LAY-OFF, RETRENCHMENT AND CLOSURECentral
Section 76 of The Industrial Relations Code, 2020
- (1)The provisions of this Chapter shall have effect notwithstanding anything inconsistent therewith contained in any other law including standing orders made under Chapter IV: Provided that where under the provisions of any other Act or rules, orders or notifications issued thereunder or under any standing orders or any award, contract or service or otherwise, a worker is entitled to benefits in respect of any matter which are more favourable to him than those to which he would be entitled under this Code, the worker shall continue to be entitled to the more favourable benefits in respect of that matter, notwithstanding that he receives benefits in respect of other matters under this Chapter.
- (2)For the removal of doubts, it is hereby declared that nothing contained in this Chapter shall be deemed to affect the provisions of any other law for the time being in force in any State in so far as that law provides for the settlement of industrial disputes, but the rights and liabilities of employers and workers in so far as they relate to lay-off and retrenchment shall be determined in accordance with the provisions of this Chapter.
Summary
- The rules in this Chapter (Chapter IX) take priority over any other laws that say something different.
- These rules also override any standing orders (a company's own set of rules) if there is a conflict.
- Workers still get to keep any benefits from other laws or contracts that are more favourable than these rules.
- This law does not stop states from having their own rules for settling industrial disputes.
- All rights and duties regarding lay-offs and retrenchment must be decided based on this Chapter.
Practical examples
1Sunita's company rulebook says she gets 5 days of pay per year of service if the factory closes. The Code says she should get 15 days. Because Section 76 makes the Code take priority, Sunita gets the 15 days of pay.
2Vijay has a special contract that gives him 4 months of notice before being let go. The Code only requires 1 month. Because Vijay's contract is more favourable to him, Section 76 says he gets to keep his 4 month notice period.
FAQ
1. Does this law replace a company's internal rules?
Yes, if the company's standing orders conflict with this Chapter, the Chapter's rules win.
2. What if I have a contract that gives me better benefits than this Code?
You are entitled to the more favourable benefits in that specific matter.
Test yourself
Q1.According to Section 76 of The Industrial Relations Code, 2020, which of these takes precedence in a conflict?
Q2.Under Section 76 of The Industrial Relations Code, 2020, what happens if another law gives a worker a better deal than this Chapter?
Q3.Does Section 76 of The Industrial Relations Code, 2020 allow state laws to exist alongside it?
Q4.According to Section 76 of The Industrial Relations Code, 2020, which specific topics are strictly governed by Chapter IX rules?