The Code on Wages

2019
 Background
• An Act to amend and consolidate the laws relating to
wages and bonus and matters connected therewith
or incidental thereto.
 Definitions
• “Industrial dispute" means,—
• (i) any dispute or difference between employers and
employers, or between employers and workers or between
workers and workers which is connected with the
employment or non-employment or the terms of
employment or with the conditions of labour, of any person;
• (ii) any dispute or difference between an individual worker
and an employer connected with, or arising out of,
discharge, dismissal, retrenchment or termination of such
worker
 Definitions
• “Wages“: all remuneration whether by way of salaries,
allowances or otherwise, expressed in terms of money or
capable of being so expressed which would, if the terms of
employment, express or implied, were fulfilled, be payable
to a person employed in respect of his employment or of
work done in such employment, and includes,—
• (i) basic pay;
• (ii) dearness allowance; and
• (iii) retaining allowance, if any
 Definitions
• but does not include––
• (a) any bonus payable under any law for the time being in force, which does
not form part of the remuneration payable under the terms of employment;
• (b) the value of any house-accommodation, or of the supply of light, water,
medical attendance or other amenity or of any service excluded from the
computation of wages by a general or special order of the appropriate
Government;
• (c) any contribution paid by the employer to any pension or provident fund,
and the interest which may have accrued thereon;
• (d) any conveyance allowance or the value of any travelling concession;
• (e) any sum paid to the employed person to defray special expenses
entailed on him by the nature of his employment;
 Definitions
• (f) house rent allowance;
• (g) remuneration payable under any award or settlement
between the parties or order of a court or Tribunal;
• (h) any overtime allowance;
• (i) any commission payable to the employee;
• (j) any gratuity payable on the termination of employment;
• (k) any retrenchment compensation or other retirement
benefit payable to the employee or any ex gratia payment
made to him on the termination of employment
 Definitions
• “Worker" means any person (except an apprentice as
defined under clause (aa) of section 2 of the
Apprentices Act, 1961) employed in any industry to do
any manual, unskilled, skilled, technical, operational,
clerical or supervisory work for hire or reward,
whether the terms of employment be express or
implied.
 Definitions
• Worker includes—
• (i) Working journalists
• as defined in clause (f) of section 2 of the Working Journalists and
other Newspaper Employees (Conditions of Service) and
Miscellaneous Provisions Act, 1955; and
• (ii) Sales promotion employees
• as defined in clause (d) of section 2 of the Sales Promotion
Employees (Conditions of Service) Act, 1976.
 Definitions
• but does not include any such person––
• (a) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or
the Navy Act, 1957; or
• (b) who is employed in the police service or as an officer or other
employee of a prison; or
• (c) who is employed mainly in a managerial or administrative
capacity; or
• (d) who is employed in a supervisory capacity drawing wage of
exceeding fifteen thousand rupees per month or an amount as may
be notified by the Central Government from time to time
 Prohibition of discrimination on
ground of gender
• There shall be no discrimination in an establishment
or any unit thereof among employees on the ground
of gender in matters relating to wages by the same
employer, in respect of the same work or work of a
similar nature done by any employee.
 Prohibition of discrimination on ground of
gender

• No employer shall,—
• (i) for the purposes of complying with the provisions of sub-
section (1), reduce the rate of wages of any employee;
• (ii) make any discrimination on the ground of sex
• while recruiting any employee for the same work or
• work of similar nature and in the conditions of employment,
except where the employment of women in such work is
prohibited or restricted by or under any law for the time being in
force
CHAPTER II MINIMUM
WAGES
Payment of minimum rate of wages

• No employer shall pay to any employee

wages less than the minimum rate of
wages notified by the appropriate
Government.
 Fixation of minimum wages
• The appropriate Government shall fix the minimum
rate of wages payable to employees––
• (a) for time work;
• (b) for piece work.
 Fixation of minimum wages
• Where employees are employed on piece work, for the
purpose of sub-section (1), the appropriate Government
shall fix a minimum rate of wages for securing such
employees a minimum rate of wages on a time work basis.
 Fixation of minimum wages
• The minimum rate of wages on time work basis may be
fixed in accordance with any one or more of the following
wage periods, namely:––
• (i) by the hour; or
• (ii) by the day; or
• (iii) by the month.
 Fixation of minimum wages
• For the purpose of fixation of minimum rate of wages under this
section, the appropriate Government,—
• (a) shall primarily take into account the skill of workers required for
working under the categories of unskilled, skilled, semi-skilled and
highly-skilled or geographical area or both; and
• (b) may, in addition to such minimum rate of wages for certain
category of workers, take into account their arduousness of work
like temperature or humidity normally difficult to bear, hazardous
occupations or processes or underground work as may be
prescribed by that Government; and
• (c) the norms of such fixation of minimum rate of wages shall be
such as may be prescribed
 Components of minimum wages
• Any minimum rate of wages fixed or revised by the appropriate
Government under section 8 may consist of––
• (a) a basic rate of wages and an allowance at a rate to be adjusted,
at such intervals and in such manner as the appropriate Government
may direct, to accord as nearly as practicable with the variation in the
cost of living index number applicable to such workers (hereinafter
referred to as "cost of living allowance"); or
• (b) a basic rate of wages with or without the cost of living allowance,
and the cash value of the concessions in respect of supplies of
essential commodities at concession rates, where so authorised; or
• (c) an all-inclusive rate allowing for the basic rate, the cost of living
allowance and the cash value of the concessions, if any
 Procedure for fixing and revising
minimum wages
• In fixing minimum rates of wages for the first time or in revising
minimum rates of wages under this Code, the appropriate
Government shall either—
• (a) appoint as many committees as it considers necessary to hold
enquiries and recommend in respect of such fixation or revision, as
the case may be; or
• (b) by notification publish its proposals for the information of
persons likely to be affected thereby and specify a date not less than
two months from the date of the notification on which the proposals
shall be taken into consideration.
 Power of Central Government to fix floor wage
• (1) The Central Government shall fix floor wage taking into account
minimum living standards of a worker in such manner as may be prescribed:
Provided that different floor wage may be fixed for different geographical
areas.
• (2) The minimum rates of wages fixed by the appropriate Government
under section 6 shall not be less than the floor wage and if the minimum
rates of wages fixed by the appropriate Government earlier is more than the
floor wage, then, the appropriate Government shall not reduce such
minimum rates of wages fixed by it earlier.
• (3) The Central Government may, before fixing the floor wage under sub-
section (1), obtain the advice of the Central Advisory Board constituted
under sub-section (1) of section 42 and consult State Governments in such
manner as may be prescribed.
 Wages of employee who works for less
than normal working day
• If an employee whose minimum rate of wages has
been fixed under this Code by the day works on any
day on which he was employed for a period of less
than the requisite number of hours constituting a
normal working day, he shall, save as otherwise
hereinafter provided, be entitled to receive wages in
respect of work done on that day, as if he had
worked for a full normal working day.
 Wages for two or more classes of
work
• Where an employee does two or more classes of
work to each of which a different minimum rate of
wages is applicable,
• the employer shall pay to such employee in respect
of the time respectively occupied in each such class
of work, wages at not less than the minimum rate in
force in respect of each such class.
 Minimum time rate wages for piece
work
• Where a person is employed on piece work for which
minimum time rate and not a minimum piece rate has
been fixed under this Code, the employer shall pay to
such person wages at not less than the minimum time
rate.
 Fixing hours of work for normal
working day
• (a) fix the number of hours of work which shall constitute a
normal working day inclusive of one or more specified
intervals;
• (b) provide for a day of rest in every period of seven days
which shall be allowed to all employees or to any specified
class of employees and for the payment of remuneration in
respect of such days of rest;
• (c) provide for payment for work on a day of rest at a rate
not less than the overtime rate.
 Wages for overtime work
• Where an employee whose minimum rate of wages
has been fixed under this Code by the hour, by the day
or by such a longer wage-period as may be prescribed,
works on any day in excess of the number of hours
constituting a normal working day, the employer shall
pay him for every hour or for part of an hour so
worked in excess, at the overtime rate which shall not
be less than twice the normal rate of wages.
CHAPTER III PAYMENT
OF WAGES
 Mode of payment of wages
• All wages shall be paid in current coin or currency
notes or by cheque or by crediting the wages in the
bank account of the employee or by the electronic
mode
 Fixation of wage period
• The employer shall fix the wage period for employees
either as daily or weekly or fortnightly or monthly
subject to the condition that no wage period in
respect of any employee shall be more than a month.
 Time limit for payment of wages
• The employer shall pay or cause to be paid wages to the
employees, engaged on—
• (i) daily basis, at the end of the shift;
• (ii) weekly basis, on the last working day of the week, that is
to say, before the weekly holiday;
• (iii) fortnightly basis, before the end of the second day after
the end of the fortnight;
• (iv) monthly basis, before the expiry of the seventh day of
the succeeding month
 Time limit for payment of wages
• Where an employee has been—
• (i) removed or dismissed from service; or
• (ii) retrenched or has resigned from service, or became
unemployed due to closure of the establishment,
• the wages payable to him shall be paid within two working
days of his removal, dismissal, retrenchment or, as the case
may be, his resignation
 Deductions which may be made from
wages
• (a) any payment made by an employee to the employer or his agent
shall be deemed to be a deduction from his wages;
• (b) any loss of wages to an employee, for a good and sufficient cause,
resulting from—
• (i) the withholding of increment or promotion, including the stoppage of
an increment; or
• (ii) the reduction to a lower post or time-scale; or
• (iii) the suspension,
• shall not be deemed to be a deduction from wages in a case where the
provisions made by the employer for such purposes are satisfying the
requirements specified in the notification issued by the appropriate
Government in this behalf
 Deductions which may be made from wages
• Deductions from the wages of an employee shall be made in
accordance with the provisions of this Code, and may be made only
for the following purposes, namely:—
• (a) fines imposed on him;
• (b) deductions for his absence from duty;
• (c) deductions for damage to or loss of goods expressly entrusted to
the employee for custody; or for loss of money for which he is
required to account, where such damage or loss is directly
attributable to his neglect or default;
 Deductions which may be made from wages

• (d) deductions for house-accommodation supplied by the employer or

by appropriate Government or any housing board set up under any law
for the time being in force, whether the Government or such board is
the employer or not, or any other authority engaged in the business of
subsidizing house-accommodation which may be specified in this
behalf by the appropriate Government by notification;
• (e) deductions for such amenities and services supplied by the
employer as the appropriate Government or any officer specified by it
in this behalf may, by general or special order, authorise and such
deduction shall not exceed an amount equivalent to the value of such
amenities and services.
Deductions which may be made from wages
• (f) deductions for recovery of—
• (i) advances of whatever nature (including advances for travelling
allowance or conveyance allowance), and the interest due in respect
thereof, or for adjustment of overpayment of wages;
• (ii) loans made from any fund constituted for the welfare of labour,
as may be prescribed by the appropriate Government, and the
interest due in respect thereof;
• (g) deductions for recovery of loans granted for house-building or
other purposes approved by the appropriate Government and the
interest due in respect thereof;
 Deductions which may be made from wages

• (h) deductions of income-tax or any other statutory levy levied by the

Central Government or State Government and payable by the
employee or deductions required to be made by order of a court or
other authority competent to make such order;
• (i) deductions for subscription to, and for repayment of advances
from any social security fund or scheme constituted by law including
provident fund or pension fund or health insurance scheme or fund
known by any other name;
• (j) deductions for payment of co-operative society subject to such
conditions as the appropriate Government may impose;
 Deductions which may be made from wages

• (k) deductions made, with the written authorisation of the employee, for
payment of the fees and contribution payable by him for the membership
of any Trade Union registered under the Trade Unions Act, 1926;
• (l) deductions for recovery of losses sustained by the railway administration
on account of acceptance by the employee of counterfeit or base coins or
mutilated or forged currency notes;
• (m) deductions for recovery of losses sustained by the railway
administration on account of the failure of the employee to invoice, to bill,
to collect or to account for the appropriate charges due to the railway
administration whether in respect of fares, freight, demurrage, wharfage
and cranage or in respect of sale of food in catering establishments or in
respect of commodities in grain shops or otherwise;
Deductions which may be made from wages
• (n) deductions for recovery of losses sustained by the railway
administration on account of any rebates or refunds incorrectly
granted by the employee where such loss is directly attributable to his
neglect or default;
• (o) deductions, made with the written authorisation of the
employee, for contribution to the Prime Minister’s National Relief
Fund or to such other fund as the Central Government may, by
notification, specify.
 Deductions which may be made
from wages
• The total amount of deductions in any wage period
from the wages of an employee shall not exceed fifty
per cent. of such wages.
 Deductions for absence from duty
• Deductions may be made under clause (b) of sub-section (2)
of section 18 only on account of the absence of an
employee from the place or places where by the terms of
his employment, he is required to work, such absence being
for the whole or any part of the period during which he is so
required to work.
 Deductions for absence from duty
• Provided that, subject to any rules made in this behalf by the
appropriate Government, if ten or more employed persons
acting in concert absent themselves without due notice
(that is to say without giving the notice which is required
under the terms of their contracts of employment) and
without reasonable cause, such deduction from any such
person may include such amount not exceeding his wages for
eight days as may by any such terms be due to the employer
in lieu of due notice.
 Deductions for damage or loss
• (1) A deduction under clause (c) or clause (n) of sub-section (2) of
section 18 for damage or loss shall not exceed the amount of the
damage or loss caused to the employer by negligence or default of
the employee.
• (2) A deduction shall not be made under sub-section (1) until the
employee has been given an opportunity of showing cause against
the deduction or otherwise than in accordance with such procedure as
may be prescribed for the making of such deductions.
• (3) All such deductions and all realisations thereof shall be recorded
in a register to be kept in such form as may be prescribed.
Deductions for services rendered
• A deduction under clause (d) or clause (e) of sub-section (2)
of section 18 shall not be made from the wages of an
employee, unless the house-accommodation amenity or
service has been accepted by him as a term of employment
or otherwise and
• Such deduction shall not exceed an amount equivalent to
the value of the house-accommodation amenity or service
supplied and shall be subject to such conditions as the
appropriate Government may impose.
 Deductions for recovery of advances
• Deductions under clause (f) of sub-section (2) of section 18 for
recovery of advances given to an employee shall be subject to the
following conditions, namely:––
• (a) recovery of advance of money given to an employee before the
employment began shall be made from the first payment of wages to
him in respect of a complete wage-period but no recovery shall be
made of such advances given for travelling expenses;
• (b) recovery of advance of money given to an employee after the
employment began shall be subject to such conditions as may be
prescribed;
• (c) recovery of advances of wages to an employee not already earned
shall be subject to such conditions as may be prescribed.
 Deductions for recovery of loans
• Deductions under clause (g) of sub-section (2) of
section 18 for recovery of loans granted to an
employee, regulating the extent to which such loans
may be granted and the rate of interest payable
thereon, shall be such as may be prescribed.
CHAPTER IV PAYMENT
OF BONUS
 Eligibility for bonus, etc.
• There shall be paid to every employee, drawing wages not
exceeding such amount per mensem, as determined by
notification, by the appropriate Government, by his
employer, who has put in at least thirty days work in an
accounting year, an annual minimum bonus calculated at
the rate of eight and one-third per cent. of the wages
earned by the employee or one hundred rupees, whichever
is higher whether or not the employer has any allocable
surplus during the previous accounting year.
 Eligibility for bonus, etc.
• The bonus payable to such employee shall be
calculated as if his wage were such amount, so
determined by the appropriate Government or the
minimum wage fixed by the appropriate
Government, whichever is higher.
 Eligibility for bonus, etc.
• Where in respect of any accounting year referred to in sub-
section (1), the allocable surplus exceeds the amount of
minimum bonus payable to the employees under that sub-
section, the employer shall, in lieu of such minimum bonus,
be bound to pay to every employee in respect of that
accounting year, bonus which shall be an amount in
proportion to the wages earned by the employee during
the accounting year, subject to a maximum of twenty per
cent. of such wages.
 Eligibility for bonus, etc.
• In the first five accounting years following the accounting
year in which the employer sells the goods produced or
manufactured by him or renders services, as the case may
be, from such establishment, bonus shall be payable only in
respect of the accounting year in which the employer
derives profit from such establishment and such bonus
shall be calculated in accordance with the provisions of this
Code in relation to that year, but without applying the
provisions of section 36
 Eligibility for bonus, etc.
• For the sixth and seventh accounting years following the accounting year in
which the employer sells the goods produced or manufactured by him or
renders services, as the case may be, from such establishment, the provisions of
section 36 shall apply subject to the following modifications, namely:—
• (i) for the sixth accounting year set on or set off, as the case may be, shall be
made, in the manner as may be prescribed by the Central Government, taking
into account the excess or deficiency, if any, as the case may be, of the allocable
surplus set on or set off in respect of the fifth and sixth accounting years;
• (ii) for the seventh accounting year set on or set off, as the case may be, shall
be made, in the manner as may be prescribed by the Central Government,
taking into account the excess or deficiency, if any, as the case may be, of the
allocable surplus set on or set off in respect of the fifth, sixth and seventh
accounting years
 Eligibility for bonus, etc.
• From the eighth accounting year following the
accounting year in which the employer sells the
goods produced or manufactured by him or renders
services, as the case may be, from such
establishment, the provisions of section 36 shall apply
in relation to such establishment as they apply in
relation to any other establishment.
 Proportionate reduction in bonus in
certain cases
• Where an employee has not worked for all the
working days in an accounting year, the minimum
bonus under sub-section (1) of section 26, if such
bonus is higher than eight and one third per cent. of
the salary or wage of the days such employee has
worked in that accounting year, shall be
proportionately reduced
 Computation of number of working
days
• For the purposes of section 27, an employee shall be deemed to have worked
in an establishment in any accounting year also on the days on which,––
• (a) he has been laid off under an agreement or as permitted by standing
orders under the Industrial Employment (Standing Orders) Act, 1946, or
under the Industrial Disputes Act, 1947, or under any other law applicable to
the establishment;
• (b) he has been on leave with salary or wages;
• (c) he has been absent due to temporary disablement caused by accident
arising out of and in the course of his employment; and
• (d) the employee has been on maternity leave with salary or wages, during
the accounting year.
 Disqualification for bonus
• Notwithstanding anything contained in this Code, an employee shall
be disqualified from receiving bonus under this Code, if he is
dismissed from service for––
• (a) fraud; or
• (b) riotous or violent behaviour while on the premises of the
establishment; or
• (c) theft, misappropriation or sabotage of any property of the
establishment; or
• (d) conviction for sexual harassment.
 Payment of bonus out of allocable
surplus
• The bonus shall be paid out of the allocable surplus which
shall be an amount equal to sixty per cent. in case of a
banking company and sixty-seven per cent. in case of other
establishment, of the available surplus and the available
surplus shall be the amount calculated in accordance with
section 33.
 Sums deductible from gross profits
• The following sums shall be deducted from the gross profits as prior
charges, namely:—
• (a) any amount by way of depreciation admissible in accordance with
the provisions of sub-section (1) of section 32 of the Income-tax Act or in
accordance with the provisions of the agricultural income-tax law, for the
time being in force, as the case may be;
• (b) subject to the provisions of section 35, any direct tax which the
employer is liable to pay for the accounting year in respect of his
income, profits and gains during that year;
• (c) such further sums in respect of the employer as may be prescribed
by the Central Government.
 Set on and set off of allocable
surplus
• Where for any accounting year, the allocable surplus exceeds the
amount of maximum bonus payable to the employees in the
establishment under section 26, then, the excess shall, subject to a
limit of twenty per cent. of the total salary or wage of the
employees employed in the establishment in that accounting year,
be carried forward for being set on in the succeeding accounting
year and so on up to and inclusive of the fourth accounting year to be
utilised for the purpose of payment of bonus in such manner as may
be prescribed by the Central Government
 Set on and set off of allocable
surplus
• Where for any accounting year, there is no available surplus or the
allocable surplus in respect of that year falls short of the amount of
minimum bonus payable to the employees in the establishment under
section 26, and there is no amount or sufficient amount carried
forward and set on under sub-section (1) which could be utilised for
the purpose of payment of the minimum bonus, then, such minimum
amount or the deficiency, as the case may be, shall be carried
forward for being set off in the succeeding accounting year and so
on up to and inclusive of the fourth accounting year in such manner
as may be prescribed by the Central Government.
 Set on and set off of allocable surplus
• Where in any accounting year any amount has been carried
forward and set on or set off under this section, then, in
calculating bonus for the succeeding accounting year, the
amount of set on or set off carried forward from the
earliest accounting year shall first be taken into account.
 Adjustment of customary or interim bonus
against bonus payable under this Code

• Where in any accounting year,—

• (a) an employer has paid any puja bonus or other customary bonus
to employee; or
• (b) an employer has paid a part of the bonus payable under this
Code to an employee before the date on which such bonus becomes
payable, then, the employer shall be entitled to deduct the amount
of bonus so paid from the amount of bonus payable by him to the
employee under this Code in respect of that accounting year and the
employee shall be entitled to receive only the balance
 Deduction of certain amounts from
bonus payable
• Where in any accounting year, an employee is found guilty
of misconduct causing financial loss to the employer, then,
it shall be lawful for the employer to deduct the amount of
loss from the amount of bonus payable by him to the
employee under this Code in respect of that accounting year
only and the employee shall be entitled to receive the
balance, if any
 Time limit for payment of bonus
• All amounts payable to an employee by way of bonus under
this Code shall be paid by crediting it in the bank account of
the employee by his employer within a period of eight
months from the close of the accounting year:
• Where there is a dispute regarding payment of bonus
pending before any authority, such bonus shall be paid,
within a period of one month from the date on which the
award becomes enforceable or the settlement comes into
operation, in respect of such dispute.
 THE INDUSTRIAL
RELATIONS CODE, 2020
 THE INDUSTRIAL RELATIONS CODE,
2020
• An Act to consolidate and amend the laws relating to
Trade Unions, conditions of employment in industrial
establishment or undertaking, investigation and
settlement of industrial disputes and for matters
connected therewith or incidental thereto.
 Definitions
• “Industrial Dispute" means any dispute or difference
• between employers and employers or
• between employers and workers or
• between workers and workers
• which is connected with the employment or non-employment or
the terms of employment or with the conditions of labour, of any
person and
• includes any dispute or difference between an individual worker
and an employer connected with, or arising out of discharge,
dismissal, retrenchment or termination of such worker
 Definitions
• "lock-out" means the
• temporary closing of a place of employment, or
• the suspension of work, or
• the refusal by an employer to continue to employ
any number of persons employed by him;
 Definitions
• “Retrenchment" means the termination by the employer of the service of a
worker for any reason whatsoever, otherwise than as a punishment inflicted
by way of disciplinary action, but does not include—
• (i) voluntary retirement of the worker; or
• (ii) retirement of the worker on reaching the age of superannuation;
• (iii) termination of the service of the worker as a result of the non-renewal of
the contract of employment between the employer and the worker concerned
on its expiry or of such contract being terminated under a stipulation in that
behalf contained therein;
• (iv) termination of service of the worker as a result of completion of tenure of
fixed term employment;
• (v) termination of the service of a worker on the ground of continued ill-health;
 Definitions
• “Settlement" means a settlement arrived at in the course of
conciliation proceeding and includes a written agreement
between the employer and worker arrived at otherwise
than in the course of conciliation proceeding where such
agreement has been signed by the parties thereto in such
manner as may be prescribed and a copy thereof has been
sent to an officer authorised in this behalf by the appropriate
Government and to the conciliation officer;
 Definitions
• “Standing orders" means orders relating to matters set-out in the First
Schedule.
• “Strike" means a
• cessation of work by a body of persons employed in any industry
acting in combination, or
• a concerted refusal, or
• a refusal, under a common understanding, of any number of persons
who are or have been so employed to continue to work or to accept
employment and
• includes the concerted casual leave on a given day by fifty per cent or
more workers employed in an industry;
 Definitions
• "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.
 Definitions
• “Unfair labour practice" means any of the practices
specified in the Second Schedule;
 Works Committee
• (1) In the case of any industrial establishment in which one
hundred or more workers are employed or have been
employed on any day in the preceding twelve months, the
appropriate Government may by general or special order
require the employer to constitute a Works Committee, in
such manner as may be prescribed, consisting of
representatives of employer and workers engaged in the
establishment:
• Provided that the number of representatives of workers in
such Committee shall not be less than the number of
representatives of the employer.
 Works Committee
• (2) The representatives of the workers shall be chosen, in
such manner as may be prescribed, from among the workers
engaged in the establishment and in consultation with their
Trade Union, if any, registered in accordance with the
provisions of section 9.
• (3) It shall be the duty of the Works Committee to promote
measures for securing and preserving amity and good
relations between the employer and workers and, to that
end, to comment upon matters of their common interest or
concern and endeavour to compose any material difference
of opinion in respect of such matters
 Grievance Redressal Committee
• Every industrial establishment employing twenty or more workers
shall have one or more Grievance Redressal Committees for
resolution of disputes arising out of individual grievances.
• The Grievance Redressal Committee shall consist of equal number of
members representing the employer and the workers to be chosen in
such manner as may be prescribed.
• The chairperson of the Grievance Redressal Committee shall be
selected from among persons representing the employer and the
workers alternatively on rotational basis every year.
Grievance Redressal Committee
• The total number of members of the Grievance
Redressal Committee shall not exceed ten-
• Provided that there shall be adequate representation
of women workers in the Grievance Redressal
Committee and such representation shall not be less
than the proportion of women workers to the total
workers employed in the industrial establishment.
 Grievance Redressal Committee
• An application in respect of any dispute referred to in sub-
section (1) may be filed before the Grievance Redressal
Committee by any aggrieved worker in such manner as may
be prescribed within one year from the date on which the
cause of action of such dispute arises.
• The Grievance Redressal Committee may complete its
proceedings within thirty days of receipt of the application
under sub-section (5).
 Grievance Redressal Committee
• The decision of the Grievance Redressal Committee on any
application filed under sub-section (5) shall be made on the
basis of majority view of the Committee, provided more
than half of the members representing the workers have
agreed to such decision, otherwise it shall be deemed that
no decision could be arrived at by the Committee.
 Grievance Redressal Committee
• The worker who is aggrieved by the decision of the
Grievance Redressal Committee or whose grievance is not
resolved in the said Committee within the period specified
in sub-section (6), may, within a period of sixty days from the
date of the decision of the Grievance Redressal Committee
or from the date on which the period specified in sub-section
(6) expires, as the case may be, file an application for the
conciliation of such grievance to the conciliation officer
through the Trade Union, of which he is a member, in such
manner as may be prescribed.
 Grievance Redressal Committee
• Where any employer discharges, dismisses, retrenches, or
otherwise terminates the services of an individual worker,
any dispute or difference between that worker and his
employer connected with, or arising out of, such discharge,
dismissal, retrenchment or termination shall be deemed to
be an industrial dispute notwithstanding that no other
worker nor any Trade Union is a party to the dispute.
Grievance Redressal Committee
• Any worker as is specified in sub-section (5) may, make an
application directly to the Tribunal for adjudication of the
dispute referred to therein after the expiry of forty-five
days from the date he has made the application to the
conciliation officer of the appropriate Government for
conciliation of the dispute, and on receipt of such
application the Tribunal shall have powers and jurisdiction to
adjudicate upon the dispute, as the Tribunal has in respect of
the application filed under sub-section (6) of section 53
 CHAPTER III
TRADE UNIONS
 Registrar of Trade Unions
• The State Government may, by notification, appoint a person
to be the Registrar of Trade Unions, and other persons as
Additional Registrar of Trade Unions, Joint Registrar of
Trade Unions and Deputy Registrar of Trade Unions, who
shall exercise such powers and perform such duties of the
Registrar as the State Government may, by notification,
specify from time to time
 Criteria for registration
• Any seven or more members of a Trade Union may, by subscribing
their names to the rules of the Trade Union and by otherwise
complying with the provisions of this Code with respect to
registration, apply for registration of the Trade Union under this
Code.
• No Trade Union of workers shall be registered unless at least ten per
cent. of the workers or one hundred workers, whichever is less,
engaged or employed in the industrial establishment or industry with
which it is connected are the members of such Trade Union on the
date of making of application for registration.
CHAPTER IV STANDING
ORDERS
 Application of this Chapter
• The provisions of this Chapter shall apply to every industrial
establishment wherein three hundred or more than three
hundred workers, are employed, or were employed on any
day of the preceding twelve months.
Preparation of draft standing orders by
employer and procedure for certification
• The employer shall prepare draft standing orders, within a period of
six months from the date of commencement of this Code, in respect
of the matters specified in the First Schedule and on any other
matter considered necessary by him for incorporation of necessary
provisions in such standing orders for his industrial establishment or
undertaking, considering the nature of activity in his industrial
establishment or undertaking, provided such provision is not
inconsistent with any of the provision of this Code and covers every
matters set out in the First Schedule
Preparation of draft standing orders by
employer and procedure for certification
• The certifying officer shall certify the draft standing orders
or the modifications in the standing orders and shall within
seven days thereafter send copies of the certified standing
orders or the modifications in the standing orders,
authenticated in such manner as may be prescribed, to the
employer and to the negotiating union or negotiating council
or the Trade Union or other representatives of the workers.
Date of operation of standing orders
and its availability
• The standing orders or modified standing orders, as the
case may be, shall, unless an appeal is preferred under
section 32, come into operation on the expiry of thirty days
from the date on which authenticated copies thereof are
sent.
 Duration and modification of
standing orders
• The standing orders certified under sub-section (8) of section
30 shall not, except on an agreement between the
employer and the workers, or a negotiating union or a
Trade Union or other representative body of the workers,
be liable to modification until the expiry of six months from
the date on which the standing orders or the last
modifications thereof came into operation
 Time-limit for completing
disciplinary proceedings
• Where any worker is suspended by the employer pending
investigation or inquiry into complaints or charges of
misconduct against him, such investigation or inquiry, or
where there is an investigation followed by an inquiry, both
the investigation and inquiry shall be completed ordinarily
within a period of ninety days from the date of suspension.
 Subsistence allowance
• Where a worker is suspended as referred to in sub-
section (1), the employer in relation to an industrial
establishment or undertaking shall pay to such worker
employed in such industrial establishment or
undertaking subsistence allowance at the rates
specified in sub-section (3) for the period during
which such worker is placed under suspension
pending investigation or inquiry into complaints or
charges of misconduct against such worker
 Subsistence allowance
• The amount of subsistence allowance payable under sub-section (2)
shall be —
• (a) at the rate of fifty per cent. of the wages which the worker was
entitled to immediately preceding the date of such suspension, for
the first ninety days of suspension; and
• (b) at the rate of seventy-five per cent. of such wages for the
remaining period of suspension, if the delay in the completion of
disciplinary proceedings against such worker is not directly
attributable to the conduct of such worker.
 CHAPTER V
NOTICE OF CHANGE
 NOTICE OF CHANGE
• No employer, who proposes to effect any change in the
conditions of service applicable to any worker in respect of
any matter specified in the Third Schedule, shall effect such
change,—
• (i) without giving to the workers likely to be affected by such
change a notice in such manner as may be prescribed of the
nature of the change proposed to be effected; or
• (ii) within twenty-one days of giving such notice.
 CHAPTER VI
VOLUNTARY REFERENCE OF DISPUTES
TO ARBITRATION
 Voluntary reference of disputes to
arbitration
• Where any industrial dispute exists or is apprehended
and the employer and the workers agree to refer the
dispute to arbitration, they may, by a written
agreement, refer the dispute to arbitration, and the
reference shall be to such person or persons as an
arbitrator or arbitrators as may be specified in the
arbitration agreement.
 CHAPTER VII
MECHANISM FOR RESOLUTION OF
INDUSTRIAL DISPUTES
 Conciliation officers
• The appropriate Government may, by notification,
appoint such number of persons, as it thinks fit to be
conciliation officers, charged with the duty of mediating
in and promoting the settlement of industrial disputes.
• A conciliation officer may be appointed for a specified
area or for specified industries in a specified area or for
one or more specified industries and either
permanently or for a limited period.
 Industrial Tribunal
• The appropriate Government may, by notification,
constitute one or more Industrial Tribunals for the
adjudication of industrial disputes and for performing
such other functions as may be assigned to them
under this Code and the Tribunal so constituted by the
Central Government shall also exercise the
jurisdiction, powers and authority conferred on the
Tribunal
 Industrial Tribunal
• Every Industrial Tribunal shall consist of two
members to be appointed by the appropriate
Government out of whom one shall be a Judicial
Member and the other, an Administrative Member.
• A bench of the Tribunal shall consist of a Judicial
Member and an Administrative Member or single
Judicial Member or single Administrative Member
 Finality of constitution of Tribunal
• No notification of the appropriate Government
appointing any person as a Judicial Member or an
Administrative Member of a Tribunal shall be called in
question in any manner; and no act or proceeding
before the Tribunal shall be called in question in any
manner on the ground mainly of the existence of any
vacancy in, or defect in the constitution of such
Tribunal
 National Industrial Tribunal
• The Central Government may, by notification, constitute one or more
National Industrial Tribunals for the adjudication of industrial
disputes which, in the opinion of the Central Government, involve
questions of national importance or are of such a nature that
industrial establishments situated in more than one State are likely
to be interested in, or affected by, such disputes.
• A National Industrial Tribunal shall consist of two members to be
appointed by the Central Government out of whom one shall be a
Judicial Member and the other, an Administrative Member.
 National Industrial Tribunal
• A person shall not be qualified for appointment as the
Judicial Member of a National Industrial Tribunal unless he
is, or has been, a Judge of a High Court.
• A person shall not be qualified for appointment as
Administrative Member of a National Industrial Tribunal
unless, he is or has been Secretary to the Government of
India or holding an equivalent rank in the Central
Government or State Government, having adequate
experience of handling the labour related matters.
• The Judicial Member shall preside over a National Industrial
Tribunal
 CHAPTER VIII
STRIKES AND LOCK-
OUTS
 Prohibition of strikes and lock-outs
• No person employed in an industrial establishment shall go on
strike, in breach of contract—
• (a) without giving to the employer notice of strike, as hereinafter
provided, within sixty days before striking; or
• (b) within fourteen days of giving such notice; or
• (c) before the expiry of the date of strike specified in any such
notice; or
• (d) during the pendency of any conciliation proceedings before a
conciliation officer and seven days after the conclusion of such
proceedings; or
 Prohibition of strikes
• (e) during the pendency of proceedings before a Tribunal or
a National Industrial Tribunal and sixty days, after the
conclusion of such proceedings; or
• (f) during the pendency of arbitration proceedings before an
arbitrator and sixty days after the conclusion of such
proceedings, where a notification has been issued under
sub-section (5) of section 42; or
• (g) during any period in which a settlement or award is in
operation, in respect of any of the matters covered by the
settlement or award.
 Prohibition of lock-outs
• No employer of an industrial establishment shall lock-out any of his workers
—
• a) without giving them notice of lock-out as hereinafter provided, within
sixty days before locking-out; or
• (b) within fourteen days of giving such notice; or
• (c) before the expiry of the date of lock-out specified in any such notice as
aforesaid; or
• (d) during the pendency of any conciliation proceedings before a conciliation
officer and seven days after the conclusion of such proceedings; or
• (e) during the pendency of proceedings before a Tribunal or a National
Industrial Tribunal and sixty days, after the conclusion of such proceedings;
or
 Prohibition of lock-outs
• (f) during the pendency of arbitration proceedings before an
arbitrator and sixty days after the conclusion of such
proceedings, where a notification has been issued under
sub-section (5) of section 42; or
• (g) during any period in which a settlement or award is in
operation, in respect of any of the matters covered by the
settlement or award.
 Illegal strikes and lock-outs
• A strike or lock-out shall be illegal, if it is—
• (i) commenced or declared in contravention of section 62; or
• (ii) continued in contravention of an order made under sub-
section (7) of section 42
 Illegal strikes and lock-outs
• Where a strike or lock-out in pursuance of an industrial dispute has
already commenced and is in existence at the time of the filing of the
application relating to such industrial dispute in the Tribunal or of the
reference of such industrial dispute to an arbitrator or a National
Industrial Tribunal, the continuance of such strike or lock-out shall not be
deemed to be illegal, provided that such strike or lock-out was not at its
commencement in contravention of the provisions of this Code or the
continuance thereof was not prohibited under sub-section (7) of section
42.
• A lock-out declared in consequence of an illegal strike or a strike declared
in consequence of an illegal lock-out shall not be deemed to be illegal.
 CHAPTER IX
LAY-OFF, RETRENCHMENT AND
CLOSURE
 Conditions precedent to
retrenchment of workers
• No worker employed in any industry who has been in
continuous service for not less than one year under an
employer shall be retrenched by that employer until—
• (a) the worker has been given one month's notice in writing
indicating the reasons for retrenchment and the period of
notice has expired, or the worker has been paid in lieu of
such notice, wages for the period of the notice;
 Conditions precedent to
retrenchment of workers
• (b) the worker has been paid, at the time of retrenchment,
compensation which shall be equivalent to fifteen days'
average pay, or average pay of such days as may be notified
by the appropriate Government, for every completed year of
continuous service or any part thereof in excess of six
months; and
• (c) notice in such manner as may be prescribed is served on
the appropriate Government or such authority as may be
specified by the appropriate Government by notification
 Procedure for retrenchment
• Where any worker in an industrial establishment who is a
citizen of India, is to be retrenched and he belongs to a
particular category of workers in that establishment, then, in
the absence of any agreement between the employer and
the worker in this behalf, the employer shall ordinarily
retrench the worker who was the last person to be
employed in that category, unless for reasons to be
recorded the employer retrenches any other worker.
 Close Down
• An employer who intends to close down an undertaking shall serve, at
least sixty days before the date on which the intended closure is to
become effective, a notice, in such manner as may be prescribed, on
the appropriate Government stating clearly the reasons for the
intended closure of the undertaking:

• Provided that nothing in this section shall apply to—

• (i) an industrial establishment in which less than fifty workers are
employed or were employed on any day in the preceding twelve
months;
• (ii) an industrial establishment set up for the construction of buildings,
bridges, roads, canals, dams or for other construction work or project.
 CHAPTER XII
UNFAIR LABOUR
PRACTICES
 Quiz
• As per new Code on Wages, the employees getting monthly salary shall
get the salary by_____of next month, those working on weekly basis
shall get the salary on______day of the week And daily wages should get
it on the _____day.
• A. 7th, last day, same
• B. 1st, same day, same
• C. 3rd, starting day, same
• D. Any of the above

• Ans: 7th, last day, same

 Quiz
• As per new code on wages, contract labour does not include:
• A. worker regularly employed by contractor for any activity of his establishment
and his employment is governed by mutually accepted standard of conditions pf
employment
• B. worker who gets periodical increment in pay, social security coverage and other
welfare benefits
• C. Part time workers
• D. Both a and b
• E. All of the above

• Ans: Both a and b

 Quiz
• The Threshold limit on wages of Worker to cover under New
Industrial Labour Code, 2020 is:
• A. Rs. 10,000 p.m
• B. Rs. 18,000 p.m
• C. Rs. 20,000 p.m.
• D. Rs. 25,000 p.m.

• B: Rs. 18,000 p.m

 Quiz
• The number of members in the Grievance Redressal Committee has
been increased to_______in an industrial establishment employing 20
or more workers, as per new Industrial relation code,2020
• A. 10 members
• B. 15 members
• C. 20 members
• D. 6 members

• 20 members
 Quiz
• As per newIndustrialRelationcode,2020,prior notice of_________days
is required for strikes or lock-outs in any establishment.
• A. 14 days
• B. 30 days
• C. 21 days
• D. 60 days
 Quiz
• What factors are taken into account while fixing minimum wages:
• A. skill of the workers
• B. Geographical Area
• C. Temperature and Humidity
• D. Hazardous Occupation and underground work
• E. All of the above

• Ans:
 Quiz
• The Code on Wages , 2019 consider the wage period to be:
• A. Daily
• B. Weekly
• C. Fortnightly
• D. Monthly
• E. All of the above
 Quiz
• what is rate of overtime wages payable to employees under Codeon
Wages,2019:
• A. Hourly Rate x 1.5
• B. Hourly Rate x 2
• C. Hourly rate x 1.75
• D. Hourly rate x 3
 Quiz
• What is the mode of payment of wages prescribed under the Code
on wages,2019:
• A. coins
• B. Current notes
• C. Cheque
• D. Credit to bank account or E-Payment
• E. All of the above
 Quiz
• As per new Industrial Relation Code, 2020, a manufacturing unit is
regarded as ‘Factory’ if it employs:

• A. 10 workers with aid of power and 20 workers without aid of power

B. 20 workers with aid of power and 40 workers without aid of power
C. 20 workers with aid of power and 30 workers without aid of power
D. 10 workers with aid of power and 30 workers without aid of power