Essential Compliances for Employers and Trade Unions under the Industrial Relation (Gujarat) Rules, 2021

Background

The Industrial Relation (Gujarat) Rules, 2021 have been framed to operationalize the Industrial Relations Code, 2020 within the state by laying down detailed procedures and compliance obligations for employers, workers, and trade unions. These rules aim to streamline industrial relations by regulating aspects such as dispute resolution, retrenchment, protected workers, and unfair labour practices. Through a structured compliance framework, the Rules seek to promote transparency, safeguard worker rights, and ensure smooth functioning of industrial establishments across Gujarat.

Applicability

The Industrial Relations Code, 2020 applies uniformly across India, including Gujarat, from the date it was brought into force by the Central Government. In Gujarat, the IR Code applies to all industrial establishments covered under the definitions of “industry,” “industrial establishment,” and “worker” in the Code. Provisions relating to standing orders apply to establishments with 300 or more workers, while rules on trade unions, dispute resolution, and employer-employee relations apply broadly to all applicable industries and establishments operating within the state.

Compliance Requirements under the Rules In accordance with the Code

1. Employer contribution reskilling fund at the time or retrenchment (Section 83(2),(3), Rule-35)

Within 10 days of retrenchment, the employer must transfer 15 days’ last drawn wages per worker to a govt. account. Govt. will credit it to workers’ accounts within 45 days for re-skilling. Employer must submit worker names, wage amount, and bank details for fund transfer.

2. Prohibition of unfair labour practices in Gujarat (Section 84)

No employer or worker or a Trade Union, whether registered under this Code, or not, shall commit any unfair labour practice specified in the Second Schedule.

3. Conditions of service to remain unchanged during pendency of proceedings in Gujarat (Section 90(1))

The employer may during pendency of proceedings, for matters unconnected with dispute:
a) alter w.r.t. conditions of service of workers immediately before commencement of such proceedings, or

b) for any misconduct, discharge or punish any worker concerned

Further, he can do so with express permission in writing of authority before which proceeding is pending.

4. Submission of names of Protected Officers by Trade Union to the Employer (Section 90(3), (4), Rule 37(1), (3))

Each Trade Union must submit by 30th April to employer, names of officers to be recognised as protected workers.

A “protected worker” refers to a worker who is a member of the executive or an office-bearer of a registered Trade Union associated with the establishment and is recognised as such under the prescribed rules. In every establishment, one percent of the total workforce shall be recognised as protected workers, with a minimum of five and a maximum of one hundred. The appropriate Government may frame rules to allocate the number of protected workers among the various Trade Unions in the establishment and to specify the procedure for selecting and recognising these protected workers.

Penalty & Punishment

U/s 86(5): Any person who commits any unfair labour practice as specified in the Second Schedule shall be punishable with fine which shall not be less than ten thousand rupees, but which may extend to two lakh rupees.

U/s 86(6): For  subsequent offence, he shall be punishable with fine which shall not be less than fifty thousand rupees, but which may extend to five lakh rupees or with imprisonment for a term which may extend to three months, or with both.

U/s 86(7):  If default is made on the part of any registered Trade Union in giving any notice or sending any statement or other document as required by or under any of the provisions of the Code, every office-bearer or other person bound by the rules of the Trade Union to give or send the same, or, if there is no such office-bearer or person, every member of the executive of the Trade Union, shall be punishable with fine which shall not be less than one thousand rupees, but which may extend to ten thousand rupees and any continuing default shall be punishable with an additional penalty of fifty rupees per day so long as the default continues.

As per Section 86(20): Any person who contravenes any other provision of this Code not covered under sub-sections (1) to (19) or the rules or regulations framed under this Code shall be punishable with fine which may extend to one lakh rupees

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