Under Section 14 of the Industrial Relations Code, 2020,

Solution

Section 14 of the Industrial Relations Code, 2020 introduces, for the first time in any Central labour law, a statutory framework for recognition of trade unions for the purpose of collective bargaining. Under Section 14(3), where more than one registered trade union is functioning in an industrial establishment, the trade union having the support of at least 51% of the workers on the rolls of that establishment shall be recognised by the employer as the sole negotiating union. Where no single union commands 51%, a Negotiating Council shall be formed comprising all unions that have at least 20% membership, proportionally represented. The recognition granted is valid for 3 years from the date of recognition, extendable up to a maximum of 5 years by mutual agreement between the union and the employer. This provision plugs a long-standing gap in Indian labour law where multiple rival unions often created chaos in collective bargaining, as there was previously no Central statute mandating recognition.