Law of Industrial Relations: formula sheet

Key formulas

Extent

Industrial Relations Code, 2020 extends to the whole of India (section 1)

No State is left out. The Code is a central law applied through the appropriate Government.

Commencement

Comes into force on the date notified by the Central Government; different dates for different provisions (section 1(3))

The official text notes 21 November 2025 under Notification S.O. 5320(E).

Repeal by notification

Trade Unions Act, 1926 + Industrial Employment (Standing Orders) Act, 1946 + Industrial Disputes Act, 1947 repealed from the date specified (section 104(1))

Remaining provisions continue until repealed by like notifications.

Savings

Action taken under repealed Acts is deemed taken under the corresponding provisions of the Code, to the extent not contrary to it (section 104(2))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

Defined in section 2. In outline: a 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

Section 2 also extends the definition to disputes about the discharge, dismissal, retrenchment or termination of an individual worker. Read the exact wording in the Code before you quote it.

Worker

Defined in section 2. In outline: a person employed in an industry for hire or reward to do manual, unskilled, skilled, technical, operational, clerical or supervisory work, with listed exclusions such as apprentices, armed forces personnel, and managerial or administrative staff

A person in a supervisory capacity is excluded if wages exceed the limit stated in the definition, or if the duties are mainly managerial. Take the figure from the text of section 2, not from memory.

Works Committee: when

100 or more workers employed, or employed on any day in the preceding 12 months → appropriate Government may, by general or special order, require the employer to constitute it

It is not automatic. A Government order is needed.

Works Committee: composition

Worker representatives ≥ employer representatives

Worker representatives are chosen from the workers of the establishment, in consultation with their registered Trade Union, if any.

Works Committee: duty

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

Preventive role.

Grievance Redressal Committee: when

Industrial establishment with 20 or more workers → one or more committees

This is a mandatory requirement.

GRC: composition

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

Chairperson alternates between employer and worker side every year, on rotation.

GRC: time limits

Application within 1 year of cause of action; proceedings may be completed within 30 days of receipt

Section 4(5) and 4(6).

GRC: decision rule

Majority view, and more than half of the worker-side members must agree; otherwise deemed no decision

A majority of the whole committee is not enough.

After the GRC

Within 60 days of decision or expiry of 30 days → application to conciliation officer through the worker's Trade Union

Section 4(8).

Direct route to Tribunal

Dismissal, discharge, retrenchment or termination of an individual worker is deemed an industrial dispute; after 45 days from the conciliation application, worker may apply to Tribunal; within 2 years of the termination

Section 4(9), (10), (11).

Only one registered union

One registered union in the establishment → employer recognises it as sole negotiating union (Section 14(2))

Recognition is subject to the criteria prescribed.

Sole negotiating union

Support of workers on muster roll ≥ 51% → sole negotiating union (Section 14(3))

Applies where more than one registered union functions. Support is verified in the prescribed manner.

Negotiating council

No union with 51% → council of unions with support ≥ 20% of total workers on muster roll; one representative for each 20% (Section 14(4))

The employer constitutes the council. The section also gives a representative for the remainder after each 20%.

Agreement in council

Agreement reached if agreed by the majority of the union representatives in the council (Section 14(5))

A simple majority of representatives, not of workers.

Validity of recognition

3 years from recognition or constitution; extendable by mutual decision, total not exceeding 5 years (Section 14(6))

Applies to the sole negotiating union and to the council.

Cancellation grounds

(i) union's own application; (ii) contravention of the Code, rules, its constitution or rules; (iii) members fall below 10% of total workers or 100 workers, whichever is less (Section 9(5))

Not less than 60 days' written notice stating grounds, unless cancelled on the union's own application.

Mandatory cancellation

Tribunal orders cancellation → Registrar shall cancel (Section 9(6))

The Registrar has no discretion here.

Appeal

Refusal or cancellation → appeal to the Tribunal within the prescribed period (Section 10)

The Tribunal may condone delay for sufficient reason or unavoidable circumstances.

Time to draft (section 30(1))

Draft standing orders within 6 months from commencement of the Code

Draft must follow the model, cover every First Schedule matter, and not be inconsistent with the Code.

Adopting model orders (section 30(3))

Model standing orders adopted = deemed certified

Employer forwards information to the certifying officer. The officer may direct amendment of the adopted orders within a prescribed period if he has observations.

Modification draft (section 30(4))

Draft of modifications within 6 months from the date the Chapter becomes applicable to the establishment

Sent to the certifying officer for certification of those modifications only.

Certification time limit (section 30(5) proviso)

Decide within 60 days of receipt, failing which deemed certified

Applies to both the draft standing orders and the draft modifications.

Certifiable test (section 30(6))

Every applicable First Schedule matter provided for + conformity with the Code

Both conditions must be met.

Copies after certification (section 30(8))

Send authenticated copies within 7 days to employer and union, council or worker representatives

Copies go to the employer and to the negotiating union, council, Trade Union or representatives.

Lock-in on modification (section 35(1))

No modification for 6 months from operation of the orders or last modification, except by agreement

Agreement between employer and workers, negotiating union, Trade Union or other representative body.

Existing standing orders (section 30(11))

Existing orders continue and are deemed certified under section 30(8)

Only to the extent not inconsistent with the Code or its rules.

Interpretation disputes (section 37)

Apply to the Tribunal; decision is final and binding

Tribunal of the territorial jurisdiction, after a reasonable opportunity of being heard to all parties.

Grievance Redressal Committee (s 4)

Applies to establishments with 20 or more workers; maximum 10 members; equal employer and worker representation; chair rotates yearly

Women workers must be represented at least in proportion to their share of the workforce.

Time limits in s 4

Application to GRC: within 1 year of cause of action. GRC proceedings: 30 days. Conciliation application: within 60 days of decision or expiry of 30 days

A GRC decision needs a majority, with more than half of the worker members agreeing; otherwise no decision is deemed made.

Direct access to Tribunal (s 4(10), (11))

Tribunal application after 45 days from the conciliation application; to be made within 2 years of discharge, dismissal, retrenchment or termination

Applies to an individual worker whose termination is deemed an industrial dispute under s 4(9).

Conciliation officer: entry and own powers (s 49(2), (4))

Entry into premises on reasonable notice (s 49(2)). Under s 49(4): enforce attendance of any person and examine him; call for and inspect documents he considers relevant; civil court powers for these

These are in addition to the shared civil court powers in s 49(3).

Civil court powers (s 49(3))

Vested in the conciliation officer, Tribunal and National Industrial Tribunal: enforcing attendance and examining on oath; compelling production of documents and material objects; commissions for witnesses; other prescribed matters

Every inquiry or investigation by a Tribunal or National Industrial Tribunal is deemed a judicial proceeding for sections 193 and 228 of the IPC.

National Industrial Tribunal (s 46)

Two members: Judicial Member (High Court Judge, presides) + Administrative Member (Secretary-level)

Constituted by the Central Government for disputes of national importance or multi-State impact.

Voluntary arbitration (s 42)

Written agreement; even number of arbitrators needs an umpire; copy to appropriate Government and conciliation officer

The Arbitration and Conciliation Act, 1996 does not apply. After a s 42(5) notification, employers and workers who are not parties to the agreement but are concerned in the dispute must be given a chance to present their case before the arbitrator.

Binding effect (s 57)

s 57(1): a settlement made outside conciliation binds the parties to it. s 57(2): an enforceable arbitration award binds the parties who referred the dispute, subject to s 57(3). s 57(3): a conciliation settlement, or an arbitration or Tribunal/National Industrial Tribunal award that has become enforceable, binds all parties to the dispute and all other parties summoned (unless the arbitrator or Tribunal records that they were summoned without proper cause). Where a party is an employer, it also binds his heirs, successors or assigns. Where a party is composed of workers, it also binds all persons employed in the establishment or part on the date of the dispute and those who later join

Do not apply the successors and workers limbs to every party. Each applies only where the party is an employer or is composed of workers.

Notice window for strike or lock-out

Notice given within 60 days before striking or locking out; action not within 14 days of notice; not before the date stated in the notice

Section 62(1)(a)-(c) for strikes and 62(2)(a)-(c) for lock-outs. All three conditions must be met.

Conciliation bar

No strike or lock-out during conciliation proceedings + 7 days after they conclude

Section 62(1)(d) and (2)(d).

Tribunal bar

No strike or lock-out during Tribunal or National Industrial Tribunal proceedings + 60 days after

Section 62(1)(e) and (2)(e).

Arbitration bar

No strike or lock-out during arbitration + 60 days after, where a notification is issued under section 42(5)

Section 62(1)(f) and (2)(f). The notification condition is essential.

Settlement or award bar

No strike or lock-out while a settlement or award is in operation, on matters it covers

Section 62(1)(g) and (2)(g).

Existing strike or lock-out

No fresh notice needed if a strike or lock-out already exists; employer must report a lock-out or strike on the day it is declared to the specified authority

Section 62(3).

Employer reporting of notices

Report within 5 days to the appropriate Government or prescribed authority and the conciliation officer the number of notices received or given that day

Section 62(6).

Illegal strike or lock-out

Illegal if commenced in contravention of section 62, or continued in contravention of an order under section 42(7)

Section 63(1).

Financial aid

No person shall knowingly spend money in direct furtherance or support of an illegal strike or lock-out

Section 64; penalty in section 86(16).

Penalties

Worker joining illegal strike: fine ₹1,000 to ₹10,000 or up to 1 month jail or both. Employer in illegal lock-out: fine ₹50,000 to ₹1,00,000 or up to 1 month jail or both. Instigator: fine ₹10,000 to ₹50,000 or up to 1 month or both. Financier: fine ₹10,000 to ₹50,000 or up to 1 month or both. Unfair labour practice: fine ₹10,000 to ₹2,00,000; repeat: ₹50,000 to ₹5,00,000 or up to 3 months or both

Section 86(13)-(16), (5) and (6).

Lay-off compensation (section 67)

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

Applies to workers on muster rolls with at least one year of continuous service. Badli and casual workers are excluded.

45-day limit on lay-off compensation

Lay-off beyond 45 days in 12 months: no compensation for days after day 45, if there is an agreement to that effect

Without an agreement the proviso does not operate. The employer may retrench after 45 days and set off lay-off compensation paid.

Retrenchment compensation (section 70)

Notice and compensation as provided in section 70. Working used on this page: 15 days' average pay × completed years of continuous service, with a part year over 6 months counted as a year

The text of section 70 is not reproduced here, so confirm the rate and the counting of part years against section 70 in the Code and your study material before relying on this working. Section 75(4) uses the 'in excess of six months' wording only for construction undertakings. Section 70 also requires notice of retrenchment. Check the notice details in your study material.

Closure compensation (section 75(1))

Notice and compensation under section 70, as if the worker had been retrenched

Needs at least one year of continuous service immediately before closure.

Cap for unavoidable circumstances

Compensation under section 70(b) ≤ average pay for 3 months

Financial difficulties or losses, undisposed stocks, expiry of lease or licence, and exhaustion of minerals in mining do not count as unavoidable circumstances.

Construction undertakings (section 75(4))

Work completed within 2 years: no compensation under section 70(b). Not completed within 2 years: compensation for every completed year or part in excess of 6 months

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

Worker re-skilling fund (section 83)

Employer contribution = 15 days' wages last drawn × each retrenched worker; credited to the worker's account within 45 days of retrenchment

The Central Government may notify a different number of days. Section 83 speaks of the contribution 'in case of retrenchment only', so lay-off does not attract it. For closure, section 75(1) treats the worker as retrenched only for notice and compensation under section 70. The text of section 75 does not settle whether the fund applies on closure, so do not state it either way as a certainty.

Lay-off in establishments to which the Chapter applies (section 78)

Prior Government permission needed; deemed granted if no order within 60 days of application; order remains in force for one year

Without an application, or if permission is refused, the lay-off is illegal and workers get all benefits as if not laid off.

Cognizance of offences (Section 87)

Court takes cognizance only on a complaint by or under authority of the appropriate Government; trial by Metropolitan Magistrate or Judicial Magistrate of first class or higher

No private complaint is enough. Courts below that rank cannot try the offence.

Compounding of fine-only offences (Section 89(1))

Composition sum = 50% of the maximum fine

Applies to offences punishable with fine only.

Compounding of offences with imprisonment up to one year or fine (Section 89(1))

Composition sum = 75% of the maximum fine

Applies to offences punishable with imprisonment of not more than one year or with fine. Read the section text for the exact wording.

Bar on compounding (Section 89(2))

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

The three years run from the date of commission of the earlier similar offence.

Non-compliance with compounding order (Section 89(7))

Additional sum = 20% of the maximum fine, plus the fine

Payable by a person who fails to comply with the compounding officer's order.

Effect of compounding (Section 89(5) and (6))

Before prosecution: no prosecution. After prosecution: officer informs the adjudicating officer under section 85(1) and the accused is discharged

Section 89(8) bars compounding except under this section.

Overriding effect (Section 76)

Chapter prevails over other laws and standing orders, but more favourable benefits continue

State dispute-settlement laws are not affected, except that lay-off and retrenchment follow the Chapter.

Removal of difficulties (Section 103)

Central Government order, no order after 3 years from commencement, laid before each House of Parliament

Orders must not be inconsistent with the Code.

Quick revision

• The chapter is governed by the Industrial Relations Code, 2020.
• Learn the definitions first, because most answers turn on whether the person is a worker and whether there is an industrial dispute.
• Works Committee and Grievance Redressal Committee are bi-partite forums; their constitution and the manner of choosing members are matters for rules.
• Trade union registration, recognition and the status of Central or State trade union are separate ideas; do not mix them.
• Standing orders are drafted, certified, appealed and modified through a set procedure with a certifying officer.
• Conciliation, Tribunal and arbitration are different routes; know who decides and who only helps the parties settle.
• Strikes and lock-outs need notice in the manner prescribed under section 62.
• Retrenchment of a worker with at least one year of continuous service needs notice to the appropriate Government or the specified authority.
• Lay-off, retrenchment and closure each have their own application or notice provisions, in sections 78, 79, 80 and 74.
• Retrenched workers who are citizens of India must be given an opportunity for re-employment under section 72.
• Worker re-skilling fund is dealt with in section 83, including its sources and utilisation.
• Offences can be compounded; the manner is a matter of rules under section 89.

Common mistakes

• Saying the three old Acts were repealed automatically on the Act's passing. Fix: Repeal under section 104 happens through the commencement notification, from the date specified. The remaining provisions stay until repealed by like notifications.
• Treating every employee as a worker. Fix: Apply the exclusions in the definition in section 2: apprentices, armed forces, managerial or administrative roles, and supervisors above the wage limit in the definition or with mainly managerial duties.
• Saying a Works Committee is compulsory in every establishment with 100 workers. Fix: Write: the appropriate Government may, by general or special order, require the employer to constitute it.
• Mixing up the thresholds of 20 and 100. Fix: Link 20 with grievances (individual, smaller units) and 100 with the Works Committee.
• Treating registration and recognition as the same thing. Fix: Registration is by the Registrar and gives legal standing. Recognition is by the employer under Section 14 and gives the right to negotiate.
• Counting the 51% or 20% on union membership or on voters. Fix: The section uses workers on the muster roll supporting the union, verified in the prescribed manner. Use the muster roll as the base.
• Saying model standing orders and certified standing orders are the same thing. Fix: Model orders are the Central Government template and the default until the establishment's orders operate. Certified standing orders are the establishment's own, approved by the certifying officer or deemed certified. Say this in one line.
• Forgetting that the employer must consult unions before sending the draft. Fix: Write the order: draft, consult unions or negotiating council, forward to the certifying officer, notice and hearing, certification.
• Saying the conciliation officer decides the dispute. Fix: He only helps the parties settle. The Tribunal decides.
• Applying the Arbitration and Conciliation Act, 1996 to arbitration under section 42. Fix: State that the Act does not apply to arbitrations under section 42.

Exam tips

• Learn the dates and the notification number for commencement. They are easy marks: 21 November 2025 and Notification S.O. 5320(E).
• Always name the three Acts that section 104 deals with, and state that repeal is by notification and may be staged.
• For worker questions, write inclusions, exclusions and the wage limit, then apply them to the facts in a short table-free list.
• Use the provision, analysis, conclusion format in every answer and end with a one-line practical point for the employer.
• Do not quote section numbers you are unsure of. Section 1 (commencement) and section 104 (repeal and savings) are safe.
• Learn sections 3 and 4 as a table of numbers and reproduce them in order.
• In case questions, always check the headcount first. It decides whether the forum applies.
• Use the Code's wording on the voting rule and the chairperson's yearly rotation. Examiners test these details.