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CS Executive · Setting Up of Business, Industrial and Labour Laws · Evaluation of Labour Legislation and need of Labour Code

Vikram Auto Components Ltd, Chennai, uses contract labour in a core activity, and a union says this is itself an unfair labour practice under Section 84 of the Industrial Relations Code, 2020. Which analysis is best supported by the official text?

Contract labour in core activities is governed by Section 57 of the OSH Code, which prohibits it except under the stated provisos. Section 84 of the Industrial Relations Code only prohibits unfair labour practices specified in the Second Schedule, so the two operate separately.

  1. ASection 84 itself bars all contract labour, so the engagement is unlawful
  2. BContract labour in core activities is prohibited under Section 57 of the OSH Code, subject to its provisos, while Section 84 prohibits only practices specified in the Second ScheduleCorrect
  3. CSection 57 of the OSH Code permits contract labour in core activities in every case, so nothing is prohibited
  4. DSection 84 allows contract labour in core activities if the union is unregistered

Explanation

Section 57(1) of the OSH Code prohibits contract labour in core activities, with exceptions such as activities ordinarily done through a contractor or sudden increase in work. Section 84 of the IR Code separately prohibits only practices specified in the Second Schedule. The two provisions operate separately, so the union cannot rely on Section 84 alone to bar contract labour.

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