Industrial Relations Code Simplified.

This law talks about the rights and duties of workers and employers in offices, factories, and other workplaces. It helps manage job-related disputes, union matters, and rules for hiring or firing workers.

What does this law do?

Solves Disputes Easily

If workers and employers have any disagreements (about salary, work conditions, etc.), the law provides a process to resolve them through negotiation, with help from the government if needed.

Clear Rules for Strikes

Workers must give 14 days’ notice before going on strike. No strikes are allowed during active talks with the government or courts.

Recognizes Trade Unions

If more than half the workers are part of one union, it will be accepted as the main one to talk to the employer.

Rules for Laying Off Workers

If a company has 300 or more workers, it must take government permission before firing workers or shutting down.

Fixed-Term Jobs

Companies can hire people for short contracts (like 1 year), but these workers must get the same pay and benefits as regular staff.

Support for Laid-Off Workers

Employers must put money into a Re-Skilling Fund to help retrain workers who lose their jobs.

Solves Employee Complaints

Every workplace with 20+ workers must form a team to handle complaints from workers quickly and fairly.

What old laws were replaced?

This Code combines and simplifies 3 old labour laws:

• Industrial Disputes Act, 1947
• Trade Unions Act, 1926
• Industrial Employment (Standing Orders) Act, 1946

Industrial Relations Code, 2020 – FAQs

1. What is this Code about?

It sets rules for how employers and workers should deal with job-related disputes, strikes, trade unions, and hiring/firing.

2. Does it apply to private companies or only government jobs?

It applies to both private and government sector workplaces, especially with 50 or more workers.

3. Can workers still form unions?

Yes, workers can still form trade unions and negotiate with employers.

4. What is a “recognised trade union”?

If more than 50% of workers in a company are in one union, that union becomes the main one to talk to the employer.

5. Can a company stop a worker from joining a union?

No. It is illegal to stop or punish a worker for joining a union.

6. When can workers go on strike legally?

Only after giving 14 days' notice and not during any ongoing negotiation or court process.

7. Can a company fire workers without notice?

Not if the company has 300 or more workers. They need government permission to fire or lay off workers.

8. What is a fixed-term worker?

Someone hired for a set time (e.g., 6 months or 1 year). They now get the same benefits and pay as permanent employees.

9. Is there any help for workers who lose their job?

Yes. The law creates a Re-Skilling Fund to train laid-off workers for new jobs.

10. Can workers complain about unfair treatment?

Yes. Workplaces with 20+ workers must set up a team to listen and resolve complaints.

11. What happens during a labour dispute?

The dispute is first tried to be settled by discussion, then with help from labour officers, and finally in a labour court if needed.

12. Is a strike allowed in all types of jobs?

Strikes are allowed but with proper notice. In some essential services, strikes can be banned temporarily.

13. Can my boss change working hours or rules suddenly?

No. In large companies, any rule change needs to be informed to workers and approved as per Standing Orders.

14. Who will help workers if the company violates rules?

Labour Commissioners or Industrial Tribunals can help settle such disputes legally.

15. Are small businesses covered?

Some rules apply only if the business has a certain number of workers (e.g., 50 or 300). Smaller firms may not need to follow all provisions.

16. What is a Standing Order?

It's a document that lists rules for conduct, leave, discipline, etc., that companies must follow.

17. Can a company close down suddenly?

No. A company with 300+ workers needs government approval before shutting down.

18. Is the notice period the same for all workers?

The law gives minimum standards, but the company policy or contract can define longer notice periods.

19. Can the government stop a strike?

Yes, during ongoing negotiations, national emergencies, or essential public services, the government can delay or stop a strike.

20. Is this Code already in effect?

The Code has been passed but may be implemented by the government gradually, along with rules from each state.