Highlights – The Industrial Relations Code, 2020

Highlights of the changes made in IR Code (1)





1    The definition  of the  term  “industry    is modified  in line with  the Apex court  verdict  in Bangalore  Water  Supply and  Sewage Board Case.

2    Domestic services and the Institutions engaged in charitable social or philanthropic service are excluded from the term “industry.

3    Termination of the service of a worker on the ground of continued ill health is considered as retrenchment.

4    Concerted mass casual leave also be construed as strike.

5    The total number of members of the Grievance Redressal Committee increased from six to ten.

6    Notice shall not be required for effecting change in case of emergent situation requiring change of shift or shift working otherwise than (except in accordance with standing orders in consultation with Grievance Redressal Committee).

7   Prohibits strikes and lockouts in any industrial establishment without giving notice of 14 days.

8    Notice of strike or lockout validity is amended from 6 weeks to 60 days.

9   Wilful go slow shall be construed as unfair labour practice on the part of worker.

10  Time period for filing a grievance application is reduced from three years to one year.

11  Time period for raising industrial dispute before the conciliation officer is reduced to 2 years from 3 years.

  1.   Factories mines or plantations shall obtain permission from the appropriate Gov, for retrenchment or lay off if 300 or more workers.
  2.  Only tribunal has the power to entertain any suit in relation to dispute concerning trade unions and the members
  3.  The employer shall contribute an amount equivalent to 15 days wages for every retrenched worker towards the workers reskilling fund.



1  Special provision introduced for recognition of trade union.

2    If more than one trade unions are functioning the trade union having 51% or more workers support shall be recognized   as sole negotiating union.

3    If  more than one trade unions are functioning and if no trade  union is having 51% or more workers support negotiating council to be formed(i.e.,@1 representative for each  20% members.

4 Only one third of the total number of office bearers of the union or five office bearers whichever is lower can be from outside the industry   with which the union is connected.



1    Chapter IV concerning the Standing orders shall apply to the industrial establishment in   which   300   or   more    workers   are employed (currently it is 100 or more)

2     Central Government shall draft model standing orders (currently both central and state Govt., has this power).

3     The central Govt., would be the appropriate Govt., for telecommunication insurance and banking companies.

4     Employers shall consult the trade unions or negotiating union council before submitting the draft standing orders to the certifying officer.

5     Certifying officer to look in to the fairness or reasonableness of the provisions of any standing orders.

6     Certifying officer shall certify the standing orders within 60 days and in case of failure to certify within the time limit then it will be deemed to have been approved.

7     Standing   orders already   certified   shall continue to be in force.



1     Empowers the app Govt., to appoint officers for holding enquiry and impose penalty in certain contraventions punishable with fine up to Rs.  50000.

2     Central Govt., would be the appropriate Govt., for metro railways.

3     The Central Government will be the appropriate Govt., for the establishment of contractors serving to the establishment undertakings etc., of Central Govt.,

4     To provide penalty for different types of violations commensurate with gravity.

5     There is an increase in Penalty in case of violation of the provisions of this code.

6    Provision for compounding of offence is introduced.


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