The Third Schedule · Industrial Relations Code

Conditions of Service Needing Notice of Change

The Third Schedule lists the 11 conditions of service that need notice before an employer changes them, under section 40 named at its head. It covers wages, employer contributions to provident or pension funds, allowances, working hours, leave, shifts, grading, customary benefits, discipline rules, changes in plant or technique likely to cause retrenchment, and changes in headcount. If a planned change touches any item on this list, the notice of change rule in section 40 applies to it, unless one of that section's exceptions covers the change.

1 section ~1 min read Official text, PDF p. 56

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Key points

1The schedule lists 11 matters, and a change to a worker's conditions of service on any of them needs notice under section 40, named at its head, unless one of the exceptions in that section applies. §schedule
2Money items are on the list: wages including the period and mode of payment, contributions paid or payable by the employer to any provident fund or pension fund or otherwise for the benefit of workers under any law, and compensatory and other allowances. §schedule
3Working time is on the list: hours of work and rest intervals, leave with wages and holidays, and starting, altering or stopping shift working other than as the standing orders provide. §schedule
4Workplace practice is on the list: classification by grades, withdrawing a customary concession or privilege or changing a usage, and bringing in or altering discipline rules beyond what the standing orders already provide. §schedule
5Changes in plant and people are on the list: rationalisation, standardisation or improvement of plant or technique likely to lead to retrenchment, and any non-casual increase or reduction in the number employed in an occupation, process, department or shift, unless caused by circumstances outside the employer's control. §schedule
6The heading also points to section 101(1), under which the Central Government can add to or amend this list by notification. §schedule

At a glance

11Matters on which a change needs noticeSection schedule

Earlier law:Industrial Disputes Act, 1947

THE THIRD SCHEDULE — CONDITIONS OF SERVICE FOR CHANGE OF WHICH NOTICE IS TO BE GIVEN

In plain words

This schedule lists the 11 conditions of service that need notice before an employer changes them under section 40: wages and how they are paid, employer fund contributions, allowances, hours and rest intervals, leave and holidays, shift working outside standing orders, grading, customary concessions and usage, discipline rules outside standing orders, changes in plant or technique likely to cause retrenchment, and non-casual changes in headcount not caused by circumstances beyond the employer's control.

[See sections 40 and 101 (1)]

Wages, including the period and mode of payment.

Contribution paid, or payable, by the employer to any provident fund or pension fund or for the benefit of the workers under any law for the time being in force.

Compensatory and other allowances.

Hours of work and rest intervals.

Leave with wages and holidays.

Starting, alteration or discontinuance of shift working otherwise than in accordance with standing orders.

Classification by grades.

Withdrawal of any customary concession or privilege or change in usage.

Introduction of new rules of discipline, or alteration of existing rules, except in so far as they are provided in standing orders.

10.

Rationalisation, standardisation or improvement of plant or technique which is likely to lead to retrenchment of workers.

11.

Any increase or reduction (other than casual) in the number of persons employed or to be employed in any occupation or process or department or shift, not occasioned by circumstances over which the employer has no control.

Source: The Industrial Relations Code, 2020, official gazette copy, page 56

In plain words

For employers

Checking a planned change against all 11 items before announcing it shows whether section 40 applies. The 21-day wait and the exceptions are in section 40, the manner of giving notice is left to rules, and section 41 lets the appropriate Government exempt classes of establishments or workers. The Central Government can amend this list by notification under section 101(1), so the current version is the one to check.

Did you know?

Changing only how or how often wages are paid, not the amount, is still on the list: item 1 covers the period and mode of payment.

Did you know?

Item 8 is not tied to any written term: it covers withdrawing any customary concession or privilege, or changing a usage.

Did you know?

Increasing headcount counts as much as reducing it: any non-casual increase or reduction in the persons employed in an occupation, process, department or shift is listed, unless it is caused by circumstances beyond the employer's control.

Did you know?

The plant item is narrow: item 10 covers rationalisation, standardisation or improvement of plant or technique only where it is likely to lead to retrenchment of workers. Likewise, the shift item covers changes made otherwise than in accordance with standing orders, and the discipline item covers rules except so far as standing orders provide them.

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