Industrial Relations Code, 2020
1. Commission Formation: In 1999, the Second National Commission on Labour was established with the
mandate to review existing labor laws and propose reforms. It was tasked with rationalizing labor laws and
creating umbrella legislation for unorganized labor.
2. Report Submission: The Commission submitted its report on various aspects including wage laws,
occupational safety, industrial relations, and social security in June 2002.
3. Objectives: The primary objectives were to simplify definitions like worker, employer, and establishment, and
to consolidate provisions related to wages, social security, industrial relations, and worker health and safety
from similar labor laws
4. Legislative Response: In line with the Commission's recommendations, the Ministry of Labour, Government
of India enacted four codes:
The Code on Wages, 2019 (consolidating 4 labor laws)
The Occupational Safety, Health and Working Conditions Code, 2020 (consolidating 13 labor laws)
The Industrial Relations Code, 2020 (consolidating 3 labor laws)
The Social Security Code, 2020 (consolidating 9 labor laws)
5. Enactment: The Industrial Relations Code, 2020 received the President's assent on September 28, 2020.
6. Purpose: The code aimed to consolidate and amend laws related to trade unions, employment conditions,
investigation and settlement of industrial disputes, and related matters.
7. Applicability: The code extends to the entirety of India, ensuring uniformity and standardization of industrial
relations laws across the country.
8. Merger of Laws: Three existing labor laws are combined:
Industrial Disputes Act, 1947
Industrial Employment (Standing Orders) Act, 1946
Trade Unions Act, 1926
Structure: It comprises 14 chapters, 3 schedules, and 104 clauses.
9. Definition of Workers: Includes those in supervisory roles earning up to a specified monthly wage.
10. Fixed Term Employment: Employees under fixed-term contracts receive benefits akin to permanent workers,
except for notice period and retrenchment compensation.
11. Definitions
Industry Excludes certain sectors like charitable organizations and government activities.
Employee: Includes various job roles and excludes Armed Forces members.
Casual Leave and Strike: Casual leave is now included in the definition of a strike.
12. Representation of Women: Mandates adequate representation of women workers in industrial
establishments.
13. Negotiating Union and Council: Employers must recognize negotiating unions and councils for negotiations.
14. Recognition Criteria: Negotiating unions need support from over 51% of workers, while each 20% support
grants one seat in the negotiating council.
15. Standing Orders Certification: Industrial establishments with 300 or more workers must obtain certification
for standing orders.
16. Industrial Tribunal: Consists of a judicial and an administrative member for dispute resolution
17. Composition: Two-member tribunal for specified cases, single-member for others.
18. Adjudicating Bodies: Replaces multiple bodies with Industrial Tribunals.
19. Time Limit for Proceedings: Conciliation officers must conclude proceedings within two years of the dispute
arising.
20. Notice for Strikes and Lockouts: Mandatory 14-day notice for strikes and lockouts.
21. Permissions for Lay-off, Retrenchment, Closure: Certain industrial establishments require government
permission before taking such actions.
22. Compounding of Offenses: Offenses can be compounded by specified government officers for fines or
imprisonment terms.
