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(GIST OF YOJANA) Impact of the Bharatiya Naya Sahita on Labour Dispute Resolution

(NOVEMBER-2024)

Impact of the Bharatiya Naya Sahita on Labour Dispute Resolution

Introduction:

Labour disputes in India have historically been regulated by primary legislation such as:

Industrial Disputes Act (IDA) of 1947
Trade Unions Act of 1926
Industrial Employment (Standing Orders) Act of 1946

These statutes were unified under the Industrial Relations Code (IRC) 2020 to organize labour laws and bolster industrial growth.

The Bharatiya Naya Sahita (BNS) symbolizes (IPC), impacting various legal fields, including the resolution of labour conflicts. BNS conforms to international criteria to promote development in India, aspiring for a middle-income status.

Industrialization and Labour Conflicts:

Industrialization generated a rift between management and employees due to unequal ownership of production resources. This disparity resulted in industrial conflicts that are prevalent worldwide, necessitating a proficient dispute resolution framework.

In India, IDA and IRC have responded to this demand by:

Encouraging conciliation, arbitration, and judicial proceedings
Enhancing social and economic stability

Dispute Resolution: Labour Concerns in India
Traditional Framework (IDA, IRC): Aimed at amicable settlement of conflicts and harmony between workers and employers.

Key clauses:

Section 3 and 10A of IDA: Emphasis on conciliation and voluntary arbitration
Section 7: Establishment of labour courts and industrial tribunals
IRC’s significant reforms: Maintenance of previous bodies, excluding the Conciliation Board, Court of Inquiry, and Labour Code.
Removal of the requirement for government consent to refer disputes, except in national tribunals.

IRC Methods of Dispute Resolution:

Bi-partisan panels: Comprising Grievance Redressal Committee and Works Committee.
Conciliation: Mediated by an impartial third party

Court Adjudication

Timelines:

Section 12 of IRC: The conciliation process should wrap up within 15 days
Section 53: 45 days for general industrial disputes, 14 days for notice-based disputes
In alignment with International Labour Organization (ILO) standards, fostering advancement.

Challenges with IDA and IRC:

Concentrates on the formal sector, neglecting the unorganized sector:

Domestic, agricultural workers, gig economy workers lack access to dispute resolution frameworks.
Conciliation often favors employers, functioning merely as a formality prior to adjudication.
IRC lacks provisions for online conciliation amid negotiations shortages.

Labour Conflicts: Dispute Resolution under BNS

BNS employs a punitive approach to labour dispute resolution, imposing stricter compliance obligations on employers.

Evolution of Strikes and Protests:

Traditionally, strikes acted as collective bargaining instruments.
Sections 16 and 17 of IRC: Protection for union members in civil/criminal cases if actions benefit the union.
BNS Section 194: Penalizes violent acts (affray) in public, targeting unlawful strikes/protests.
Supreme Court (All India Bank Employees Association v. IT): Asserts that the right to form unions does not guarantee an absolute right to strike.

Potential Consequences:

While deterring unlawful strikes, BNS may criminalize specific worker protests.
Signifies a transition from conciliation to punitive measures, introducing a new classification of labour offenses.

Practical Challenges and Future Perspective:

Criminalization of labour offenses may intensify judicial delays.
Smaller businesses may struggle to navigate BNS intricacies.
The judiciary’s function is pivotal in interpreting BNS clauses, particularly Section 194 for various labour scenarios.
Evolving Influence: The actual impact will hinge on how the judiciary applies BNS in future instances, shaping labour interactions.

Labour Conflicts and BNS: The Path Ahead

BNS Evolution:

Transitions from conciliatory strategies to a punitive framework.
Enhances worker safeguarding while imposing stricter penalties on employers.
Reclassifies certain labour misdemeanors as criminal to align with global standards.

Implications:

Alters the dynamics between employers and employees, balancing worker rights with business interests.
Could escalate adversarial relations within the labour sphere.
Success relies on adaptation to changes in the labour landscape and safeguarding both worker and employer rights.

Informal Sector and BNS:

While BNS addresses the implications for the formal sector, its application to the informal sector remains ambiguous.
Recent ruling (Ms X vs ICC, ANI Technologies Ltd): Acknowledges platform drivers as employees, permitting dispute pathways under BNS and IRC.

Future Prospects:

BNS might reform labour dispute resolution for a fairer framework in India.
The judiciary’s role is vital for a balanced legal framework that acknowledges both worker rights and employer interests.