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Draft Labour Code on Industrial Relations Bill, 2015

Mysuru Karnataka : 06 06 2015: Workers busy at a thread making unit inside the century-old silk weaving factory in Mysuru. PHOTO: M.A.SRIRAM - | Photo Credit: M_A_SRIRAM -

The Union Ministry of Labour and Employment has prepared a draft Labour Code on Industrial Relations Bill, 2015. The stated objective of the government is to simplify the country's archaic labour laws relating to the registration of trade unions, conditions of employment, investigation and settlement of disputes and related matters. It seeks to integrate three labour laws -- Industrial Disputes Act, 1947; Trade Unions Act, 1926; and Industrial Employment (Standing Orders) Act, 1946 -- into a single code.

While the primary aim of the Draft Labour Code on Industrial Relations Bill, 2015 was to simplify labour laws, it has come in for sharp criticism from labour groups and trade unions. The Code will enable companies to fire their staff without any official sanction if the staff strength is up to 300. As of now, companies having more than 100 employees require official sanction for firing their staff. Also, registering a trade union will require at least 10 per cent of the employees as members, regardless of the size of the establishment.

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