[Analysis] Industrial Relations Code 2020 – Restrictions | Notices

The Industrial Relations Code 2020 ('Code') lays down the consolidated legal framework governing strikes and lockouts in India. It modernises and replaces earlier labour laws by standardising definitions, extending notice periods, regulating when industrial action can be taken, and specifying circumstances under which strikes or lockouts are prohibited or deemed illegal. Through Sections 62 to 67, the Code outlines procedural requirements for notices, reporting, exemptions, and penalties, ensuring that both workers and employers exercise their rights within a structured, lawful, and time-bound process to maintain industrial peace and minimise abrupt disruptions.

Table of Contents

1. Introduction
2. Legal Framework Under Industrial Relations Code, 2020
3. Key Provisions Relating to Strikes and Lockouts Under the Industrial Relations Code, 2020
4. Extant Provisions on Industrial Relations
5. Comparative Study
6. Conclusion

1. Introduction

Industrial peace and harmony are essential to any nation’s economic and social progress. However, differences between employers and employees are inevitable in an industrial setup, often leading to disputes over wages, working conditions, employment security or management decisions. When such disputes escalate without resolution, they may culminate in strikes or lockouts.

Both strikes and lockouts are integral components of the collective bargaining process, serving as pressure tools in industrial negotiations. While a strike reflects the workers’ expression of protest or demand, a lockout symbolises the employers’ countermeasure to ensure operational discipline.

In India, the right to strike is not a fundamental right, but a statutory right, subject to legal restrictions under labour legislation. Similarly, lockouts are lawful only when they are conducted in compliance with specific legal procedures. Historically, these aspects were governed by the Industrial Disputes Act, 1947, which laid the foundation for industrial relations in post-independence India.

However, with the evolution and diversification of industrial activities, the need for a more unified, integrated and simplified legal structure has become evident. This led to the enactment of the Industrial Relations Code, 2020, one of four labour codes introduced by the Government of India to consolidate, modernise and rationalise existing labour laws.

2. Legal Framework Under Industrial Relations Code, 2020

The Industrial Relations Code, 2020, represents a significant reform in India’s labour law landscape. It consolidates and replaces three key statutes:

• The Industrial Disputes Act 1947 – This Act was intended to provide workers with a mechanism that would provide relief against layoffs, downsizing and wrongful termination that is against the letter of the law. It also sought to promote healthy labour relations by minimising the scope for illegal strikes and lockouts and penalising unfair labour practices.
• The Trade Unions Act 1926 – This Act aimed to provide workers with better working conditions, better wages, protection against abusive employment, the right to form an association and collective negotiation. It facilitated the organisation of the workers’ union and allowed greater participation of the workforce in the management of the establishment.
• Industrial Employment (Standing Orders) Act 1946 – This Act regulates the conditions of employment, grievances, misconduct, etc. of the workers employed in the industry

It is to be noted that the Industrial Relations Code, 2020, was passed by Parliament and received the President’s assent on September 28, 2020. However, it has not yet been brought into force. The Industrial Relations Code, 2020, will take effect only from the date the Central Government issues a notification in the Official Gazette. Until then, the existing labour laws continue to apply.

3. Key Provisions Relating to Strikes and Lockouts Under the Industrial Relations Code, 2020

The key provisions relating to strikes and lockouts are detailed under Sections 62 to 67 of the Industrial Relations Code, 2020.

3.1 Definitions

Strikes and lockouts are defined as follows:

• ‘Strike’ [Section 2(zk)] – Means a cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal, or a refusal, under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment and includes the concerted casual leave on a given day by 50% or more workers employed in an industry.
• ‘Lockout’ [Section 2(u)] – Refers to the temporary closing of a place of employment, or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him.

3.1.1 Do Workers Have a Fundamental Right to Strike in India?

The Supreme Court in T.K. Rangarajan v. Government of Tamil Nadu and Others [2003] taxmann.com 3831 (SC) held that the right to strike is not a fundamental right. In fact, there is no legal/statutory right to go on strike. Apart from statutory rights, Government employees cannot claim that they can take society to ransom by going on strike. Further, there is a prohibition on going on strike under the Tamil Nadu Government Servants Conduct Rules 1973.

Additionally, the Supreme Court in Crompton Greaves Ltd. v. Workmen (AIR 1978 SC 1489) observed that a strike is a legal weapon available to workers. However, its justification depends on the facts and circumstances of each case. The Court clarified that even an illegal strike may be justified in rare situations, while a legal strike may still be unjustified if the conduct of workers is unreasonable.

3.1.2 Whether a Lockout Is the Same as the Closure of Operations?

The Supreme Court in Management of Express Newspapers Ltd. v. Workers & Staff Employed Under it (AIR 1963 SC 569) clarified that a lockout is not the same as a closure. A lockout refers to the temporary closing of the place of employment, the suspension of work, or the employer’s refusal to employ workers during an industrial dispute. A closure, on the other hand, refers to the permanent shutdown of business operations. Unlike a lockout, a closure signifies the end of business itself, not just the temporary suspension of operations.

Further, in Management of Kairbetta Estate v. Rajamanickam (AIR 1960 SC 893), the Supreme Court elaborated on the distinction between a lockout and a layoff. The Court held that a layoff arises when ongoing operations exist but workers cannot be given work due to reasons beyond the employer’s control, while a lockout involves a temporary suspension of operations by the employer. In this case, a justified lockout in response to workers’ violence cannot be treated as a layoff, and thus, the workers were not entitled to layoff compensation.

3.2 Prohibition on Strikes and Lockouts

The provisions relating to the prohibition on strikes and lockouts are as follows:

3.2.1 Prohibition on Strikes

No person employed in an industrial establishment must go on strike, in breach of contract, in any of the following circumstances:

• Without giving the employer a notice of strike within 60 days before striking, or
• Within 14 days of giving such notice or
• Before the expiry of the date of the strike specified in such notice or
• During the pendency of any conciliation proceedings before a Conciliation Officer and seven days after the conclusion of such proceedings, or
• During the pendency of proceedings before a Tribunal or National Industrial Tribunal and sixty days after the conclusion of such proceedings, or
• During the pendency of arbitration proceedings before an arbitrator and 60 days after the conclusion of such proceedings, or
• During any period in which a settlement or award is in operation, in respect of matters covered by such settlement or award.

3.2.2 Prohibition on Lockouts

No employer of an industrial establishment must lock out any of his workers in any of the following circumstances:

• Without giving a notice of lockout within 60 days before locking out or
• Within 14 days of giving such notice or
• Before the expiry of the date of the lockout specified in such notice or
• During the pendency of any conciliation proceedings before a Conciliation Officer and seven days after the conclusion of such proceedings, or
• During the pendency of proceedings before a Tribunal or National Industrial Tribunal and sixty days after the conclusion of such proceedings, or
• During the pendency of arbitration proceedings before an arbitrator and 60 days after the conclusion of such proceedings, or
• During any period in which a settlement or award is in operation, in respect of matters covered by such settlement or award.

3.3 Exemption from Notice Requirement in Case of Existing Strike or Lockout

The notice of strike or lockout must not be necessary where a strike or lockout is already in existence. However, the employer must send intimation of such lockout or strike on the day on which it is declared to such authority as may be specified by the appropriate Government, either generally or for a particular area or for a particular class of services.

3.4 Reporting Requirements for Strikes and Lockout Notices

If on any day, an employer receives from any person employed by him, any notice or gives to any person employed by him, any notice of strike or lockout, he must report it within 5 days to the appropriate Government or to such authority as the Government may prescribe and to the conciliation officer, specifying the number of notices received or issued on that day.

3.5 Illegality of Strikes and Lockouts

A strike or lockout must be considered illegal if it is commenced or declared in contravention of Section 62 or continued in violation of an order made under Section 42(7) of the Code.

3.5.1 When Continuation of a Strike or Lockout Is Not Deemed Illegal

If a strike or lockout relating to an industrial dispute has already commenced and is in existence at the time an application is filed before the Tribunal or when the dispute is referred to an arbitrator or the National Industrial Tribunal, its continuance shall not be deemed illegal. The only condition is that the strike or lockout was legal when it began and has not been prohibited.

3.5.2 Legality of Strikes or Lockouts Declared in Consequence of Illegality

A lockout declared in consequence of an illegal strike or a strike declared in consequence of an illegal lockout must not be considered illegal.

3.6 Prohibition on Financial Support to Illegal Strikes and Lockouts

A person is prohibited from knowingly spending or using money to directly support or promote any illegal strike or lockout.

4. Extant Provisions on Industrial Relations

The extant provisions are as follows:

4.1 Definitions

Strikes and lockouts are defined as follows:

• ‘Strike’ [Section 2(q)] – Means a cessation of work by a body of persons employed in any industry acting in combination, or a concerted refusal, or a refusal, under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment.
• ‘Lockout’ [Section 2(l)] – A lockout refers to the temporary closing of a place of employment or the suspension of work or the refusal by an employer to continue to employ any number of persons employed by him.
• ‘Industrial Dispute’ [Section 2(k)] – Means any dispute or difference between employers and employers or between employers and workmen or between workmen and workmen, which is connected with the employment or non-employment or the terms of employment or with the conditions of labour of any person.

4.2 Provisions Relating to Strikes and Lockouts

The provisions relating to strikes and lockouts as per the Industrial Dispute Act, 1947, are as follows:

4.2.1 Prohibition on Strikes

No person employed in a public utility service must go on strike in breach of contract, in the following circumstances:

• Without giving the employer a notice of strike within six weeks before striking, or
• Within 14 days of giving such notice or
• Before the expiry of the date of the strike specified in such notice or
• During the pendency of any conciliation proceedings before a Conciliation Officer and seven days after the conclusion of such proceedings, or

4.2.2 Prohibition on Lockouts

No employer carrying on any public utility service must lock out any of his workers in any of the following circumstances:

• Without giving a notice of lockout within six weeks before locking out or
• Within 14 days of giving such notice or
• Before the expiry of the date of the lockout specified in such notice or
• During the pendency of any conciliation proceedings before a Conciliation Officer and seven days after the conclusion of such proceedings.

Whether a Lockout Declared Without Issuing Notice Is Considered Legal?
The Supreme Court, in B.R. Singh v. Union of India (1990 AIR 1), emphasised that while workers have a right to collectively voice their grievances, this right must be exercised strictly in accordance with statutory requirements, including notice and other provisions of the Act. Any strike or lockout that violates mandatory legal conditions cannot be regarded as legal.

4.2.3 Prohibition on Strikes and Lockouts (Other Than Non-Public Utility Services)

No workman who is employed in any industrial establishment must go on strike in breach of contract, and no employer must declare a lockout:

• During the pendency of conciliation proceedings before a Board and seven days after the conclusion of such proceedings;
• During the pendency of proceedings before a Labour Court, Tribunal or National Tribunal and two months after the conclusion of such proceedings;
• During the pendency of arbitration proceedings before an arbitrator and two months after the conclusion of such proceedings;
• During any period in which a settlement or award is in operation with respect to matters covered by the settlement or award.

4.3 Exemption from Notice Requirement in Case of Existing Strike or Lockout

The notice of strike or lockout must not be necessary where a strike or lockout is already in existence. However, the employer must send intimation of such lockout or strike on the day on which it is declared to such authority as may be specified by the appropriate Government, either generally or for a particular area or for a particular class of services.

4.4 Reporting Requirements for Strikes and Lockout Notices

If on any day, an employer receives from any person employed by him, any notice or gives to any person employed by him, any notice of strike or lockout, he must report it within 5 days to the appropriate Government or to such authority as the Government may prescribe and to the conciliation officer, specifying the number of notices received or issued on that day.

4.5 Illegality of Strikes and Lockouts

A strike or lockout must be considered illegal if it is commenced or declared in contravention of Section 22 or 23 of the Act.

4.5.1 When Continuation of a Strike or Lockout Is Not Deemed Illegal

If a strike or lockout relating to an industrial dispute has already commenced and is in existence at the time of reference of the dispute to the Board, a labour Court, Tribunal or National Tribunal, its continuance shall not be deemed illegal. The only condition is that the strike or lockout was legal when it began and has not been prohibited.

4.5.2 Legality of Strikes or Lockouts Declared in Consequence of Illegality

A lockout declared in consequence of an illegal strike or a strike declared in consequence of an illegal lockout must not be considered illegal.

Whether a Lockout Declared in Consequence of an Illegal Strike Is Automatically Illegal?

The Supreme Court in Indian Iron & Steel Co. Ltd. & Another v. Their Workmen (1958 AIR 130, 1958 SCR 667), noted that a lockout was declared in consequence of repeated illegal strikes by the workmen. The Supreme Court held that the lockout was lawful and that the lockout notice, stating that employees’ services “shall be deemed to be discharged,” meant a temporary refusal to employ, not a permanent dismissal.

The intention was not termination, but rather the suspension of services due to work disruption. Workers who reported within an extended period retained the right to resume work unconditionally. Further, the Court emphasised that Industrial Tribunals have limited scope to interfere in disciplinary actions and may intervene only where the action is malafide, constitutes unfair labour practice, violates principles of natural justice or is based on findings not supported by material.

5. Comparative Study

A comparative overview is as follows:

S.No.	Key Changes	Industrial Disputes Act, 1947	Industrial Relations Code, 2020	Impact
1.	Definitions	Section 2(q) defines the term ‘Strike’ and Section 2(l) defines the term ‘Lockout’	Section 2(zk) defines the term ‘Strike’ and Section 2(u) defines the term ‘Lockout’	The Code broadens the concept of strike to cover mass casual leave movements often used to circumvent legal restrictions on strikes.
2.	Notice Period for Strike/Lockout	Section 22(1) – Six weeks’ notice required; strike not to commence within 14 days of giving notice Section 22(2) – Similar provisions for lockouts	Section 62(1) & (2) – Notice period extended to 60 days before strike/lockout; cannot commence within 14 days of notice	The extension from 6 weeks to 60 days provides a longer window for conciliation and negotiation, allowing parties and authorities to intervene before a shutdown occurs.
3.	Restrictions during proceedings	Section 23 – Prohibition during pendency of conciliation, arbitration or tribunal proceedings and for 2 months thereafter.	Section 62(d) –(f) – Prohibition continues during pendency and extends for 60 days after conclusion of proceedings.	The Code maintains the spirit of the Industrial Dispute Act but standardises the post-proceeding restriction to 60 days across forums.
4.	Exemption from notice	Section 22(3) – Notice is not required if a strike/lockout already exists; the employer must intimate the Government Authority.	Section 63(2) – Similar provision retained; intimation on the day of declaration to the prescribed authority.	The code clarifies the timing and responsibility of intimation, making it obligatory for employers to report on the day of declaration.
5.	Reporting obligation to the Government	Section 22(6) – Employer must report notice of strike/lockout within 5 days to the appropriate Government.	Section 62(6) – Employer must report notice of strike/lockout within 5 days to the appropriate Government and the conciliation officer.	The change broadens the reporting requirement by mandating employers to submit the notice of strike/lockout not only to the appropriate Government but also to the conciliation officer. This enhances transparency and strengthens early dispute-resolution mechanisms.
6.	Illegality of Strikes/Lockouts	Section 24 – A strike or lockout is illegal if commenced in contravention of Section 22 or 23 of the Act or continued despite prohibition orders.	Section 63 – Similar provision; declares a strike/lockout illegal if commenced in violation of Section 62 or continued in contravention of orders under Section 42(7).	The concept of illegality is retained, but references are streamlined to the new Code framework. The clear cross-linking with Section 42(7) strengthens enforceability by aligning illegality with formal adjudication prohibitions, thereby ensuring that industrial actions cannot continue once legally restrained.
7.	When the continuation of a strike/lockout is not deemed illegal	Section 24(2) – Continuation of strike/lockout is not deemed illegal if strike/lockout was legal at the time of commencement and the dispute can later be referred for adjudication.	Section 63(2) – Similar safeguard retained.	The preservation of this clause upholds the balance between statutory regulation and the legitimate right to collective bargaining. It ensures that workers and employers are not penalised for lawful actions that precede a reference to adjudication, thereby maintaining fairness in procedural application.
8.	Legality of consequent strikes/lockouts	Section 24(3) – A strike/lockout declared in consequence of an illegal strike or lockout is not considered illegal.	Section 63(3) – Mirrors this position in the Code.	The continuation of this principle maintains parity in employer-employee rights. It prevents one party from gaining an undue advantage through an initial illegal action and ensures equitable treatment under industrial jurisprudence.
9.	Financial support for illegal strikes/lockouts	Section 25 – No person must knowingly spend or apply any money in direct furtherance or support of any illegal strike or lockout.	Section 64 – No person must knowingly spend or apply any money in direct furtherance or support of any illegal strike or lockout.	The provision under the Code retains the same prohibition as the Industrial Disputes Act, 1947, reflecting continuity in the law. This indicates that legislative intent remains unchanged, ensuring that no financial support is extended to illegal strikes or lockouts.
10.	Penalties	Sections 26-28 – Provided monetary fines and imprisonment for illegal strikes, lockouts and instigation.	Sections 86-89 – Updated penalty structure with higher fines and graded severity.	The updated penalty structure aligns with current economic realities and acts as a stronger deterrent. It also introduces proportionality – higher penalties for employers or unions depending on the gravity and repetition of offences, ensuring better compliance and enforcement efficiency.

6. Conclusion

The legal framework governing strikes and lockouts in India aims to balance industrial peace with the genuine rights of workers and employers. The Industrial Relations Code, 2020, once brought into force, is expected to modernise and streamline the law by broadening key definitions, standardising timelines, strengthening reporting requirements and updating penalties to discourage abrupt shutdowns and encourage negotiations. At the same time, it preserves protections for lawful ongoing strikes and lockouts, ensuring fairness to both parties. Overall, the Code seeks to promote stable and cooperative industrial relations by providing clear procedural mechanisms and discouraging illegal actions.