Labour Panel Clears Industrial Code With Riders

Submits report urging Centre to create a condusive industrial atmosphere

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The Parliamentary Standing Committee on Labour, headed by Biju Janata Dal MP Bhartruhari Mahtab, has recommended a number of changes to the Industrial Relations Code. The panel submitted its report to Speaker Om Birla on Thursday, urging the Centre to create a formal and conducive industrial relations system by strengthening the various provisions in the Code.

The code proposes to subsume within it the Industrial Disputes Act, 1947, the Trade Unions Act, 1946 and the Industrial Employment (Standing Orders) Act, 1946. It also provides simplification and rationalisation of the existing provisions in those laws.

Commenting on the clause that asks the employer to pay 50 per cent wages to the workers/ employees who are laid off due to shortage of power, coal, raw material, the panel expressed reservations overpayment of the prescribed percentage of wages to the workers in the event of closure of an establishment due to natural calamity. It said in case of natural calamities such as earthquake, flood and super cyclone which often result in closure of establishments for extended period for no fault of employers’, payment of wages to workers until the reestablishment of the industry may be unjustifiable.