Labour courts in limbo as new labour codes yet to be brought into force

Labour courts across the State are facing uncertainty following the recent notification bringing the Industrial Relations Code, 2020 – one of the new labour codes – into force from November 21 this year.

Labour lawyers and activists say the absence of clear directions on the repeal of older labour laws has left adjudicatory bodies unsure of their authority, and this has resulted in stalled proceedings and mounting concerns among workers, trade unions, and employers.

According to advocate V. Prakash, the confusion is due to the lack of a specific notification clarifying the status of the Industrial Disputes Act, 1947, the Trade Unions Act, 1926, and the Industrial Employment (Standing Orders) Act, 1946. While the new code has been notified, the government has not expressly stated when these earlier enactments stand repealed, he adds.

This has led labour courts to adjourn cases on the assumption that they no longer have jurisdiction, even as new forums under the code are yet to be fully constituted.

For enforcing a law, the government needs to notify rules under the law to operationalise the legislation. It is said that the government intends to enforce the rules for operationalisation of the four codes from April 1.

Industrial tribunals in the State also are reportedly unable to function effectively, as the way they are constituted currently does not align with the requirements under the new legislation. As a result, hundreds of pending disputes relating to wages, dismissals, and service conditions remain undecided. New disputes, including those involving individual workers who are bound by limitation periods, are also left without a clear legal pathway, activists say.

R. Geetha of the Unorganised Workers’ Federation says access to justice is a fundamental right, and the current impasse denies workers and employers a functioning forum to resolve disputes. Many have expressed concern that prolonged delays could heighten tension at workplaces, and weaken confidence in the labour justice system.

Acknowledging the confusion over the functioning of labour courts since November 21, a court officer in the labour court for State cases in Chennai says existing labour courts should continue to function until alternative mechanisms are established.