Section 77 of The Industrial Relations Code, 2020
Application of this Chapter.
- (1)The provisions of this Chapter shall apply to an industrial establishment (not being an establishment of a seasonal character or in which work is performed only intermittently) in which not less than three hundred workers, or such higher number of workers as may be notified by the appropriate Government, were employed on an average per working day in the preceding twelve months.
- (2)If a question arises whether an industrial establishment is of a seasonal character or whether work is performed therein only intermittently, the decision of the appropriate Government thereon shall be final.
- (3)For the purposes of this Chapter, "industrial establishment" means---
- (i)a factory as defined in clause (m) of section 2 of the Factories Act, 1948 (63 of 1948);
- (ii)a mine as defined in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952 (35 of 1952); or
- (iii)a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951 (69 of 1951).
Summary
- This Chapter covers factories, mines, and plantations as defined in relevant laws.
- Seasonal businesses or those where work happens intermittently are not covered by Chapter X.
- The Government makes the final decision if there is a disagreement about whether a business is seasonal.
- The average number of workers is calculated based on the working days in the previous twelve months.
Practical examples
FAQ
1. What is the main size limit for a business to be under Chapter X?
It applies to establishments with at least three hundred workers.
2. Does this law apply to temporary or seasonal work?
No, it specifically excludes establishments of a seasonal character or where work is only intermittent.
3. Who has the final say on whether a company is seasonal?
The decision of the appropriate Government on this question is final.
4. Can the 300 worker limit ever be changed?
Yes, the appropriate Government has the power to notify a "higher number" of workers as the new threshold.
Test yourself
1.Under Section 77 of The Industrial Relations Code, 2020, what is the worker threshold for Chapter X to apply?
2.According to Section 77 of The Industrial Relations Code, 2020, which of these is NOT an "industrial establishment" for this Chapter?
3.Under Section 77 of The Industrial Relations Code, 2020, who decides if a business is seasonal?
4.Section 77 of The Industrial Relations Code, 2020 refers to "Section 2" for certain definitions. What is the key measurement period for counting workers?