Industrial Relations Code, 2020
Key Provisions
The Industrial Relations Code, 2020 (enacted 28 September 2020) is one of four labour codes that consolidated 29 existing central labour laws. It subsumed the Trade Unions Act 1926, the Industrial Employment (Standing Orders) Act 1946, and the Industrial Disputes Act 1947. The Code raised the threshold for mandatory government approval for layoffs, retrenchment, and closure from 100 workers to 300 workers — a major change that increases employer flexibility to adjust workforce size without government permission.
- Enacted: 28 September 2020 (yet to be fully implemented as states frame rules)
- Laws subsumed: Trade Unions Act 1926, Industrial Employment (Standing Orders) Act 1946, Industrial Disputes Act 1947
- Key threshold: prior government permission for layoff/retrenchment/closure now required only for establishments with 300+ workers (raised from 100)
- Standing orders: applicable to establishments with 300+ workers (raised from 100)
- Fixed Term Employment (FTE): introduced as a legitimate employment form
- Trade Union recognition: 51% membership threshold for Negotiating Union status; 20% minimum for Negotiating Council membership
- Dispute resolution: new mechanism through Industrial Tribunal (two-member: judicial + administrative)
● Tracked since February 09, 2026 · last seen August 21, 2026 · updates as the daily brief publishes
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