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Comparative study of Industrial Relations Code, 2020 & Trade Unions Act, 1926/Industrial Employment (Standing Orders) Act, 1946/Industrial Disputes Act, 1947 (Repealed Acts) I-7
Arr a nge me nt of s ecti o ns
Te xt of I nd ust ri al Rel ati o ns Co de, 2020
INDUSTRIAL RELATIONS CODE, 2020*
[35 OF 2020]
An Act to consolidate and amend the laws relating to Trade Unions, conditions of employment in industrial establishment or undertaking, investigation and settlement of industrial disputes and for matters connected therewith or incidental thereto.
Be i t e nact e d by Parli a me nt i n t he Se ve nt y- first Ye ar of t he Re p ubli c of I ndi a as f oll o ws:
CHAPTER I
PRELIMINARY
Short title, extent and commencement.
1 1. ( 1) Thi s Act may be c all e d t he I nd ust ri al Rel ati o ns Co de, 2020.
( 2) It s hall e xt e nd t o t he whol e of I ndi a.
( 3) It s hall c o me i nt o f or ce o n s uc h dat e† as t he Ce nt r al Gover n me nt may, by noti ficati oni nt he Of fici al Gaz ett e appoi nt; a nd di ff er e nt dat es may be appoi nt e d f or di ff er e nt pr ovi si o ns of t hi s Co de a nd a ny r ef er e nce i n a ny s uc h pr ovi si o n t o t he c o mme nce me nt of t hi s Co de s hall be c o nst r ue d as a r ef er e nce t o t he c o m i ng i nt o f or ce of t hat pr ovi si o n.
Definitions.
1 2. I n t hi s Co de, unl ess t he c o nt e xt ot her w i s e r e q ui r es, ( a ) “ a ppell at e a ut hori t y ” me a ns a n a ut hori t y a ppoi nt e d by t he a ppr opri at e Gover n me nt t o e xer ci s e s uc h f uncti o ns i n s uc h ar e a as may be s peci fi e d by t hat Gover n me nt by noti fi c ati o n i n t he Offi ci al Gaz ett e;
(b ) “ a ppr opri at e Gover n me nt” me a ns,
(i ) i n r el ati o n t o a ny i nd ust ri al est a bli s h me nt or undert a ki ng c ar - ri e d o n by or under t he a ut hori t y of t he Ce nt r al Gover n me nt or c o ncer ni ng a ny s uc h c o nt r oll e d i nd ust r y as may be s peci fi e d i n t hi s be hal f by t he Ce nt r al Gover n me nt or t he est a bli s h me nt of r ail ways i ncl udi ng met r o r ail ways, m i nes, oil fi el ds, maj or port s,
* Dat e d 28- 9- 2020
1. Enf or ce d w i t h eff ect f r o m 21-11-2025 .
†See Noti fi cati on No S O 5320( E), dat e d 21- 11- 2025 ( see Notifications )
ai r t r a ns port s er vi ce, t el ec o mmuni c ati o n, ba nki ng a nd i ns ur a nce c o mpa ny or a c or por ati o n or ot her a ut hori t y est a bli s he d by a Ce nt r al Act or a ce nt r al p ubli c s ect or undert a ki ng, s ubsi di ar y c o mpa ni es s et up by t he pri nci pal undert a ki ngs or a ut o no mo us bo di es o wne d or c o nt r oll e d by t he Ce nt r al Gover n me nt i ncl ud - i ng est a bli s h me nt s of t he c o nt r act ors f or t he p ur pos es of s uc h est a bli s h me nt, c or por ati o n, ot her a ut hori t y, p ubli c s ect or under - t a ki ngs or a ny c o mpa ny i n whi c h not l ess t ha n fi ft y- o ne per ce nt of t he pai d- up s har e c a pi t al i s hel d by t he Ce nt r al Gover n me nt, as t he c as e may be, t he Ce nt r al Gover n me nt.
Explanation.
For t he p ur pos es of t hi s cl a us e, t he Ce nt r al Gover n me nt s hall c o nti n ue t o be t he a ppr opri at e Gover n me nt f or ce nt r al p ubli c s ect or undert a ki ngs e ve n i f t he hol di ng of t he Ce nt r al Gover n me nt r e d uces t o l ess t ha n fift y per ce nt e q ui t y i n t hat p ubli c s ect or undert a ki ng aft er t he c o mme nce me nt of t hi s Co de;
(ii ) i n r el ati o n t o a ny ot her i nd ust ri al est a bli s h me nt, i ncl udi ng St at e p ubli c s ect or undert a ki ngs, s ubsi di ar y c o mpa ni es s et up by t he pri nci pal undert aki ng a nd a ut ono mo us bodi es o wne d or c ont r oll e d by t he St at e Gover n me nt, t he St at e Gover n me nt:
Provided t hat i n c as e of a di s p ut e bet wee n a c o nt r act or a nd t he c o nt r act l a bo ur e mpl oye d t hr o ug h t he c o nt r act or i n a ny i nd ust ri al est a bli s h me nt wher e s uc h di s p ut e fi rst ar os e, t he a ppr opri at e Gover n me nt s hall be t he Ce nt r al Gover n me nt or t he St at e Gover n me nt, as t he c as e may be, whi c h has c o nt r ol over s uc h i nd ust ri al est a bli s h me nt;
( c ) “ ar bi t r at or” i ncl udes a n u mpi r e;
(d ) “ aver age pay” me a ns t he aver age of t he wages paya bl e t o a wor ker,
(i ) i n t he c as e of mo nt hl y pai d wor ker, i n t hr ee c o mpl et e c al e ndar mo nt hs;
(ii ) i n t he c as e of wee kl y pai d wor ker, i n f o ur c o mpl et e wee ks;
(iii ) i n t he c as e of dail y pai d wor ker, i n t wel ve f ull wor ki ng days, pr ece di ng t he dat e o n whi c h t he aver age pay bec o mes paya bl e, i f t he wor ker ha d wor ke d f or t hr ee c o mpl et e cal e ndar mont hs or f o ur c o mpl et e wee ks or t wel ve f ull wor ki ng days, as t he c as e may be, a nd wher e s uc h c al c ul ati o n c a nnot be ma de, t he aver age pay s hall be c al c ul at e d as t he aver age of t he wages paya bl e t o a wor ker d uri ng t he peri o d he act uall y wor ke d;
( e ) “ a war d” me a ns a n i nt eri m or a final det er m i nati o n of a ny i nd ust ri al di s p ut e or of a ny q uesti o n r el ati ng t her et o by a ny I nd ust ri al Tri b unal r ef err e d t o i n s ecti o n 44 or Nati o nal I nd ust ri al Tri b unal r ef err e d t o i n s ecti o n 46 a nd i ncl udes a n ar bi t r ati o n a war d ma de under s ecti o n 42;
(f )
“ ba nki ng c o mpa ny” me a ns a ba nki ng c o mpa ny as de fine d i n s ecti o n 5 of t he Ba nki ng Re g ul ati o n Act, 1949 ( 10 of 1949) a nd i ncl udes t he Ex port- I mport Ba nk of I ndi a, t he I nd ust ri al Rec o nst r ucti o n Ba nk of I ndi a, t he S mall I nd ust ri es De vel op me nt Ba nk of I ndi a est a bli s he d un - der s ecti o n 3 of t he S mall I nd ust ri es De vel op me nt Ba nk of I ndi a Act, 1989 ( 39 of 1989), t he Res er ve Ba nk of I ndi a, t he St at e Ba nk of I ndi a, a c orr es po ndi ng ne w ba nk c o nsti t ut e d under s ecti o n 3 of t he Ba nk - i ng Co mpa ni es ( Ac q ui si ti o n a nd Tr a nsf er of Undert a ki ngs) Act, 1970 ( 5 of 1970), a c orr es po ndi ng ne w ba nk c o nsti t ut e d under s ecti o n 3 of t he Ba nki ng Co mpa ni es ( Ac q ui si ti o n a nd Tr a nsf er of Undert a ki ngs) Act, 1980 ( 40 of 1980);
( g ) “ certi f yi ng of ficer” me a ns a ny of ficer a ppoi nt e d by t he a ppr opri at e Gover n me nt, by noti fic ati o n, t o perf or mt he f uncti o ns of a certi f yi ng of ficer under t he pr ovi si o ns of Cha pt er I V ;
(h ) “ cl os ur e” me a ns t he per ma ne nt cl osi ng do wn of a pl ace of e mpl oy me nt or part t her e of;
(i )
“ c oncili ati on of ficer” mea ns a c oncili ati on of ficer appoi nt e d under s ecti on 43;
(j ) “ c o ncili ati o n pr ocee di ng” me a ns a ny pr ocee di ng hel d by a c o ncili ati o n of ficer under t hi s Co de;
(k ) “ c o nt r oll e d i nd ust r y ” me a ns a ny i nd ust r y t he c o nt r ol of whi c h by t he Uni o n has bee n decl ar e d by a ny Ce nt r al Act t o be e x pe di e nt i n t he p ubli c i nt er est;
(l ) “ e mpl oyee” me a ns a ny pers o n ( ot her t ha n a n a ppr e nti ce e ngage d under t he Appr e nti ces Act, 1961 ( 52 of 1961)) e mpl oye d by a n i nd ust ri al est a b - li s h me nt t o do a ny s kill e d, s e m i - s kill e d or uns kill e d, ma n ual, oper ati o nal, s uper vi s or y, ma nageri al, a d m i ni st r ati ve, t ec hni c al or cl eri c al wor k f or hi r e or r e war d, whet her t he t er ms of e mpl oy me nt be e x pr ess or i mpli e d, a nd al s oi ncl udes a pers o n decl ar e d t o be a n e mpl oyee by t he a ppr opri at e Gover n me nt, b ut does not i ncl ude a ny me mber of t he Ar me d For ces of t he Uni o n;
( m ) “ e mpl oyer” me a ns a pers o n who e mpl oys, whet her di r ectl y or t hr o ug h a ny pers o n, or o n hi s be hal f or o n be hal f of a ny pers o n, o ne or mor e e mpl oyee or wor ker i n hi s est a bli s h me nt a nd wher e t he est a bli s h me nt i s c arri e d o n by a ny de part me nt of t he Ce nt r al Gover n me nt or t he St at e Gover n me nt, t he a ut hori t y s peci fie d by t he hea d of t he de part me nt i nt hi s be hal f or wher e no a ut hori t y i s s o s peci fie d, t he he a d of t he de part me nt, a nd i n r el ati o n t o a n est a bli s h me nt c arri e d o n by a l oc al a ut hori t y, t he c hi ef e xec uti ve of t hat a ut hori t y, a nd i ncl udes,
(i ) i n r el ati o n t o a n est a bli s h me nt whi c h i s a f act or y, t he occ upi er of t he f act or y as defi ne d i n cl a us e ( n ) of s ecti o n 2 of t he Fact ori es Act, 1948 ( 63 of 1948) a nd, wher e a pers o n has bee n na me d as
a ma nager of t he f act or y under cl a us e (f ) of s ub- s ecti o n ( 1) of s ecti o n 7 of t he s ai d Act, t he pers o n s o na me d;
(ii ) i n r el ati o n t o a ny ot her est a bli s h me nt, t he pers o n who, or t he a ut hori t y whi c h has ul ti mat e c o nt r ol over t he aff ai rs of t he est a b - li s h me nt a nd wher e t he s ai d aff ai rs ar e e nt r ust e d t o a ma nager or ma nagi ng di r ect or, s uc h ma nager or ma nagi ng di r ect or;
(iii ) c o nt r act or; a nd
(iv ) l e gal r e pr es e nt ati ve of a dece as e d e mpl oyer;
( n ) “ e xec uti ve”, i n r el ati o n t o a Tr a de Uni o n, me a ns t he bo dy by what e ver na me c all e d, t o whi c h t he ma nage me nt of t he aff ai rs of a Tr a de Uni o n i s e nt r ust e d;
( o ) “ fi xe d t er m e mpl oy me nt” me a ns t he e ngage me nt of a wor ker o n t he basi s of a wri tt e n c o nt r act of e mpl oy me nt f or a fi xe d peri o d:
Provided t hat
( a ) hi s ho urs of wor k, wages, all o wa nces a nd ot her be nefi t s s hall not be l ess t ha n t hat of a per ma ne nt wor ker doi ng t he s a me wor k or wor k of si mil ar nat ur e;
(b ) he s hall be eli gi bl e f or all st at ut or y be nefi t s avail a bl e t o a per mane nt wor ker pr oporti o nat el y acc or di ng t o t he peri o d of s er vi ce r e nder e d by hi me ve ni f hi s peri o d of e mpl oy me nt does not e xt e nd t o t he q uali f yi ng peri o d of e mpl oy me nt r e q ui r e d i n t he st at ut e; a nd
( c ) he s hall be eli gi bl e f or gr at ui t y i f he r e nders s er vi ce under t he c o nt r act f or a peri o d of o ne ye ar;
( p ) “i nd ust r y ” me a ns a ny s yst e mati c acti vi t y c arri e d o n by c o- oper ati o n bet wee n a n e mpl oyer a nd wor ker ( whet her s uc h wor ker i s e mpl oye d by s uc h e mpl oyer di r ectl y or by or t hr o ug h a ny age nc y, i ncl udi ng a c o n - t r act or) f or t he pr o d ucti o n, s uppl y or di st ri b uti o n of g oo ds or s er vi ces w i t h a vi e wt o s ati sf y h u ma n wa nt s or w i s hes ( not bei ng wa nt s or w i s hes whi c h ar e mer el y s pi ri t ual or r eli gi o us i n nat ur e), whet her or not,
(i ) a ny c a pi t al has bee n i nvest e d f or t he p ur pos e of c arr yi ng o n s uc h acti vi t y; or
(ii ) s uc h acti vi t y i s c arri e d o n w i t h a moti ve t o ma ke a ny gai n or pr ofi t, b ut does not i ncl ude
(i ) i nsti t uti o ns o wne d or ma nage d by or ga ni s ati o ns wholl y or s ubst a nti all y e ngage d i n a ny c hari t a bl e, s oci al or p hil a n - t hr opi c s er vi ce; or
(ii ) a ny acti vi t y of t he a ppr opri at e Gover n me nt r el at a bl e t o t he s over ei g n f uncti o ns of t he a ppr opri at e Gover n me nt i ncl udi ng all t he acti vi ti es c arri e d o n by t he de part me nt s
of t he Ce nt r al Gover n me nt de ali ng w i t h def e nce r es e ar c h, at o m i c e ner gy a nd s pace; or (iii ) a ny do mesti c s er vi ce; or (iv ) a ny ot her acti vi t y as may be noti fi e d by t he Ce nt r al Gover n me nt;
( q ) “i nd ust ri al di s p ut e” me a ns a ny di s p ut e or di ff er e nce bet wee n e mpl oyers a nd e mpl oyers or bet wee n e mpl oyers a nd wor kers or bet wee n wor kers a nd wor kers whi c h i s c o nnect e d w i t h t he e mpl oy me nt or no n- e mpl oyme nt or t he t er ms of e mpl oy me nt or w i t h t he c o ndi ti o ns of l a bo ur, of a ny pers o n a ndi ncl udes a ny di s p ut e or di ff er e nce bet wee n a ni ndi vi d ual wor ker a nd a n e mpl oyer c o nnect e d w i t h, or ari si ng o ut of di s c har ge, di s m i ss al, r et r e nc h me nt or t er m i nati o n of s uc h wor ker;
( r ) “i nd ust ri al est a bli s h me nt or undert a ki ng” me a ns a n est a bli s h me nt or undert a ki ng i n whi c h a ny i nd ust r y i s c arri e d o n:
Provided t hat wher e s e ver al acti vi ti es ar e c arri e d o ni n a n est a bli s h me nt or undert a ki ng a nd o nl y o ne or s o me of s uc h acti vi ti es i s or ar e a n i nd ust r y or i nd ust ri es, t he n,
(i ) i f a ny uni t of s uc h est a bli s h me nt or undert a ki ng c arr yi ng o n a ny acti vi t y, bei ng a ni nd ust r y, i s s e ver a bl e f r o mt he ot her uni t or uni t s of s uc h est a bli s h me nt or undert a ki ng whi c h i s not c arr yi ng o n or ai di ng t he c arr yi ng o n of a ny s uc h acti vi t y, s uc h uni t s hall be dee me d t o be a s e par at e i nd ust ri al est a bli s h me nt or undert a ki ng;
(ii ) i f t he pr e do m i na nt acti vi t y or e ac h of t he pr e do m i na nt acti vi ti es carri e d oni n s uc h est a bli s h me nt or undert aki ng or a ny uni t t her e of i s a n i nd ust r y a nd t he ot her acti vi t y or e ac h of t he ot her acti vi ti es c arri e d o n i n s uc h est a bli s h me nt or undert a ki ng or uni t t her e of i s not s e ver a bl e f r o m a nd i s, f or t he p ur pos e of c arr yi ng o n, or ai di ng t he c arr yi ng o n of, s uc h pr e do m i na nt acti vi t y or acti vi ti es, t he e nti r e est a bli s h me nt or undert a ki ng or, as t he c as e may be, uni t t her e of s hall be dee me d t o be a n i nd ust ri al est a bli s h me nt or undert a ki ng;
( s ) “i ns ur a nce c o mpa ny” me a ns a c o mpa ny as defi ne d i n s ecti o n 2 of t he I ns ur a nce Act, 1938 ( 4 of 1938);
( t ) “l ay- off” ( w i t h i t s gr a mmati c al vari ati o ns a nd c og nat e e x pr essi o ns) me a ns t he f ail ur e, r ef us al or i na bili t y of a n e mpl oyer o n acc o unt of s hort age of c oal, po wer or r a w mat eri al s or t he acc u mul ati o n of st oc ks or t he br e a k- do wn of mac hi ner y or nat ur al c al a m i t y or f or a ny ot her c o nnect e d r e as o n, t o gi ve e mpl oy me nt t o a wor ker whos e na me i s bor ne o n t he must er r oll s of hi s i nd ust ri al est a bli s h me nt a nd who has not bee n r et r e nc he d.
Explanation.
Ever y wor ker whos e na me i s bor ne o n t he must er r oll s of t he i nd ust ri al est a bli s h me nt a nd who pr es e nt s hi ms el f f or wor k at
t he est a bli s h me nt at t he ti me a ppoi nt e d f or t he p ur pos e d uri ng nor mal wor ki ng ho urs o n a ny day a nd i s not gi ve n e mpl oy me nt by t he e mpl oyer w i t hi n t wo ho urs of hi s s o pr es e nti ng hi ms el f s hall be dee me d t o have bee n l ai d- off f or t hat day w i t hi n t he me a ni ng of t hi s cl a us e:
Provided t hat i f t he wor ker, i nst e a d of bei ng gi ve n e mpl oy me nt at t he c o mme nce me nt of a ny s hi ft f or a ny day i s as ke d t o pr es e nt hi ms el f f or t he p ur pos e d uri ng t he s ec o nd hal f of t he s hi ft f or t he day a nd i s gi ve n e mpl oy me nt t he n, he s hall be dee me d t o have bee n l ai d- off o nl y f or o ne- hal f of t hat day:
Provided further t hat i f he i s not gi ve n a ny s uc h e mpl oy me nt e ve n aft er s o pr es e nti ng hi ms el f, he s hall not be dee me d t o have bee n l ai d- off f or t he s ec o nd hal f of t he s hi ft f or t he day a nd s hall be e nti tl e d t o f ull basi c wages a nd de ar ness all o wa nce f or t hat part of t he day;
( u ) “l oc k- o ut” me a ns t he t e mpor ar y cl osi ng of a pl ace of e mpl oy me nt, or t he s us pe nsi o n of wor k, or t he r ef us al by a n e mpl oyer t o c o nti n ue t o e mpl oy a ny n u mber of pers o ns e mpl oye d by hi m ;
( v ) “ maj or port” me a ns a maj or port as defi ne d i n cl a us e (8 ) of s ecti o n 3 of t he I ndi a n Port s Act, 1908 ( 15 of 1908);
( w ) “ met r o r ail way” me a ns t he met r o r ail way as defi ne d i n s ub- cl a us e (i ) of cl a us e (1 ) of s ecti on 2 of t he Met r o Rail ways ( Oper ati on a nd Mai nt e na nce) Act, 2002 ( 60 of 2002);
( x ) “ m i ne” me a ns a m i ne as defi ne d i n cl a us e (j ) of s ub- s ecti o n ( 1) of s ecti o n 2 of t he M i nes Act, 1952 ( 35 of 1952);
( y ) “ Nati o nal I nd ust ri al Tri b unal ” me a ns a Nati o nal I nd ust ri al Tri b unal c o nsti t ut e d under s ecti o n 46;
( z ) “ ne g oti ati ng uni o n or ne g oti ati ng c o uncil ” me a ns t he ne g oti ati ng uni o n or ne g oti ati ng c o uncil r ef err e d t o i n s ecti o n 14;
( za ) “ noti fi c ati o n” me a ns a noti fi c ati o n p ubli s he d i n t he Offi ci al Gaz ett e of I ndi a or t he Offi ci al Gaz ett e of a St at e, as t he c as e may be, a nd t he e xpr essi o n “ noti f y ” w i t hi t s gr a mmati c al vari ati o n a nd c og nat e e x pr essi o ns s hall be c o nst r ue d acc or di ngl y;
(zb ) “ offi ce- be ar er”, i n r el ati o n t o a Tr a de Uni o n, i ncl udes a ny me mber of t he e xec uti ve t her e of, b ut does not i ncl ude a n a udi t or;
( zc ) “ pr es cri be d” me a ns pr es cri be d by r ul es ma de under t hi s Co de;
(zd ) “ r ail way” me a ns t he r ail way as defi ne d i n cl a us e (31 ) of s ecti o n 2 of t he Rail ways Act, 1989 ( 24 of 1989);
( ze ) “ r e gi st er e d offi ce” me a ns t hat offi ce of a Tr a de Uni o n whi c hi s r e gi st er e d under t hi s Co de as t he he a d offi ce t her e of;
(zf ) “ r e gi st er e d Tr a de Uni o n” me a ns a Tr a de Uni o n r e gi st er e d under t hi s Co de;
