CHAPTER XIV: MISCELLANEOUS

Section 90: Conditions of service, etc., to remain unchanged under certain circumstances during pendency of proceedings

This section provides crucial job protection for workers involved in an existing dispute while the case is pending before an authority (Conciliation Officer, Arbitrator, or Tribunal).

Sub-Section (1): No Prejudice for Related Matters

• Legal Text: Where a dispute is pending (and a “Notice of Change” under Section 40 has not been given regarding that matter), the employer shall not—(a) alter to the prejudice of the workers concerned in such dispute the conditions of service applicable to them immediately before the commencement of such proceedings; or (b) for any misconduct connected with the dispute, discharge or punish… any worker concerned in such dispute, save with the express permission in writing of the authority before which the proceeding is pending.
• Simple English: If a dispute is already being handled by a third-party authority (like a Tribunal), the employer cannot take two actions related to that dispute without written permission from the authority:
  1. Worsen working conditions (e.g., cut benefits).
  2. Fire or punish workers for any reason connected to the dispute.
• Example: A union is challenging a reduction in their lunch break time at the Tribunal. The employer cannot unilaterally reduce their pay or fire the union leaders for insubordination related to the lunch break dispute unless the Tribunal grants permission.

Sub-Section (2): Permitted Actions for Unrelated Matters

• Legal Text: During the pendency of proceedings, the employer may, in accordance with standing orders or contract terms, (a) alter, in regard to any matter not connected with the dispute, the conditions of service; or (b) discharge or punish… that worker for any misconduct not connected with the dispute…
• Simple English: The employer is free to change working conditions or discipline a worker if the reason is completely separate from the ongoing legal dispute.
• Example: While the union is at the Tribunal disputing a wage hike, the employer can still transfer a worker to a new shift or fire a manager for theft, because these are matters not connected with the wage dispute.

Proviso (Condition for Discharge in Unrelated Matters):

• Legal Text: “…no such worker shall be discharged or dismissed, unless he has been paid wages for one month and an application has been made by the employer to the authority before which the proceeding is pending for approval of the action taken by the employer.”
• Simple English: Even when firing a worker for a reason unrelated to the dispute, the employer must still pay the worker one month’s salary and immediately file an application with the Tribunal/Arbitrator asking for retroactive approval of the firing decision.
• Example: A worker is fired for repeated unapproved absence (misconduct unrelated to the dispute). The employer must hand over one month’s wages to the worker and file an “approval application” with the Tribunal the very next day.

Sub-Section (3): Special Protection for “Protected Worker”

• Legal Text: No action (worsening conditions or punishment) shall be taken against any protected worker concerned in such dispute, save with the express permission in writing of the authority before which the proceeding is pending.
• Simple English: For a “Protected Worker” (a designated union official), the employer must get written permission first from the authority before taking any prejudicial action, whether the matter is related to the dispute or not.
• Example: A Protected Worker assaults a supervisor (misconduct not connected to the dispute). The employer cannot simply fire him and apply for approval later. The employer must wait for the Tribunal’s written permission before firing him.

Explanation (Definition of Protected Worker):

• Simple English: A “Protected Worker” is an official (executive or office-bearer) of a registered Trade Union who has been formally recognized as such by the company, as per the prescribed rules.

Sub-Section (4): Number of Protected Workers

• Legal Text: Every establishment can recognize $1\%$ of its total workers as protected workers, subject to a minimum of five and a maximum of one hundred protected workers.
• Simple English: Companies must designate between 5 and 100 workers as union officials who receive special job protection. The government creates rules for how these slots are divided among different unions.
• Example: A company has 200 workers. $1\%$ is 2. Since the minimum is 5, they must designate 5 Protected Workers. A company with 15,000 workers would have $1\%$ (150 workers), but the maximum is 100, so only 100 are designated.

Sub-Section (5): Timely Decision on Approval Applications

• Legal Text: An authority receiving an employer’s application for approval (under the proviso to sub-section 2) must hear it and pass an order within a period of three months from the date of receipt.
• Simple English: The Tribunal or Arbitrator must deal with the employer’s request to approve a firing decision (for unrelated misconduct) quickly, generally within 90 days.
• Example: The employer fires a worker and files the approval application on January 10th. The Tribunal must issue its decision by April 10th.

Section 91: Special provision for adjudication as to whether conditions of service, etc., changed during pendency of proceedings

This section details the worker’s recourse if the employer violates the job protection rules established in Section 90 while a dispute is pending.

• Preamble (Worker Complaint): If an employer contravenes the job protection provisions of Section 90 during the pendency of a proceeding, any affected employee may make a written complaint.
  • Simple English: If an employer illegally changes a worker’s conditions or fires someone without permission while a case is being heard, the affected worker must file a formal, written complaint about that specific illegal action.
  • Example: A union challenges a new shift rotation at the Conciliation Officer. The employer illegally cuts the sick leave benefits for the workers involved in the dispute (violating Section 90). The affected workers file a complaint to the officer regarding the illegal benefit cut.
• Clause (a) (Complaint to Conciliation Officer): …the complaint goes to the conciliation officer, who shall take such complaint into account in mediating in, and promoting the settlement of, such industrial dispute.
  • Simple English: If the main dispute is in the mediation stage, the Conciliation Officer must incorporate the employer’s illegal act into the settlement talks. The illegal act becomes leverage for the worker.
  • Example: The Conciliation Officer informs the employer that no comprehensive settlement can be reached until the illegally cut sick leave benefits are fully restored.
• Clause (b) (Complaint to Tribunal/Arbitrator): …the complaint goes to the arbitrator, Tribunal or National Industrial Tribunal, and that authority shall adjudicate upon the complaint as if it were a dispute referred to or pending before it…
  • Simple English: If the main dispute is already in a formal judicial process (Arbitration or Tribunal), the body must treat the complaint about the illegal action as a brand new, formal dispute. It must immediately hear and decide that new issue, resulting in a binding award.
  • Example: A Tribunal is hearing a wage case. When a worker complains they were illegally denied a promotion (a Section 90 violation), the Tribunal must pause the wage case, hold hearings on the promotion denial, and issue an immediate award on that specific complaint.

Section 92: Power to transfer certain proceedings

This section grants the government the power to move legal cases between various dispute resolution bodies.

• Sub-Section (1) (Intra-State Transfer): The appropriate Government may withdraw any proceeding pending before a Tribunal and transfer the same to another Tribunal… The receiving Tribunal may proceed either de novo (from scratch) or from the stage at which it was so transferred.
  • Simple English: The State Government can move a case from one Tribunal to another within the state (e.g., from an overloaded city to a lighter-load regional Tribunal). The new Tribunal decides whether to restart the case or continue the proceedings.
  • Example: The State Government moves 30 similar retrenchment cases from Tribunal A to Tribunal B to clear a backlog, directing Tribunal B to use all previously recorded evidence.
• Sub-Section (2) (Inter-State/National Transfer): The Central Government may withdraw any proceeding pending under this Code before a State or Central Tribunal and transfer to a National Industrial Tribunal for disposal…
  • Simple English: The Central Government can take any case—even one being heard by a State-level Tribunal—and move it to the specialized National Industrial Tribunal if it deems the case to be of national importance.
  • Example: A dispute regarding a uniform national bonus policy at all branches of a private bank is transferred by the Central Government from the local State Tribunal to the National Industrial Tribunal.
• Sub-Section (3) (Empowering State Tribunals for Central Disputes): The Central Government may… empower a Tribunal constituted by the State Government to entertain and dispose of the cases arising… where the appropriate Government is the Central Government.
  • Simple English: The Central Government can formally allow State-level Tribunals to handle disputes where the Central Government is the legally responsible authority (e.g., in cases involving railways or major ports).
  • Example: The Central Government, via official notification, authorizes the Gujarat State Tribunal to hear a lay-off case from the major port in Kandla, instead of forcing the parties to travel to a Central Tribunal located in New Delhi.

Section 93: Protection of persons

This section protects any worker who decides not to participate in an illegal strike or lock-out.

• Sub-Section (1) (Protection from Retaliation): No person refusing to take part or to continue to take part in any strike or lock-out which is illegal under this Code shall… be subject to expulsion from any Trade Union or society, or to any fine or penalty, or to deprivation of any right or benefit…
  • Simple English: If a union calls a strike that violates this Code (e.g., no proper notice was given), any worker who refuses to join, or who decides to return to work, cannot be punished, fined, or expelled by their union for that decision.
  • Example: A union official issues a fine to a member who refused to join an unapproved, illegal strike. The fine is void, and the member can complain that the union violated this protection.
• Sub-Section (2) (Enforcing Protection and Damages): …the civil court may, in lieu of ordering a person who has been expelled… to be restored to membership, order that he be paid out of the funds of the Trade Union or society such sum by way of compensation or damages as that court thinks just.
  • Simple English: If a union illegally punishes a worker, that worker can sue the union in civil court. The court can order the union to pay compensation or damages to the worker from its funds instead of forcing the worker back into membership.
  • Example: A worker is illegally expelled and sues the union. The Civil Court rules that the union must pay the worker $\text{Rs. } 75,000$ in damages from the union treasury as restitution.

Section 94: Representation of parties

This section defines who can legally represent an employer or a worker during conciliation and adjudication proceedings.

• Sub-Section (1) (Worker Representation): A worker can be represented by:
  • Clause (a): An official of their own registered Trade Union.
    • Example: The President of the factory union speaks on behalf of the fired worker at the Tribunal.
  • Clause (b): An official of a federation of Trade Unions to which their own union is affiliated.
    • Example: The worker’s union is part of the State Federation of Manufacturing Unions. An officer from the State Federation represents the worker.
  • Clause (c): Where the worker is not a member of any Trade Union, any official of an existing relevant Trade Union or any other worker employed in the industry, provided they are officially authorized.
    • Example: A non-unionized technician is represented by a colleague from his own team, who is authorized by a letter.
• Sub-Section (2) (Employer Representation): An employer can be represented by:
  • Clause (a): An officer of the employer association they belong to.
    • Example: The HR Manager of the company is represented by a legal officer from the regional Chamber of Commerce.
  • Clause (b): An officer of a federation of employer associations to which their association is affiliated.
    • Example: The regional association is part of the National Employers’ Council. An official from the Council represents the company.
  • Clause (c): Where the employer is not a member of any association, any official of another relevant employer association or any other employer engaged in the industry, provided they are officially authorized.
    • Example: A small factory owner (not in an association) authorizes the owner of a larger, similar factory to represent him at the hearing.
• Sub-Section (3) (Bar on Legal Practitioners – General Rule):No party to a dispute shall be entitled to be represented by a legal practitioner in any conciliation proceedings or any proceedings before a Tribunal or National Industrial Tribunal.
  • Simple English: Lawyers are generally forbidden from participating in conciliation or representing parties in front of the Industrial Tribunals. The system favors representation by internal experts (union officials or company managers).
  • Example: During a settlement talk with the Conciliation Officer, the company’s external legal counsel must remain silent and cannot speak on the company’s behalf unless the condition in Sub-section (4) is met.
• Sub-Section (4) (Exception for Lawyers – Consent Rule): Notwithstanding the above, a lawyer may represent a party in a Tribunal or National Industrial Tribunal proceeding with the consent of the other parties and with the leave of the Tribunal.
  • Simple English: A lawyer can only be brought into a Tribunal hearing if the opposing party specifically agrees to it, AND the Tribunal itself grants formal permission. Without mutual consent, a lawyer is barred.
  • Example: The union refuses to agree to the company bringing its lawyer. The Tribunal, seeing no mutual consent, rejects the company’s application for legal representation.

Section 95: Removal of doubts in interpretation of award or settlement

This section provides a formal mechanism for resolving ambiguities in final legal documents.

• Sub-Section (1) (Power to Refer for Clarification): If the appropriate Government believes any difficulty or doubt arises as to the interpretation of any provision of an award or settlement, it may refer the question to a Tribunal or National Industrial Tribunal for a decision.
  • Simple English: When a company and a union cannot agree on what a certain clause in a final, binding settlement or award actually means, the government steps in and sends that specific question to the Tribunal for a definitive ruling.
  • Example: A negotiated settlement mandates a “transport allowance based on prevailing government rates.” The company and the union dispute which exact “government rates” apply. The State Government refers this specific wording to the Tribunal for interpretation.
• Sub-Section (2) (Binding Decision): The Tribunal… shall, after giving the parties an opportunity of being heard, decide such question and its decision shall be final and binding on all such parties.
  • Simple English: The Tribunal must hear arguments from both sides on the ambiguous point, and its final ruling on the correct meaning of the original clause is legally binding on the company and the union.
  • Example: The Tribunal rules that “prevailing government rates” refers to the rates published by the Ministry of Road Transport as of the date the settlement was signed. This ruling resolves the dispute and must be obeyed.

Section 96: Power to exempt

This section grants the appropriate government (Central or State) the authority to selectively exempt businesses from following certain provisions of the Code.

Sub-Section (1): General Exemption Power

• Legal Text: “Where the appropriate Government is satisfied in relation to any industrial establishment or undertaking… that adequate provisions exist to fulfil the objects of any provision of this Code, it may, by notification, exempt, conditionally or unconditionally such establishment or undertaking… from that provision of this Code.”
• Simple English: If a company already has internal policies or follows another law that achieves the same goal as a provision in this Code, the government can officially allow that company to skip (be exempt from) the specific Code provision.
• Example: A large multinational company has an internal, legally binding policy that offers more retrenchment compensation than the Code requires. The government may exempt this company from the Code’s specific Section 70 requirements, as the company’s internal rules already fulfil the Code’s objective of providing compensation.

Sub-Section (2): Special Exemption for New Establishments

• Legal Text: “Where the appropriate Government is satisfied in relation to any new industrial establishment… that it is necessary in the public interest so to do, it may… exempt, conditionally or unconditionally, any such new establishment… from all or any of the provisions of this Code for such period from the date of establishment… as may be specified in the notification:”
• Simple English: To encourage investment and job creation, the government can temporarily exempt a brand new factory or business from all or some parts of the Code. This is done in the public interest for a specific period of time.
• Example: A State Government wants to attract a new technology company. It issues a notification exempting the company’s new factory from the strict 300-worker threshold for Standing Orders for the first three years of its operation, allowing the company time to stabilize.

Proviso (Savings for Old State Exemptions):

• Legal Text: “…any notification issued by a State Government under the Industrial Disputes Act, 1947, prior to the commencement of this Code… shall remain in force after such commencement for its remaining period…”
• Simple English: If a State Government had already granted a temporary exemption to a new business under the old labor law, that exemption remains valid for its remaining duration even after this new Code begins.

Section 97: Jurisdiction of civil courts barred

This section makes it clear that civil courts (regular courts that handle property, contract, and family disputes) cannot interfere with the matters governed by this Code.

• Legal Text: “No civil court shall have jurisdiction in respect of any matter to which any provision of this Code applies and no injunction shall be granted by any civil court in respect of anything which is done or intended to be done by or under this Code.”
• Simple English: Only the authorities set up under this Code (Conciliation Officers, Arbitrators, Tribunals) can deal with labor disputes covered by the Code. General courts cannot hear these cases, and they cannot issue temporary orders (injunctions) to stop the Code’s authorities from doing their job.
• Example: An employer tries to file a case in a city Civil Court to stop a Tribunal from hearing a retrenchment case. The Civil Court must dismiss the case immediately because the Industrial Relations Code explicitly bars its jurisdiction over the matter.

Section 98: Protection of action taken in good faith

This protects government officials and other individuals acting lawfully under the Code from personal lawsuits.

• Legal Text: “No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of this Code or any rules made thereunder.”
• Simple English: Any government official (like a Registrar, Conciliation Officer, or Tribunal Member) or even a party acting under the Code cannot be sued or prosecuted for their actions, provided they genuinely believed they were acting legally and correctly.
• Example: A Conciliation Officer issues a failure report, which the employer disagrees with. The employer cannot personally sue the Conciliation Officer for issuing the report, as the officer was carrying out their duty “in good faith.”

Section 99: Power of appropriate Government to make rules

This section grants the government the expansive power to create the detailed rules and procedures necessary to implement the broad framework of the Code.

Sub-Section (1): General Rule-Making Power

• Legal Text: “The appropriate Government may, subject to the condition of previous publication, make rules for the purpose of giving effect to the provisions of this Code:”
• Simple English: The Central or State Government can create the detailed operating rules for the Code, but they must first publicly publish the proposed rules (the “previous publication”) to allow for objections and suggestions from the public and stakeholders.

Proviso (Waiver of Previous Publication):

• Legal Text: “…the appropriate Government may, if it is satisfied that circumstances exist which render it necessary or expedient in the public interest so to do, dispense with the condition of previous publication or reduce the required time period for inviting objections…”
• Simple English: In urgent situations where public interest requires immediate action, the government can bypass the public consultation process or shorten the public feedback period.
• Example: Due to an unforeseen economic crisis, the government needs to implement new rules for the Worker Re-Skilling Fund immediately. The government can issue the rules directly, claiming urgency, and then seek public feedback later.

Sub-Section (2): Specific Areas for Rule-Making

• Legal Text: (This contains a long list of 31 specific areas, labeled ‘a’ through ‘zzf’, where rules must or may be made.)
• Simple English: This is a checklist of all the specific administrative and procedural details the government needs to formalize, such as:
  • The manner of choosing members for the Grievance Redressal Committee (c).
  • The form of application for Trade Union registration (j).
  • The manner of holding conciliation proceedings (zl).
  • The manner of giving notice of a strike (zm).
  • The time-limit for review of a large establishment closure (zx).
• Example: To fulfill the mandate of Clause (c), the State Government must create a rule detailing whether GRC worker representatives are chosen by election, nomination, or rotation.

Sub-Section (3): Central Government Specific Rule-Making

• Legal Text: The Central Government specifically makes rules for: (a) The recognition of Central Trade Unions (national level), and (b) The manner of holding an enquiry by the Adjudicating Officer (Section 85).
• Simple English: Only the Central Government creates the rules governing the largest, nation-level union federations and the procedural rules for the officers who impose fines.

Sub-Section (4) (Laying Rules Before State Legislature):

• Legal Text: “All rules made under this section by the State Government shall, as soon as possible after they are made, be laid before the State Legislature.”
• Simple English: State-made rules are subject to review by the respective State Assembly.

Sub-Section (5) (Laying Rules Before Parliament):

• Legal Text: Rules made by the Central Government… shall be laid, as soon as may be after it is made, before each House of Parliament… for a total period of thirty days… If both Houses agree to modify or annul the rule, it takes effect only in that modified form or becomes void.
• Simple English: Central Government rules are subject to review by both the Lok Sabha and Rajya Sabha. If Parliament rejects or changes a rule within 30 days of seeing it, the rule is changed or cancelled.

Section 100: Delegation of powers

This section allows the government to delegate its responsibilities under the Code to lower-level officials or other government bodies.

• Preamble (Power to Delegate): The appropriate Government may… direct that any power exercisable by it under this Code… shall… be exercisable also by a specified officer or authority.
• Simple English: The government can assign the task of exercising its legal powers to a subordinate officer or a different government body. It does not lose the power itself, but allows another authority to use it as well.
• Clause (a) (Central Government Delegation): …The Central Government can delegate its powers to an officer subordinate to it, or to the State Government, or to an officer subordinate to the State Government.
  • Example: The Central Government delegates its power to appoint Conciliation Officers for major ports to the State Government’s Labour Secretary.
• Clause (b) (State Government Delegation): …The State Government can delegate its powers to an officer or authority subordinate to the State Government.
  • Example: The State Government delegates its power to grant exemptions (Section 96) to a regional Collector to speed up local business approval.

Section 101: Power to amend Schedules

This section gives the Central Government the authority to modify the important lists (Schedules) that govern Unfair Labour Practices, Standing Orders, and Notice of Change items.

Sub-Section (1): Central Government’s Power to Amend

• Legal Text: “The Central Government may, by notification, add to or alter or amend the First Schedule or the Second Schedule or the Third Schedule and on any such notification being issued, the… Schedule… shall be deemed to be amended accordingly.”
• Simple English: The Central Government can quickly update the three key lists (like the list of Unfair Labour Practices) by simply issuing an official announcement (notification). The list is considered legally changed the moment that announcement is made.
• Example: The government decides to add “continuous monitoring of non-work-related communications” to the list of Unfair Labour Practices (Second Schedule). It issues a notification, and that practice immediately becomes illegal.

Sub-Section (2): Parliamentary Review of Amendments

• Legal Text: Every amendment notification must be laid before each House of Parliament for a total of thirty days. If Parliament agrees to modify or reject the notification, it only takes effect in the modified form or is voided. This action is without prejudice to anything previously done under the notification.
• Simple English: Parliament must review all government-made changes to the Schedules. If Parliament disagrees with a change within 30 days, they can cancel or modify it. Any legal action taken based on that rule before it was cancelled remains valid.
• Example: The government adds a new item to the Standing Orders list (First Schedule). Ten days later, Parliament rejects the addition. The item is removed, but any company that voluntarily adopted the new item during those 10 days did so legally.

Section 102: Amendment of Act 7 of 2017

This section contains technical adjustments required to update other existing central laws to reference the new Code instead of the repealed ones.

• Clause (a): This makes a technical change in the Eighth Schedule of the Finance Act, 2017, by updating the name of the central Industrial Tribunal to the new name and citation (Section 44(1) of the Industrial Relations Code, 2020).
  • Simple English: It’s housekeeping. It ensures that an older law (The Finance Act, 2017), which deals with judicial appointments, now correctly recognizes the judges of the new Industrial Tribunal.
• Clause (b): This further updates the Eighth Schedule of the Finance Act, 2017, by replacing all references to the Industrial Disputes Act, 1947, with the new Industrial Relations Code, 2020.
  • Simple English: It completes the paperwork in the Finance Act, 2017, formally switching the name of the law being referenced.

Section 103: Power to remove difficulties

This grants the Central Government a temporary, emergency power to fix unexpected administrative or legal problems that arise during the implementation of the new Code.

Sub-Section (1): Central Government’s Problem-Solving Power

• Legal Text: If any difficulty arises in giving effect to the provisions of this Code, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Code, as may appear to it to be necessary for removing the difficulty:
• Simple English: If the new law causes confusion or unexpected problems in practice, the Central Government can issue specific orders to solve the issue, as long as the solution doesn’t contradict the actual text of the Code.
• Example: The lack of clarity on how to transition old bank cases is causing delays. The Central Government issues an order specifically detailing the exact process and format for the transfer of those files to the new Tribunals.

Proviso (Time Limit on Problem-Solving Power)

• Legal Text: Provided that no order shall be made under this section after the expiry of three years from the date of commencement of this Code.
• Simple English: This special problem-solving authority is temporary and expires three years after the law takes effect. After that, any fixes must be done through the formal parliamentary amendment process.

Sub-Section (2): Parliamentary Review of Fixes

• Legal Text: Every order made under this section shall be laid before each House of Parliament.
• Simple English: All orders issued by the government to remove implementation difficulties must be presented to Parliament for their review.

Section 104: Repeal and savings

This is the standard, final legal section that officially replaces the old labor laws while ensuring that everything done under those old laws remains valid under the new Code.

Sub-Section (1): Repeal of Old Acts

• Legal Text: The Central Government may specify that the provisions of (a) the Trade Unions Act, 1926; (b) the Industrial Employment (Standing Orders) Act, 1946; and (c) the Industrial Disputes Act, 1947, shall stand repealed with effect from the date appointed in the notification… and the remaining provisions of the enactments… shall remain in force till they are repealed by like notifications in the like manner.
• Simple English: This Code replaces three major, long-standing labor laws. The government can choose to cancel the old laws section-by-section on different dates or repeal them all at once. The sections that are not immediately cancelled remain in legal effect until the government cancels them later.

Sub-Section (2): Continuity of Past Actions (Savings Clause)

• Legal Text: Notwithstanding such repeal… anything done or any action taken under the repealed provisions (including rules, appointments, orders, etc.) shall be deemed to have been done or taken under the corresponding provisions of this Code and shall be in force to the extent they are not contrary to the provisions of this Code.
• Simple English: This is a powerful safety net. Every existing action—from an old Trade Union registration to a current government appointment, or a set of old Standing Orders—is automatically recognized and treated as valid under this new Code, provided it doesn’t violate a new rule in the Code.
• Example: A factory’s Standing Orders were certified in 2018 under the old 1946 Act. These rules automatically continue to apply under the new Code without needing recertification, unless they directly clash with a specific provision of the new Code.

Sub-Section (3): General Statutory Protection

• Legal Text: The provisions of section 6 of the General Clauses Act, 1897 shall apply to the repeal of such enactments.
• Simple English: This is a technical reference that ensures the standard legal protections are in place. It confirms that the rights and liabilities that accrued under the old laws (like the right to sue for an unpaid wage claim from last year) are preserved even after the old laws are formally cancelled.

The First Schedule: Mandatory Matters for Standing Orders

The Standing Orders (Chapter IV, Section 30) are the legally certified rules of an industrial establishment. The First Schedule lists 11 subjects that must be defined in these rules to ensure clarity and transparency in the workplace.

1. Classification of workers

• Legal Text: Classification of workers, whether permanent, temporary, apprentices, probationers, badlis or fixed term employment.
• Simple English: The rules must clearly define every type of worker employed by the company (e.g., permanent staff, temporary contractors, trainees, etc.).
• Example: The Standing Orders specify that a Permanent Worker is one who has completed a six-month probation period, while a Fixed Term Employee is hired for a specific 12-month contract and is entitled to pro-rata benefits.

2. Information on Work Schedules and Pay

• Legal Text: Manner of intimating to workers periods and hours of work, holidays, pay-days and wage rates.
• Simple English: The company must define exactly how it will communicate the details of daily work (hours, rest breaks), when the office/factory closes (holidays), and the dates and methods for receiving wages.
• Example: The Standing Orders state that a notice will be posted on the main factory notice board every Friday detailing the work schedule for the following week, and that payday is the 7th of every month via bank transfer.

3. Shift Working

• Legal Text: Shift working.
• Simple English: The rules must detail the procedures for operating different work shifts, including scheduling, rotation, and changing shifts.
• Example: The Standing Orders specify that the night shift runs from 10:00 PM to 6:00 AM, and workers rotate shifts every two weeks to ensure fair distribution of difficult hours.

4. Attendance and Late Coming

• Legal Text: Attendance and late coming.
• Simple English: The company must clearly define the rules regarding showing up for work, signing in, and the consequences or penalties for arriving late.
• Example: The Standing Orders require employees to use the biometric scanner before 9:00 AM. It states that three instances of late arrival in a month will result in a warning letter.

5. Leave and Holidays

• Legal Text: Conditions of, procedure in applying for, and the authority which may grant leave and holidays.
• Simple English: The rules must define how much leave a worker gets, the exact steps a worker must follow to request leave (the application process), and which manager or department has the power to approve or deny the request.
• Example: The Standing Orders confirm that all permanent employees receive 21 days of annual paid leave. They specify that leave requests must be submitted through the HR portal at least 7 days in advance and must be approved by the Department Head.

6. Entry, Exit, and Search

• Legal Text: Requirement to enter premises by certain gates, and liability to search.
• Simple English: The company must specify which entrances workers must use and must state that workers (and their belongings) may be searched upon entering or leaving the premises.
• Example: The Standing Orders state that all employees must enter and exit through Gate 3, and that any worker leaving the production floor is liable to be searched by security personnel to check for unauthorized removal of company property.

7. Work Stoppages and Closures

• Legal Text: Closing and reporting of sections of the industrial establishment, temporary stoppages of work and the rights and liabilities of the employer and workers arising therefrom.
• Simple English: The rules must explain what happens if a section of the business is temporarily shut down (e.g., due to a machinery breakdown) and detail the rights and responsibilities of both the employer and the workers during that stoppage (e.g., whether the worker must wait for the line to restart or can be sent home).
• Example: The Standing Orders state that in case of a power outage lasting less than four hours, workers must wait at their workstations; if the stoppage lasts longer, the employer is liable to pay them half-day wages and may declare a temporary lay-off.

8. Termination of Employment

• Legal Text: Termination of employment, and the notice thereof to be given by employer and workers.
• Simple English: The rules must define the reasons and procedures for ending employment, including the length of the mandatory warning period (notice) that both the employer and the worker must give.
• Example: The Standing Orders state that either party (employer or worker) must provide 30 days of written notice before terminating the employment, or pay wages in lieu of that notice period.

9. Misconduct and Discipline

• Legal Text: Suspension or dismissal for misconduct, and acts or omissions which constitute misconduct.
• Simple English: The rules must contain a clear, exhaustive list of all actions or behaviors (misconduct) that can lead to punishment, suspension, or firing, along with the disciplinary procedure to be followed.
• Example: The Standing Orders list specific acts of misconduct, such as “theft of company property,” “insubordination to a superior officer,” and “coming to work under the influence of alcohol,” and detail the internal inquiry process for each.

10. Grievance Redressal Against Unfair Treatment

• Legal Text: Means of redress for workers against unfair treatment or wrongful exactions by the employer or his agents or servants.
• Simple English: The rules must describe the official method or channel through which a worker can complain if they feel they have been treated unfairly or had money illegally withheld by the employer or any supervisor.
• Example: The Standing Orders direct workers who believe they have been wrongfully denied a promotion to file a formal complaint with the Grievance Redressal Committee (GRC) within seven days.

11. Other Specified Matters

• Legal Text: Any other matter which may be specified by the appropriate Government by notification.
• Simple English: The government reserves the right to later require companies to include additional topics in their Standing Orders by simply announcing the change.
• Example: Three years from now, the State Government issues a notification requiring all establishments to include a specific procedure for digital communication security in their Standing Orders. The company must then amend its rules to include this.

The Second Schedule: Unfair Labour Practices (ULPs)

The Second Schedule is a comprehensive list of actions or inactions that are considered illegal under the Industrial Relations Code. Committing these actions (detailed in Chapter XIII, Section 86) can result in heavy fines and, for repeat offenses, imprisonment.

I. ON THE PART OF EMPLOYERS AND TRADE UNIONS OF EMPLOYERS

These are actions an employer (or their representative union) cannot take against workers or their organizations.

(1) Interfering with the Right to Organise

This covers any attempt by the employer to prevent or coerce workers from forming, joining, or assisting a Trade Union for collective bargaining.

• Clause (a): Threatening Discharge/Dismissal
  • Simple English: Threatening to fire a worker just because they join a union.
  • Example: A manager tells an employee, “If I see your name on that union membership list, you’ll be out of a job by the end of the week.”
• Clause (b): Threatening Lock-out or Closure
  • Simple English: Threatening to shut down the factory or business if a union is successfully formed or organized.
  • Example: The owner posts a notice stating, “If the union campaign succeeds, we will initiate a lock-out and relocate the facility.”
• Clause (c): Granting Wage Increases at Crucial Periods
  • Simple English: Giving unprompted, sudden wage hikes during a unionization drive specifically to undermine the union’s organizing efforts and make the union seem unnecessary.
  • Example: Management, without any prior negotiation, announces a $15\%$ bonus just two days before a key vote on union recognition to influence the outcome.

(2) Dominating or Supporting a Trade Union

This makes it illegal for an employer to sponsor, control, or overly influence a union.

• Clause (a): Taking an Active Interest in Organising
  • Simple English: An employer actively helping or guiding their workers to form a union, which makes that union essentially a “management union.”
  • Example: The HR director personally meets with a group of workers, offering them free office space and secretarial help to start a union that is favorable to management.
• Clause (b): Showing Partiality or Granting Favour
  • Simple English: Favoring one union over others that are trying to organize or giving special benefits only to members of a non-recognized union.
  • Example: A company grants paid time off for negotiation meetings only to officials of Union A, while refusing the same facility to Union B, which is still seeking recognition.

(3) Establishing Employer Sponsored Trade Unions

• Simple English: Setting up a union that is merely a puppet organization controlled by the company itself.
• Example: The company officially registers a “Workers Welfare Association,” controls its budget, and dictates who its leaders should be, rather than allowing a genuine, independent union to operate.

(4) Encouraging or Discouraging Membership through Discrimination

This outlaws actions that reward or punish workers based on their union involvement.

• Clause (a): Discharging or Punishing Organizers
  • Simple English: Firing or otherwise penalizing a worker specifically because they encouraged others to join or organize a union.
  • Example: A dedicated worker who starts handing out union pamphlets during lunch is fired the next day under the pretext of “poor performance.”
• Clause (b): Discharging/Dismissing for Participating in a Legal Strike
  • Simple English: Firing a worker for participating in a strike that is legally protected (i.e., not deemed an illegal strike under this Code).
  • Example: Workers participate in a one-day strike after giving the required 60-day notice. The company cannot dismiss them for this, as the strike was legal.
• Clause (c): Changing Seniority Rating for Union Activities
  • Simple English: Adjusting a worker’s seniority (which affects promotions, lay-offs, etc.) as a way to penalize their union involvement.
  • Example: A worker who becomes a union treasurer suddenly has his service start date inaccurately changed in the company records to reduce his seniority.
• Clause (d): Refusing Promotion for Union Activities
  • Simple English: Blocking a worker from moving to a higher position solely because they are involved in union activities.
  • Example: A highly qualified supervisor is told by HR that she cannot be promoted to shift manager until she resigns her position on the negotiating council.
• Clause (e): Giving Unmerited Promotions to Undermine the Union
  • Simple English: Giving undeserved promotions to a few key workers with the goal of creating division and conflict within the existing union membership.
  • Example: Management bypasses the standard promotion process to elevate two anti-union workers in the hope that it will make other workers distrust their union leaders.
• Clause (f): Discharging Office-bearers/Active Members
  • Simple English: Firing the leaders or most active members of the Trade Union solely due to their union activities.
  • Example: The newly elected Union Secretary is fired one week after leading a successful collective bargaining session, with no legitimate cause cited.

(5) To Discharge or Dismiss Workers (Victimization and Bad Faith)

This targets dismissals that are abusive or unfair, even if couched in procedural language.

• Clause (a): By Way of Victimisation
  • Simple English: Firing a worker purely for revenge or retaliation.
  • Example: An employee serves as a key witness against the company in a labor inquiry. The company later dismisses him simply because he testified against them.
• Clause (b): Not in Good Faith (Colourable Exercise of Rights)
  • Simple English: Firing a worker using a legal loophole or a flimsy excuse to hide the real, unfair reason for dismissal.
  • Example: A manager fires a worker claiming “redundancy,” but immediately hires a new worker to do the exact same job, indicating the redundancy was a fake reason.
• Clause (c): Falsely Implicating in a Criminal Case
  • Simple English: Framing a worker or creating fake evidence to get them arrested or convicted, leading to their dismissal.
• Clause (d): For Patently False Reasons
  • Simple English: Firing a worker using a reason that is obviously untrue.
  • Example: A worker who has never had a single absence is fired for “chronic unpunctuality” based on records that are clearly falsified.
• Clause (e): On Untrue or Trumped-up Allegations of Absence
  • Simple English: Firing a worker based on fake claims that they were absent without leave.
• Clause (f): In Utter Disregard of Natural Justice
  • Simple English: Firing a worker by skipping the fair disciplinary process (like not giving them a chance to defend themselves or refusing to hear their evidence).
  • Example: A worker accused of breaking a company rule is fired immediately without any internal inquiry or opportunity to explain his side of the story.
• Clause (g): Disproportionate Punishment
  • Simple English: Firing a worker for a very minor or technical mistake, where the punishment does not fit the severity of the offense.
  • Example: A worker accidentally forgets to check a box on a form (a technical misconduct) and is immediately dismissed, despite 15 years of perfect service.

(6) Outsourcing Work to Break a Strike

• Legal Text: To abolish the work of a regular nature being done by workers, and to give such work to contractors as a measure of breaking a strike.
• Simple English: Shutting down a department where permanent workers normally work and giving those tasks to external contractors, specifically as a tactic to defeat an ongoing strike.
• Example: During a legal strike by the cleaning staff, the management cancels all permanent cleaning positions and hires an external agency to clean the office, with the intent of keeping the strikers out permanently.

(7) Mala Fide Transfer

• Legal Text: To transfer a worker mala fide from one place to another, under the guise of following management policy.
• Simple English: Transferring a worker to a distant, inconvenient, or hostile location not for business reasons but to punish or harass them.
• Example: A key union organizer is suddenly transferred from the city factory to a remote, poorly equipped facility 500 km away, under the pretense of “staff rotation needs.”

(8) Insisting on a “Good Conduct Bond” After a Legal Strike

• Legal Text: To insist upon individual workers, who are on a legal strike to sign a good conduct bond, as a precondition to allowing them to resume work.
• Simple English: Forcing workers who participated in a legal strike to sign a document promising good behavior and swearing off future strikes before they are allowed back to their jobs.
• Example: After a week-long legal strike, the employer refuses to let the workers back into the building until they individually sign an agreement renouncing union activity.

(9) Favouritism or Partiality

• Legal Text: To show favouritism or partiality to one set of workers regardless of merit.
• Simple English: Treating a group of workers better than others for personal or non-merit reasons.
• Example: Management routinely promotes staff based on their personal friendship with a supervisor rather than their performance or qualifications, ignoring qualified workers.

(10) Employing “Temporaries” to Deny Permanent Status

• Legal Text: To employ workers as badli workers, casuals or temporaries and to continue them as such for years, with the object of depriving them of the status and privileges of permanent workers.
• Simple English: Keeping workers in temporary, casual, or “replacement” roles for years (like five years or more) specifically to avoid giving them the benefits, job security, and higher wages of permanent employees.
• Example: A security company keeps a worker on a “temporary contract” that renews every 11 months for six years, even though the job is permanent and year-round.

(11) Discriminating Against Workers Who File Charges

• Legal Text: To discharge or discriminate against any worker for filing charges or testifying against an employer in any enquiry or proceeding relating to any industrial dispute.
  • Simple English: Punishing an employee for participating as an accuser or a witness in an official labor inquiry.
• Example: A worker testifies truthfully at a Tribunal hearing that the company manipulated attendance records. The company tries to demote the worker a month later.

(12) Recruiting Workers During a Legal Strike

• Legal Text: To recruit worker during a strike which is not an illegal strike.
• Simple English: Hiring “scab” or replacement workers while a legal strike is taking place.
• Example: The union is on a legal, approved strike over safety issues. The company cannot hire and train new employees to permanently replace the strikers.

(13) Failure to Implement Awards/Settlements

• Legal Text: Failure to implement award, settlement or agreement.
• Simple English: Refusing to obey the terms of a legally binding agreement (like a collective bargaining settlement) or a court’s final order (an award).
• Example: The company loses a case and is ordered to pay two years of back wages to 50 workers, but it deliberately ignores the Tribunal’s award.

(14) Indulging in Acts of Force or Violence

• Simple English: Using physical force or violence against workers.

(15) Refusing to Bargain Collectively

• Legal Text: To refuse to bargain collectively, in good faith with the recognised Trade Unions.
• Simple English: A recognized union asks the employer to meet and negotiate a new contract, but the employer refuses to participate or attends meetings but refuses to negotiate genuinely.
• Example: A recognized union requests a meeting on eight occasions to discuss wage revisions, and the employer cancels or ignores all requests without offering alternative dates.

(16) Proposing or Continuing an Illegal Lock-out

• Simple English: Initiating or continuing an action where the employer shuts down the workplace or stops providing work in violation of the legal rules (Section 62 and 63).

II. ON THE PART OF WORKERS AND TRADE UNIONS OF WORKERS

These are actions that workers or their Trade Unions cannot take against the employer, other workers, or the public.

(1) Supporting an Illegal Strike

• Legal Text: To advise or actively support or instigate any strike deemed to be illegal under this Code.
• Simple English: Union leaders cannot plan, encourage, or fund a strike that violates the Code’s rules (e.g., failing to give proper notice).
• Example: The union committee circulates flyers encouraging members to join a strike that the Conciliation Officer has already declared illegal.

(2) Coercing Other Workers

This prohibits unions from using force or intimidation to pressure non-members or non-strikers.

• Clause (a): Physical Picketing
  • Simple English: Using picketing as a physical blockade to stop non-striking workers from entering the work premises.
  • Example: Strikers lock arms or form a human chain across the main gate, preventing other workers from entering the factory.
• Clause (b): Force, Violence, or Intimidation
  • Simple English: Using physical force, violence, or threats against workers who choose not to strike or against managers.
  • Example: A union member verbally threatens a non-striking worker with physical harm if they continue to show up for work.

(3) Refusing to Bargain Collectively (Union Side)

• Legal Text: For a recognised union to refuse to bargain collectively in good faith with the employer.
• Simple English: Once a union is legally recognized, it has an obligation to negotiate fairly when the employer is ready to do so. It cannot refuse to engage in dialogue.
• Example: The recognized union, despite receiving a good-faith negotiation proposal from the employer, cancels all scheduled meetings and refuses to counter-offer.

(4) Coercing Against Certification

• Legal Text: To indulge in coercive activities against certification of a bargaining representative.
• Simple English: Using force or threats to interfere with the legal process of determining which union is the official negotiating body (e.g., during a union election or verification process).

(5) Staging Coercive Actions

This prohibits specific actions that disrupt work without being a formal strike.

• “Go-slow”
  • Simple English: Two or more workers deliberately slow down their pace and effort (while pretending to work normally) to pressure the employer for concessions.
  • Example: The assembly line workers, in a coordinated manner, deliberately reduce their output rate by half, but without officially declaring a strike.
• “Squatting”
  • Simple English: Refusing to leave the work premises after working hours.
• “Gherao”
  • Simple English: Illegally surrounding or confining managers or other staff.
  • Example: Workers surround the General Manager’s office for 12 hours, blocking his exit and denying him access to food and water.

(6) Demonstrations at Staff Residences

• Legal Text: To stage demonstrations at the residence of the employers or the managerial staff members.
• Simple English: Protesting or demonstrating outside the private homes of company owners or managers.
• Example: Striking workers show up at the Chief Operating Officer’s private apartment complex and start shouting slogans.

(7) Wilful Damage to Property

• Legal Text: To incite or indulge in wilful damage to employer’s property connected with the industry.
• Simple English: Encouraging or participating in the intentional destruction of the company’s machinery, buildings, or products.
• Example: During a workplace dispute, a worker intentionally pours industrial chemicals into a machine to sabotage production.

(8) Violence to Prevent Attendance

• Legal Text: To indulge in acts of force or violence or to hold out threats of intimidation against any worker with a view to prevent him from attending work.
• Simple English: Using force or threats against a colleague to stop them from coming to work.
• Example: A striker intercepts a non-striking colleague outside the premises and physically assaults him to keep him from reporting to his shift.

The Third Schedule: Conditions Requiring Notice of Change

The Third Schedule lists eleven key conditions of employment. If an employer wants to change any of these conditions, they must first serve a notice to the affected workers and wait 21 days before implementing the change (as mandated by Chapter V, Section 40).

1. Wages and Payment

• Legal Text: Wages, including the period and mode of payment.
• Simple English: You must give 21 days’ notice before altering a worker’s basic pay, or changing when (pay period) or how (payment mode) they receive their salary.
• Example: A company decides to switch from paying workers weekly to paying them monthly. This change to the period of payment requires a formal 21-day notice before it can be implemented.

2. Statutory Contributions

• Legal Text: Contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefit of the workers under any law for the time being in force.
• Simple English: You must give notice before altering the amount the company contributes to worker benefits mandated by law, such as a provident fund (PF) or employee insurance schemes.
• Example: An employer decides to lower the percentage they contribute to the employee’s pension fund, even if they stay above the legal minimum. This change requires a 21-day notice.

3. Compensatory and Other Allowances

• Legal Text: Compensatory and other allowances.
• Simple English: You must give notice before altering or discontinuing non-wage payments like housing allowances, travel reimbursements, or hardship pay.
• Example: A company decides to stop paying the city compensatory allowance (CCA) to its employees. This change requires a 21-day notice.

4. Hours of Work and Rest Intervals

• Legal Text: Hours of work and rest intervals.
• Simple English: You must give notice before changing the mandatory length of the workday or the time allowed for breaks (lunch or rest periods).
• Example: A factory management wants to increase the daily work shift from 8 hours to 9 hours. This modification requires a 21-day notice.

5. Leave with Wages and Holidays

• Legal Text: Leave with wages and holidays.
• Simple English: You must give notice before changing the amount of paid leave (annual, sick, or casual) that workers earn or the list of public holidays they receive.
• Example: A company decides to reduce the number of paid casual leave days from 12 to 8 per year. This reduction requires a 21-day notice.

6. Shift Working (Change)

• Legal Text: Starting, alteration or discontinuance of shift working otherwise than in accordance with standing orders.
• Simple English: You must give notice before introducing entirely new shift schedules, changing existing shifts, or stopping shifts, unless this specific action is already permitted and detailed in your certified Standing Orders.
• Example: The Standing Orders currently detail only a Day Shift and a Night Shift. Management decides to introduce a new “Twilight Shift” for the first time. This introduction requires a 21-day notice.

7. Classification by Grades

• Legal Text: Classification by grades.
• Simple English: You must give notice before restructuring the job categories, grades, or hierarchical structure of employees (e.g., merging two grades into one or adding a new tier).
• Example: A manufacturing company decides to merge the “Junior Operator” grade and the “Operator” grade into a single, entry-level grade called “Technician I.” This reclassification requires a 21-day notice.

8. Withdrawal of Customary Privileges

• Legal Text: Withdrawal of any customary concession or privilege or change in usage.
• Simple English: You must give notice before taking away a benefit, perk, or practice that workers have historically and consistently received, even if it wasn’t formalized in a contract.
• Example: For 20 years, a company has traditionally provided a free, subsidized lunch to all workers. Removing this customary privilege requires a 21-day notice.

9. Rules of Discipline

• Legal Text: Introduction of new rules of discipline, or alteration of existing rules, except in so far as they are provided in standing orders.
• Simple English: You must give notice before introducing or changing rules that relate to penalties, disciplinary actions, or conduct, unless those changes are covered by your existing, certified Standing Orders.
• Example: A company suddenly decides that using a mobile phone on the factory floor is now an offense punishable by suspension, a rule not previously mentioned in the Standing Orders. This new disciplinary rule requires a 21-day notice.

10. Rationalisation and Retrenchment Risk

• Legal Text: Rationalisation, standardisation or improvement of plant or technique which is likely to lead to retrenchment of workers.
• Simple English: You must give notice before making major, efficiency-driven changes to machinery, production methods, or technology that will probably result in job cuts.
• Example: A textile mill decides to install fully automated looms that will reduce the required number of manual operators by $40\%$. Because this technological change is likely to lead to retrenchment, it requires a 21-day notice.

11. Manpower Changes

• Legal Text: Any increase or reduction (other than casual) in the number of persons employed or to be employed in any occupation or process or department or shift, not occasioned by circumstances over which the employer has no control.
• Simple English: You must give notice before making a permanent (non-casual) increase or decrease in the size of the workforce in any area, unless that change is caused by an uncontrollable event (like a government ban or a natural disaster).
• Example: Due to a business decision to focus on a new product line, a company decides to permanently reduce the staff in the “Old Product Assembly” department by 20 people. This non-casual reduction requires a 21-day notice.