The Industrial Relations Code, 2020
Act No. 35 of 2020
1. Executive Overview
Streamlines trade unions, disputes, and employment conditions. Legalizes Fixed Term Employment and raises retrenchment thresholds.
2. Old vs New Comparison
| Provision | Old Law | New IR Code |
|---|---|---|
| Retrenchment | 100+ Workers | 300+ Workers (Permission Required) |
| Strike Notice | Public Utility | Mandatory (14 Days) for ALL |
| Dispute Limit | 3 Years | 2 Years |
3. Fixed Term Employment (FTE)
Employers can hire for a fixed duration. Termination at contract end is not retrenchment.
4. Ease of Doing Business (Compounding)
Employers can now pay 50% of the maximum fine to “compound” (settle) offenses out of court, avoiding criminal prosecution.
5. Trade Unions
Negotiating Council: A union with 51% support becomes the sole negotiating agent. Note: Primarily relevant for manufacturing sectors.