Draft Rules: Labor Code,2020

4 Comments / Labor Codes: Updates & Cases / By

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Download: Industrial Relation (Central) Rules, 2020

Download: Occupational Safety, Health and Working Conditions Central Rules, 2020

Industrial Relations Code: Subsumes 3 acts into 1

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

Silent Features:

  • No prior permission needed for upto 300 workers for retrenchment (earlier limit 100)
  • Fixed term employment. Workers can now be directly hired with all benefits without middlemen contractors.
  • payment of 15 days wages per completed year of service if retrenched
  • Re-skilling fund for all retrenched workers
  • 14 days mandatory notice period before strike (thus avoiding flash strikes)

Occupational Safety & Health Code: Subsumes 13 acts into 1

Some of these laws include the Factories Act, 1948, Dock workers Act, 1986, Contract Labor Act, 1970, and Inter-state Migrant Workers Act, 1979 among others.

Silent Features:

  • 1 registration instead of 6
  • 1 license instead of 4
  • 1 return instead of 21
  • Single, all India 5 years valid license for hiring contract workers (now license needed per work order)
  • Applicability threshold of law increased from 10 (power) and 20 (non-power) to 20 and 40
  • New establishments may be exempt from the law by specific local orders

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4 thoughts on “Draft Rules: Labor Code,2020”

  2. M R Gusai

    As per new wages code 19 contractors can made of wages by cash?

    As state issued ordinance to amend the threshold limit of workers is more than 50 for labour License engaged in any work at establishment.

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