Industrial Relations Code vs. Industrial Disputes Act: What changed

The Industrial Relations Code, 2020 (IR Code) replaced the Industrial Disputes Act, 1947 (ID Act) when it came into force on 21 November 2025. For anyone comparing the Industrial Relations Code vs Industrial Disputes Act, the headline is simple: higher thresholds for employers, strike notice for every establishment, and a new reskilling fund. This guide explains each change in plain language.

Background

Section 104 of the IR Code repeals three laws: the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946 and the ID Act. The Industrial Relations (Central) Rules, 2026 were notified on 8 May 2026 to operate the Code. State rules also matter, so check your State.

Industrial Relations Code vs Industrial Disputes Act: Key Differences

IssueID Act, 1947IR Code, 2020
Worker definitionSupervisors earning up to ₹10,000 a monthSupervisors up to ₹18,000, plus working journalists and sales promotion employees
Standing orders100 or more workers300 or more workers (Section 28)
Government permission for layoff, retrenchment, closure100 or more workers300 or more workers (Section 77)
Strike noticePublic utility services onlyAll industrial establishments, 60 days (Section 62)
AdjudicationLabour Courts and TribunalsTwo-member Industrial Tribunals
Union recognitionNo statutory processNegotiating union with 51% support (Section 14)
ReskillingNoneWorker Re-skilling Fund (Section 83)

Standing Orders

Standing orders are written rules on service conditions such as shifts, leave and misconduct. Under Section 28, they now apply to establishments with 300 or more workers, up from 100 under the 1946 Act. Model standing orders fill the gap for smaller units.

Strike Notice Rules

Under Section 62, no worker may strike without 60 days’ notice. Strike also covers concerted mass casual leave. Strikes are barred within 14 days of giving notice, before the notice expires, and during conciliation, tribunal or arbitration proceedings and for set periods afterwards. Earlier, notice was needed only in public utility services.

Retrenchment Under the Industrial Relations Code

Retrenchment means ending a worker’s service for surplus labour. Under Section 70, the employer must give one month’s notice, pay 15 days’ average pay for every completed year of service and inform the government. Section 83 adds a Worker Re-skilling Fund, to which the employer contributes 15 days’ wages for each retrenched worker. Rules also require employers to inform eligible retrenched workers of vacancies.

Government permission for layoff, retrenchment or closure now applies to establishments with 300 or more workers (Section 77).

Fixed-Term Employment and Trade Unions

Fixed-term employees get the same working hours, wages and allowances as permanent workers. Gratuity is payable after one year under the Code on Social Security, 2020.

A trade union needs at least 10% of the workers or 100 workers, whichever is less, with a minimum of seven members, to register. Under Section 14, a union with 51% membership is the sole negotiating union. Otherwise, a negotiating council of unions is formed.

How Disputes Are Resolved

Grievance Redressal Committee (20 or more workers)
↓
Conciliation Officer
↓
Industrial Tribunal
↓
High Court (writ jurisdiction, Article 226)

Penalties and Remedies

Chapter XIV provides fines, and imprisonment for some offences, for breaches such as illegal strikes, missing notice or wrongful retrenchment. Many offences can be compounded, meaning settled by paying a fee. Workers can use the grievance committee, conciliation or the Tribunal.

Frequently Asked Questions

1. Is the ID Act still in force?

No. Section 104 of the IR Code repeals it.

2. Do private factories need to give strike notice?

Yes. Section 62 covers all industrial establishments.

3. Does the 300-worker threshold exempt smaller firms?

Only from standing orders and permission rules. Other duties still apply, and governments may change thresholds by notification.

4. Is mass casual leave a strike?

Yes, if it is concerted, the Code treats it as a strike.

5. Do fixed-term workers get benefits?

Yes, the same as permanent workers, with gratuity after one year.


For a deeper understanding, you can refer to these resource:

Social Security Code, 2020: A Commentary by J K Verma

Wages Code, 2019: A Commentary by J K Verma

Industrial Relations Code, 2020: A Commentary by J K Verma

Occupational Safety, Health and Working Conditions Code, 2020: A Commentary by J K Verma

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