Businesses with employees in India should review major changes to the country’s labor relations framework that will impact your policies and practices. The new Industrial Relations Code, which took effect late last year, streamlines India’s dispute resolution process while attempting to maintain the balance between employer flexibility and worker protections. In doing so, the code updates requirements for grievance committees, consolidates tribunals, and expands procedural requirements governing strikes and lockouts. Here’s what you need to know about key changes and seven steps you can take now to prepare and comply.
The Industrial Relations Code retains and strengthens Grievance Redressal Committees (GRCs), which were first introduced by the Industrial Disputes Act in 1947. GRCs are designed to address individual employee grievances at the establishment level and must provide equal representation for both employers and workers.
What changed? Industrial establishments employing 20 or more workers are now required to have a GRC. Under prior law, employers could seek an exemption by relying on pre-existing, alternative mechanisms to address grievances. The code removes this exemption, creating a uniform grievance redressal process across covered establishments. The code also increases the maximum number of GRC members to 10 and requires adequate representation of women in proportion to their share of the workforce.
Here’s a rundown of the...
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