Offences Under Sections 85-89 of the Industrial

Relations Code, 2020

Introduction
The Industrial Relations Code, 2020, represents a significant overhaul of the
labor laws in India, consolidating and amending several existing laws to create
a more streamlined framework for industrial relations. Among its various
provisions, Sections 85 to 89 specifically address offences and penalties
related to industrial relations, aiming to ensure compliance and protect the
rights of workers and employers alike. This article delves into these sections,
elucidating the offences defined, the corresponding penalties, and the broader
implications for industrial relations in India.

Overview of the Industrial Relations Code, 2020

The Industrial Relations Code, 2020, was enacted to replace the previous
laws governing industrial relations, including the Trade Unions Act, 1926, the
Industrial Employment (Standing Orders) Act, 1946, and the Industrial
Disputes Act, 1947. The Code aims to promote harmonious relations between
employers and employees, facilitate the resolution of disputes, and provide a
framework for the formation and registration of trade unions.

Sections 85-89: A Detailed Analysis

Section 85: Offences by Employers
Section 85 outlines the offences that an employer may commit under the
Code. It specifies that any employer who contravenes the provisions of the
Code, including the rules and orders made thereunder, can be held liable. The
key offences include:

1. Non-Compliance with Provisions: Employers failing to adhere to the

provisions regarding the formation of trade unions, recognition of
unions, or any other statutory obligations may face penalties.
2. Interference with Trade Union Activities: Employers are prohibited
from interfering with the formation and functioning of trade unions. Any
act of intimidation, coercion, or unfair treatment towards union members
can result in legal consequences.
 3. Failure to Maintain Records: Employers are required to maintain
specific records related to employment, wages, and working conditions.
Failure to do so can also lead to penalties.

Section 86: Offences by Trade Unions

Section 86 addresses the offences committed by trade unions. This section is
crucial as it ensures that trade unions operate within the legal framework and
uphold the rights of their members. Offences include:

1. Non-Compliance with Registration Requirements: Trade unions

must register under the provisions of the Code. Operating without
registration or failing to comply with the regulations can lead to
penalties.
2. Disruption of Industrial Peace: Any action taken by a trade union that
leads to strikes, lockouts, or other forms of industrial unrest without
following due process can be deemed an offence.
3. Corruption and Mismanagement: Trade unions are expected to
manage their funds transparently. Any misappropriation of funds or
failure to account for finances can result in legal action.

Section 87: Penalties for Offences

Section 87 outlines the penalties for the offences specified in Sections 85 and
86. The penalties are designed to serve as a deterrent against non-
compliance and to encourage adherence to the provisions of the Code. Key
aspects include:

1. Fines: The Code specifies monetary fines for various offences, which
can vary based on the severity of the violation. For instance, minor
infractions may incur lower fines, while serious violations could attract
higher penalties.
2. Imprisonment: In cases of egregious violations, such as repeated
offences or actions that significantly disrupt industrial peace,
imprisonment may be imposed. The duration of imprisonment can range
from a few months to several years, depending on the nature of the
offence.
3. Compounding of Offences: The Code allows for the compounding of
certain offences, enabling offenders to pay a fine and avoid further legal
proceedings. This provision is particularly beneficial for minor
infractions, promoting quicker resolution and compliance.
Section 88: Cognizance of Offences
Section 88 details the procedures for cognizance of offences under the Code.
It stipulates that:

1. Cognizance by Courts: Offences under the Code can only be taken

cognizance of by a Magistrate of the first class. This provision ensures
that only competent authorities handle industrial relations disputes and
offences.
2. Complaints by Authorized Officers: Complaints regarding offences
can be made by authorized officers or representatives of the
government, ensuring that there is an official mechanism for addressing
grievances.
3. Time Limit for Prosecution: The Code establishes a time limit for the
prosecution of offences, typically within six months from the date of the
offence. This provision aims to expedite legal proceedings and ensure
timely justice.

Section 89: Protection of Action Taken in Good Faith

Section 89 provides a safeguard for individuals and entities acting in good
faith under the provisions of the Code. It specifies that:

1. Immunity from Legal Action: Individuals, including employers and

trade union representatives, who act in good faith while executing their
duties under the Code are protected from legal action . This provision
encourages compliance and promotes a cooperative approach to
industrial relations.
2. Definition of Good Faith: The Code outlines what constitutes good
faith, emphasizing honesty, transparency, and adherence to the legal
framework. This definition helps clarify the expectations for conduct
under the Code.
3. Limitations on Protection: While the protection is robust, it does not
extend to actions that are malicious or intended to harm others. This
limitation ensures that the provision cannot be misused to justify
wrongful conduct.

Implications of Sections 85-89

The offences and penalties outlined in Sections 85 to 89 of the Industrial
Relations Code, 2020, have significant implications for both employers and
trade unions. By establishing clear guidelines and consequences for non-
compliance, the Code aims to foster a more balanced and fair industrial
environment.

For Employers

1. Increased Accountability: Employers are now more accountable for

their actions, particularly regarding their treatment of employees and
their obligations towards trade unions. This accountability is expected to
lead to improved workplace conditions and better employee relations.
2. Encouragement of Compliance: The penalties for non-compliance
serve as a strong incentive for employers to adhere to the provisions of
the Code. By understanding the potential consequences, employers are
more likely to engage in fair practices and maintain open lines of
communication with their employees.
3. Legal Awareness: Employers must enhance their understanding of the
legal framework governing industrial relations. This awareness will help
them navigate potential pitfalls and avoid legal disputes.

For Trade Unions

1. Strengthened Governance: The provisions regarding trade union

offences promote better governance within unions. By requiring
registration and adherence to financial regulations, the Code aims to
enhance the credibility and effectiveness of trade unions.
2. Promotion of Industrial Harmony: By penalizing actions that disrupt
industrial peace, the Code encourages trade unions to engage in
constructive dialogue and negotiation rather than resorting to strikes or
lockouts. This shift is expected to lead to more stable industrial
relations.
3. Empowerment of Members: The emphasis on transparency and
accountability within trade unions empowers members to hold their
representatives accountable. This empowerment can lead to more
active participation and engagement from union members.

Conclusion
Sections 85 to 89 of the Industrial Relations Code, 2020, play a crucial role in
shaping the landscape of industrial relations in India. By clearly defining
offences and establishing penalties, the Code aims to promote compliance,
protect the rights of workers, and foster harmonious relations between
employers and employees. As the industrial relations framework continues to
evolve, it is essential for both employers and trade unions to understand their
rights and responsibilities under the Code, ensuring a fair and equitable
working environment for all stakeholders involved.