Industrial Relations Code, 2020
The Industrial Relations Code, 2020 improves ease of doing business by raising thresholds for layoffs, retrenchment, and standing orders, while extending strike notice requirements to all industries — consolidating three earlier industrial relations laws into one code.
Acts Subsumed (3 Total)
- The Trade Unions Act, 1926
- The Industrial Employment (Standing Orders) Act, 1946
- The Industrial Disputes Act, 1947
Key HR Compliance Mandates
1. Raised Thresholds for Standing Orders & Layoffs
The code improves operational flexibility for MSMEs. Industrial establishments with up to 300 workers (raised from the previous 100) are no longer required to furnish standing orders or seek prior government permission for layoff, retrenchment, and closure.
2. Single Negotiating Union
If there are multiple trade unions, the union possessing 51% or more of the workers on the muster roll will be recognised as the sole negotiating union. If no union hits 51%, a negotiating council will be formed of representatives from unions with at least 20% membership.
3. Strike Notice: 60 Days' Notice, 14-Day Window
A strike notice now requires two conditions to be met, extended from public utility services to all industrial establishments: workers must give at least 60 days' advance written notice stating the grounds for the proposed strike, and the strike itself may only take place within the 14-day window specified in that notice — not before, and not after that window has closed.