beyond the employer's control (in certain cases).

2. Retrenchment (Section 2(zz) and Section 83)

a. Definition of Retrenchment (Section 2(zz)):
Retrenchment refers to the termination of service of a worker by the
employer for any reason except as a result of disciplinary action or
superannuation. The definition in Section 2(zz) of the IRC, 2020, specifies
that retrenchment does not include:
 Voluntary retirement.
 Retirement upon reaching the age of superannuation.
 Termination due to ill health or disability.
 Contractual termination when the contract comes to an end.
In simple terms, retrenchment typically occurs when the employer needs to
reduce the workforce due to financial or operational constraints.
b. Conditions for Retrenchment (Section 83):
Section 83 of the IRC, 2020, lays down the conditions for lawful
retrenchment. The key conditions include:
1. Notice or Compensation in Lieu of Notice:
o The employer must provide one month's notice to the worker before
retrenchment.
o Alternatively, the employer can provide wages in lieu of the notice
period.
2. Retrenchment Compensation:
o The employer must pay retrenchment compensation at the rate of
15 days' wages for every completed year of service or any part of
the year in excess of six months.
3. Notice to the Government:
o For establishments employing 300 or more workers, the employer
must give prior notice to the appropriate government before
proceeding with the retrenchment.
4. Retrenchment on the Basis of "Last In, First Out":
o Employers are generally required to follow the principle of "last in,
first out" when selecting workers for retrenchment, meaning that the
workers most recently employed should be retrenched first.
Exemptions:
 Workers employed in seasonal establishments or temporary project-based
work are generally exempt from retrenchment protections.

3. Closure (Section 2(q) and Section 74)

a. Definition of Closure (Section 2(q)):
Under Section 2(q) of the IRC, 2020, closure refers to the permanent
closing down of a place of employment or part of it. It happens when an
employer decides to permanently cease the operations of an establishment
 due to financial insolvency, operational inefficiency, or any other valid
reason.
b. Conditions for Closure (Section 74):
Section 74 of the IRC, 2020, outlines the conditions that must be met for a
legal closure:
1. Notice to Government:
o If an industrial establishment has 300 or more workers, the employer
must provide a 60-day prior notice to the appropriate government
authority before proceeding with the closure.
2. Compensation to Workers:
o Workers who are affected by the closure are entitled to the same
compensation as in retrenchment (15 days’ wages for every
completed year of service).
3. Permission for Closure:
o For industrial establishments employing 300 or more workers,
employers are required to seek prior permission from the
appropriate government for closure. Failure to obtain permission
makes the closure illegal.
Exemptions:
 Employers of establishments with less than 300 workers do not need prior
government permission to close the unit but are still required to provide
closure compensation to the workers.

4. Differences between Lay-off, Retrenchment, and Closure

Retrenchmen
Aspect Lay-off Closure
t
Temporary Permanent
inability to termination Permanent
provide work of workers shutdown of
Definition
due to due to business or
uncontrollabl economic part of it.
e reasons. reasons.
Notice No specific 1-month 60-day prior
 Retrenchmen
Aspect Lay-off Closure
t
notice or
notice
notice wages in lieu
required for
required, but of notice
establishment
Requirement compensatio required for
s with 300 or
n is lawful
more
mandatory. retrenchment
workers.
.
50% of 15 days' 15 days'
Compensatio wages during wages for wages for
n lay-off every year of every year of
period. service. service.
Not required
Required for
for
establishment
Government establishment
Not required. s with 300 or
Permission s with fewer
more
than 300
workers.
workers.
Duration Temporary. Permanent. Permanent.

5. Important Sections under the IRC, 2020

 Section 2(kkk): Definition of Lay-off.
 Section 2(zz): Definition of Retrenchment.
 Section 2(q): Definition of Closure.
 Section 74: Conditions and notice for closure.
 Section 78: Compensation during lay-off.
 Section 83: Conditions and compensation for retrenchment.

3.3 Analysis of the Concepts, Pre-requisites

 Analysis of Concepts and Pre-requisites under the Industrial Relations
Code (IRC), 2020
The Industrial Relations Code (IRC), 2020, consolidates and simplifies
existing labor laws, focusing on maintaining harmonious relations between
employers and employees while ensuring fair treatment and protection of
workers' rights. The IRC outlines several key concepts and prerequisites
essential for understanding industrial relations, including trade unions,
strikes, lockouts, lay-offs, retrenchments, and closures.

1. Key Concepts under IRC, 2020

a. Trade Union (Section 2(zh))
A trade union is defined as an association of workers formed to promote
and protect their mutual interests, primarily relating to wages, working
conditions, and other employment-related matters. The IRC recognizes the
rights of workers to organize and form unions, providing them with legal
status.
Key Features:
 Trade unions can negotiate on behalf of workers regarding employment
terms.
 They have the right to represent members in disputes with employers.
b. Industrial Dispute (Section 2(k))
An industrial dispute refers to any disagreement or conflict between
employers and workers regarding employment terms, working conditions,
or any matter affecting workers.
Key Features:
 This can involve disputes between employers and workers, workers and
workers, or between trade unions and employers.
c. Workman (Section 2(z))
A workman is defined as any person employed in an industry to do any
manual, unskilled, skilled, technical, operational, or clerical work for hire or
reward.
Key Features:
 The definition excludes certain categories, such as individuals employed in
managerial or supervisory roles.
d. Strike (Section 2(zk))
 A strike is the cessation of work by a body of persons acting in combination,
often aimed at pressing specific demands.
Key Features:
 Strikes can be legal or illegal, depending on adherence to specified
conditions outlined in the IRC.
e. Lockout (Section 2(s))
A lockout occurs when an employer temporarily closes a place of
employment or suspends work in response to an industrial dispute.

2. Pre-requisites for Key Concepts under IRC, 2020

a. Trade Union Registration (Section 4)
For a trade union to be recognized legally, it must be registered under the
IRC.
Pre-requisites:
 A minimum of seven members is required for formation.
 The union must submit a written application to the Registrar, along with its
constitution, objectives, and a list of officers.
b. Conditions for Legal Strikes (Section 62)
Strikes must meet specific conditions to be deemed legal:
Pre-requisites:
1. Notice:
o For public utility services, a six-week notice must be provided.
o For other sectors, notice is required, although the exact period can
vary.
2. Prohibition during Conciliation:
o Strikes are prohibited during ongoing conciliation proceedings or
within 14 days after the notice is given.
3. Justification:
o The reasons for the strike must be justifiable and not involve illegal
actions by workers.
c. Conditions for Legal Lockouts (Section 63)
Similar to strikes, lockouts must also adhere to legal conditions.
Pre-requisites:
1. Notice:
 o Employers must provide a six-week notice before implementing a
lockout in public utility services.
2. Prohibition during Conciliation:
o Lockouts cannot be declared during conciliation proceedings.
d. Lay-off (Section 2(kkk) and Section 78)
For a lay-off to be considered legal, certain criteria must be fulfilled:
Pre-requisites:
1. Compensation:
o Workers must be compensated at the rate of 50% of their basic
wages and dearness allowance during the lay-off period.
2. Duration:
o The lay-off should be temporary, and the employer should maintain a
record of the reasons for the lay-off.
e. Retrenchment (Section 83)
Retrenchment entails specific procedures to ensure fairness to the worker
being terminated.
Pre-requisites:
1. Notice:
o Employers must provide a one-month notice or wages in lieu of
notice before retrenching an employee.
2. Compensation:
o Retrenchment compensation of 15 days' wages for every completed
year of service must be paid.
3. Government Notice:
o For establishments with 300 or more workers, prior notice must be
given to the government.
f. Closure (Section 74)
For a closure to be lawful, certain conditions must be observed.
Pre-requisites:
1. Notice:
o A 60-day notice is required for establishments with 300 or more
workers.
2. Compensation:
o Affected workers must receive 15 days' wages for every completed
year of service.
3. Key Sections Related to Concepts and Pre-requisites
Concept Section Description
Trade Union Section 2(zh) Definition of a trade union.
Definition of an industrial
Industrial Dispute Section 2(k)
dispute.
Workman Section 2(z) Definition of a workman.
Strike Section 2(zk) Definition of a strike.
Lockout Section 2(s) Definition of a lockout.
Trade Union Requirements for
Section 4
Registration registering a trade union.
Conditions for a strike to be
Legal Strikes Section 62
legal.
Conditions for a lockout to
Legal Lockouts Section 63
be legal.
Definition and
Section 2(kkk),
Lay-off compensation during lay-
Section 78
off.
Conditions and
Retrenchment Section 83 compensation for
retrenchment.
Conditions and notice for
Closure Section 74
closure.

4. Conclusion
The Industrial Relations Code (IRC), 2020, establishes a structured
framework for managing industrial relations in India. By defining key
concepts and setting out prerequisites for actions like strikes, lockouts, lay-
offs, retrenchments, and closures, the IRC aims to create a balanced
 approach that safeguards the rights of workers while enabling employers to
manage their establishments effectively. Understanding these concepts and
their associated requirements is crucial for all stakeholders in the industrial
relations landscape, ensuring compliance with the law and fostering a
harmonious workplace environment.

3.4 Unfair Labour Practices

Unfair Labour Practices under the Industrial Relations Code (IRC), 2020
Unfair labour practices (ULPs) refer to actions by employers or trade unions
that violate the principles of fair treatment in industrial relations. The
Industrial Relations Code (IRC), 2020 provides a framework for identifying
and addressing these practices to promote harmonious relations between
workers and employers. ULPs can undermine workers' rights, disrupt
workplace harmony, and adversely affect productivity.

1. Definition of Unfair Labour Practices

The IRC, 2020 does not explicitly define "unfair labour practices," but it
outlines specific practices that are considered unfair and provides remedies
against them.
2. Categories of Unfair Labour Practices
Under the IRC, 2020, unfair labour practices are generally categorized into
two groups: those committed by employers and those committed by trade
unions.
a. Unfair Labour Practices by Employers (Section 66)
Section 66 of the IRC specifies several actions that constitute unfair labour
practices on the part of employers. These include:
1. Discrimination Against Workers:
o Discriminating against employees for union activities or their
membership in a trade union.
2. Termination or Suspension:
o Dismissing, suspending, or penalizing employees for engaging in
lawful union activities or organizing strikes.
3. Interference:
 o Interfering with the formation or administration of any trade union or
contributing to the funds of a union, except as an employer.
4. Coercion:
o Coercing employees to accept or reject union representation or
participating in union activities.
5. False Statements:
o Making false statements about the consequences of joining or not
joining a union.
6. Favoritism:
o Offering benefits to employees to dissuade them from forming or
joining trade unions.
b. Unfair Labour Practices by Trade Unions (Section 67)
Section 67 of the IRC outlines the unfair labour practices committed by
trade unions, which include:
1. Discrimination Against Non-Members:
o Discriminating against non-members regarding employment or any
benefits.
2. Interference with Employer Rights:
o Interfering with an employer’s right to manage their business,
including coercing the employer to recognize a union not duly
elected.
3. Violence or Intimidation:
o Engaging in violence or intimidation against non-union members or
other unions.
4. Illegal Strikes:
o Calling or participating in strikes or lockouts that do not comply with
the procedures outlined in the IRC.
5. Imposing Restrictions:
o Imposing unreasonable restrictions on the activities of the employer
or on other unions.

3. Remedies for Unfair Labour Practices (Section 68)

Section 68 of the IRC provides mechanisms for addressing unfair labour
practices. The key points include:
1. Complaint Submission:
 o Affected parties can submit a complaint regarding unfair labour
practices to the appropriate authority.
2. Conciliation Process:
o The authority will initiate a conciliation process to resolve the dispute
amicably. If the matter is not resolved through conciliation, it may be
referred to the appropriate court or tribunal for adjudication.
3. Penalties:
o The IRC empowers the relevant authority to impose penalties on the
party found guilty of committing unfair labour practices. Penalties
may include fines or other corrective measures.
4. Restoration of Rights:
o The authority can order the restoration of the rights of the aggrieved
party, including reinstatement of employees who were wrongfully
terminated or suspended.

4. Enforcement and Provisions for Unfair Labour Practices

The IRC, 2020 emphasizes the need for maintaining fair practices in
industrial relations and provides enforcement mechanisms.
1. Role of the Appropriate Government:
o The appropriate government is responsible for implementing and
enforcing the provisions related to unfair labour practices.
2. Establishment of Authorities:
o The IRC may provide for the establishment of special authorities to
deal with complaints of unfair labour practices.
3. Reporting Mechanism:
o Employers and trade unions may be required to maintain records of
activities to ensure compliance with the law and facilitate
inspections.

5. Key Sections Related to Unfair Labour Practices

Section Description
Section 66 Unfair labour practices by employers.
Section 67 Unfair labour practices by trade unions.
 Section Description
Remedies for unfair labour practices and conciliation
Section 68
processes.

4.1 Minimum Wages and Payment of Wages

Minimum Wages and Payment of Wages under the Wages Code, 2020
The Wages Code, 2020 is an important piece of legislation in India that
consolidates and simplifies the laws relating to the payment of wages and
the determination of minimum wages. It aims to ensure that all workers
receive fair remuneration for their work, along with provisions to address
wage-related disputes.
This code brings together aspects of previous laws, including the Minimum
Wages Act, 1948, and the Payment of Wages Act, 1936, into a single
legislative framework.

1. Minimum Wages
a. Definition of Minimum Wages (Section 2(m))
Minimum wages refer to the minimum amount of remuneration that must
be paid to workers for their work, regardless of the sector or type of
employment.
Key Features:
 The Wages Code, 2020, empowers the appropriate government to fix the
minimum wages for different categories of workers.
 The minimum wages may vary based on the nature of work, skill level,
geographical area, and other relevant factors.
b. Fixation of Minimum Wages (Section 9)
The appropriate government has the authority to fix minimum wages by
taking into account the following considerations:
1. Skill Level: Minimum wages can vary for skilled, semi-skilled, and unskilled
workers.
2. Geographical Area: Different rates can be set based on urban and rural
distinctions or specific regions.
3. Industry Standards: Wages in similar industries can be considered for
determining minimum wages.
c. Revisions of Minimum Wages (Section 10)
 The minimum wages are required to be reviewed and revised at least once
every five years.
 The appropriate government must consider factors such as cost of living
and inflation while revising the wages.
d. Notification of Minimum Wages (Section 8)
 The appropriate government is mandated to notify the minimum wages in
the Official Gazette and to ensure that these wages are widely
communicated to all stakeholders, including employers and employees.

2. Payment of Wages
a. Definition of Wages (Section 2(z))
Wages encompass all remuneration payable to a worker for their work,
including:
 Basic pay
 Dearness allowance
 Any other allowances or bonuses that are payable to the worker
b. Payment of Wages (Section 15)
 Section 15 of the Wages Code, 2020 stipulates that wages must be paid on
a monthly basis. The payment must be made within seven days from the
end of the wage period, unless otherwise specified.
c. Mode of Payment (Section 18)
Wages must be paid through one of the following methods:
 Bank transfer to the worker’s bank account.
 Cheque.
 Cash.
Key Points:
 The employer is required to maintain records of wages paid and to provide
wage slips to workers detailing the wages earned, deductions made, and
other relevant information.
d. Deductions from Wages (Section 20)
 The Wages Code, 2020, allows for specific deductions from wages under
certain circumstances, such as:
 o Deductions for absence from duty.
o Deductions for fines imposed for misconduct.
o Deductions for recovery of loans or advances.
Key Features:
 Any deduction must be reasonable and must be specified in the
employment contract or as per company policy.
 Employers must provide workers with a statement of deductions made
from their wages.

3. Penalties for Non-Compliance

a. Offenses Related to Non-Payment of Wages (Section 47)
 Employers failing to comply with the provisions related to the payment of
wages or the fixation of minimum wages are liable to face penalties.
Key Penalties:
 A penalty of up to ₹50,000 for failure to pay wages.
 In cases of repeated offenses, penalties can be increased, and employers
may face imprisonment for up to three months.

4. Key Sections Related to Minimum Wages and Payment of Wages

Section Description
Section
Definition of Minimum Wages.
2(m)
Fixation of Minimum Wages by the appropriate
Section 9
government.
Section 10 Revision of Minimum Wages.
Section 8 Notification of Minimum Wages.
Section 2(z) Definition of Wages.
Section 15 Payment of Wages: timeline and requirements.
Section 18 Mode of Payment of Wages.
Section 20 Deductions from Wages.
 Section Description
Section 47 Penalties for non-compliance with wage regulations.

4.2 Payment of Bonus

Payment of Bonus under the Wages Code, 2020
The Wages Code, 2020 consolidates and streamlines various labor laws
related to the payment of wages, including the provisions concerning the
payment of bonuses to employees. The code aims to ensure fair
remuneration and incentivize performance through bonuses, enhancing
employee satisfaction and productivity.

1. Definition of Bonus
a. What Constitutes a Bonus (Section 2(16))
A bonus is defined as an additional payment made to employees based on
the company's profits, productivity, or any other agreed-upon criteria. It is
generally paid over and above the regular wages or salary.
Key Features:
 Bonuses may vary based on the performance of the organization and the
employee.
 The specific terms and conditions for bonus payments are typically outlined
in the employment contract or company policy.

2. Eligibility for Bonus (Section 8)

a. Applicability
The provisions for the payment of bonuses under the Wages Code apply to
every establishment covered under the code, including factories, mines,
and establishments employing a certain number of workers.
Key Points:
 Employees are eligible for bonuses if they have worked for at least 30 days
in the financial year.
b. Calculation of Bonus (Section 9)
Section 9 provides the framework for calculating the bonus payable to
employees, which includes:
 Basic Salary: The bonus is typically calculated as a percentage of the
employee's basic salary or wages.
 Profit Sharing: The bonus amount may be determined based on the profits
earned by the establishment in a given financial year.

3. Minimum and Maximum Bonus (Section 10)

a. Minimum Bonus
 According to Section 10, every eligible employee is entitled to a minimum
bonus of 8.33% of their salary or wage, irrespective of the company’s
profits.
b. Maximum Bonus
 The maximum bonus that can be paid under the Wages Code is capped at
20% of the employee’s salary or wages.

4. Time of Payment (Section 11)

a. Payment Timeline
Section 11 outlines the timeline for the payment of bonuses:
 Bonuses must be paid within 30 days from the end of the financial year or
the period for which the bonus is calculated.

5. Deductions from Bonus (Section 12)

a. Permissible Deductions
The Wages Code allows for certain deductions from the bonus payable to
an employee, including:
 Deductions required by law (e.g., for Provident Fund contributions).
 Any other deductions mutually agreed upon.

6. Penalty for Non-Payment of Bonus (Section 47)

a. Consequences for Non-Compliance
Employers who fail to pay the bonus as stipulated under the Wages Code
are subject to penalties.
Key Penalties:
 A penalty of up to ₹50,000 for non-payment of bonuses.
 Repeat offenders may face increased penalties, including possible
imprisonment of up to three months.
 7. Key Sections Related to Payment of Bonus
Section Description
Section 2(16) Definition of Bonus.
Section 8 Eligibility for Bonus payments.
Section 9 Calculation of Bonus.
Section 10 Minimum and Maximum Bonus provisions.
Section 11 Time of Payment of Bonus.
Section 12 Deductions from Bonus payments.
Section 47 Penalties for non-payment of Bonus.

4.3 Offences and Penalties

Offences and Penalties under the Wages Code, 2020

The Wages Code, 2020 consolidates various labor laws related to the
payment of wages, bonuses, and other wage-related matters. To ensure
compliance with the provisions of the code, it lays down specific offences
and penalties applicable to employers and other stakeholders who violate
its provisions. This framework aims to promote fair labor practices and
protect the rights of workers.

1. General Offences (Section 47)

Section 47 outlines various offences related to the provisions of the Wages
Code, including:
a. Non-Payment of Wages
 Failing to pay the minimum wages as prescribed under the code.
b. Failure to Maintain Records
 Not maintaining required records concerning the payment of wages,
bonuses, and related deductions.
c. Non-Payment of Bonus
 Failing to pay the statutory bonus to eligible employees.
 d. Violation of Provisions
 Any other violation of the provisions related to the payment of wages and
bonuses outlined in the code.

2. Specific Offences and Penalties

a. Offences Related to Payment of Wages (Section 48)
1. Failure to Pay Wages on Time:
o If an employer fails to pay wages within the stipulated time frame as
specified in the code.
Penalty:
o A fine of up to ₹50,000 for the first violation.
o For repeat offences, the penalty may increase up to ₹1,00,000.
2. False Statement or Misrepresentation:
o If an employer makes false statements regarding the payment of
wages or bonuses.
Penalty:
o A fine of up to ₹50,000.
b. Offences Related to Bonus (Section 49)
1. Failure to Pay Minimum Bonus:
o Not paying the minimum bonus as required by the code.
Penalty:
o A fine of up to ₹50,000 for the first offence.
o Repeat offenders may face fines of up to ₹1,00,000.
2. Non-Compliance with Bonus Payment Guidelines:
o Violating the provisions regarding the calculation and payment of
bonuses.
Penalty:
o A fine of up to ₹50,000.

3. Prosecution and Penalties (Section 50)

a. Prosecution of Offences
 Certain offences under the Wages Code may lead to prosecution against the
employer or responsible officers.
b. Imprisonment for Repeat Offenders
 In cases of repeated violations or egregious non-compliance, the employer
may face imprisonment for a term of up to three months, in addition to
monetary fines.
c. Cognizance of Offences
 Offences under the Wages Code are cognizable and non-bailable, meaning
that they can be prosecuted without a warrant and the offenders may not
be entitled to bail.

4. Compounding of Offences (Section 51)

a. Compounding of Offences
 The appropriate government may allow the compounding of certain
offences, which means that offenders can pay a specified amount to avoid
prosecution.
Key Points:
 The compounding amount will be determined by the appropriate
government.
 This provision encourages compliance and allows for a quicker resolution of
minor infractions.

5. Key Sections Related to Offences and Penalties

Section Description
Section 47 General offences under the Wages Code.
Section 48 Offences related to payment of wages and penalties.
Section 49 Offences related to bonus payments and penalties.
Prosecution and penalties for offences, including
Section 50
imprisonment.
Section 51 Provisions for compounding of offences.

4.4 Miscellaneous
Miscellaneous Provisions under the Wages Code, 2020
 The Wages Code, 2020 includes several miscellaneous provisions that
address various aspects of wage regulation and ensure the effective
implementation of the law. These provisions cover topics ranging from the
appointment of authorities to the power to make rules and the applicability
of the code. This section is essential for understanding the broader
implications and operational framework of the Wages Code.

1. Power to Make Rules (Section 53)

Section 53 empowers the appropriate government to make rules for
carrying out the provisions of the Wages Code. These rules can cover
aspects such as:
 Form and Manner of Wage Payment: Details on how wages should be paid,
including the form of payment (e.g., cash, cheque, bank transfer).
 Maintenance of Records: Specifications regarding the maintenance of
records by employers, including the records of wages paid and deductions
made.
 Manner of Fixation of Minimum Wages: Procedures and criteria for the
fixation and revision of minimum wages.

2. Central Advisory Board (Section 54)

Section 54 provides for the establishment of a Central Advisory Board to
advise the central government on various matters related to wage
regulation. The board comprises representatives from:
 Employers' Associations
 Trade Unions
 Independent Experts
Key Functions:
 To review and make recommendations regarding minimum wage fixation.
 To address issues related to wage payment and bonuses.

3. Applicability of the Code (Section 5)

Section 5 outlines the applicability of the Wages Code:
 The code applies to all establishments, including factories, mines, and other
establishments employing a specified number of workers.
 It is applicable to workers engaged in scheduled employment and
unorganized sectors, ensuring comprehensive coverage.

4. Regulations for Workers in Scheduled Employment (Section 6)

Section 6 states that the appropriate government may specify different
minimum wages for various classes of workers in scheduled employments.
This provision recognizes the diversity of labor conditions across different
industries and regions.

5. Provisions Related to Grievance Redressal (Section 52)

Section 52 emphasizes the need for a mechanism to address grievances
related to wage payments and bonus issues. It provides for:
 Complaint Mechanisms: Workers may file complaints regarding wage-
related grievances to the designated authority.
 Resolution Process: The authority is required to resolve complaints within a
specified time frame, promoting timely redressal of issues.

6. Bar on Judicial Proceedings (Section 55)

Section 55 establishes that no judicial proceedings shall lie against any
person for anything done in good faith in the execution of their duties
under the Wages Code. This provision aims to protect officers and
individuals acting in accordance with the law, encouraging compliance and
reporting of violations without fear of litigation.

7. Repeal and Savings (Section 56)

Section 56 deals with the repeal of certain previous laws relating to wages
and payment of wages:
 It repeals laws such as the Minimum Wages Act, 1948 and the Payment of
Wages Act, 1936, among others.
 However, it saves any ongoing proceedings under the repealed laws,
ensuring continuity and protection for workers’ rights established under
those laws.

8. Definitions and Interpretations (Section 2)

Section 2 provides various definitions crucial for the interpretation of the
provisions of the code, including:
 Definitions for terms like "wages," "minimum wages," and "bonus."
 Clarity on terms helps ensure consistent application and understanding of
the code.

9. Key Miscellaneous Sections

Section Description
Section 53 Power to make rules for implementation of the code.
Section 54 Establishment of a Central Advisory Board.
Section 5 Applicability of the Wages Code to various establishments.
Section 6 Minimum wages for scheduled employment.
Section 52 Grievance redressal mechanisms for wage-related issues.
Bar on judicial proceedings against actions taken in good
Section 55
faith.
Section 56 Repeal and savings of previous wage-related laws.
Section 2 Definitions for key terms in the Wages Code.