Strike-related rules stricter, layoff norms eased in new labour rules

Mumbai: The state government in its cabinet meeting on Friday gave its assent to the rules formed under the new labour codes passed by the central government in 2020

Mumbai: The state government in its cabinet meeting on Friday gave its assent to the rules formed under the new labour codes passed by the central government in 2020. Some of the rules are: workers will have to give two months’ notice for a strike instead of the current 14 days, industries with less than 300 workers can lay off employees and shut down facilities without needing government permission, and employers will have the discretion to hire employees for a limited period of time.

HT Image

The rules also mandate that a trade union, in order to function as the sole union in an establishment, must have more than 51 percent of workers registered with it. In the event of no union having the required number, all the unions in an establishment can be part of the negotiating council.

Employees in a supervisory role drawing more than ₹18,000 a month have been excluded from the definition of ‘worker’ under the Industrial Disputes Act. Similarly, institutions working in the social, philanthropic and service sectors have been excluded from the definition of ‘industry’. The rules also seek to replace district courts with tribunals headed by officials and experts.

While trade unions are upset with the rules, there are a couple of provisions that will allegedly safeguard the interests of workers. For instance, if an employer moves the high court against a lower court order to reinstate an employee, the rules mandate that the employee must be paid their full salary till the high court gives its decision. Similarly, workers will have the right to avail of legal remedy for their individual disputes, as the Industrial Dispute Act is being amended accordingly.

The Maharashtra Industrial Relations Code Rules 2023 have been drafted in accordance with the central government’s ordinance issued in September 2020. The state government has proposed to subsume 29 existing laws in the four labour codes, which are Code of Wages, Code of Industrial Relations, Code of Social Security and Code of Occupational Safety, Health and Working Conditions. After the central government formulated the codes in September 2020, states were directed to frame their own rules.

State labour minister Suresh Khade said the rules were unlikely to be implemented immediately, as other states had yet to frame theirs. “We have sought legal opinion to decide the further course of action,” he said. “As for the rules themselves, some of them may be in favour of employers but most are in the interests of workers. The replacement of labour courts with tribunals, for instance, will ensure stricter action against employers.”

Sanjay Singhvi, a senior advocate at the Bombay high court and general secretary of the Trade Union Centre of India, said that very few states had framed new labour rules. “If Maharashtra adopts them and wishes to go ahead with their implementation, they will have to pass a law and get the central government’s nod,” he said. “The codes have been framed on the basis of the Ravindra Verma Commission report submitted in 2002. However, almost all the trade unions had opposed the report.”

Anil Ganacharya, general secretary of the Indian National Trade Union Congress, said the rules were anti-worker and would be opposed strongly. “We are holding a meeting to decide the further course of action,” he said.