Govt. Notifies Nov. 21, 2025 for Enforcement of ‘Industrial Relations Code, 2020’

Notification No. S.O. 5320(E); dated: 21.11.2025

The Ministry of Labour and Employment has notified November 21, 2025, as the effective date for the enforcement of all the provisions of the Industrial Relations Code, 2020. The objective of this Code is to promote industrial peace and harmony by balancing the rights of employers and employees and to provide a more streamlined process for resolving disputes. Further, the Industrial Relations Code aims to simplify compliance and promote ease of doing business within an establishment.

The new Code has repealed the following three legislations:

(a) The Industrial Disputes Act, 1947,

(b) The Industrial Employment (Standing Orders) Act, 1946, and

(c) The Trade Unions Act, 1926.

1. Applicability of Code

The Code applies to establishments as per the formation of committees and unions:

(a) Industrial Establishments with 100 or more workers employed or have been employed on any day in the preceding 12 months (IEs must have a Works Committee, consisting of representatives of employers and workers engaged in the establishment).

(b) Industrial Establishments (IE) with 20 or more workers (IEs must have one or more Grievance Redressal Committees to resolve disputes arising from individual grievances).

(c) Any trade union having 7 or more members may register under the Code.

(d) Industrial establishment with 300 or more workers employed or were employed on any day of the preceding 12 months.

2. Key Highlights of the Industrial Relations Code, 2020

The Key highlights are as follows:

(a) The term ‘workmen’ is replaced with ‘worker’ in the Code. [Section 2(zr)]

(b) Definition of the term ‘strike’ revised to include ‘mass casual leave’ on a given day by 50% or more workers employed in an industry. [Section 2(zk)]

(c) The Code provides that a worker cannot go on strikes and lockouts in breach of contract without giving the employer notice of strike/lockout within 60 days before striking. [Section 62]

(d) A ‘Worker re-skilling fund’ shall be created, consisting of contributions from the employer and the Appropriate Government for the employees laid off. [Section 83]

(e) The provisions of lay-off and retrenchment under the Code do not apply to industrial establishments in which less than 50 workers on an average per working day have been employed in the preceding calendar month or to establishments which are of a seasonal character. [Section 65]

(f) Now, the disputes related to discharge, dismissal, retrenchment or termination of the services of an individual worker will fall under the definition of ‘Industrial Dispute’. Defined under section 2(q) of the Code.

(g) The standing orders applied only to thresholds of 100 or more workers as per the Industrial Establishments Standing Orders Act, 1946. The threshold has now been increased from 100 to 300 workers. [Section 28]

(h) Any industrial establishment employing 20 or more workers must have one or more Grievance Redressal Committees for the resolution of disputes arising out of individual grievances. [Section 4]

(i) The Code establishes that when there is more than one trade union in an establishment, the trade union having 51% or more workers on the muster roll of the establishment shall be recognised by the employer as the ‘sole negotiating union’ of workers. [Section 14]

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