At a Glance
Where the Code comes from, when it took effect and what it replaced.
The Industrial Relations Code, 2020 came into force across India on 21 November 2025, and the Industrial Relations (Central) Rules, 2026 were notified on 8 May 2026, giving the Code its full working machinery of forms, timelines and procedures.
The Central Rules apply directly to establishments where the Central Government is the appropriate government, such as banking, insurance, telecom, mining, railways, major ports and central public sector undertakings. Most private employers fall under state jurisdiction, so full compliance for them depends on their respective State Rules, several of which are still in draft form as of July 2026.
- Issuing authority
- Ministry of Labour and Employment, Government of India
- Notified
- Code brought into force from 21 November 2025 (Notification S.O. 5320(E)) and the Industrial Relations (Central) Rules 2026 notified on 8 May 2026 (Notification G.S.R. 342(E))
- Objection window
- Draft Central Rules were published on 30 December 2025 with a 30 day window for objections and suggestions, which closed around 29 January 2026
- Legal basis
- Section 1(3) and Section 99 of the Industrial Relations Code 2020 (Act 35 of 2020)
- Supersedes
- Trade Unions Act 1926, Industrial Employment (Standing Orders) Act 1946 and Industrial Disputes Act 1947, all formally repealed with effect from 21 November 2025 vide Notification S.O. 465(E) dated 2 February 2026 and the Industrial Relations Code (Amendment) Act 2026. Also supersedes the Industrial Disputes (Central) Rules 1957 (Part II and Parts V to VIII) and the Industrial Employment (Standing Orders) Central Rules 1946
- Status as of
- 25 July 2026, in force nationwide. Central Rules are operative for central sphere establishments, while State Rules under the Code remain pending notification in several states for private sector employers
Introduction
For nearly a century, Indian employers had to track three separate central laws to manage trade unions, standing orders and industrial disputes: the Trade Unions Act 1926, the Industrial Employment (Standing Orders) Act 1946 and the Industrial Disputes Act 1947.
The Industrial Relations Code 2020 folds all three into a single law. It introduces new ideas such as statutory recognition for negotiating unions, a formal Grievance Redressal Committee for every mid sized establishment, and a Worker Reskilling Fund funded by employers when they retrench staff. The Code itself came into force on 21 November 2025, and the Industrial Relations (Central) Rules 2026, notified on 8 May 2026, supply the forms and timelines employers actually have to follow.
Forms Employers Must File
These are the forms an employer, not a trade union or a worker, is responsible for filing under the Industrial Relations (Central) Rules 2026.
| Form No. | Title | Governing Rule | Filed By |
|---|---|---|---|
| Form IV | Notice of change in conditions of service | Rule 19, IR Central Rules 2026 read with Section 40 of the Code | Employer |
| Form V | Arbitration agreement to refer an industrial dispute | Rule 20, IR Central Rules 2026 read with Section 42 of the Code | Employer, jointly with workers or trade union |
| Form XII | Notice of lock out | Rule 26, IR Central Rules 2026 read with Section 62 of the Code | Employer |
| Form XIII | Notice of retrenchment or closure to the Central Government | Rules 27 and 29, IR Central Rules 2026 read with Sections 70 and 74 of the Code | Employer |
| Form XIV | Application for prior permission for lay off, retrenchment or closure (establishments with 300 or more workers) | Rules 30, 33 and 35, IR Central Rules 2026 read with Sections 78, 79 and 80 of the Code | Employer |
| Form XV | Application for compounding of an offence | Rule 38, IR Central Rules 2026 read with Section 89 of the Code | Employer, in response to a compounding notice |
Due Dates
Compliance deadlines, the form each one uses and how often it recurs.
| Compliance | Form | Rule Reference | Frequency | Due Date |
|---|---|---|---|---|
| Notice of change in service conditions | Form IV | Section 40 of the Code, Rule 19 | Event based | At least 21 days before the change takes effect |
| Lock out notice | Form XII | Section 62 of the Code, Rule 26 | Event based | At least 14 days before the lock out, and intimation to the conciliation officer within 5 days of the notice |
| Retrenchment notice to the government | Form XIII | Rule 27 | Event based | Within 3 days of the notice served on the worker, or 1 month in advance if retrenchment is under an agreement |
| Seniority list before retrenchment | Notice board | Rule 28(1) | Event based | At least 7 days before the retrenchment |
| Closure notice (below Chapter X threshold) | Form XIII | Section 74 of the Code, Rule 29 | Event based | At least 60 days before the intended closure |
| Permission for retrenchment (300 or more workers) | Form XIV | Section 79 of the Code, Rule 33 | Event based | 3 months prior notice, and prior government permission before retrenchment |
| Permission for closure (300 or more workers) | Form XIV | Section 80 of the Code, Rule 35 | Event based | At least 90 days before the intended closure |
| Worker Reskilling Fund contribution | Direct transfer | Section 83 of the Code, Rule 37 | Event based | Within 10 days of retrenchment |
| Grievance Redressal Committee decision | Application under Rule 7 | Section 4 of the Code, Rule 8 | Event based | Within 30 days of the worker filing the grievance |
| Works Committee meetings | — | Rule 5(18) | Recurring | At least once every 3 months |
| Protected worker list update to trade unions | — | Rule 39 | Annual | Trade unions to inform the employer before 30 April every year, employer to respond within 15 days |
| Compounding amount deposit | Form XV | Section 89 of the Code, Rule 38(5) | Event based | Within 15 days of receiving the compounding notice |
Key Provisions
The sections that decide what an employer has to do.
Old Law vs. New Law
What employers followed before, against what applies now — point matched against point.
| On this point | Before — earlier law | Now — the new Code |
|---|---|---|
| Governing law | Three separate laws: Trade Unions Act 1926, Industrial Employment (Standing Orders) Act 1946 and Industrial Disputes Act 1947 | One consolidated law, the Industrial Relations Code 2020, backed by the Industrial Relations (Central) Rules 2026 |
| Standing orders threshold | Mandatory for establishments with 100 or more workers | Mandatory for establishments with 300 or more workers, with Model Standing Orders available for adoption |
| Permission before retrenchment or closure | Prior government permission needed once an establishment crossed 100 workers under the central law, though several states had already raised this to 300 | Uniform national threshold of 300 or more workers for prior permission requirements |
| Supervisory wage ceiling | A supervisor lost workman status once wages crossed Rs 1,600 a month, a figure last revised in 1982 and never broadly updated | A supervisor loses worker status once wages cross Rs 18,000 a month, a figure the Central Government can revise by notification |
| Fixed term employment | Not defined in the central law itself, only addressed through amendments to Model Standing Orders in some states | Defined directly in the Code with statutory parity in wages, hours and benefits, including gratuity after one year |
| Strike notice requirement | Mandatory notice applied only to public utility services | Mandatory notice now applies to every industrial establishment before any strike or lock out |
| Grievance handling | Grievance Settlement Authorities were optional under Section 9C of the old Industrial Disputes Act and rarely set up | Grievance Redressal Committees are compulsory for establishments with 20 or more workers, with fixed statutory timelines |
| Trade union recognition | No binding statutory mechanism for recognising a negotiating union at the central level | Statutory recognition criteria for a sole negotiating union or a negotiating council, verified through secret ballot |
| Support fund on retrenchment | No equivalent central fund existed | Worker Reskilling Fund requires employers to contribute 15 days of wages per retrenched worker |
| Filing of forms and notices | Largely paper based filing with physical registers | Electronic filing, digital registers and designated online portals built into almost every process |
Applicability
Who the Code covers, and who gets special or exempt treatment.
Covered
- Every industrial establishment or undertaking across India where an industry, as defined in the Code, is carried on
- Establishments with 100 or more workers on any day in the preceding 12 months, for the Works Committee requirement
- Establishments with 20 or more workers, for the Grievance Redressal Committee requirement
- Establishments with 300 or more workers, for standing orders and for prior permission before lay off, retrenchment or closure
- All industrial establishments, for the strike and lock out notice requirements
Exempted / special treatment
- Domestic service is excluded from the definition of industry
- Institutions run wholly for charitable, social or philanthropic purposes are excluded
- Sovereign functions of government, including defence research, atomic energy and space, are excluded
- Members of the Armed Forces of the Union, and persons employed in the police service or as prison officers, are excluded from the definition of worker
- Persons employed mainly in a managerial or administrative capacity, and supervisors drawing wages above Rs 18,000 a month, are excluded from the definition of worker
Penalties
What each default costs, section by section.
Frequently Asked Questions
Answers to what employers ask us most about this Code.
What is the Industrial Relations Code 2020?
It is a single central law that brings together everything to do with trade unions, standing orders and industrial disputes. It replaces three older laws that employers used to track separately, and adds new requirements such as Grievance Redressal Committees and a Worker Reskilling Fund.
When did the Industrial Relations Code come into force?
The entire Code came into force on 21 November 2025. The Industrial Relations (Central) Rules 2026, which supply the actual forms and timelines, were notified later on 8 May 2026.
Which older laws does the Industrial Relations Code replace?
It replaces the Trade Unions Act 1926, the Industrial Employment (Standing Orders) Act 1946 and the Industrial Disputes Act 1947. All three were formally repealed with effect from 21 November 2025.
What are the Industrial Relations Central Rules 2026?
These are the detailed procedural rules made under Section 99 of the Code. They prescribe the actual forms, such as Form IV for a notice of change and Form XIII for a retrenchment notice, along with timelines and the certifying and conciliation process.
Does the Industrial Relations Code apply to my company right now?
The Code itself applies nationwide from 21 November 2025. However, the Central Rules only govern establishments where the Central Government is the appropriate government, such as banking, insurance, telecom and railways. Most private companies fall under state jurisdiction and need to watch for their state's own rules under the Code.
What is a Grievance Redressal Committee and who needs one?
It is a joint employer and worker committee that resolves individual worker grievances. Any establishment employing 20 or more workers must set one up, with equal representation from both sides and a maximum of 10 members.
What is a negotiating union and how does a trade union get recognised?
A negotiating union is the trade union an employer must formally negotiate with on wages, hours and working conditions. A single union with at least 30 percent membership can be recognised as the sole negotiating union. Where multiple unions exist, one needs 51 percent support, verified through a secret ballot, to become the sole negotiating union.
When do I need to get standing orders certified?
Once your establishment reaches 300 or more workers. You can either draft your own standing orders and get them certified, or simply adopt the relevant Model Standing Orders for the mining, manufacturing or service sector and inform the certifying officer.
What is fixed term employment under the new Code?
It means hiring a worker on a written contract for a fixed period. Such workers must get the same wages, hours and statutory benefits as permanent workers doing similar work, and they become eligible for gratuity once they complete one year of service.
Do I need to give notice before every strike or lock out now?
Yes. Under the old law, mandatory strike notice applied only to public utility services. Under the Code, prior notice of at least 14 days is required before any strike or lock out in any industrial establishment.
What is the Worker Reskilling Fund?
It is a fund employers must contribute to whenever they retrench a worker. The contribution equals 15 days of that worker's last drawn wages and must be transferred within 10 days of retrenchment, so the worker has money to reskill for a new role.
What happens if I retrench or close down without permission?
For establishments with 300 or more workers, retrenchment or closure without prior government permission is treated as illegal, and the workers remain entitled to all benefits as if the retrenchment or closure never happened. It can also attract a fine of Rs 1 lakh to Rs 10 lakh under Section 86.
Can penalties under the Code be settled without going to court?
Many offences can be compounded, meaning the accused pays a set percentage of the maximum fine instead of facing a full prosecution. This is handled through Form XV and a notified compounding officer, as long as the offence does not carry imprisonment only.
Where can employers find the Model Standing Orders?
The Central Government notified separate Model Standing Orders for the mining, manufacturing and service sectors on 8 May 2026, alongside the Central Rules. Employers can adopt the version relevant to their establishment instead of drafting new standing orders from scratch.
What should employers do next to prepare?
Check whether the Central Rules or your state's rules apply to you, review your worker count against the 20, 100 and 300 worker thresholds, update your standing orders or adopt the Model Standing Orders, and set up a Grievance Redressal Committee if you have not already.
Sources of Information
Where every fact on this page comes from.
- → The Industrial Relations Code 2020 (Act 35 of 2020), Gazette of India (official)
- → Notification S.O. 5320(E) dated 21 November 2025, Ministry of Labour and Employment (official)
- → Industrial Relations (Central) Rules 2026, Notification G.S.R. 342(E) dated 8 May 2026, Ministry of Labour and Employment (official)
- → Draft Industrial Relations (Central) Rules 2025, Notification G.S.R. 930(E) dated 30 December 2025 (official)
- → Model Standing Orders 2026, Notification S.O. 2312(E) dated 8 May 2026 (official)
- → Industrial Relations Code (Amendment) Act 2026 and Notification S.O. 465(E) dated 2 February 2026 (official)
- → Ministry of Labour and Employment, press releases and official FAQs on the four Labour Codes (official)
For informational purposes only — not legal advice. State rules made under this Code vary, and both the Code and its rules are subject to amendment. Check your state's status or verify with our compliance team before acting.