Not being an at-will jurisdiction, India has had its fair share of employment litigation with many claims relating to unlawful termination and unfair labor practices. Labor unions have also remained active in the country, though largely confined to the industrial sectors. India’s new labor codes are still awaiting their effective date. The four labor codes replace 29 federal-level labor laws. Once implemented, it will be by far the biggest change to our labor law system.
One of the critical set of changes that will be introduced by the Industrial Relations Code, 2020 (“IRC”) relates to the system of employment litigation. Currently, the Industrial Disputes Act, 1947 (“IDA”) envisages the following forums:
Board of Conciliation, to encourage the settling of an industrial dispute.
Court of Inquiry, to inquire about any dispute looking to be related to employment law.
Labor Courts, to settle employment litigation judicially. They can interpret standing orders and adjudicate on violation of standing orders along with deciding the legality of discharge or dismissal of a worker. They can rescind any customary privilege or concessions and invalidate a lock-out or strike apart from other disputes not in the jurisdiction of a tribunal.
Industrial Tribunals, to adjudicate disputes of wages like period, payment mode, allowances including compensatory allowances, leave, working hours, rest intervals, provident fund, bonus,...
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