The Industrial Relations Code, 2020 is often misunderstood due to misinformation. Common myths claim that it abolishes the right to strike, allows unrestricted retrenchment, weakens trade unions, promotes employer interests only, and undermines job security through fixed-term employment.

In reality, the Code does not prohibit strikes but standardizes notice requirements to encourage dispute resolution. It retains procedural safeguards and compensation for retrenchment, strengthens collective bargaining through recognized negotiating unions, and balances ease of doing business with worker protection. Fixed-term employment is formalized with equal wages and benefits, ensuring fairness rather than insecurity.

The Code is intended to simplify labour laws, preserve essential worker rights, and promote industrial harmony.

Frequently Asked Questions on the Industrial Relations Code 2020

Q1. Does the Industrial Relations Code take away workers’ right to form trade unions?

Answer:
No. Provisions related to registration of trade unions are retained under Chapter III of the Industrial Relations Code, 2020.

Q2. Does the Industrial Relations Code ban all strikes?

Answer:
No. The right to strike remains intact. A mandatory 14-day notice period is required before going on strike.

Q3. Do workers need government permission to go on strike?

Answer:
No government permission is required. A 14-day prior strike notice is required to facilitate conciliation and timely dispute resolution.

Q4. Does the Industrial Relations Code allow employers to retrench workers freely?

Answer:
No. Mandatory one-month notice and retrenchment compensation provisions continue. Prior government permission is required for retrenchment in establishments with 300 or more workers.

Q5. Do trade unions lose their grievance redressal role?

Answer:
No. Trade unions receive statutory backing as negotiating unions or negotiating councils. The Code also provides Works Committees and Grievance Redressal Committees with equal representation to ensure time-bound grievance resolution.

Q6. Does the Code end job security for permanent workers and promote hire and fire?

Answer:
No. Worker rights and job security remain protected through mandatory notice, compensation, and approval requirements for retrenchment in large establishments.

Q7. Is Fixed-Term Employment exploitative?

Answer:
No. Fixed-term employees are eligible for all benefits equal to permanent employees, including EPF, ESI, flexible working hours, and minimum wages. They are also eligible for gratuity after one year of service. Fixed-term employment reduces contractualization and enhances employability.

Q8. Can employers with fewer than 300 workers terminate employees without restriction?

Answer:
No. Mandatory one-month notice and retrenchment compensation apply to all workers. A re-skilling fund for retrenched workers has been introduced to improve future employment opportunities.

Q9. Is the conciliation mechanism abolished under the Industrial Relations Code?

Answer:
No. Conciliation has been streamlined and made compulsory in strike-related disputes. Fixed timelines, digital processes, and clear jurisdiction aim to facilitate faster dispute settlement.

Q10. Are Labour Courts abolished?

Answer:
Labour Courts and Industrial Tribunals are replaced with a simplified two-tier tribunal system. Two-member tribunals are introduced for faster justice delivery.

Q11. Can workers collectively bargain or protest under the Code?

Answer:
Yes. Mandatory recognition of a sole negotiating union or negotiating council strengthens structured collective bargaining.

Q12. Does industry closure no longer require approval?

Answer:
No. Establishments with 300 or more workers require prior government permission for lay-off, retrenchment, and closure. Benefits such as retrenchment compensation and priority in reemployment continue.

Q13. Is workers’ participation in management removed?

Answer:
No. Workers’ participation is ensured through Works Committees and Grievance Redressal Committees.

Q14. Are penalties for employer violations removed?

Answer:
No. Penal provisions remain in force, and penalties have been substantially increased to match the nature of offences.

Q15. Does the Industrial Relations Code centralize labour powers?

Answer:
No. Labour is a concurrent subject under the Constitution of India. State governments remain appropriate authorities under all four labour codes.

Q16. Will the abolition of Labour Courts delay workers’ justice?

Answer:
No. The two-member Industrial Tribunal system is designed to ensure faster adjudication and reduce delays.

Q17. Does the Code favour employers only?

Answer:
No. The Code protects workers through negotiating unions, grievance redressal mechanisms, safeguards before retrenchment and closure, and effective dispute resolution systems.

Q18. Are sales promotion employees excluded from labour protections?

Answer:
No. Sales promotion employees are recognized under the definition of worker in the Industrial Relations Code.

Q19. Are journalists treated as freelancers and excluded from labour protections?

Answer:
No. Working journalists employed in newspapers or agencies are included under the definition of worker in the Industrial Relations Code.