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

Section 84 Industrial Relations Code: Unfair Labour Practice

Updated 11 October 2026 · Fact-checked

Section 84 of the Industrial Relations Code, 2020 says no employer, worker or trade union, whether registered or not, shall commit any unfair labour practice specified in the Second Schedule. To solve a question, identify who acted, match the act to the Second Schedule, then state the penalty under section 86(5) or (6).

Understand Prohibition of Unfair Labour Practice under Section 84

A labour practice is the way employers, workers and unions behave towards each other. Some behaviour is treated as unfair because it damages fair dealing at work. Examples are victimising a worker for union activity or forcing workers to join a union. The Code does not leave this to general ideas of fairness. It lists the practices in a Second Schedule.

Section 84 is a short prohibition. It binds three parties: the employer, the worker and a trade union. It applies to a trade union whether it is registered under the Code or not. So an unregistered union cannot say the section does not touch it.

The key point is the link to the Second Schedule. Section 84 prohibits only the practices specified there. In an answer, do not simply call something unfair. Show that it falls within a listed practice. The text of the Second Schedule was not supplied for this page, so check the list in your ICSI study material and learn the practices for employers, for workers and for unions.

The penalty sits in section 86. Under section 86(5), any person who commits an unfair labour practice specified in the Second Schedule is punishable with fine of not less than ₹10,000 but up to ₹2,00,000. Under section 86(6), a repeat offender after conviction faces fine of not less than ₹50,000 but up to ₹5,00,000, or imprisonment up to three months, or both.

Do not mix this up with illegal strikes or lock-outs. Those are punished separately under section 86(13) to (16). An unfair labour practice is a listed wrongful act. An illegal strike or lock-out is a breach of the Code's rules on industrial action. One event can raise both issues, but they are separate offences.

Key rules to remember

Prohibition (section 84)
No employer / worker / trade union (registered or not) shall commit any unfair labour practice specified in the Second Schedule
The prohibition covers only practices listed in the Second Schedule.
First offence penalty (section 86(5))
Fine: minimum ₹10,000, maximum ₹2,00,000
Applies to any person who commits an unfair labour practice specified in the Second Schedule.
Repeat offence penalty (section 86(6))
Fine: ₹50,000 to ₹5,00,000, or imprisonment up to 3 months, or both
Applies to a person who again commits the same offence after conviction.
Related penalty: illegal strike by worker (section 86(13))
Fine ₹1,000 to ₹10,000, or imprisonment up to 1 month, or both
Use only to contrast with unfair labour practice.
Related penalty: illegal lock-out by employer (section 86(14))
Fine ₹50,000 to ₹1,00,000, or imprisonment up to 1 month, or both
Use only to contrast with unfair labour practice.

How to solve Prohibition of Unfair Labour Practice under Section 84 questions

Use this order for any question on unfair labour practice. It matches the ICSI style of provision, analysis, conclusion.

  1. 1Identify who acted: employer, worker or trade union. Note whether the union is registered; it does not matter.
  2. 2State section 84: no such person shall commit any unfair labour practice specified in the Second Schedule.
  3. 3Match the facts to a specific practice in the Second Schedule. Name that practice.
  4. 4If the facts are not in the Second Schedule, say section 84 is not attracted. Check whether another provision, such as one on strikes, applies.
  5. 5State the penalty: section 86(5) for a first offence, section 86(6) if the person was convicted earlier for the same offence.
  6. 6Give a clear conclusion that answers the question asked, with the fine range in rupees.

Quickest way: Who, Schedule, Penalty

When to use it: Use for short-note or case questions when time is tight.

  1. Write one line: section 84 bars employer, worker and union (registered or not) from Second Schedule practices.
  2. Write one line naming the matching practice.
  3. Write the penalty: first offence ₹10,000 to ₹2,00,000; repeat ₹50,000 to ₹5,00,000 or up to 3 months or both.
  4. Close with a one-line conclusion.

Common mistakes in Prohibition of Unfair Labour Practice under Section 84

  • Saying only employers can commit unfair labour practices.

    Most examples taught are about employers victimising workers.

    Fix: Remember section 84 names three parties: employer, worker and trade union.

  • Saying section 84 does not apply to an unregistered trade union.

    Students link all union duties to registration.

    Fix: Quote the words: whether registered under this Code, or not.

  • Giving the penalty under section 84.

    Section 84 only prohibits; it has no penalty.

    Fix: Cite section 86(5) and 86(6) for the penalty.

  • Mixing up the fine for a first offence with the illegal strike fine.

    Section 86 has twenty sub-sections with similar-looking ranges.

    Fix: Learn ₹10,000 to ₹2,00,000 for unfair labour practice and treat strike and lock-out penalties as separate.

  • Calling any harsh act an unfair labour practice.

    Students use the everyday meaning of unfair.

    Fix: Tie the act to a listed practice in the Second Schedule before concluding.

Worked examples

Example 1

A trade union that is not registered under the Industrial Relations Code, 2020 argues that section 84 does not apply to it. Examine the argument.

Show the solution
  1. Provision: section 84 says no employer or worker or a Trade Union, whether registered under this Code or not, shall commit any unfair labour practice specified in the Second Schedule.
  2. Analysis: the section expressly covers a trade union whether registered or not. Registration is therefore irrelevant to the prohibition.
  3. Penalty: if the union commits a Second Schedule practice, section 86(5) applies to any person, with fine of ₹10,000 to ₹2,00,000.

Answer: The argument fails. Section 84 binds unregistered trade unions too, and a first offence is punishable under section 86(5) with fine from ₹10,000 to ₹2,00,000.

Example 2

An employer was convicted for an unfair labour practice under the Second Schedule and, some time later, commits the same offence again. State the punishment.

Show the solution
  1. Provision: section 84 prohibits Second Schedule practices by an employer.
  2. Analysis: the employer has a prior conviction and repeats the same offence, so section 86(6) applies, not section 86(5).
  3. Punishment: fine of not less than ₹50,000 but up to ₹5,00,000, or imprisonment up to three months, or both.

Answer: Under section 86(6), the employer is punishable with fine of ₹50,000 to ₹5,00,000, or imprisonment up to three months, or both.

Exam tips

  • Always name all three parties in section 84: employer, worker and trade union.
  • Quote the phrase whether registered under this Code, or not; it earns easy marks.
  • Write the penalty from section 86(5) and 86(6) with exact rupee figures.
  • Learn the Second Schedule list from your study material and give one or two matching practices in your answer.
  • If asked to distinguish from illegal strike, point to section 86(13) and (14) as separate provisions.

Practice questions from Evaluation of Labour Legislation and need of Labour Code

Prohibition of Unfair Labour Practice under Section 84: frequently asked questions

What does section 84 of the Industrial Relations Code, 2020 say?

It prohibits any employer, worker or trade union, whether registered under the Code or not, from committing any unfair labour practice specified in the Second Schedule.

What is the penalty for an unfair labour practice?

Under section 86(5), fine of not less than ₹10,000 and up to ₹2,00,000. For a repeat offence after conviction, section 86(6) provides fine of ₹50,000 to ₹5,00,000, or imprisonment up to three months, or both.

What is the difference between unfair labour practice and illegal strike?

An unfair labour practice is a wrongful act listed in the Second Schedule. An illegal strike is industrial action that breaches the Code. They are punished under different sub-sections of section 86.

Can a worker commit an unfair labour practice?

Yes. Section 84 applies to workers and trade unions as well as employers, for practices specified in the Second Schedule.