The Industrial Relations Code, 2020: formula sheet

Key formulas

Extent

The Code extends to the whole of India

Section 1(2). The short title is the Industrial Relations Code, 2020.

Commencement

In force on the date notified by the Central Government; different dates possible for different provisions

Section 1(3). The date notified is 21 November 2025 (Notification S.O. 5320(E)).

Acts repealed

Trade Unions Act, 1926 + Industrial Employment (Standing Orders) Act, 1946 + Industrial Disputes Act, 1947

Section 104. Repeal takes effect from the date specified in the Central Government's notification. Remaining provisions stay until repealed by like notifications.

Savings

Action taken under a repealed Act is deemed taken under the corresponding provision of the Code, to the extent not contrary to it

Section 104(2). Section 6 of the General Clauses Act, 1897 also applies (section 104(3)).

Industrial dispute

Dispute or difference between employers and employers, employers and workers, or workers and workers, connected with employment, non-employment, terms of employment or conditions of labour

It also covers an individual worker's dispute with the employer over discharge, dismissal, retrenchment or termination.

Worker

Any person employed in an industry for hire or reward to do manual, unskilled, skilled, technical, operational, clerical or supervisory work

Excludes members of the armed forces, police and prison staff, persons in a mainly managerial or administrative role, and supervisors drawing wages above ₹18,000 a month or mainly doing managerial functions. Apprentices under the Apprentices Act, 1961 are also excluded.

Strike

Cessation of work, or concerted refusal to work, by a body of persons employed in an industry acting in combination or under a common understanding

The definition also covers concerted casual leave on a given day by 50 per cent or more of the workers.

Lock-out

Temporary closing of a place of employment, suspension of work, or the employer's refusal to continue to employ any number of persons

The act is the employer's. Strike is by workers, lock-out is by the employer.

Retrenchment

Termination of a worker's service for any reason, other than as disciplinary punishment

Not retrenchment: voluntary retirement, retirement on superannuation, non-renewal of contract or termination under a contract stipulation, end of a fixed term employment, and termination for continued ill-health.

Continuous service (section 66)

Deemed one year: 240 days in 12 months (190 days if below ground in a mine). Deemed six months: 120 days in 6 months (95 days if below ground in a mine)

Service interrupted by sickness, authorised leave, accident, a strike which is not illegal, lock-out or cessation of work not due to the worker's fault still counts as continuous.

Works Committee: applicability

100 or more workers employed (or employed on any day in the preceding 12 months) + order of appropriate Government

Section 3(1). The employer constitutes it only when required by a general or special order.

Works Committee: composition

Workers' representatives ≥ employer's representatives

Proviso to section 3(1). Workers' representatives are chosen from among the workers engaged in the establishment, in consultation with their registered Trade Union, if any (section 3(2)).

Works Committee: duty

Promote amity and good relations; comment on matters of common interest; endeavour to compose material differences of opinion

Section 3(3).

Grievance Redressal Committee: applicability

20 or more workers

Section 4(1). One or more committees for disputes arising out of individual grievances.

Grievance Redressal Committee: composition

Equal employer and worker members; total ≤ 10; women's share ≥ women's proportion of total workers

Section 4(2) and 4(4). Chairperson is selected alternately from employer and worker representatives on rotation every year (section 4(3)).

Grievance Redressal Committee: time limits

Application: within 1 year of cause of action. Proceedings: 30 days of receipt. Appeal to conciliation: 60 days.

Section 4(5), (6) and (8). The 60 days run from the decision, or from expiry of the 30 days.

Grievance Redressal Committee: decision rule

Majority view, provided more than half of the workers' representatives agree; otherwise deemed no decision

Section 4(7).

Direct access to Tribunal

After 45 days from conciliation application; Tribunal application within 2 years of termination

Section 4(10) and (11). Applies to discharge, dismissal, retrenchment or termination of an individual worker (section 4(9)).

Application for registration (Section 8(1))

Application to Registrar + affidavit declaration + rules and adopting resolution + resolution authorising applicants (+ resolutions of each member union for a federation)

The application can be made electronically or otherwise. If the union existed for more than one year, add a general statement of assets and liabilities (Section 8(2)).

Name rule (Sections 8(4) and 24(4))

Identical or deceptively similar name → Registrar requires alteration and refuses registration (or change of name) until then

The test is whether the name is likely to deceive the public or members of either union.

Cancellation grounds (Section 9(5))

(i) union's own application; (ii) contravention of Code, rules, constitution; (iii) members below 10% of total workers or 100 workers, whichever is less

At least 60 days' written notice with grounds is needed, unless cancellation is on the union's own application. Cancellation is mandatory if a Tribunal orders it (Section 9(6)). Reasons must be recorded and communicated (Section 9(7)).

Appeal (Section 10)

Refusal or cancellation → appeal to Tribunal within the prescribed period

The Tribunal can condone delay for sufficient reason or unavoidable circumstances. It can dismiss the appeal, direct registration, or set aside the cancellation.

Sole negotiating union (Section 14(2) and (3))

One registered union → recognised as sole negotiating union (subject to prescribed criteria). Several unions → union with ≥ 51% of muster-roll workers' support

The support is verified in the prescribed manner.

Negotiating council (Section 14(4) and (5))

No union at 51% → council of unions with ≥ 20% support; one representative per 20% and for the remainder; agreement by majority of representatives

The employer constitutes the council.

Validity of recognition (Section 14(6))

3 years, extendable by mutual decision, total not exceeding 5 years

This applies to recognition under sub-sections (2) and (3) and to a council under sub-section (4).

Change of name and amalgamation (Section 24)

Name change: consent of ≥ two-thirds of total members. Notice signed by secretary and 7 members (of each union in an amalgamation)

A name change takes effect from the date of registration. Rights, obligations and legal proceedings are not affected (Section 24(7)).

Employer's duty to prepare draft

Draft standing orders within 6 months from commencement of the Code (s. 30(1)); draft modifications within 6 months from the date the Chapter becomes applicable to the establishment (s. 30(4))

The draft must be based on the model standing orders and cover every First Schedule matter. The two six-month periods start from different events, so do not merge them.

Consultation before sending the draft

Employer consults Trade Unions / recognised negotiating union / members of negotiating council, then forwards the draft to the certifying officer (s. 30(2))

Consultation comes first; forwarding comes after.

Adoption of model standing orders

Model standing orders adopted = deemed certified; employer informs certifying officer (s. 30(3))

Officer may still direct amendment of adopted orders within the prescribed period if he has observations.

Certification time limit

Certifying officer completes the procedure within 60 days of receipt of the draft or the draft modifications; failing which they are deemed certified on expiry of that period (proviso to s. 30(5))

Applies to drafts and to draft modifications. On deemed certification they take effect as certified. Section 30(8) provides for copies to be sent within 7 days after the officer certifies.

Certifiability test

Standing orders certifiable if (a) every applicable First Schedule matter is provided for and (b) they conform to the Code (s. 30(6))

Fairness and reasonableness is judged against the model standing orders (s. 30(7)).

Copies after certification

Certified copies sent within 7 days to the employer and to the negotiating union/council, Trade Union or worker representatives (s. 30(8))

Seven days run from certification by the officer.

Interim model standing orders

From applicability of the Chapter until final certified standing orders come into operation, model standing orders are deemed adopted (s. 29(2))

Section 35 on modification also applies to them.

Lock-in on modification

No modification until 6 months from date standing orders or last modification came into operation, unless agreement (s. 35(1))

Modification applications follow the same procedure as first-time certification (s. 35(3)).

Disputes on interpretation

Employer, worker or Trade Union may apply to the Tribunal; decision final and binding (s. 37)

Tribunal must give all parties a reasonable opportunity of being heard.

Fixed term employment

Fixed term employee: engaged on a written contract for a fixed period

The Code's definition attaches conditions to this form of employment. Learn them from the Code and your study material. The text supplied here covers standing orders only.

Procedure of the authorities (Section 49(1))

Arbitrator / conciliation officer / Tribunal / NIT follow the procedure they deem fit, subject to the Code and rules

They are not bound by a fixed procedure, but the Code and rules still apply.

Civil court powers (Section 49(3))

Conciliation officer, Tribunal and NIT: (a) enforce attendance and examine on oath; (b) compel production of documents and material objects; (c) issue commissions for examination of witnesses; (d) other prescribed matters

These are the powers of a civil court under the Code of Civil Procedure, 1908 when trying a suit.

Conciliation officer's own powers (Section 49(2) and (4))

Enter establishment premises after reasonable notice; enforce attendance; call for and inspect relevant documents

Entry is for inquiry into an existing or apprehended dispute. The officer may also inspect documents to verify implementation of an award.

Voluntary arbitration (Section 42)

Written agreement by employer and workers → arbitrator(s) named → copy to appropriate Government and conciliation officer → signed award to Government

If the agreement names an even number of arbitrators, it must provide for an umpire. The umpire's award prevails if they are equally divided.

National Industrial Tribunal (Section 46)

2 members: 1 Judicial Member (is or has been a High Court Judge) + 1 Administrative Member (is or has been Secretary to Government of India or equivalent rank, with labour experience); Judicial Member presides

Constituted by the Central Government by notification.

NIT reference (Section 54)

Central Government refers disputes of national importance or involving establishments in more than one State

The NIT must hold proceedings expeditiously and submit its award within the period specified in the order, or any extended period.

Who is bound (Section 57)

Private settlement: parties to it. Arbitration award: parties who referred. Conciliation settlement / arbitration / Tribunal or NIT award (enforceable): all parties, parties summoned, successors, and all present and future workers

The award must have become enforceable. Summoned parties are excluded if the authority records that they were summoned without proper cause.

Commencement and conclusion before arbitrator or Tribunal (Section 60(3))

Starts on date of filing application or appeal, or date of reference; ends when the award becomes enforceable

Different from conciliation, which starts at the first meeting.

Strike notice and timing (s. 62(1))

Notice within 60 days before striking; no strike within 14 days of notice; no strike before the date stated in the notice

Applies to a person employed in an industrial establishment going on strike in breach of contract.

Lock-out notice and timing (s. 62(2))

Same as strike: notice within 60 days before; not within 14 days of notice; not before the date in the notice

Employer's side of the same rule.

Periods when strike or lock-out is prohibited

Conciliation: pendency + 7 days | Tribunal/NIT: pendency + 60 days | Arbitration (s. 42(5) notification): pendency + 60 days | Settlement or award in operation: on covered matters

Remember 7 days for conciliation and 60 days for the other two.

No notice where already on (s. 62(3))

Notice not needed if a strike or lock-out already exists; employer must intimate the specified authority on the day it is declared

Employer must also report notices received or given to the appropriate Government and conciliation officer within five days (s. 62(6)).

Illegal strike or lock-out (s. 63)

Illegal if in breach of s. 62 or continued against a s. 42(7) order

Continuance is not illegal if it was lawful at the start and was on when the dispute reached the Tribunal or arbitrator, and no s. 42(7) prohibition applies. A response lock-out or strike is not illegal.

Lay-off compensation (s. 67)

Compensation = 50% × (basic wages + dearness allowance) for each day of lay-off, excluding weekly holidays

For a worker on the muster rolls with at least 1 year of continuous service. Badli and casual workers are excluded.

45-day proviso on lay-off

If laid off for more than 45 days in any 12 months, no compensation after the first 45 days, if the worker and employer have agreed so

The employer may then retrench after 45 days, and lay-off compensation paid in the preceding 12 months can be set off against retrenchment compensation.

Retrenchment conditions (s. 70)

(a) 1 month's written notice with reasons, or wages in lieu; (b) compensation of 15 days' average pay for every completed year of service or part over 6 months; (c) notice to the appropriate Government or specified authority

Applies to a worker with at least 1 year of continuous service. Appropriate Government may notify a different number of days.

Closure compensation (s. 75)

Closure = treated as retrenchment under s. 70. If closed due to unavoidable circumstances beyond employer's control, compensation under s. 70(b) is capped at average pay for 3 months

Financial difficulties, unsold stocks, expiry of lease or licence, and mineral exhaustion alone are not unavoidable circumstances.

Construction undertaking (s. 75(4))

Closed on completion within 2 years of set-up: no s. 70(b) compensation. Not completed within 2 years: notice and compensation for each completed year or part over 6 months

Applies to buildings, bridges, roads, canals, dams and other construction work.

Re-skilling fund contribution (Section 83(2)(a))

Employer contribution = 15 days' wages last drawn by the worker immediately before retrenchment, per retrenched worker

Central Government may notify a different number of days. Applies to retrenchment only.

Crediting the fund (Section 83(3))

Credit of 15 days' last-drawn wages to the retrenched worker's account within 45 days of retrenchment

Done in the prescribed manner.

Compounding amount (Section 89(1))

50% of maximum fine (fine-only offences); 75% of maximum fine (offences punishable with imprisonment up to one year or with fine)

Not available for offences punishable with imprisonment only, or with imprisonment and also fine. Amount goes to the Social Security Fund.

Repeat offence bar (Section 89(2))

No compounding for an offence committed a second time or later within 3 years of a similar offence compounded or convicted

Counted from the date of commission of the earlier similar offence.

Penalty for unfair labour practice (Section 86(5), (6))

First: fine ₹10,000 to ₹2,00,000. Repeat after conviction: fine ₹50,000 to ₹5,00,000, or imprisonment up to 3 months, or both

Applies to any person committing a practice in the Second Schedule.

Penalty for Sections 78, 79, 80 (Section 86(1), (2))

First: fine ₹1,00,000 to ₹10,00,000. Repeat after conviction: fine ₹5,00,000 to ₹20,00,000, or imprisonment up to 6 months, or both

Applies to an employer.

Penalty for Sections 67, 70, 73, 75 (Section 86(3), (4))

First: fine ₹50,000 to ₹2,00,000. Repeat after conviction: fine ₹1,00,000 to ₹5,00,000, or imprisonment up to 6 months, or both

Applies to an employer.

Illegal strike or lock-out penalties (Section 86(13)-(16))

Worker in illegal strike: ₹1,000 to ₹10,000 or up to 1 month or both. Employer in illegal lock-out: ₹50,000 to ₹1,00,000 or up to 1 month or both. Instigator: ₹10,000 to ₹50,000 or up to 1 month or both. Financier: ₹10,000 to ₹50,000 or up to 1 month or both

Section 63 defines illegality; Section 64 bars financial aid.

Breach of settlement or award (Section 86(17), (18))

Fine ₹20,000 to ₹2,00,000, or imprisonment up to 3 months, or both; continuing breach: additional fine up to ₹1,000 per day after first conviction

Court may direct fine to be paid as compensation to an affected person.

Residuary penalty (Section 86(20))

Fine up to ₹1,00,000

For any other contravention not covered by Section 86(1) to (19).

Quick revision

• Section 4 applies to an industrial establishment with twenty or more workers, which must have one or more Grievance Redressal Committees.
• The Committee has equal members for the employer and the workers, and no more than ten in total.
• Women workers must be represented at least in proportion to their share of the total workforce.
• The chairperson rotates between employer and worker representatives every year.
• An aggrieved worker may apply to the Committee within one year of the cause of action.
• The Committee may complete its proceedings within thirty days of receiving the application.
• A decision needs a majority view with more than half of the worker members agreeing; otherwise it is deemed that no decision was reached.
• After the Committee's decision, or after the 30 days lapse, the worker has sixty days to apply for conciliation through the Trade Union of which he is a member.
• Discharge, dismissal, retrenchment or termination of one worker is deemed an industrial dispute even if no other worker or union is a party.
• A worker may apply directly to the Tribunal after forty-five days from applying for conciliation, and within two years of the termination.
• Write every answer as provision, facts or analysis, then conclusion, citing the section.

Common mistakes

• Writing that the Code came into force on its enactment date or leaving the date out. Fix: Say the Code comes into force on the date the Central Government notifies. The date notified is 21 November 2025 by Notification S.O. 5320(E).
• Saying the three older Acts stand repealed automatically on enactment. Fix: State that repeal takes effect from the date specified in the Central Government's notification, and the remaining provisions stay until repealed by like notifications.
• Saying every establishment with 100 workers must have a Works Committee. Fix: Write that the appropriate Government may by order require it under section 3(1). The duty arises from the order.
• Swapping the thresholds of 100 and 20. Fix: Link 100 with the Works Committee (section 3) and 20 with the Grievance Redressal Committee (section 4).
• Saying the Registrar recognises the union as negotiating union. Fix: Registrar registers (Section 9). The employer recognises or constitutes the council (Section 14).
• Using 50% instead of 51% for sole negotiating union. Fix: Section 14(3) says fifty-one per cent. or more of workers on the muster roll.
• Saying the model standing orders always need full certification proceedings. Fix: Under section 30(3), adopted model standing orders are deemed certified. The employer only forwards information, though the officer may direct amendments.
• Forgetting the 60-day deemed certification rule. Fix: If the certifying officer does not finish within 60 days, the draft or the modification is deemed certified.
• Saying arbitration under the Code is governed by the Arbitration and Conciliation Act, 1996. Fix: Remember Section 42(8): nothing in the 1996 Act applies to arbitrations under that section.
• Treating all awards and settlements as binding on everyone. Fix: Separate three cases: a private settlement binds only its parties, an arbitration award binds those who referred the dispute, and a conciliation settlement or Tribunal or NIT award binds the wider group in Section 57(3).

Exam tips

• Learn the commencement date, 21 November 2025, and the notification number S.O. 5320(E). A precise date earns easy marks in a short note.
• Prepare the worker definition as inclusions plus exclusions, including the ₹18,000 wage limit for supervisors. Examiners like to test the exclusions in fact-based questions.
• For retrenchment, memorise the five non-retrenchment cases as a list, then apply them to the facts in order.
• In every answer, give the provision, apply it to the facts, then conclude in one clear line. Cite a section only if you are certain of it.
• Do not cite the Industrial Disputes Act, 1947 as the current law. Mention it only to show what the Code replaces.
• Write section numbers: section 3 for the Works Committee and section 4 for the Grievance Redressal Committee. Examiners reward the correct citation.
• In a compare-and-contrast question, use the headings threshold, who forms it, composition, purpose and outcome.
• In case-based problems, count the days carefully and state which sub-section each time limit comes from.