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The
Industrial Relations Code, 20201
(Industrial Relations Code, 2020)
[Act 35 of 2020]
[28th September, 2020]

CONTENTS

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement

2. Definitions

CHAPTER II

BI-PARTITE FORUMS

3. Works Committee

4. Grievance Redressal Committee

CHAPTER III

TRADE UNIONS

5. Registrar of Trade Unions

6. Criteria for registration

7. Provisions to be contained in constitution or rules of Trade Union

8. Application for registration, alteration of name and procedure thereof

9. Registration of Trade Union and cancellation thereof

10. Appeal against non-registration or cancellation of registration

11. Communication to Trade Union and change in its registration particulars

12. Incorporation of a registered Trade Union

13. Certain Acts not to apply to registered Trade Unions

14. Recognition of negotiating union or negotiating council

15. Objects of general fund, composition of separate fund and membership fee of
Trade Union

16. Immunity from civil suit in certain cases

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17. Criminal conspiracy in furtherance of objects of Trade Union

18. Enforceability of agreements

19. Right to inspect books of Trade Union

20. Rights of minor to membership of Trade Union

21. Disqualification of office-bearers of Trade Unions

22. Adjudication of disputes of Trade Unions

23. Proportion of office-bearers to be connected with industry

24. Change of name, amalgamation, notice of change and its effect

25. Dissolution

26. Annual returns

27. Recognition of Trade Unions at Central and State level

CHAPTER IV

STANDING ORDERS

28. Application of this Chapter

29. Making of model standing orders by Central Government and temporary

application

30. Preparation of draft standing orders by employer and procedure for certification

31. Certifying officer and appellate authority to have powers of civil court

32. Appeals

33. Date of operation of standing orders and its availability

34. Register of standing orders

35. Duration and modification of standing orders

36. Oral evidence in contradiction of standing orders not admissible

37. Interpretation, etc., of standing orders

38. Time-limit for completing disciplinary proceedings and liability to pay subsistence
allowance

39. Power to exempt

CHAPTER V

NOTICE OF CHANGE

40. Notice of change

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41. Power of appropriate Government to exempt

CHAPTER VI

VOLUNTARY REFERENCE OF DISPUTES TO ARBITRATION

42. Voluntary reference of disputes to arbitration

CHAPTER VII

MECHANISM FOR RESOLUTION OF INDUSTRIAL DISPUTES

43. Conciliation officers

44. Industrial Tribunal

45. Finality of constitution of Tribunal

46. National Industrial Tribunal

47. Decision of Tribunal or National Industrial Tribunal

48. Disqualifications for members of Tribunal and National Industrial Tribunal

49. Procedure and powers of arbitrator, conciliation officer, Tribunal and National
Industrial Tribunal

50. Powers of Tribunal and National Industrial Tribunal to give appropriate relief in
case of discharge or dismissal of worker

51. Transfer of pending cases

52. Adjustment of services of presiding officers under repealed Act

53. Conciliation and adjudication of dispute

54. Reference to and functions of National Industrial Tribunal

55. Form of award, its communication and commencement

56. Payment of full wages to worker pending proceedings in higher Courts

57. Persons on whom settlements and awards are binding

58. Period of operation of settlements and awards

59. Recovery of money due from employer

60. Commencement and conclusion of proceedings

61. Certain matters to be kept confidential

CHAPTER VIII

STRIKES AND LOCK-OUTS

62. Prohibition of strikes and lock-outs

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63. Illegal strikes and lock-outs

64. Prohibition of financial aid to illegal strikes or lock-outs

CHAPTER IX

LAY-OFF, RETRENCHMENT AND CLOSURE

65. Application of Sections 67 to 69

66. Definition of continuous service

67. Rights of workers laid-off for compensation, etc

68. Duty of an employer to maintain muster rolls of workers

69. Workers not entitled for compensation in certain cases

70. Conditions precedent to retrenchment of workers

71. Procedure for retrenchment

72. Re-employment of retrenched worker

73. Compensation to workers in case of transfer of establishment

74. Sixty days' notice to be given of intention to close down any undertaking

75. Compensation to workers in case of closing down of undertakings

76. Effect of laws inconsistent with this Chapter

CHAPTER X

SPECIAL PROVISIONS RELATING TO LAY-OFF, RETRENCHMENT AND CLOSURE IN

CERTAIN ESTABLISHMENTS

77. Application of this Chapter

78. Prohibition of lay-off

79. Conditions precedent to retrenchment of workers to which Chapter X applies

80. Procedure for closing down an industrial establishment

81. Duty of an employer to maintain muster rolls of workers

82. Certain provisions of Chapter IX to apply to industrial establishment to which this

Chapter applies

CHAPTER XI

WORKER RE-SKILLING FUND

83. Worker re-skilling fund

CHAPTER XII
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UNFAIR LABOUR PRACTICES

84. Prohibition of unfair labour practice

CHAPTER XIII

OFFENCES AND PENALTIES

85. Power of officers of appropriate Government to impose penalty in certain cases

86. Penalties

87. Cognizance of offences

88. Offences by companies

89. Composition of offences

CHAPTER XIV

MISCELLANEOUS

90. Conditions of service, etc., to remain unchanged under certain circumstances

during pendency of proceedings

91. Special provision for adjudication as to whether conditions of service, etc.,

changed during pendency of proceedings

92. Power to transfer certain proceedings

93. Protection of persons

94. Representation of parties

95. Removal of doubts in interpretation of award or settlement

96. Power to exempt

97. Jurisdiction of civil courts barred

98. Protection of action taken in good faith

99. Power of appropriate Government to make rules

100. Delegation of powers

101. Power to amend Schedules

102. Amendment of Act 7 of 2017

103. Power to remove difficulties

104. Repeal and savings

The First Schedule. Matters to be Provided in Standing Orders Under this Code

The Second Schedule. Unfair Labour Practices

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The Third Schedule. Conditions of Service for Change of Which Notice Is to be Given

———

Industrial Relations Code, 2020

[Act 35 of 2020] [28th September,
2020]
An Act to consolidate and amend the laws relating to Trade Unions, conditions of
employment in industrial establishment or undertaking, investigation and settlement
of industrial disputes and for matters connected therewith or incidental thereto
Be it enacted by Parliament in the Seventy-first Year of the Republic of India as
follows:—
Statement of Objects and Reasons.—The Second National Commission on
Labour, which submitted its report in June 2002, had recommended that the existing
set of labour laws should be broadly amalgamated into the following groups, namely:
—
(a) industrial relations;
(b) wages;
(c) social security;
(d) safety; and
(e) welfare and working conditions.
2. In pursuance of the recommendations of the said Commission relating to
industrial relations and the deliberations made in the tripartite meeting comprising of
the Government, employers' and industry representatives, it has been decided to bring
the proposed legislation for amalgamating, simplifying and rationalising the relevant
provisions of—
(a) the Trade Unions Act, 1926;
(b) the Industrial Employment (Standing Orders) Act, 1946; and
(c) the Industrial Disputes Act, 1947.
3. Accordingly, the Industrial Relations Code, 2019 was introduced in Lok Sabha on
the 28th November, 2019, which was referred to the Department-related
Parliamentary Standing Committee on Labour for its examination and report. The said
Committee submitted its Eighth Report on the 23rd April, 2020 recommending various
modifications in the said Bill to give impetus to the economic activity in the country
without compromising on the basic aspects of the benefit to workers. Considering the
valuable recommendations of the said Parliamentary Standing Committee, the
Government proposes to withdraw the Industrial Relations Code, 2019 pending in
Parliament and introduce a new Bill, namely, the Industrial Relations Code, 2020 with
certain modifications.
4. The proposed legislation provides for a broader framework to protect the rights of
workers to form unions, to minimise the friction between the employers and workers
and to provide provisions for investigation and settlement of industrial disputes. The
object of the proposed legislation is to achieve industrial peace and harmony as the
ultimate pursuit in resolving industrial disputes and to advance the progress of
industry by bringing about the existence of harmony and cordial relationship between
the employers and workers.
5. The salient features of the Industrial Relations Code, 2020, inter alia, are as
follows:—
(i) to define “workers” which includes the persons in supervisory capacity getting
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wages up to eighteen thousand rupees per month or an amount as may be

notified by the Central Government from time to time;
(ii) to provide for fixed term employment with the objective that the employee gets
all the benefits like that of a permanent worker (including gratuity), except for
notice period after conclusion of a fixed period, and retrenchment compensation.
The employer has been provided with the flexibility to employ workers on fixed
term basis on the basis of requirement and without restriction on any sector;
(iii) to revise the definition of “industry” that any systematic activity carried on by
co-operation between the employer and workers for the production, supply or
distribution of goods or services with a view to satisfy human wants or wishes
(not being wants or wishes which are merely spiritual or religious in nature) with
certain exceptions;
(iv) to bring concerted casual leave within the ambit of the definition of strike;
(v) to provide the maximum number of members in the Grievance Redressal
Committee up to ten in an industrial establishment employing twenty or more
workers. There shall be adequate representation of the women workers therein in
the proportion of the women workers to the total workers employed in the
industrial establishment;
(vi) to provide for a new feature of recognition of negotiating union and negotiating
council in an industrial establishment by an employer for the purpose of
negotiations. The criterion for recognition of negotiating union has been fixed at
fifty-one per cent or more workers on a muster roll of that industrial
establishment. As regards negotiating council, a Trade Union having support of
every twenty per cent of workers will get one seat in the negotiating council and
the fraction above twenty per cent shall be disregarded;
(vii) to provide for appeal against non-registration or cancellation of registration of
Trade Union before the Industrial Tribunal;
(viii) to empower the Central Government and the State Governments to recognise
a Trade Union or a federation of Trade Unions as the Central Trade Union or State
Trade Unions, respectively;
(ix) to provide for applicability of threshold of three hundred or more workers for an
industrial establishment to obtain certification of standing orders, if the standing
order differ from the model standing order made by the Central Government;
(x) to provide that if the employer prepares and adopts model standing order of the
Central Government with respect to the matters relevant to the employer's
industrial establishment, then the model standing order would be deemed to be
certified. Otherwise, the industrial establishment may seek certification of only
those clauses which are different from the model standing orders;
(xi) to set up Industrial Tribunal consisting of a Judicial Member and an
Administrative Member, in place of only Judicial Member who presently presides
the Tribunal. For certain specified cases, the matters will be decided by the two-
member Tribunal and the remaining shall be decided by single-member Tribunal
as may be provided for in the rules;
(xii) to set up Industrial Tribunals in the place of existing multiple adjudicating
bodies like the Court of Inquiry, Board of Conciliation and Labour Courts;
(xiii) to remove the reference system for adjudication of Industrial Disputes, except
the reference to the National Industrial Tribunal for adjudication;
(xiv) to provide that the commencement of conciliation proceedings shall be
deemed to have commenced on the date of the first meeting held by the
conciliation officer in an industrial dispute after the receipt of the notice of strike
or lock-out by the conciliation officer;
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(xv) to prohibit strikes and lock-outs in all industrial establishments without giving
notice of fourteen days;
(xvi) to provide for the obligation on the part of industrial establishments pertaining
to mine, factories and plantation having three hundred or more workers to take
prior permission of the appropriate Government before lay-off, retrenchment and
closure with flexibility to the appropriate Government to increase the threshold to
higher numbers, by notification;
(xvii) to set up a re-skilling fund for training of retrenched workers. The fund shall,
inter alia, consist of the contribution of the employer of an amount equal to
fifteen days wages last drawn by the worker immediately before the
retrenchment or such other number of days, as may be notified by the Central
Government, in case of retrenchment only. The fund shall be utilised by crediting
fifteen days wages last drawn by the worker to his account who is retrenched,
within forty-five days of the retrenchment as may be provided by rules;
(xviii) to provide for compounding of offences by a Gazetted Officer, as the
appropriate Government may, by notification, specify, for a sum of fifty per cent
of the maximum fine provided for such offence punishable with fine only and for
a sum of seventy-five per cent provided for such offence punishable with
imprisonment for a term which is not more than one year, or with fine;
(xix) to provide for penalties for different types of violations to rationalise with such
offences and commensurate with the gravity of the violations;
(xx) to empower the appropriate Government to exempt any industrial
establishment from any of the provisions of the Code in the public interest for
the specified period.
6. The notes on clauses explain in detail the various provisions contained in the Bill.
7. The Bill seeks to achieve the above objectives.
Chapter I
PRELIMINARY
1. Short title, extent and commencement.—(1) This Act may be called the
Industrial Relations Code, 2020.
(2) It shall extend to the whole of India.
Corresponding Law: S. 1(1) & (2) of Industrial Employment (Standing Orders)
Act, 1946.
(3) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette appoint; and different dates may be appointed for
different provisions of this Code and any reference in any such provision to the
commencement of this Code shall be construed as a reference to the coming into force
of that provision.
Corresponding Law: S. 1 of Industrial Disputes Act, 1947; S. 1 Trade Unions Act,
1926.
2. Definitions.—In this Code, unless the context otherwise requires,—
(a) “appellate authority” means an authority appointed by the appropriate
Government to exercise such functions in such area as may be specified by
that Government by notification in the Official Gazette;
Corresponding Law: S. 2(a) of Industrial Employment (Standing Orders) Act,
1946.
(b) “appropriate Government” means,—
(i) in relation to any industrial establishment or undertaking carried on by or
under the authority of the Central Government or concerning any such
controlled industry as may be specified in this behalf by the Central
Government or the establishment of railways including metro railways,
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mines, oil fields, major ports, air transport service, telecommunication,

banking and insurance company or a corporation or other authority
established by a Central Act or a central public sector undertaking,
subsidiary companies set up by the principal undertakings or autonomous
bodies owned or controlled by the Central Government including
establishments of the contractors for the purposes of such establishment,
corporation, other authority, public sector undertakings or any company in
which not less than fifty-one per cent of the paid-up share capital is held by
the Central Government, as the case may be, the Central Government.
Explanation.—For the purposes of this clause, the Central Government shall
continue to be the appropriate Government for central public sector
undertakings even if the holding of the Central Government reduces to less
than fifty per cent equity in that public sector undertaking after the
commencement of this Code;
(ii) in relation to any other industrial establishment, including State public
sector undertakings, subsidiary companies set up by the principal
undertaking and autonomous bodies owned or controlled by the State
Government, the State Government:
Provided that in case of a dispute between a contractor and the contract
labour employed through the contractor in any industrial establishment
where such dispute first arose, the appropriate Government shall be the
Central Government or the State Government, as the case may be, which
has control over such industrial establishment;
Corresponding Law: S. 2(a) of Industrial Disputes Act, 1947; S. 2(b) of Industrial
Employment (Standing Orders) Act, 1946; S. 2 Trade Unions Act, 1926.
(c) “arbitrator” includes an umpire;
Corresponding Law: S. 2(aa) of Industrial Disputes Act, 1947.
(d) “average pay” means the average of the wages payable to a worker,—
(i) in the case of monthly paid worker, in three complete calendar months;
(ii) in the case of weekly paid worker, in four complete weeks;
(iii) in the case of daily paid worker, in twelve full working days,
preceding the date on which the average pay becomes payable, if the worker
had worked for three complete calendar months or four complete weeks or
twelve full working days, as the case may be, and where such calculation
cannot be made, the average pay shall be calculated as the average of the
wages payable to a worker during the period he actually worked;
Corresponding Law: S. 2(aaa) of Industrial Disputes Act, 1947.
(e) “award” means an interim or a final determination of any industrial dispute
or of any question relating thereto by any Industrial Tribunal referred to in
Section 44 or National Industrial Tribunal referred to in Section 46 and
includes an arbitration award made under Section 42;
Corresponding Law: S. 2(b) of Industrial Disputes Act, 1947.
(f) “banking company” means a banking company as defined in Section 5 of
the Banking Regulation Act, 1949 (10 of 1949) and includes the Export-
Import Bank of India, the Industrial Reconstruction Bank of India, the
Small Industries Development Bank of India established under Section 3 of
the Small Industries Development Bank of India Act, 1989 (39 of 1989),
the Reserve Bank of India, the State Bank of India, a corresponding new
bank constituted under Section 3 of the Banking Companies (Acquisition
and Transfer of Undertakings) Act, 1970 (5 of 1970), a corresponding new
bank constituted under Section 3 of the Banking Companies (Acquisition
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and Transfer of Undertakings) Act, 1980 (40 of 1980);

Corresponding Law: S. 2(bb) of Industrial Disputes Act, 1947.
(g) “certifying officer” means any officer appointed by the appropriate
Government, by notification, to perform the functions of a certifying officer
under the provisions of Chapter IV;
Corresponding Law: S. 2(c) of Industrial Employment (Standing Orders) Act,
1946.
(h) “closure” means the permanent closing down of a place of employment or
part thereof;
Corresponding Law: S. 2(cc) of Industrial Disputes Act, 1947.
(i) “conciliation officer” means a conciliation officer appointed under Section
43;
Corresponding Law: S. 2(d) of Industrial Disputes Act, 1947.
(j) “conciliation proceeding” means any proceeding held by a conciliation
officer under this Code;
Corresponding Law: S. 2(e) of Industrial Disputes Act, 1947.
(k) “controlled industry” means any industry the control of which by the Union
has been declared by any Central Act to be expedient in the public interest;
Corresponding Law: S. 2(ee) of Industrial Disputes Act, 1947.
(l) “employee” means any person (other than an apprentice engaged under
the Apprentices Act, 1961 (52 of 1961)) employed by an industrial
establishment to do any skilled, semi-skilled or unskilled, manual,
operational, supervisory, managerial, administrative, technical or clerical
work for hire or reward, whether the terms of employment be express or
implied, and also includes a person declared to be an employee by the
appropriate Government, but does not include any member of the Armed
Forces of the Union;
(m) “employer” means a person who employs, whether directly or through any
person, or on his behalf or on behalf of any person, one or more employee
or worker in his establishment and where the establishment is carried on by
any department of the Central Government or the State Government, the
authority specified by the head of the department in this behalf or where no
authority is so specified, the head of the department, and in relation to an
establishment carried on by a local authority, the chief executive of that
authority, and includes,—
Corresponding Law: S. 2(g) of Industrial Disputes Act, 1947; S. 2(d) of Industrial
Employment (Standing Orders) Act, 1946.
(i) in relation to an establishment which is a factory, the occupier of the
factory as defined in clause (n) of Section 2 of the Factories Act, 1948
(63 of 1948) and, where a person has been named as a manager of the
factory under clause (f) of sub-section (1) of Section 7 of the said Act,
the person so named;
(ii) in relation to any other establishment, the person who, or the authority
which has ultimate control over the affairs of the establishment and
where the said affairs are entrusted to a manager or managing director,
such manager or managing director;
(iii) contractor; and
(iv) legal representative of a deceased employer;
(n) “executive”, in relation to a Trade Union, means the body by whatever
name called, to which the management of the affairs of a Trade Union is
entrusted;
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Corresponding Law: S. 2(gg) of Industrial Disputes Act, 1947; S. 2(a) Trade

Unions Act, 1926.
(o) “fixed term employment” means the engagement of a worker on the basis
of a written contract of employment for a fixed period:
Provided that—
(a) his hours of work, wages, allowances and other benefits shall not be
less than that of a permanent worker doing the same work or work of
similar nature;
(b) he shall be eligible for all statutory benefits available to a permanent
worker proportionately according to the period of service rendered by
him even if his period of employment does not extend to the qualifying
period of employment required in the statute; and
(c) he shall be eligible for gratuity if he renders service under the contract
for a period of one year;
(p) “industry” means any systematic activity carried on by co-operation
between an employer and worker (whether such worker is employed by
such employer directly or by or through any agency, including a contractor)
for the production, supply or distribution of goods or services with a view to
satisfy human wants or wishes (not being wants or wishes which are
merely spiritual or religious in nature), whether or not,—
(i) any capital has been invested for the purpose of carrying on such
activity; or
(ii) such activity is carried on with a motive to make any gain or profit, but
does not include —
(i) institutions owned or managed by organisations wholly or
substantially engaged in any charitable, social or philanthropic
service; or
(ii) any activity of the appropriate Government relatable to the sovereign
functions of the appropriate Government including all the activities
carried on by the departments of the Central Government dealing with
defence research, atomic energy and space; or
(iii) any domestic service; or
(iv) any other activity as may be notified by the Central Government;
Corresponding Law: S. 2(j) of Industrial Disputes Act, 1947.
(q) “industrial dispute” means any dispute or difference between employers and
employers or between employers and workers or between workers and workers
which is connected with the employment or non-employment or the terms of
employment or with the conditions of labour, of any person and includes any
dispute or difference between an individual worker and an employer connected
with, or arising out of discharge, dismissal, retrenchment or termination of
such worker;
Corresponding Law: S. 2(k) of Industrial Disputes Act, 1947.
(r) “industrial establishment or undertaking” means an establishment or
undertaking in which any industry is carried on:
Provided that where several activities are carried on in an establishment or
undertaking and only one or some of such activities is or are an industry or
industries, then,—
(i) if any unit of such establishment or undertaking carrying on any activity,
being an industry, is severable from the other unit or units of such
establishment or undertaking which is not carrying on or aiding the
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carrying on of any such activity, such unit shall be deemed to be a separate

industrial establishment or undertaking;
(ii) if the predominant activity or each of the predominant activities carried on
in such establishment or undertaking or any unit thereof is an industry and
the other activity or each of the other activities carried on in such
establishment or undertaking or unit thereof is not severable from and is,
for the purpose of carrying on, or aiding the carrying on of, such
predominant activity or activities, the entire establishment or undertaking
or, as the case may be, unit thereof shall be deemed to be an industrial
establishment or undertaking;
Corresponding Law: S. 2(ka) of Industrial Disputes Act, 1947; S. 2(e) of
Industrial Employment (Standing Orders) Act, 1946.
(s) “insurance company” means a company as defined in Section 2 of the
Insurance Act, 1938 (4 of 1938);
Corresponding Law: S. 2(kk) of Industrial Disputes Act, 1947.
(t) “lay-off” (with its grammatical variations and cognate expressions) means the
failure, refusal or inability of an employer on account of shortage of coal,
power or raw materials or the accumulation of stocks or the break-down of
machinery or natural calamity or for any other connected reason, to give
employment to a worker whose name is borne on the muster rolls of his
industrial establishment and who has not been retrenched.
Explanation.—Every worker whose name is borne on the muster rolls of the
industrial establishment and who presents himself for work at the
establishment at the time appointed for the purpose during normal working
hours on any day and is not given employment by the employer within two
hours of his so presenting himself shall be deemed to have been laid-off for
that day within the meaning of this clause:
Provided that if the worker, instead of being given employment at the
commencement of any shift for any day is asked to present himself for the
purpose during the second half of the shift for the day and is given
employment then, he shall be deemed to have been laid-off only for one-half
of that day:
Provided further that if he is not given any such employment even after so
presenting himself, he shall not be deemed to have been laid-off for the
second half of the shift for the day and shall be entitled to full basic wages
and dearness allowance for that part of the day;
Corresponding Law: S. 2(kkk) of Industrial Disputes Act, 1947.
(u) “lock-out” means the temporary closing of a place of employment, or the
suspension of work, or the refusal by an employer to continue to employ any
number of persons employed by him;
Corresponding Law: S. 2(l) of Industrial Disputes Act, 1947.
(v) “major port” means a major port as defined in clause (8) of Section 3 of the
Indian Ports Act, 1908 (15 of 1908);
Corresponding Law: S. 2(l-a) of Industrial Disputes Act, 1947.
(w) “metro railway” means the metro railway as defined in sub-clause (i) of
clause (1) of Section 2 of the Metro Railways (Operation and Maintenance)
Act, 2002 (60 of 2002);
(x) “mine” means a mine as defined in clause (j) of sub-section (1) of Section 2
of the Mines Act, 1952 (35 of 1952);
Corresponding Law: S. 2(l-b) of Industrial Disputes Act, 1947.
(y) “National Industrial Tribunal” means a National Industrial Tribunal
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constituted under Section 46;

Corresponding Law: S. 2(ll) of Industrial Disputes Act, 1947.
(z) “negotiating union or negotiating council” means the negotiating union or
negotiating council referred to in Section 14;
(za) “notification” means a notification published in the Official Gazette of India
or the Official Gazette of a State, as the case may be, and the expression
“notify” with its grammatical variation and cognate expressions shall be
construed accordingly;
(zb) “office-bearer”, in relation to a Trade Union, includes any member of the
executive thereof, but does not include an auditor;
Corresponding Law: S. 2(lll) of Industrial Disputes Act, 1947; S. 2(b) Trade
Unions Act, 1926.
(zc) “prescribed” means prescribed by rules made under this Code;
Corresponding Law: S. 2(m) of Industrial Disputes Act, 1947; S. 2(f) of Industrial
Employment (Standing Orders) Act, 1946; S. 2(c) Trade Unions Act, 1926.
(zd) “railway” means the railway as defined in clause (31) of Section 2 of the
Railways Act, 1989 (24 of 1989);
Corresponding Law: S. 2(n) of Industrial Disputes Act, 1947.
(ze) “registered office” means that office of a Trade Union which is registered
under this Code as the head office thereof;
Corresponding Law: S. 2(d) Trade Unions Act, 1926.
(zf) “registered Trade Union” means a Trade Union registered under this Code;
Corresponding Law: S. 2(e) Trade Unions Act, 1926.
(zg) “Registrar” means a Registrar of Trade Unions appointed by the State
Government under Section 5;
Corresponding Law: S. 2(f) Trade Unions Act, 1926.
(zh) “retrenchment” means the termination by the employer of the service of a
worker for any reason whatsoever, otherwise than as a punishment inflicted by
way of disciplinary action, but does not include—
(i) voluntary retirement of the worker; or
(ii) retirement of the worker on reaching the age of superannuation; or
(iii) termination of the service of the worker as a result of the non-renewal of
the contract of employment between the employer and the worker
concerned on its expiry or of such contract being terminated under a
stipulation in that behalf contained therein; or
(iv) termination of service of the worker as a result of completion of tenure of
fixed term employment; or
(v) termination of the service of a worker on the ground of continued ill-
health;
Corresponding Law: S. 2(oo) of Industrial Disputes Act, 1947.
(zi) “settlement” means a settlement arrived at in the course of conciliation
proceeding and includes a written agreement between the employer and
worker arrived at otherwise than in the course of conciliation proceeding where
such agreement has been signed by the parties thereto in such manner as
may be prescribed and a copy thereof has been sent to an officer authorised in
this behalf by the appropriate Government and to the conciliation officer;
Corresponding Law: S. 2(p) of Industrial Disputes Act, 1947.
(zj) “standing orders” means orders relating to matters set-out in the First
Schedule;
Corresponding Law: S. 2(g) of Industrial Employment (Standing Orders) Act,
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1946.
(zk) “strike” means a cessation of work by a body of persons employed in any
industry acting in combination, or a concerted refusal, or a refusal, under a
common understanding, of any number of persons who are or have been so
employed to continue to work or to accept employment and includes the
concerted casual leave on a given day by fifty per cent or more workers
employed in an industry;
Corresponding Law: S. 2(q) of Industrial Disputes Act, 1947.
(zl) “Trade Union” means any combination, whether temporary or permanent,
formed primarily for the purpose of regulating the relations between workers
and employers or between workers and workers, or between employers and
employers, or for imposing restrictive conditions on the conduct of any trade
or business, and includes any federation of two or more Trade Unions:
Provided that the provisions of Chapter III of this Code shall not affect—
(i) any agreement between partners as to their own business; or
(ii) any agreement between an employer and those employed by him as to
such employment; or
(iii) any agreement in consideration of the sale of the goodwill of a business or
of instruction in any profession, trade or handicraft;
Corresponding Law: S. 2(qq) of Industrial Disputes Act, 1947; S. 2(h) of
Industrial Employment (Standing Orders) Act, 1946; S. 2(h) Trade Unions Act, 1926.
(zm) “Trade Union dispute” means any dispute relating to Trade Union arising
between two or more Trade Unions or between the members of a Trade Union
inter se;
(zn) “Tribunal” means an Industrial Tribunal constituted under Section 44;
Corresponding Law: S. 2(r) of Industrial Disputes Act, 1947.
(zo) “unfair labour practice” means any of the practices specified in the Second
Schedule;
Corresponding Law: S. 2(ra) of Industrial Disputes Act, 1947.
(zp) “unorganised sector” shall have the same meaning as assigned to it in
clause (l) of Section 2 of the Unorganised Workers' Social Security Act, 2008
(33 of 2008);
(zq) “wages” means all remuneration, whether by way of salary, allowances or
otherwise, expressed in terms of money or capable of being so expressed
which would, if the terms of employment, express or implied, were fulfilled, be
payable to a person employed in respect of his employment or of work done in
such employment, and includes,—
(i) basic pay;
(ii) dearness allowance;
(iii) retaining allowance, if any,
but does not include—
(a) any bonus payable under any law for the time being in force, which does
not form part of the remuneration payable under the terms of employment;
(b) the value of any house-accommodation, or of the supply of light, water,
medical attendance or other amenity or of any service excluded from the
computation of wages by a general or special order of the appropriate
Government;
(c) any contribution paid by the employer to any pension or provident fund,
and the interest which may have accrued thereon;
(d) any conveyance allowance or the value of any travelling concession;
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(e) any sum paid to the employed person to defray special expenses entailed
on him by the nature of his employment;
(f) house rent allowance;
(g) remuneration payable under any award or settlement between the parties
or order of a court or Tribunal;
(h) any overtime allowance;
(i) any commission payable to the employee;
(j) any gratuity payable on the termination of employment; or
(k) any retrenchment compensation or other retirement benefit payable to the
employee or any ex gratia payment made to him on the termination of
employment:
Provided that, for calculating the wage under this clause, if any payments
made by the employer to the employee under sub-clauses (a) to (i)
exceeds one half, or such other per cent as may be notified by the Central
Government, of all remuneration calculated under this clause, the amount
which exceeds such one-half, or the per cent so notified, shall be deemed
to be remuneration and shall be accordingly added in wages under this
clause:
Provided further that for the purpose of equal wages to all genders and for
the purpose of payment of wages the emoluments specified in sub-clauses
(d), (f), (g) and (h) shall be taken for computation of wage.
Explanation.—Where an employee is given in lieu of the whole or part of the
wages payable to him, any remuneration in kind by his employer, the value
of such remuneration in kind which does not exceed fifteen per cent of the
total wages payable to him, shall be deemed to form part of the wages of
such employee;
Corresponding Law: S. 2(rr) of Industrial Disputes Act, 1947; S. 2(i) of Industrial
Employment (Standing Orders) Act, 1946.
(zr) “worker” means any person (except an apprentice as defined under clause
(aa) of Section 2 of the Apprentices Act, 1961 (52 of 1961)) employed in any
industry to do any manual, unskilled, skilled, technical, operational, clerical or
supervisory work for hire or reward, whether the terms of employment be
express or implied, and includes working journalists as defined in clause (f) of
Section 2 of the Working Journalists and other Newspaper Employees
(Conditions of Service) and Miscellaneous Provisions Act, 1955 (45 of 1955)
and sales promotion employees as defined in clause (d) of Section 2 of the
Sales Promotion Employees (Conditions of Service) Act, 1976 (11 of 1976),
and for the purposes of any proceeding under this Code in relation to an
industrial dispute, includes any such person who has been dismissed,
discharged or retrenched or otherwise terminated in connection with, or as a
consequence of, that dispute, or whose dismissal, discharge or retrenchment
has led to that dispute, but does not include any such person—
(i) who is subject to the Air Force Act, 1950 (45 of 1950), or the Army Act,
1950 (46 of 1950), or the Navy Act, 1957 (62 of 1957); or
(ii) who is employed in the police service or as an officer or other employee of
a prison; or
(iii) who is employed mainly in a managerial or administrative capacity; or
(iv) who is employed in a supervisory capacity drawing wages exceeding
eighteen thousand rupees per month or an amount as may be notified by
the Central Government from time to time:
Provided that for the purposes of Chapter III, “worker”—
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(a) means all persons employed in trade or industry; and

(b) includes the worker as defined in clause (m) of Section 2 of the
Unorganised Workers' Social Security Act, 2008 (33 of 2008).
Corresponding Law: S. 2(s) of Industrial Disputes Act, 1947; S. 2(i) of Industrial
Employment (Standing Orders) Act, 1946.
► Clause 2(zh) : Retrenchment.—Termination of service is not retrenchment, Kurukshetra
University v. Prithvi Singh, (2018) 4 SCC 483.
► Clause 2(zl) : Trade Union.— Object of Trade Union is primarily for regulating relations
between workmen and employers or between workmen and workmen or between employers and
employers. Further held, trade unions while regulating their relations with employers, negotiate with
employers and in case amicable settlement cannot be reached, raise industrial dispute, All Escorts
Employees Union v. State of Haryana, (2017) 16 SCC 336.
► Clause 2(zr): Workman.—Person to be “workman” under the Industrial Disputes Act, 1947
must be employed to do work of any of the categories viz. manual, unskilled, skilled, technical,
operational, clerical or supervisory. Driver employed by school being a skilled person, is “workman”
for purpose of ID Act, Raj Kumar v. Director of Education, (2016) 6 SCC 541 : (2016) 2 SCC
(L&S) 111.
If employee of cooperative society is covered by definition of “workman” under Industrial
Disputes Act, 1947, and claimed relief of reinstatement, such relief cannot be granted by
Cooperative Court but can only be granted by Labour Court/Industrial Court i.e. as jurisdiction of
civil court stands ousted in such cases. Thus, even if it is accepted that Cooperative Court is
substitute for civil court, since jurisdiction of civil court to grant relief of reinstatement is barred, a
fortiori, jurisdiction of Cooperative Court shall also stand barred. Further held, civil court does not
have jurisdiction to grant relief of reinstatement as giving of such relief would amount to enforcing
contract of personal service which is specifically barred under Section 14 r/w Section 41(e),
Specific Relief Act, 1963 subject to stipulated exceptions, Maharashtra State Coop. Housing
Finance Corpn. Ltd. v. Prabhakar Sitaram Bhadange, (2017) 5 SCC 623.
Chapter II
BI-PARTITE FORUMS
3. Works Committee.—(1) In the case of any industrial establishment in which one
hundred or more workers are employed or have been employed on any day in the
preceding twelve months, the appropriate Government may by general or special order
require the employer to constitute a Works Committee, in such manner as may be
prescribed, consisting of representatives of employer and workers engaged in the
establishment:
Provided that the number of representatives of workers in such Committee shall not
be less than the number of representatives of the employer.
(2) The representatives of the workers shall be chosen, in such manner as may be
prescribed, from among the workers engaged in the establishment and in consultation
with their Trade Union, if any, registered in accordance with the provisions of Section
9.
(3) It shall be the duty of the Works Committee to promote measures for securing
and preserving amity and good relations between the employer and workers and, to
that end, to comment upon matters of their common interest or concern and
endeavour to compose any material difference of opinion in respect of such matters.
Corresponding Law: S. 3 of Industrial Disputes Act, 1947.
4. Grievance Redressal Committee.—(1) Every industrial establishment employing
twenty or more workers shall have one or more Grievance Redressal Committees for
resolution of disputes arising out of individual grievances.
(2) The Grievance Redressal Committee shall consist of equal number of members
representing the employer and the workers to be chosen in such manner as may be
prescribed.
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(3) The chairperson of the Grievance Redressal Committee shall be selected from
among persons representing the employer and the workers alternatively on rotational
basis every year.
(4) The total number of members of the Grievance Redressal Committee shall not
exceed ten:
Provided that there shall be adequate representation of women workers in the
Grievance Redressal Committee and such representation shall not be less than the
proportion of women workers to the total workers employed in the industrial
establishment.
Corresponding Law: S. 9-C(1), (2), (3) & (4) of Industrial Disputes Act, 1947.
(5) An application in respect of any dispute referred to in sub-section (1) may be
filed before the Grievance Redressal Committee by any aggrieved worker in such
manner as may be prescribed within one year from the date on which the cause of
action of such dispute arises.
(6) The Grievance Redressal Committee may complete its proceedings within thirty
days of receipt of the application under sub-section (5).
Corresponding Law: S. 9-C(6) of Industrial Disputes Act, 1947.
(7) The decision of the Grievance Redressal Committee on any application filed
under sub-section (5) shall be made on the basis of majority view of the Committee,
provided more than half of the members representing the workers have agreed to such
decision, otherwise it shall be deemed that no decision could be arrived at by the
Committee.
(8) The worker who is aggrieved by the decision of the Grievance Redressal
Committee or whose grievance is not resolved in the said Committee within the period
specified in sub-section (6), may, within a period of sixty days from the date of the
decision of the Grievance Redressal Committee or from the date on which the period
specified in sub-section (6) expires, as the case may be, file an application for the
conciliation of such grievance to the conciliation officer through the Trade Union, of
which he is a member, in such manner as may be prescribed.
Corresponding Law: S. 9-C(7) of Industrial Disputes Act, 1947.
(9) Where any employer discharges, dismisses, retrenches, or otherwise terminates
the services of an individual worker, any dispute or difference between that worker and
his employer connected with, or arising out of, such discharge, dismissal,
retrenchment or termination shall be deemed to be an industrial dispute
notwithstanding that no other worker nor any Trade Union is a party to the dispute.
(10) Notwithstanding anything contained in this section or Section 53, any worker
as is specified in sub-section (5) may, make an application directly to the Tribunal for
adjudication of the dispute referred to therein after the expiry of forty-five days from
the date he has made the application to the conciliation officer of the appropriate
Government for conciliation of the dispute, and on receipt of such application the
Tribunal shall have powers and jurisdiction to adjudicate upon the dispute, as the
Tribunal has in respect of the application filed under sub-section (6) of Section 53.
(11) The application referred to in sub-section (10) shall be made to the Tribunal
before the expiry of two years from the date of discharge, dismissal, retrenchment or
otherwise termination of service as specified in sub-section (9).
Chapter III
TRADE UNIONS
5. Registrar of Trade Unions.—(1) The State Government may, by notification,
appoint a person to be the Registrar of Trade Unions, and other persons as Additional
Registrar of Trade Unions, Joint Registrar of Trade Unions and Deputy Registrar of
Trade Unions, who shall exercise such powers and perform such duties of the Registrar
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as the State Government may, by notification, specify from time to time.

(2) Subject to the provisions of any order made by the State Government, where an
Additional Registrar of Trade Unions or a Joint Registrar of Trade Unions or a Deputy
Registrar of Trade Unions exercises the powers and performs the duties of the
Registrar in an area within which the registered office of a Trade Union is situated,
such Additional Registrar of Trade Unions or a Joint Registrar of Trade Unions or a
Deputy Registrar of Trade Unions, as the case may be, shall be deemed to be the
Registrar in relation to that Trade Union for the purposes of this Code.
Corresponding Law: S. 3 Trade Unions Act, 1926.
6. Criteria for registration.—(1) Any seven or more members of a Trade Union may,
by subscribing their names to the rules of the Trade Union and by otherwise complying
with the provisions of this Code with respect to registration, apply for registration of
the Trade Union under this Code.
(2) No Trade Union of workers shall be registered unless at least ten per cent of the
workers or one hundred workers, whichever is less, engaged or employed in the
industrial establishment or industry with which it is connected are the members of
such Trade Union on the date of making of application for registration.
Corresponding Law: S. 4(1) Trade Unions Act, 1926.
(3) Where an application has been made under sub-section (1) for registration of a
Trade Union, such application shall not be deemed to have become invalid merely by
reason of the fact that, at any time after the date of the application but before the
registration of the Trade Union, some of the applicants, but not exceeding half of the
total number of persons who made the application, have ceased to be members of the
Trade Union or have given notice in writing to the Registrar dissociating themselves
from the application.
Corresponding Law: S. 4(2) Trade Unions Act, 1926.
(4) A registered Trade Union of workers shall at all times continue to have not less
than ten per cent of the workers or one hundred workers, whichever is less, subject to
a minimum of seven, engaged or employed in an industrial establishment or industry
with which it is connected, as its members.
Corresponding Law: S. 9-A Trade Unions Act, 1926.
► Issuance of certificate of registration.—If the certificate of registration has been issued by
Registrar by mistake or due to incorrect assessment or non-application of mind, such official act by
Registrar cannot be nullified by him under Section 10 of Trade Unions Act, 1926, but can only be
rectified by appellate authority or writ court, R.G. D'souza v. Poona Employees Union, (2015) 2
SCC 526 : (2015) 1 SCC (L&S) 517.
7. Provisions to be contained in constitution or rules of Trade Union.—A Trade Union
shall not be entitled to registration under this Code, unless the executive thereof is
constituted in accordance with the provisions of this Code, and the rules of the Trade
Union provide for the following matters, namely:—
(a) the name of the Trade Union;
(b) the whole of the objects for which the Trade Union has been established;
(c) the whole of the purposes for which the general funds of the Trade Union
shall be applicable, all of which purposes shall be purposes to which such
funds are lawfully applicable under this Code;
(d) the maintenance of a list of members of the Trade Union and adequate
facilities for the inspection thereof by the office-bearers and members of the
Trade Union;
(e) the admission of ordinary members (irrespective of their craft or category)
who shall be persons actually engaged or employed in the industrial
establishment, undertaking or industry, or units, branches or offices of an
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industrial establishment, as the case may be, with which the Trade Union is
connected, and also the admission of such number of honorary or temporary
members, who are not such workers, as are not permitted under Section 21 to
be office-bearers to form the executive of the Trade Union;
(f) the payment of a subscription by members of the Trade Union from such
members and others, as may be prescribed;
Corresponding Law: S. 6 Trade Unions Act, 1926.
(g) the conditions under which any member shall be entitled to any benefit
assured by the rules and under which any fine or forfeiture may be imposed
on any member;
(h) the annual general body meeting of the members of the Trade Union, the
business to be transacted at such meeting, including the election of office-
bearers of the Trade Union;
(i) the manner in which the members of the executive and the other office-
bearers of the Trade Union shall be elected once in a period of every three
years and removed, and filling of casual vacancies;
(j) the safe custody of the funds of the Trade Union, an annual audit, in such
manner as may be prescribed, of the accounts thereof, and adequate facilities
for the inspection of the account books by the office-bearers and members of
the Trade Union;
(k) the manner in which the rules shall be amended, varied or rescinded; and
(l) the manner in which the Trade Union may be dissolved.
8. Application for registration, alteration of name and procedure thereof.—(1) Every
application for registration of a Trade Union shall be made to the Registrar
electronically or otherwise and be accompanied by—
(a) a declaration to be made by an affidavit in such form and manner as may be
prescribed;
(b) copy of the rules of the Trade Union together with a copy of the resolution by
the members of the Trade Union adopting such rules;
(c) a copy of the resolution adopted by the members of the Trade Union
authorising the applicants to make an application for registration; and
(d) in the case of a Trade Union, being a federation or a central organisation of
Trade Unions, a copy of the resolution adopted by the members of each of the
member Trade Unions, meeting separately, agreeing to constitute a federation
or a central organisation of Trade Unions.
Explanation.—For the purposes of this clause, resolution adopted by the members
of the Trade Union means, in the case of a Trade Union, being a federation or a central
organisation of Trade Unions, the resolution adopted by the members of each of the
member Trade Unions, meeting separately.
Corresponding Law: S. 5(1) Trade Unions Act, 1926.
(2) Where a Trade Union has been in existence for more than one year before the
making of an application for its registration, there shall be delivered to the Registrar,
together with the application, a general statement of the assets and liabilities of the
Trade Union prepared in such form and containing such particulars, as may be
prescribed.
Corresponding Law: S. 5(2) Trade Unions Act, 1926.
(3) The Registrar may call for further information for the purpose of satisfying
himself that the application complies with the provisions of this Code and the Trade
Union is entitled for registration under this Code, and may refuse to register the Trade
Union until such information is furnished.
Corresponding Law: S. 7(1) Trade Unions Act, 1926.
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(4) If the name under which the Trade Union is proposed to be registered is
identical with that of an existing registered Trade Union or in the opinion of the
Registrar so nearly resembles the name of an existing Trade Union that such name is
likely to deceive the public or the members of either Trade Union, the Registrar shall
require the persons applying for altering the name of the Trade Union and shall refuse
to register the Trade Union until such alteration has been made.
Corresponding Law: S. 7(2) Trade Unions Act, 1926.
► Gender discrimination.—Refusal of Cine Costume Make-up Artists and Hair Dressers
Association in Maharashtra to allow women to work as make-up artists, only permitting them to works
as hair dressers not permissible, Charu Khurana v. Union of India, (2015) 1 SCC 192 : (2015) 1
SCC (L&S) 161.
► Bye-laws, accepted/ratified by the Registrar of Trade Unions.—A trade union, registered
under statutory provisions, cannot make a rule/regulation/bye-law contrary to the constitutional
mandate, Charu Khurana v. Union of India, (2015) 1 SCC 192 : (2015) 1 SCC (L&S) 161.
► Absence of recognised Trade Union.—In absence of recognised Trade Union in
establishment, reference cannot be rejected only on ground that appellant was not
recognised/registered union, Hind Kamgar Sanghatana v. Dai Ichi Karkaria Ltd., (2018) 11 SCC
258.
9. Registration of Trade Union and cancellation thereof.—(1) The Registrar shall, on
being satisfied that the Trade Union has complied with all the requirements of the
provisions of this Chapter in regard to registration, register the Trade Union by
entering in a register, to be maintained in such form as may be prescribed, the
particulars relating to the Trade Union contained in the statement accompanying the
application for registration.
Corresponding Law: S. 8 Trade Unions Act, 1926.
(2) Where the Registrar makes an order for registration of a Trade Union, he shall
issue a certificate of registration to the applicant Trade Union, in such form as may be
prescribed, which shall be the conclusive evidence that the Trade Union has been
registered under this Code.
Corresponding Law: S. 9 Trade Unions Act, 1926.
(3) If the Registrar has issued a certificate of registration to a Trade Union, he shall
enter the name and other particulars of the Trade Union in a register maintained in
this behalf in such form as may be prescribed.
(4) Every Trade Union registered under the Trade Unions Act, 1926 (16 of 1926)
having valid registration immediately before the commencement of this Code shall be
deemed to have been registered under this Code:
Provided that such Trade Union shall file with the Registrar a statement that the
constitution of the executive of the Trade Union is in accordance with this Code along
with the rules of the Trade Union updated in accordance with Section 7, and the
Registrar shall amend his records accordingly.
(5) The certificate of registration of a Trade Union may be withdrawn or cancelled by
the Registrar,—
(i) on the application of the Trade Union verified in such manner as may be
prescribed; or
(ii) on the information received by him regarding the contravention by the Trade
Union of the provisions of this Code or the rules made thereunder or its
constitution or rules; or
(iii) if he is satisfied that the members in a Trade Union falls below ten per cent
of total workers or one hundred workers, whichever is less:
Provided that not less than sixty days previous notice in writing specifying the
grounds on which it is proposed to cancel the certificate of registration of a Trade
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Union shall be given by the Registrar to the Trade Union before the certificate of
registration is cancelled otherwise than on the application of the Trade Union.
Corresponding Law: S. 10 Trade Unions Act, 1926.
(6) A certificate of registration of a Trade Union shall be cancelled by the Registrar
where a Tribunal has made an order for cancellation of registration of such Trade
Union.
(7) While cancelling the certificate of registration of a Trade Union, the Registrar
shall record the reasons for doing so and communicate the same in writing to the
Trade Union concerned.
► Gender Discrimination.—Women not permitted to work as make-up artists, offends Article
21, dealing with right to livelihood and, is against fundamental human rights. Such discrimination in
access to employment and, to be considered for employment unless some justifiable riders are
attached to it, cannot withstand scrutiny. A clause in the bye-laws of a trade union, which calls itself
an association, which is accepted by the statutory authority, cannot play foul of Article 21. Clause 4
of bye-laws also violates Section 21 of the Trade Unions Act, 1926 which has not made any
distinction between men and women, Charu Khurana v. Union of India, (2015) 1 SCC 192 : (2015)
1 SCC (L&S) 161.
► Recognition of Trade Union.—Exercise of examination application of Union seeking status
of recognised Union is neither a routine ritual nor an idle formality. Not only must applicant Union be
eligible to apply as per prescription of membership for relevant period, but it must also be a bona
fide application in interest of employees, and such Union must not have indulged in instigating,
aiding or assisting commencement or continuation of strike during said period. Furthermore, burden
is on applicant Union to decisively establish its claim. Duty is cast upon investigating officer for
verification of membership of Unions, and inquiry undertaken by Industrial Court to strictly comport
to prescripts of relevant provisions, Poona Employees Union v. Force Motors Ltd., (2016) 2 SCC
531.
► Cancellation or withdrawal of certificate of registration.—Under Section 10 of the Trade
Unions Act, 1926, certificate of registration of trade union may be withdrawn or cancelled by
Registrar of Trade Unions either on application of trade union or Registrar may suo motu take
cognizance under said section. Cancellation of registration on application by any other person is
not envisaged, R.G. D'souza v. Poona Employees Union, (2015) 2 SCC 526 : (2015) 1 SCC (L&S)
517.
Registration of trade union may be cancelled if it is obtained by fraud or mistake by trade union.
However, registration cannot be cancelled if same is granted by mistake due to incorrect
assessment or non-application of mind or mechanical act on part of authority, R.G. D'souza v.
Poona Employees Union, (2015) 2 SCC 526 : (2015) 1 SCC (L&S) 517.
10. Appeal against non-registration or cancellation of registration.—(1) Any person
aggrieved by the refusal of the Registrar to grant registration to a Trade Union under
Section 9 or by cancellation of a certificate of registration under sub-section (5) of the
said section, may within such period as may be prescribed, prefer an appeal to the
Tribunal:
Provided that the Tribunal may entertain the appeal after the limitation prescribed
for preferring the appeal under this sub-section, if the appellant satisfies the Tribunal
that such delay has been caused due to sufficient reason or unavoidable
circumstances.
Corresponding Law: S. 11(1) Trade Unions Act, 1926.
(2) The Tribunal may, after giving the parties concerned an opportunity of being
heard, dismiss the appeal or pass an order directing the Registrar to register the Trade
Union and to issue a certificate of registration or set aside the order of cancellation of
certificate of registration, as the case may be and forward a copy of such order to the
Registrar.
Corresponding Law: S. 11(2) Trade Unions Act, 1926.
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11. Communication to Trade Union and change in its registration particulars.—(1)

All communications and notices to a registered Trade Union shall be sent, in such
manner as may be prescribed, to the address of the head office of the Trade Union as
entered in the register maintained by the Registrar.
Corresponding Law: S. 12 Trade Unions Act, 1926.
(2) The Trade Union shall inform the Registrar if the members of such Trade Union
falls below ten per cent of total workers or one hundred workers, whichever is less.
(3) The Trade Union shall inform the Registrar of any change in the particulars
given by it in its application for registration and in its constitution or rules, in such
manner as may be prescribed.
Corresponding Law: S. 12 Trade Unions Act, 1926.
12. Incorporation of a registered Trade Union.—Every registered Trade Union shall
be a body corporate by the name under which it is registered, and shall have perpetual
succession and a common seal with power to acquire and hold both movable and
immovable property and to contract, and shall by the said name sue and be sued.
Corresponding Law: S. 13 Trade Unions Act, 1926.
13. Certain Acts not to apply to registered Trade Unions.—The provisions of the
following Acts, namely:—
(a) the Societies Registration Act, 1860 (21 of 1860);
(b) the Co-operative Societies Act, 1912 (2 of 1912);
(c) the Multi-State Co-operative Societies Act, 2002 (39 of 2002);
(d) the Companies Act, 2013 (18 of 2013); and
(e) any other corresponding law relating to co-operative societies for the time
being in force in any State,
shall not apply to any registered Trade Union and the registration of any such Trade
Union under any of the aforementioned Acts shall be void.
Corresponding Law: S. 14 Trade Unions Act, 1926.
14. Recognition of negotiating union or negotiating council.—(1) There shall be a
negotiating union or a negotiating council, as the case may be, in an industrial
establishment having registered Trade Union for negotiating with the employer of the
industrial establishment, on such matters as may be prescribed.
(2) Where only one Trade Union of workers registered under the provisions of this
Chapter is functioning in an industrial establishment, then, the employer of such
industrial establishment shall, subject to such criteria as may be prescribed, recognise
such Trade Union as sole negotiating union of the workers.
(3) If more than one Trade Union of workers registered under this Code are
functioning in an industrial establishment, then, the Trade Union having fifty-one per
cent or more workers on the muster roll of that industrial establishment, verified in
such manner as may be prescribed, supporting that Trade Union shall be recognised
by the employer of the industrial establishment, as the sole negotiating union of the
workers.
(4) If more than one Trade Union of workers registered under this Code are
functioning in an industrial establishment, and no such Trade Union has fifty-one per
cent or more of workers on the muster roll of that industrial establishment, verified in
such manner as may be prescribed, supporting that Trade union, then, there shall be
constituted by the employer of the industrial establishment, a negotiating council for
negotiation on the matters referred to in sub-section (1), consisting of the
representatives of such registered Trade Unions which have the support of not less
than twenty per cent of the total workers on the muster roll of that industrial
establishment so verified and such representation shall be of one representative for
each twenty per cent and for the remainder after calculating the membership on each
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twenty per cent.

(5) Where any negotiation on the matters referred to in sub-section (1) is held
between an employer and a negotiating council constituted under sub-section (4),
consequent upon such negotiation, any agreement is said to be reached, if it is agreed
by the majority of the representatives of the Trade Unions in such negotiating council.
(6) Any recognition made under sub-section (2) or sub-section (3) or the
negotiating council constituted under sub-section (4) shall be valid for three years
from the date of recognition or constitution or such further period not exceeding five
years, in total, as may be mutually decided by the employer and the Trade Union, as
the case may be.
(7) The facilities to be provided by industrial establishment to a negotiating union
or negotiating council shall be such as may be prescribed.
15. Objects of general fund, composition of separate fund and membership fee of
Trade Union.—(1) The general funds of a registered Trade Union shall not be spent on
any objects other than such objects as may be prescribed.
Corresponding Law: S. 15 Trade Unions Act, 1926.
(2) A registered Trade Union may constitute a separate fund, from contributions
separately levied for or made to that fund, from which payments may be made, for the
promotion of the civic and political interests of its members, in furtherance of such
objects as may be prescribed.
Corresponding Law: S. 16(1) Trade Unions Act, 1926.
(3) No member shall be compelled to contribute to the fund constituted under sub-
section (2) and a member who does not contribute to the said fund shall not be
excluded from any benefits of the Trade Union, or placed in any respect either directly
or indirectly under any disability or at any disadvantage as compared with other
members of the Trade Union (except in relation to the control or management of the
said fund) by reason of his not contributing to the said fund; and contribution to the
said fund shall not be made a condition for admission to the Trade Union.
Corresponding Law: S. 16(3) Trade Unions Act, 1926.
(4) The subscriptions payable by the members of the Trade Union shall be such as
may be prescribed.
16. Immunity from civil suit in certain cases.—(1) No suit or other legal proceeding
shall be maintainable in any civil court against any registered Trade Union or any office
-bearer or member thereof in respect of any act done in contemplation or furtherance
of an industrial dispute to which a member of the Trade Union is a party on the ground
only that such act induces some other person to break a contract of employment or
that it is an interference with the trade, business, or employment of some other
person or with the right of some other person to dispose of his capital or of his labour
as he wills.
(2) A registered Trade Union shall not be liable in any suit or other legal proceeding
in any civil court in respect of any tortuous act done in contemplation or furtherance of
an industrial dispute by an agent of the Trade Union if it is proved that such person
acted without the knowledge of, or contrary to express instructions given by, the
executive of the Trade Union.
Corresponding Law: S. 18 Trade Unions Act, 1926.
17. Criminal conspiracy in furtherance of objects of Trade Union.—No office-bearer
or member of a registered Trade Union shall be liable to punishment under sub-section
(2) of Section 120-B of the Indian Penal Code (45 of 1860) in respect of any
agreement made between the members for the purpose of furthering any such object
of the Trade Union as is specified in Section 15, unless such agreement is an
agreement to commit an offence.
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Corresponding Law: S. 17 Trade Unions Act, 1926.

18. Enforceability of agreements.—Notwithstanding anything contained in any other
law for the time being in force, an agreement between the members of a registered
Trade Union shall not be void or voidable merely by reason of the fact that any of the
objects of the agreement are in restraint of trade:
Provided that nothing in this section shall enable any civil court to entertain any
legal proceedings instituted for the purpose of enforcing or recovering damages for the
breach of any agreement concerning the conditions on which any members of a Trade
Union shall or shall not sell their goods, transact business, work, employ or be
employed.
Corresponding Law: S. 19 Trade Unions Act, 1926.
19. Right to inspect books of Trade Union.—The books of account of a registered
Trade Union and the list of members thereof shall be open to inspection by an office-
bearer or member of the Trade Union at such times as may be provided for in the rules
of the Trade Union.
Corresponding Law: S. 20 Trade Unions Act, 1926.
20. Rights of minor to membership of Trade Union.—Any person who has attained
the age of fourteen years and is employed in a non-hazardous industry may be a
member of a registered Trade Union subject to any rules of the Trade Union, and may,
subject to as aforesaid enjoy all the rights of a member and execute all instruments
and given all acquaintances necessary to be executed or given under the rules.
Corresponding Law: S. 21 Trade Unions Act, 1926.
21. Disqualification of office-bearers of Trade Unions.—(1) A person shall be
disqualified for being chosen as, and for being, a member of the executive or any other
office-bearer of a registered Trade Union, if—
(i) he has not attained the age of eighteen years;
(ii) he has been convicted by a court in India for any offence involving moral
turpitude and sentenced to imprisonment unless a period of five years has
elapsed since his release;
Corresponding Law: S. 21-A Trade Unions Act, 1926.
(iii) the Tribunal has directed that he shall be disqualified for being chosen or for
being office-bearer of a Trade Union for a period specified therein.
(2) No member of the Council of Ministers or a person holding an office of profit
(not being an engagement or employment in an establishment or industry with which
the Trade Union is connected) in the Union or a State shall be a member of the
executive or other office-bearer of a Trade Union.
Corresponding Law: S. 22(3) Trade Unions Act, 1926.
22. Adjudication of disputes of Trade Unions.—(1) Where a dispute arises
between—
(a) one Trade Union and another; or
(b) one or more workers who are members of the Trade Union and the Trade
Union regarding registration, administration or management or election of
office bearers of the Trade Union; or
(c) one or more workers who are refused admission as members and the Trade
Union; or
(d) where a dispute is in respect of a Trade Union which is a federation of Trade
Unions and office-bearer authorised in this behalf by the Trade Union,
an application may be made in such manner as may be prescribed to the Tribunal
having jurisdiction over the area where the registered office of the Trade Union or
Trade Unions is located for adjudication of such disputes.
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(2) No civil court other than the Tribunal shall have power to entertain any suit or
other proceedings in relation to any dispute referred to in sub-section (1).
23. Proportion of office-bearers to be connected with industry.—(1) Not less than
one-half of the total number of the office-bearers of every registered Trade Union in an
unorganised sector shall be persons actually engaged or employed in an establishment
or industry with which the Trade Union is connected:
Provided that the appropriate Government may, by special or general order, declare
that the provisions of this section shall not apply to any Trade Union or class of Trade
Unions specified in the order.
Explanation.—For the purposes of this sub-section, “unorganised sector” means any
sector which the appropriate Government may, by notification, specify.
Corresponding Law: S. 22(1) Trade Unions Act, 1926.
(2) Save as otherwise provided in sub-section (1), all office-bearers of a registered
Trade Union, except not more than one-third of the total number of the office-bearers
or five, whichever is less, shall be persons actually engaged or employed in the
establishment or industry with which the Trade Union is connected.
Explanation.—For the purposes of this sub-section, an employee who has retired or
has been retrenched shall not be construed as outsider for the purpose of holding an
office in a Trade Union.
Corresponding Law: S. 22(2) Trade Unions Act, 1926.
24. Change of name, amalgamation, notice of change and its effect.—(1) Any
registered Trade Union may, with the consent of not less than two-third of the total
number of its members and subject to the provisions of sub-section (3), change its
name.
Corresponding Law: S. 23 Trade Unions Act, 1926.
(2) Any two or more registered Trade Unions may be amalgamated in such manner
as may be prescribed.
Corresponding Law: S. 24 Trade Unions Act, 1926.
(3) Notice in writing of every change of name and of every amalgamation signed in
the case of a change of name, by the secretary and by seven members of the Trade
Union changing its name, and in the case of an amalgamation, by the secretary and by
seven members of each and every Trade Union which is a party thereto, shall be sent
to the Registrar and where the head office of the amalgamated Trade Union is situated
in a different State, to the Registrar of such State in such manner as may be
prescribed.
Corresponding Law: S. 25(1) Trade Unions Act, 1926.
(4) If the proposed name is identical with that by which any other existing Trade
Union has been registered or, in the opinion of the Registrar, so nearly resembles such
name as to be likely to deceive the public or the members of either Trade Union, the
Registrar shall refuse to register the change of name.
Corresponding Law: S. 25(2) Trade Unions Act, 1926.
(5) Save as provided in sub-section (4), the Registrar shall, if he is satisfied that
the provisions of this Code in respect of change of name have been complied with,
register the change of name in the register referred to in sub-section (3) of Section 9,
and the change of name shall have effect from the date of such registration.
Corresponding Law: S. 25(3) Trade Unions Act, 1926.
(6) The Registrar of the State in which the head office of the amalgamated Trade
Union is situated shall, if he is satisfied that the provisions of this Code in respect of
amalgamation have been complied with and that the Trade Union formed thereby is
entitled to registration under Section 9, register the Trade Union and the
amalgamation shall have effect from the date of such registration.
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Corresponding Law: S. 25(4) Trade Unions Act, 1926.

(7) The change in the name of a registered Trade Union shall not affect any rights
or obligations of the Trade Union or render defective any legal proceeding by or against
the Trade Union, and any legal proceeding which might have been continued or
commenced by or against it by its former name may be continued or commenced by
or against it by its new name.
Corresponding Law: S. 26(1) Trade Unions Act, 1926.
(8) An amalgamation of two or more registered Trade Unions shall not prejudice any
right of any such Trade Unions or any right of a creditor of any of them.
Corresponding Law: S. 26(2) Trade Unions Act, 1926.
25. Dissolution.—(1) When a registered Trade Union is dissolved, notice of the
dissolution signed by seven members and by the secretary of the Trade Union shall,
within fourteen days of the dissolution, be sent to the Registrar, and shall be
registered by him if he is satisfied that the dissolution has been effected in accordance
with the rules of the Trade Union, and the dissolution shall have effect from the date of
such registration.
(2) Where the dissolution of a registered Trade Union has been registered and the
rules of the Trade Union do not provide for the distribution of funds of the Trade Union
on dissolution, the Registrar shall divide the funds amongst the members in such
manner as may be prescribed.
Corresponding Law: S. 27 Trade Unions Act, 1926.
26. Annual returns.—(1) Every registered Trade Union shall—
(a) forward annually to the Registrar, on or before such date, in such form,
audited in such manner and by such person, as may be prescribed, a general
statement containing particulars of all receipts and expenditure of such
registered Trade Union during the year ending on the 31st day of December
next preceding such prescribed date, and of the assets and liabilities of the
Trade Union existing on such 31st day of December;
(b) along with the general statement referred to in clause (a), forward to the
Registrar a statement showing changes of office-bearers made by the Trade
Union during the year to which such general statement refers, together also
with a copy of the rules of the Trade Union corrected up to the date of
dispatch thereof to the Registrar.
(2) A copy of every alteration made in the rules of a registered Trade Union shall be
sent to the Registrar within fifteen days of the making of the alteration.
(3) For the purpose of examining the documents referred to in clauses (a) and (b)
of sub-section (1), and sub-section (2), the Registrar or any officer authorised by him,
by general or special order, may at all reasonable times inspect the certificate of
registration, account books, registers and other documents, relating to a Trade Union,
at its registered office or may require their production at such place as he may specify
in this behalf, but no such place shall be at a distance of more than fifteen kilometres
from the registered office of such Trade Union.
Corresponding Law: S. 28 Trade Unions Act, 1926.
27. Recognition of Trade Unions at Central and State level.—(1) Where the Central
Government is of the opinion that it is necessary or expedient that a Trade Union or
federation of Trade Unions is to be recognised as Central Trade Union at the Central
level, it may recognise such Trade Union or federation of Trade Unions as Central Trade
Union in such manner and for such purpose, as may be prescribed, and if any dispute
arises in relation to such recognition, it shall be decided by such authority in such
manner as may be prescribed by the Central Government.
(2) Where the State Government is of the opinion that it is necessary or expedient
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that a Trade Union or federation of Trade Unions is to be recognised as State Trade

Union at the State level, it may recognise such Trade Union or federation of Trade
Unions as State Trade Union in such manner and for such purpose, as may be
prescribed, and if any dispute arises in relation to such recognition, it shall be decided
by such authority in such manner as may be prescribed by the State Government.
Chapter IV
STANDING ORDERS
28. Application of this Chapter.—(1) The provisions of this Chapter shall apply to
every industrial establishment wherein three hundred or more than three hundred
workers, are employed, or were employed on any day of the preceding twelve months.
Corresponding Law: S. 1(3) of Industrial Employment (Standing Orders) Act,
1946.
(2) Notwithstanding anything contained in sub-section (1), the provisions of this
Chapter shall not apply to an industrial establishment in so far as the workers
employed therein are persons to whom the Fundamental and Supplementary Rules,
Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary
Service) Rules, Revised Leave Rules, Civil Service Regulations, Civilians in Defence
Service (Classification, Control and Appeal) Rules or the Indian Railway Establishment
Code or any other rules or regulations that may be notified in this behalf by the
appropriate Government, apply.
Corresponding Law: S. 13-B of Industrial Employment (Standing Orders) Act,
1946.
29. Making of model standing orders by Central Government and temporary
application.—(1) The Central Government shall make model standing orders relating to
conditions of service and other matters incidental thereto or connected therewith.
(2) Notwithstanding anything contained in Sections 30 to 36, for the period
commencing on the date on which this section becomes applicable to an industrial
establishment and ending with the date on which the standing orders as finally
certified under this Code come into operation under Section 33 in that establishment,
the model standing order referred to in sub-section (1) shall be deemed to be adopted
in that establishment and the provisions of sub-section (2) of Section 33 and Section
35 shall apply to such model standing orders as they apply to the standing orders so
certified.
Corresponding Law: S. 12-A(1) of Industrial Employment (Standing Orders) Act,
1946.
30. Preparation of draft standing orders by employer and procedure for certification.
—(1) The employer shall prepare draft standing orders, within a period of six months
from the date of commencement of this Code, based on the model standing orders
referred to in Section 29 in respect of the matters specified in the First Schedule and
on any other matter considered necessary by him for incorporation of necessary
provisions in such standing orders for his industrial establishment or undertaking,
considering the nature of activity in his industrial establishment or undertaking,
provided such provision is not inconsistent with any of the provision of this Code and
covers every matters set out in the First Schedule.
(2) The employer shall consult the Trade Unions or recognised negotiating union or
members of the negotiating council relating to the industrial establishment or
undertaking, as the case may be, in respect of the draft of the standing order and
thereafter forward the draft of the standing order electronically or otherwise to the
certifying officer for certification.
(3) Where an employer adopts a model standing order of the Central Government
referred to in Section 29 with respect to matters relevant to his industrial
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establishment or undertaking, then, such model standing order shall be deemed to

have been certified under the provisions of this section and employer shall forward the
information in this regard to the concerned certifying officer in such manner as may be
prescribed:
Provided that if the certifying officer has any observation, he may direct such
employer to amend the standing order so adopted within such period as may be
prescribed.
Corresponding Law: S. 3 of Industrial Employment (Standing Orders) Act, 1946.
(4) The employer shall prepare the draft of the modifications required in the
standing order, if any, in accordance with the provisions of this Code and forward
electronically or otherwise to the certifying officer for certification of those
modifications only within a period of six months from the date, the provisions of this
Chapter becomes applicable to his industrial establishment.
(5) On receipt of the drafts referred to in sub-section (1) and sub-section (4), the
certifying officer shall issue notice to—
(i) the Trade Union or negotiating union of the industrial establishment or
undertaking, or members of the negotiating council; or
(ii) where there is no Trade Union operating, to such representatives of the
workers of the industrial establishment or undertaking chosen in such manner
as may be prescribed,
for seeking their comments in the matter and after receipt of their comments give an
opportunity of being heard to the negotiating union or negotiating council, or as the
case may be, to the Trade Unions or the representatives of the workers and decide as
to whether or not any modification or addition to such draft standing order is
necessary to render the draft standing order certifiable, and shall make an order in
writing in this regard:
Provided that the certifying officer shall complete such procedure for certification
referred to in sub-sections (4) and (5) in respect of—
(a) the draft standing order so received within a period of sixty days from the
date of the receipt of it; and
(b) the draft modifications in the standing order so received within a period of
sixty days from the date of the receipt of such modifications,
failing which such draft standing orders or, as the case may be, the modifications in
the standing order shall be deemed to have been certified on the expiry of the said
period.
Corresponding Law: S. 5(1) and (2) of Industrial Employment (Standing Orders)
Act, 1946.
(6) The standing orders shall be certifiable under this Code, if—
(a) provision is made therein for every matter set out in the First Schedule which
is applicable to the industrial establishment; and
(b) such orders are otherwise in conformity with the provisions of this Code.
Corresponding Law: S. 4 of Industrial Employment (Standing Orders) Act, 1946.
(7) It shall be the function of the certifying officer or the appellate authority
referred to in Section 32 to adjudicate upon the fairness or reasonableness of the
provisions of any standing orders keeping in view the provisions of the model standing
orders referred to in Section 29.
Corresponding Law: S. 4 of Industrial Employment (Standing Orders) Act, 1946.
(8) The certifying officer shall certify the draft standing orders or the modifications
in the standing orders referred to in sub-section (5), and shall within seven days
thereafter send copies of the certified standing orders or the modifications in the
standing orders, authenticated in such manner as may be prescribed, to the employer
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and to the negotiating union or negotiating council or the Trade Union or other
representatives of the workers referred to in clause (ii) of sub-section (5).
Corresponding Law: S. 5(3) of Industrial Employment (Standing Orders) Act,
1946.
(9) The draft standing orders under sub-section (1) or draft of the modifications
proposed in the standing orders under sub-section (5) shall be accompanied by a
statement giving such particulars, as may be prescribed, of the workers employed in
the industrial establishment, the Trade Union to which they belong, and the
negotiating union or negotiating council, if any.
Corresponding Law: S. 3(3) of Industrial Employment (Standing Orders) Act,
1946.
(10) Subject to such conditions as may be prescribed, a group of employers in
similar establishments may submit a joint draft of standing orders under this section
and for the purposes of proceedings specified in sub-sections (1), (5), (6), (8) and
(9), the expressions “employer”, “Trade Union” and “negotiating union or negotiating
council” shall respectively include all the employers, Trade Unions and negotiating
unions or negotiating council of such similar establishments, as the case may be.
Corresponding Law: S. 3(4) of Industrial Employment (Standing Orders) Act,
1946.
(11) Without prejudice to the foregoing provisions of this section, the standing
orders relating to an industrial establishment or undertaking existing on the date of
commencement of the relevant provisions of this Code, shall, in so far as is not
inconsistent with the provisions of this Code or rules made thereunder, continue and
be deemed to be the standing orders certified under sub-section (8) and accordingly
the provisions of this Chapter shall apply thereon.
31. Certifying officer and appellate authority to have powers of civil court.—(1)
Every certifying officer and the appellate authority referred to in Section 32 shall have
all the powers of a civil court for the purposes of receiving evidence, administering
oath, enforcing the attendance of witnesses, and compelling the discovery and
production of documents, and shall be deemed to be a civil court within the meaning
of Sections 345 and 346 of the Code of Criminal Procedure, 1973 (2 of 1974).
(2) Clerical or arithmetical mistakes in any order passed by a certifying officer, or
errors arising therein from any accidental slip or omission may, at any time, be
corrected by that officer or successor in office of such officer.
Corresponding Law: S. 11 of Industrial Employment (Standing Orders) Act, 1946.
32. Appeals.—An employer or Trade Union or the negotiating union or negotiating
council, or where there is no negotiating union or negotiating council in an industrial
establishment or undertaking, any union or such representative body of the workers of
the industrial establishment or undertaking, if not satisfied with the order of the
certifying officer given under sub-section (5) of Section 30, may file an appeal within
sixty days of receipt of the order of the certifying officer to the appellate authority
appointed by the appropriate Government, by notification, and such authority shall
dispose of the appeal in such manner as may be prescribed.
Corresponding Law: S. 6 of Industrial Employment (Standing Orders) Act, 1946.
► Powers of appellate authority.—Appellate authority can exercise only those powers
conferred on it under S. 6(1) of the Industrial Employment (Standing Orders) Act, 1946. Appellate
authority has no power to set aside order passed by certifying officer, Foundation Brake Kamgar
Sanghatna v. Foundation Brake Mfg. (P) Ltd., 2016 SCC OnLine Bom 3960.
► Written statement.—Filing of a written statement or a written say by respondent has not
been specifically prohibited. It would neither violate Act and Rules nor would it be prejudicial in
permitting respondents to counter contentions in appeal memo and assist court, Foundation Brake
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Kamgar Sanghatna v. Foundation Brake Mfg. (P) Ltd., 2017 SCC OnLine Bom 9232.
33. Date of operation of standing orders and its availability.—(1) The standing
orders or modified standing orders, as the case may be, shall, unless an appeal is
preferred under Section 32, come into operation on the expiry of thirty days from the
date on which authenticated copies thereof are sent under sub-section (8) of Section
30, or where an appeal as aforesaid is preferred, on the expiry of seven days from the
date on which copies of the order of the appellate authority are sent in such manner as
may be prescribed.
Corresponding Law: S. 7 of Industrial Employment (Standing Orders) Act, 1946.
(2) The text of a standing order as finally certified under this Code shall be
maintained by the employer in such language and in such manner for the information
of the concerned workers as may be prescribed.
Corresponding Law: S. 9 of Industrial Employment (Standing Orders) Act, 1946.
34. Register of standing orders.—A copy of all standing orders as finally certified
under this Code shall be filed by the certifying officer in a register maintained for the
purpose or uploaded in electronic form or such other form as may be prescribed, and
the certifying officer shall furnish a copy thereof to any person applying there for on
payment of such fee as may be prescribed.
Corresponding Law: S. 8 of Industrial Employment (Standing Orders) Act, 1946.
35. Duration and modification of standing orders.—(1) The standing orders certified
under sub-section (8) of Section 30 shall not, except on an agreement between the
employer and the workers, or a negotiating union or a Trade Union or other
representative body of the workers, be liable to modification until the expiry of six
months from the date on which the standing orders or the last modifications thereof
came into operation.
Corresponding Law: S. 10(1) of Industrial Employment (Standing Orders) Act,
1946.
(2) Subject to the provisions of sub-section (1), an employer or worker or a Trade
Union or other representative body of the workers may apply to the certifying officer to
have the standing orders modified in such application as may be prescribed, which
shall be accompanied by such copies of the modifications proposed to be made, and
where the modifications are proposed to be made by agreement between the employer
and the workers or a Trade Union or other representative body of the workers, a
certified copy of that agreement shall be filed along with the application.
Corresponding Law: S. 10(2) of Industrial Employment (Standing Orders) Act,
1946.
(3) The foregoing provisions of this Code shall apply in respect of an application
under sub-section (2) as they apply to the certification of the first time standing
orders.
Corresponding Law: S. 10(3) of Industrial Employment (Standing Orders) Act,
1946.
36. Oral evidence in contradiction of standing orders not admissible.—No oral
evidence having the effect of adding to or otherwise varying or contradicting standing
order as finally certified under this Chapter shall be admitted in any Court.
Corresponding Law: S. 12 of Industrial Employment (Standing Orders) Act, 1946.
37. Interpretation, etc., of standing orders.—If any question arises as to the
application, or interpretation, of the standing orders certified under sub-section (8) of
Section 30 or the modification made therein by an agreement entered into under sub-
section (5) of that section, the employer or any worker or workers concerned or the
Trade Union in relation to the workers employed in the industrial establishment or
undertaking, wherein the question has arisen, may apply to the Tribunal, within the
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local limits of whose territorial jurisdiction such establishment or the office, section or
branch of the undertaking is situated, to decide the question and such Tribunal shall,
after giving all the parties concerned a reasonable opportunity of being heard, decide
the question and its decision shall be final and binding on the concerned employer and
the workers.
Corresponding Law: S. 13-A of Industrial Employment (Standing Orders) Act,
1946.
38. Time-limit for completing disciplinary proceedings and liability to pay
subsistence allowance.—(1) Where any worker is suspended by the employer pending
investigation or inquiry into complaints or charges of misconduct against him, such
investigation or inquiry, or where there is an investigation followed by an inquiry, both
the investigation and inquiry shall be completed ordinarily within a period of ninety
days from the date of suspension.
(2) The standing orders certified under sub-section (8) of Section 30 or modified
under Section 35 shall provide that where a worker is suspended as referred to in sub-
section (1), the employer in relation to an industrial establishment or undertaking
shall pay to such worker employed in such industrial establishment or undertaking
subsistence allowance at the rates specified in sub-section (3) for the period during
which such worker is placed under suspension pending investigation or inquiry into
complaints or charges of misconduct against such worker.
(3) The amount of subsistence allowance payable under sub-section (2) shall be —
(a) at the rate of fifty per cent of the wages which the worker was entitled to
immediately preceding the date of such suspension, for the first ninety days of
suspension; and
(b) at the rate of seventy-five per cent of such wages for the remaining period of
suspension, if the delay in the completion of disciplinary proceedings against
such worker is not directly attributable to the conduct of such worker.
Corresponding Law: S. 10-A(1) of Industrial Employment (Standing Orders) Act,
1946.
39. Power to exempt.—The appropriate Government may, by notification, exempt,
conditionally or unconditionally, any industrial establishment or class of industrial
establishments from all or any of the provisions of this Chapter.
Corresponding Law: S. 14 of Industrial Employment (Standing Orders) Act, 1946.
Chapter V
NOTICE OF CHANGE
40. Notice of change.—No employer, who proposes to effect any change in the
conditions of service applicable to any worker in respect of any matter specified in the
Third Schedule, shall effect such change,—
(i) without giving to the workers likely to be affected by such change a notice in
such manner as may be prescribed of the nature of the change proposed to be
effected; or
(ii) within twenty-one days of giving such notice:
Provided that no notice shall be required for effecting any such change—
(a) where the change is effected in pursuance of any settlement or award;
(b) where the workers likely to be affected by the change are persons to
whom the Fundamental and Supplementary Rules, Civil Services
(Classification, Control and Appeal) Rules, Civil Services (Temporary
Service) Rules, Revised Leave Rules, Civil Services Regulations, Civilians in
Defence Services (Classification, Control and Appeal) Rules or the Indian
Railway Establishment Code or any other rules or regulations that may be
notified in this behalf by the appropriate Government in the Official
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Gazette, apply;
Corresponding Law: S. 9-A of Industrial Disputes Act, 1947.
(c) in case of emergent situation which requires change of shift or shift
working, otherwise than in accordance with standing orders, in consultation
with Grievance Redressal Committee;
(d) if such change is effected in accordance with the orders of the appropriate
Government or in pursuance of any settlement or award.
41. Power of appropriate Government to exempt.—Where the appropriate
Government is of the opinion that the application of the provisions of Section 40 to any
class of industrial establishments or to any class of worker employed in any industrial
establishment affect the employers in relation thereto so prejudicially that such
application may cause serious repercussion on the industry concerned and that public
interest so requires, the appropriate Government may, by notification, direct that the
provisions of the said section shall not apply or shall apply, subject to such conditions
as may be specified in the notification, to that class of industrial establishments or to
that class of workers employed in any industrial establishment.
Corresponding Law: S. 9-B of Industrial Disputes Act, 1947.
Chapter VI
VOLUNTARY REFERENCE OF DISPUTES TO ARBITRATION
42. Voluntary reference of disputes to arbitration.—(1) Where any industrial dispute
exists or is apprehended and the employer and the workers agree to refer the dispute
to arbitration, they may, by a written agreement, refer the dispute to arbitration, and
the reference shall be to such person or persons as an arbitrator or arbitrators as may
be specified in the arbitration agreement.
(2) Where an arbitration agreement provides for a reference of the dispute to an
even number of arbitrators, the agreement shall provide for the appointment of
another person as umpire who shall enter upon the reference, if the arbitrators are
equally divided in their opinion, and the award of the umpire shall prevail and shall be
deemed to be the arbitration award for the purposes of this Code.
(3) An arbitration agreement referred to in sub-section (1) shall be in such form
and shall be signed by the parties thereto in such manner as may be prescribed.
(4) A copy of the arbitration agreement shall be forwarded to the appropriate
Government and the conciliation officer.
(5) Where an industrial dispute has been referred to arbitration and the appropriate
Government is satisfied that the persons making the reference represent the majority
of each party, the appropriate Government may issue a notification in such manner as
may be prescribed; and when any such notification is issued, the employers and
workers who are not parties to the arbitration agreement but are concerned in the
dispute, shall be given an opportunity of presenting their case before the arbitrator or
arbitrators:
Provided that—
(i) where such industrial dispute is the industrial dispute other than the
termination of individual worker by way of discharge, dismissal, retrenchment
or otherwise, the workers shall be represented before the arbitrator,—
(a) where there is negotiating union or negotiating council, by the negotiating
union or negotiating council, as the case may be; or
(b) where there is no negotiating union or negotiating council, by the Trade
Union; or
(c) where there is no Trade Union, by such representatives of the workers
chosen in such manner as may be prescribed;
(ii) where such industrial dispute relates to termination of individual worker by
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way of discharge, dismissal, retrenchment or otherwise, the concerned

workers shall be represented in person or through a representative authorised
by him.
(6) The arbitrator or arbitrators shall investigate the dispute and submit to the
appropriate Government the arbitration award signed by the arbitrator or all the
arbitrators, as the case may be.
(7) Where an industrial dispute has been referred to arbitration and a notification
has been issued under sub-section (5), the appropriate Government may, by order,
prohibit the continuance of any strike or lock-out in connection with such dispute
which may be in existence on the date of the reference.
(8) Nothing in the Arbitration and Conciliation Act, 1996 (26 of 1996), shall apply
to arbitrations under this section.
Corresponding Law: S. 10-A of Industrial Disputes Act, 1947.
Chapter VII
MECHANISM FOR RESOLUTION OF INDUSTRIAL DISPUTES
43. Conciliation officers.—(1) The appropriate Government may, by notification,
appoint such number of persons, as it thinks fit to be conciliation officers, charged
with the duty of mediating in and promoting the settlement of industrial disputes.
(2) A conciliation officer may be appointed for a specified area or for specified
industries in a specified area or for one or more specified industries and either
permanently or for a limited period.
Corresponding Law: S. 4 of Industrial Disputes Act, 1947.
44. Industrial Tribunal.—(1) The appropriate Government may, by notification,
constitute one or more Industrial Tribunals for the adjudication of industrial disputes
and for performing such other functions as may be assigned to them under this Code
and the Tribunal so constituted by the Central Government shall also exercise the
jurisdiction, powers and authority conferred on the Tribunal, as defined in clause (m)
of Section 2 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952
(19 of 1952) by or under that Act.
Corresponding Law: S. 7-A(1) and (1-A) of Industrial Disputes Act, 1947.
(2) Every Industrial Tribunal shall consist of two members to be appointed by the
appropriate Government out of whom one shall be a Judicial Member and the other, an
Administrative Member.
(3) A bench of the Tribunal shall consist of a Judicial Member and an Administrative
Member or single Judicial Member or single Administrative Member.
(4) The qualifications for appointment, method of recruitment, term of office,
salaries and allowances, resignation, removal and the other terms of conditions of
service of the Judicial Member and the Administrative Member of the Tribunal
constituted by the Central Government shall be in accordance with the rules made
under Section 184 of the Finance Act, 2017 (7 of 2017):
Provided that a person who has held a post below the rank of Joint Secretary to the
Government of India or an equivalent rank in the Central Government or a State
Government, shall not be eligible to be appointed as an Administrative Member of the
Tribunal.
Corresponding Law: S. 7-D of Industrial Disputes Act, 1947.
(5) The term of office of the Judicial Member and the Administrative Member of a
Tribunal constituted by the State Government under sub-section (1), their salaries and
allowances, resignation, removal and other terms and conditions of service shall be
such as may be prescribed by the State Government.
(6) The salary and allowances and the terms and conditions of service of the
Judicial Member or Administrative Member referred to in sub-section (2) and
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appointed by a State Government shall not be varied to his disadvantage after his
appointment.
(7) The procedure of the Tribunal (including distribution of cases in the benches of
the Tribunal) shall be such as may be prescribed, provided a bench consisting of a
Judicial Member and an Administrative Member shall entertain and decide the cases
only relating to—
(a) the application and interpretation of standing order;
(b) discharge or dismissal of workmen including reinstatement of, or grant of
relief to, workmen dismissed;
(c) illegality or otherwise of a strike or lockout;
(d) retrenchment of workmen and closure of establishment; and
(e) Trade Union disputes,
and the remaining cases shall be entertained and decided by the bench of the Tribunal
consisting either a Judicial Member or an Administrative Member of the Tribunal.
(8) The Judicial Member shall preside over the Tribunal where the bench of the
Tribunal consists of one Judicial Member and one Administrative Member.
(9) If, for any reason, a vacancy (other than a temporary absence) occurs in a
National Industrial Tribunal or a Tribunal, then, such vacancy shall be filled up in such
manner as may be prescribed, without prejudice to the provisions of sub-section (4) or
sub-section (5), as the case may be, and the proceeding shall be continued before
such National Industrial Tribunal or Tribunal, as the case may be, from the stage at
which the vacancy is filled.
Corresponding Law: S. 8 of Industrial Disputes Act, 1947.
(10) The appropriate Government may provide such number of officers and other
staff as it thinks fit in consultation with the Judicial Member of the Tribunal which may
be required for the due discharge of the functioning of the Tribunal.
45. Finality of constitution of Tribunal.—No notification of the appropriate
Government appointing any person as a Judicial Member or an Administrative Member
of a Tribunal shall be called in question in any manner; and no act or proceeding
before the Tribunal shall be called in question in any manner on the ground mainly of
the existence of any vacancy in, or defect in the constitution of such Tribunal.
Corresponding Law: S. 9(1) of Industrial Disputes Act, 1947.
46. National Industrial Tribunal.—(1) The Central Government may, by notification,
constitute one or more National Industrial Tribunals for the adjudication of industrial
disputes which, in the opinion of the Central Government, involve questions of national
importance or are of such a nature that industrial establishments situated in more
than one State are likely to be interested in, or affected by, such disputes.
Corresponding Law: S. 7-B(1) of Industrial Disputes Act, 1947.
(2) A National Industrial Tribunal shall consist of two members to be appointed by
the Central Government out of whom one shall be a Judicial Member and the other, an
Administrative Member.
Corresponding Law: S. 7-B(2) of Industrial Disputes Act, 1947.
(3) A person shall not be qualified for appointment as the Judicial Member of a
National Industrial Tribunal unless he is, or has been, a Judge of a High Court.
Corresponding Law: S. 7-B(3) of Industrial Disputes Act, 1947.
(4) A person shall not be qualified for appointment as Administrative Member of a
National Industrial Tribunal unless, he is or has been Secretary to the Government of
India or holding an equivalent rank in the Central Government or State Government,
having adequate experience of handling the labour related matters.
(5) The Judicial Member shall preside over a National Industrial Tribunal.
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Corresponding Law: S. 7-B(3) of Industrial Disputes Act, 1947.

(6) The procedure of selection of Judicial Member and Administrative Member of the
National Industrial Tribunal, their salaries, allowances and other terms and conditions
of service shall be such as may be prescribed.
(7) The Central Government may provide such number of officers and other staff as
it thinks fit in consultation with the Judicial Member of the National Industrial Tribunal
which may be required for the due discharge of the functioning of the National
Industrial Tribunal.
47. Decision of Tribunal or National Industrial Tribunal.—(1) The decision of a
Tribunal or a National Industrial Tribunal, as the case may be, shall be by consensus of
the members.
(2) If the members of a Tribunal or a National Industrial Tribunal differ in opinion
on any point, they shall state the point or points on which they differ, and make a
reference to the appropriate Government.
(3) The appropriate Government shall, on receipt of a reference made under sub-
section (2), appoint a Judicial Member of other Tribunal or a National Industrial
Tribunal, who shall hear the point or points himself and such point or points shall be
decided according to the majority of the members of a Tribunal or a National Industrial
Tribunal, as the case may be, who have first heard the case, including the Judicial
Member of the other Tribunal who heard the case thereafter.
48. Disqualifications for members of Tribunal and National Industrial Tribunal.—No
person shall be appointed to, or continue in, the office of the member of a Tribunal or
National Industrial Tribunal, respectively, if—
(a) he is not an independent person; or
(b) he has attained the age of sixty-five years.
Explanation.—For the purposes of this section “independent person” means a
person who is unconnected with the industrial dispute referred to a Tribunal or
National Industrial Tribunal or with any industry directly affected by such dispute.
Corresponding Law: S. 7-C of Industrial Disputes Act, 1947.
49. Procedure and powers of arbitrator, conciliation officer, Tribunal and National
Industrial Tribunal.—(1) Subject to the provisions of this Code and the rules that may
be made in this behalf, an arbitrator, conciliation officer, Tribunal or National Industrial
Tribunal shall follow such procedure as the arbitrator, conciliation officer, Tribunal or
National Industrial Tribunal may deem fit.
(2) A conciliation officer or an officer authorised in this behalf by the Tribunal or
National Industrial Tribunal may, for the purpose of inquiry into any existing or
apprehended industrial dispute, after giving reasonable notice, enter the premises
occupied by any establishment to which the dispute relates.
(3) The conciliation officer, Tribunal and National Industrial Tribunal shall have the
same powers as are vested in a civil court under the Code of Civil Procedure, 1908 (5
of 1908), when trying a suit, in respect of the following matters, namely: —
(a) enforcing the attendance of any person and examining him on oath;
(b) compelling the production of documents and material objects;
(c) issuing commissions for the examination of witnesses;
(d) in respect of such other matters as may be prescribed,
and every inquiry or investigation by Tribunal or National Industrial Tribunal, shall be
deemed to be a judicial proceeding within the meaning of Sections 193 and 228 of the
Indian Penal Code (45 of 1860).
(4) A conciliation officer may enforce the attendance of any person for the purpose
of examination of such person or call for and inspect any document which he has
ground for considering to be relevant to the industrial dispute or to be necessary for
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the purpose of verifying the implementation of any award or carrying out any other
duty imposed on him under this Code, and for the aforesaid purposes, the conciliation
officer shall have the same powers as are vested in a civil court under the Code of Civil
Procedure, 1908 (5 of 1908), in respect of enforcing the attendance of any person and
examining him or of compelling the production of documents.
(5) The appropriate Government may, if it so thinks fit, appoint one or more
persons having special knowledge of the matter under consideration as assessors or
experts to advise a Tribunal or National Industrial Tribunal, as the case may be, in
respect of any proceeding before either of the said Tribunals.
(6) All conciliation officers and the members of a Tribunal or National Industrial
Tribunal shall be deemed to be public servants within the meaning of Section 21 of the
Indian Penal Code (45 of 1860).
(7) Subject to any rules made under this Code, the costs of, and incidental to, any
proceeding before a Tribunal or National Industrial Tribunal shall be in the discretion of
that Tribunal or National Industrial Tribunal and the Tribunal or National Industrial
Tribunal, as the case may be, shall have full powers to determine by and to whom and
to what extent and subject to what conditions, if any, such costs are to be paid, and to
give all necessary directions for the purposes aforesaid and such costs may, on
application made to the appropriate Government by the person entitled, be recovered
by that Government in the same manner as an arrear of land revenue.
(8) Every Tribunal or National Industrial Tribunal shall be deemed to be civil court
for the purposes of Sections 345, 346, and 348 of the Code of Criminal Procedure,
1973 (2 of 1974).
(9) Every award made, order issued or settlement arrived at by or before a Tribunal
or a National Industrial Tribunal shall be executed in accordance with the procedure
laid down for execution of orders and decree of a civil court under Order XXI of the
Code of Civil Procedure, 1908 (5 of 1908) and for that purpose such Tribunal or
National Industrial Tribunal shall be deemed to be a civil court.
Corresponding Law: S. 11 of Industrial Disputes Act, 1947.
► Power of Tribunals.—Labour Court/Industrial Tribunal cannot sit in judgment over
conclusions of enquiry officer if not perverse, State of Gujarat v. Bhanji Gopal Karchhar, (2016) 12
SCC 645.
50. Powers of Tribunal and National Industrial Tribunal to give appropriate relief in
case of discharge or dismissal of worker.—(1) Where the application under sub-section
(6) of Section 53 relating to an industrial dispute involving discharge or dismissal or
otherwise termination of a worker has been made to a Tribunal or has been referred to
a National Industrial Tribunal for adjudication, and, in the course of adjudication
proceedings, the Tribunal or National Industrial Tribunal, as the case may be, is
satisfied that the order of discharge or dismissal or otherwise termination was not
justified, it may, by its award, set aside the order of discharge or dismissal or
termination and direct reinstatement of the worker on such terms and conditions, if
any, as it thinks fit, or give such other relief to the worker including the award of any
lesser punishment in lieu of discharge or dismissal or otherwise termination, as the
circumstances of the case may require.
(2) A Tribunal or National Industrial Tribunal, as the case may be, may, in the
interest of justice, grant such interim relief to the worker referred to in sub-section (1)
during the pendency of the industrial dispute as the circumstances of the case may
require:
Provided that in any proceeding under this sub-section the Tribunal or National
Industrial Tribunal, as the case may be, shall rely only on the materials on record and
shall not take any fresh evidence in relation to the matter.
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Corresponding Law: S. 11-A of Industrial Disputes Act, 1947.

51. Transfer of pending cases.—(1) On and from the date of commencement of this
Code, the cases pending immediately before such commencement—
(a) in the Labour Court and the Tribunal constituted under the Industrial
Disputes Act, 1947 (14 of 1947), shall be transferred to the Tribunal having
corresponding jurisdiction under this Code;
(b) in the National Tribunal constituted under the Industrial Disputes Act, 1947
(14 of 1947) shall be transferred to the National Industrial Tribunal having
corresponding jurisdiction under this Code.
(2) The cases transferred under sub-section (1) to the Tribunal or the National
Industrial Tribunal shall be dealt with de novo or from the stage at which they were
pending before such transfer, as it may deem fit.
52. Adjustment of services of presiding officers under repealed Act.—A presiding
officer of a Labour Court or Tribunal or, as the case may be, National Tribunal,
constituted under the Industrial Disputes Act, 1947 (14 of 1947), holding office as
such immediately before the commencement of this Code and is qualified to be
appointed under this Code, shall be the Judicial Member of the Tribunal or, as the case
may be, the Judicial Member of the National Industrial Tribunal, and shall continue as
such for the remaining period of his office.
53. Conciliation and adjudication of dispute.—(1) Where any industrial dispute
exists or is apprehended or a notice under Section 62 has been given, the conciliation
officer shall, hold conciliation proceedings in such manner as may be prescribed:
Provided that the conciliation officer shall not hold any such proceedings relating to
the industrial dispute after two years from the date on which such industrial dispute
arose.
Corresponding Law: S. 12(1) of Industrial Disputes Act, 1947.
(2) The conciliation officer shall, for the purpose of bringing about a settlement of
the dispute, without delay, investigate the dispute and all matters affecting the merits
and right settlement thereof and may do all such things as he thinks fit for the
purpose of inducing the parties to come to a fair and amicable settlement of the
dispute.
Corresponding Law: S. 12(2) of Industrial Disputes Act, 1947.
(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in
the course of the conciliation proceedings, the conciliation officer shall send a report
thereof to the appropriate Government or an officer authorised in this behalf by the
appropriate Government together with a memorandum of the settlement signed by the
parties to the dispute.
Corresponding Law: S. 12(3) of Industrial Disputes Act, 1947.
(4) If no such settlement is arrived at, the conciliation officer shall, as soon as
practicable, after the close of the investigation, send to the concerned parties and to
the appropriate Government a full report, in the electronic or other form as may be
prescribed, setting forth the steps taken by him for ascertaining the facts and
circumstances relating to the dispute and for bringing about a settlement thereof,
together with a full statement of such facts and circumstances, and the reasons on
account of which, in his opinion, a settlement could not be arrived at.
Corresponding Law: S. 12(4) of Industrial Disputes Act, 1947.
(5) Notwithstanding anything contained in sub-section (4), the conciliation officer
shall send the report to the concerned parties and the appropriate Government within
forty-five days of the commencement of the conciliation proceedings or within such
shorter period as may be fixed by the appropriate Government:
Provided that where a conciliation officer receives notice under Section 62, he shall
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send the report to the concerned parties and to the appropriate Government within
fourteen days of the commencement of the conciliation proceedings:
Provided further that subject to the approval of the conciliation officer, the time
may be extended by such period as may be agreed upon in writing by the concerned
parties to the dispute.
(6) Any concerned party may make application in the prescribed form to the
Tribunal in the matters not settled by the conciliation officer under this section within
ninety days from the date on which the report under sub-section (4) is received to the
concerned party and the Tribunal shall decide such application in the prescribed
manner.
54. Reference to and functions of National Industrial Tribunal.—(1) The Central
Government may refer an industrial dispute to a National Industrial Tribunal which in
the opinion of such Government involves question of national importance or is of such
a nature that industrial establishments situated in more than one State are likely to be
interested in, or affected by such industrial dispute.
(2) Where an industrial dispute has been referred under sub-section (1) or
transferred under Section 92 by the Central Government to a National Industrial
Tribunal for adjudication, it shall hold its proceedings expeditiously and shall, within
the period specified in the order referring or transferring such industrial dispute or
further period extended by the Central Government, submit its award to that
Government.
Corresponding Law: S. 10(1-A) of Industrial Disputes Act, 1947.
► Scope of judicial review regarding existence of live industrial dispute.—Adequacy or
sufficiency of material on which opinion is formed is beyond scope of judicial review. Reference
power being an administrative function, order of reference is open to judicial review if it is shown
that appropriate Government had no material before it or had not applied its mind or had not taken
into consideration certain vital facts which it ought to have taken. Likewise, where appropriate
Government refuses to make reference, it is open to judicial review if it is shown that “appropriate
Government” did not take into consideration relevant material or reasons for refusing to make
reference were irrelevant or not germane to formation of opinion, Prabhakar v. Sericulture Deptt.,
(2015) 15 SCC 1 : (2016) 2 SCC (L&S) 149.
► Jurisdiction of Tribunal.—Courts/Tribunals are loath to interfere in matters with regard to
grant of pay scale since grant of pay scale is highly technical and complex matter which requires
consideration of host of other factors. Further held, merely because pay scale may have been and
remained same cannot lead to conclusion of conscious parity and a ground for grant of parity to
Assistant Security Officer, Security Havaldar and Security Guard also, DTC Security Staff Union v.
DTC, (2018) 16 SCC 619.
► Delay/Laches : Effect.— Reference pertaining to entitlement of respondent to reinstatement
made in year 1995, where respondent was dismissed in year 1968 and had superannuated in year
1992, not proper, State of Gujarat v. Bhanji Gopal Karchhar, (2016) 12 SCC 645.
► Reference — Parity.—When cases of similarly situated persons were referred for
adjudication without any objection with regard to delay, it was directed that cases of appellants shall
also be considered for reference ignoring objection on ground of delay, Basant Singh v. State of
H.P., (2017) 1 SCC 263.
► Reference of belated industrial dispute.—Policy of industrial adjudication to be kept in
mind is that very stale claims should not be generally encouraged or allowed inasmuch as unless
there is satisfactory explanation for delay as, apart from the obvious risk to industrial peace from the
entertainment of claims after long lapse of time, it is necessary also to take into account the
unsettling effect which it is likely to have on the employers’ financial arrangement and to avoid
dislocation of an industry, Prabhakar v. Sericulture Deptt., (2015) 15 SCC 1 : (2016) 2 SCC (L&S)
149.
► Administrative Power of “appropriate Government”.—Power of “appropriate Government”
to refer industrial dispute for adjudication is an administrative function and it does not decide any
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question of law or fact, Prabhakar v. Sericulture Deptt., (2015) 15 SCC 1 : (2016) 2 SCC (L&S)
149.
The satisfaction of the existence of an industrial dispute or the satisfaction that an industrial
dispute is apprehended is “a condition precedent to the order of reference”. An order of reference
cannot be made mechanically without forming an opinion. For formation of the necessary opinion,
the “appropriate Government” must also be satisfied that a person whose dispute is being referred
for adjudication is a “workman”. If the dispute is not between an employer and his workman, it is not
an “industrial dispute” and the Government can justifiably refuse to refer the dispute. From the
material placed before it, the Government reaches an administrative decision whether there exists an
existing or apprehended industrial dispute. In either event, it can exercise the power under this
Section. Prabhakar v. Sericulture Deptt., (2015) 15 SCC 1 : (2016) 2 SCC (L&S) 149.
► Termination by way of punishment.—Where termination is by way of punishment,
preliminary issue to be determined is validity of domestic enquiry. Where domestic enquiry is found
legal and proper, next issue would be adjudging proportionality of punishment imposed. Further held,
where domestic enquiry is found illegal and improper, issue which need determination is whether
employer can be allowed to prove misconduct/charge before Labour Court on merits by adducing
independent evidence, Kurukshetra University v. Prithvi Singh, (2018) 4 SCC 483.
► Pre-emptory direction to refer dispute for adjudication.—Government has to satisfy itself
after applying its mind to relevant factors factum of existence of industrial dispute before taking
decision to refer same for adjudication. Further, held, it is not entitled to enter finding on merits of
case and decline reference. Only when Court finds that refusal by Government to make reference is
unjustified, on irrelevant factors, may Court issue direction to Government to make reference,
Rahman Industries (P) Ltd. v. State of U.P., (2016) 12 SCC 420.
► Claim to regularization.—Issue pertaining to regularisation of services should be
adjudicated by Industrial Tribunal, in reference under Section 10, Industrial Disputes Act, 1947
since such dispute is required to be adjudicated on facts and evidence, Sunil Kumar Biswas v.
Ordnance Factory Board, (2019) 15 SCC 617.
55. Form of award, its communication and commencement.—(1) The award of—
(i) a Tribunal delivered by a bench consisting of a Judicial Member and an
Administrative Member or a single Judicial Member or a single Administrative
Member; or
(ii) a National Industrial Tribunal,
shall be in writing and shall be signed electronically or otherwise, as the case may be,
by both the Judicial Member and the Administrative Member or either by the Judicial
Member or the Administrative Member by whom the award is delivered.
Corresponding Law: S. 16 of Industrial Disputes Act, 1947.
(2) Every arbitration award and every award of Tribunal or National Industrial
Tribunal shall be communicated to the parties concerned and the appropriate
Government.
Corresponding Law: S. 17(1) of Industrial Disputes Act, 1947.
(3) An award made under this Code shall become enforceable on the expiry of thirty
days from the date of its communication under sub-section (2):
Provided that—
(a) if the appropriate Government is of the opinion in any case, where the award
has been given by a Tribunal in relation to an industrial dispute to which it is a
party; or
(b) if the Central Government is of opinion in any case, where the award has
been given by a National Industrial Tribunal,
that it will be inexpedient on public grounds affecting national economy or social
justice to give effect to the whole or any part of the award, the appropriate
Government, or as the case may be, the Central Government may, by notification,
declare that the award shall not become enforceable on the expiry of the said period of
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thirty days.
Corresponding Law: S. 17-A(1) of Industrial Disputes Act, 1947.
(4) Where any declaration has been made in relation to an award under the proviso
to sub-section (3), the appropriate Government or the Central Government, as the
case may be, may, within ninety days from the date of communication of the award
under sub-section (2), make an order rejecting or modifying the award, and shall, on
the first available opportunity, lay the award together with a copy of the order before
the Legislature of the State, if the order has been made by a State Government, or
before Parliament, if the order has been made by the Central Government.
Corresponding Law: S. 17-A(2) of Industrial Disputes Act, 1947.
(5) Where any award as rejected or modified by an order made under sub-section
(4) is laid before the Legislature of a State or before Parliament, such award shall
become enforceable on the expiry of fifteen days from the date on which it is so laid;
and where no order under sub-section (4) is made in pursuance of a declaration under
the proviso to sub-section (3), the award shall become enforceable on the expiry of
the period of ninety days referred to in sub-section (4).
Corresponding Law: S. 17-A(3) of Industrial Disputes Act, 1947.
(6) Subject to the provisions of sub-section (3) and sub-section (5) regarding the
enforceability of an award, the award shall come into operation with effect from such
date as may be specified therein, but where no date is so specified, it shall come into
operation on the date when the award becomes enforceable under sub-section (3) or
sub-section (5), as the case may be.
Corresponding Law: S. 17-A(4) of Industrial Disputes Act, 1947.
56. Payment of full wages to worker pending proceedings in higher Courts.—Where
in any case, a Tribunal or a National Industrial Tribunal by its award directs
reinstatement of any worker and the employer prefers any proceedings against such
award in a High Court or the Supreme Court, the employer shall be liable to pay such
worker, during the period of pendency of such proceedings in the High Court or the
Supreme Court, full wages last drawn by him, inclusive of any maintenance allowance
admissible to him under any rule if the worker had not been employed in any
establishment during such period and an affidavit by such worker had been filed to
that effect in such Court:
Provided that where it is proved to the satisfaction of the High Court or the
Supreme Court that such worker had been employed and had been receiving adequate
remuneration during any such period or part thereof, the Court shall order that no
wages shall be payable under this section for such period or part, as the case may be.
Corresponding Law: S. 17-B of Industrial Disputes Act, 1947.
57. Persons on whom settlements and awards are binding.—(1) A settlement
arrived at by agreement between the employer and worker otherwise than in the
course of conciliation proceeding shall be binding on the parties to the agreement.
(2) Subject to the provisions of sub-section (3), an arbitration award which has
become enforceable shall be binding on the parties to the agreement who referred the
dispute to arbitration.
(3) A settlement arrived at in the course of conciliation proceedings under this Code
or an arbitration or an award of a Tribunal or National Industrial Tribunal which has
become enforceable shall be binding on—
(a) all parties to the industrial dispute;
(b) all other parties summoned to appear in the proceedings as parties to the
dispute, unless the arbitrator, Tribunal or National Industrial Tribunal, as the
case may be, records the opinion that they were so summoned without proper
cause;
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(c) where a party referred to in clause (a) or clause (b) is an employer, his heirs,
successors or assigns in respect of the establishment to which the dispute
relates;
(d) where a party referred to in clause (a) or clause (b) is composed of workers,
all persons who were employed in the establishment or part of the
establishment, as the case may be, to which the dispute relates on the date of
the dispute and all persons who subsequently become employed in that
establishment or part.
Corresponding Law: S. 18 of Industrial Disputes Act, 1947.
58. Period of operation of settlements and awards.—(1) A settlement shall come
into operation on such date as is agreed upon by the parties to the dispute, and if no
date is agreed upon, on the date on which the memorandum of the settlement is
signed by the parties to the dispute.
(2) Such settlement shall be binding for such period as is agreed upon by the
parties, and if no such period is agreed upon, for a period of six months from the date
on which the memorandum of settlement is signed by the parties to the dispute, and
shall continue to be binding on the parties after the expiry of the period aforesaid,
until the expiry of sixty days from the date on which a notice in writing of an intention
to terminate the settlement is given by one of the parties to the other party or parties
to the settlement.
(3) An award shall, subject to the provisions of this section, remain in operation for
a period of one year from the date on which the award becomes enforceable under
Section 55:
Provided that the appropriate Government may reduce the said period and fix such
period as it thinks fit:
Provided further that the appropriate Government may, before expiry of the said
period, extend the period of operation by any period not exceeding one year at a time
as it thinks fit so, however, that the total period of operation of any award does not
exceed three years from the date on which it came into operation.
(4) Where the appropriate Government, whether of its own motion or on the
application of any party bound by the award, considers that since the award was
made, there has been a material change in the circumstances on which it was based,
the appropriate Government may refer the award or part of it to the Tribunal, if the
award is made by the Tribunal for decision whether the period of operation should not,
by reason of such change, be shortened and the decision of the Tribunal on such
reference shall be final.
(5) Nothing contained in sub-section (3) shall apply to any award which by its
nature, terms or other circumstances does not impose, after it has been given effect
to, any continuing obligation on the parties bound by the award.
(6) Notwithstanding the expiry of the period of operation under sub-section (3), the
award shall continue to be binding on the parties until a period of sixty days has
elapsed from the date on which notice is given by any party bound by the award to the
other party or parties intimating its intention to terminate the award.
(7) No notice given under sub-section (2) or sub-section (6) shall have effect,
unless it is given by a party representing the majority of persons bound by the
settlement or award, as the case may be.
Corresponding Law: S. 19 of Industrial Disputes Act, 1947.
59. Recovery of money due from employer.—(1) Where any money is due to a
worker from an employer under a settlement or an award or under the provisions of
Chapter IX or Chapter X, the worker himself or any other person authorised by him in
writing in this behalf, or, in the case of the death of the worker, his assignee or heirs
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may, without prejudice to any other mode of recovery, make an application to the
appropriate Government for the recovery of the money due to him, and if the
appropriate Government is satisfied that any money is so due, it shall issue a
certificate for that amount to the Collector who shall proceed to recover the same in
the same manner as an arrear of land revenue:
Provided that every such application shall be made within one year from the date on
which the money became due to the worker from the employer:
Provided further that any such application may be entertained after the expiry of
the said period of one year, if the appropriate Government is satisfied that the
applicant had sufficient cause for not making the application within the said period.
(2) Where any worker is entitled to receive from the employer any money or any
benefit which is capable of being computed in terms of money and if any question
arises as to the amount of money due or as to the amount at which such benefit
should be computed, then the question may, subject to any rules that may be made
under this Code, be decided by such Tribunal as may be specified in this behalf by the
appropriate Government within a period not exceeding three months:
Provided that where the Tribunal considers it necessary or expedient so to do, it
may, for reasons to be recorded in writing, extend such period by such further period
as it may think fit.
(3) For the purposes of computing the money value of a benefit referred to in sub-
section (2), the Tribunal may, if it so thinks fit, appoint a Commissioner who shall,
after taking such evidence as may be necessary, submit a report to the Tribunal and
the Tribunal shall determine the amount after considering the report of the
Commissioner and other circumstances of the case.
(4) The decision of the Tribunal shall be forwarded by it to the appropriate
Government and any amount found due by the Tribunal may be recovered in the
manner provided for in sub-section (1).
(5) Where workers employed under the same employer are entitled to receive from
him any money or any benefit capable of being computed in terms of money, then,
subject to such rules as may be made in this behalf, a single application for the
recovery of the amount due may be made on behalf of or in respect of any number of
such workers.
Corresponding Law: S. 33-C of Industrial Disputes Act, 1947.
► Claim for lay-off compensation after availing VRS.—Where VRS does not cover past dues
like lay-off compensation, subsistence allowance, etc. workman would be entitled to approach
Labour Court under Section 33-C(2), Industrial Disputes Act, 1947. Where the same are
specifically covered or language of VRS shows that it covers such claims under scheme, no forum
would have jurisdiction to grant the same, A. Satyanarayana Reddy v. Labour Court, (2016) 9 SCC
462 : (2016) 2 SCC (L&S) 674.
60. Commencement and conclusion of proceedings.—(1) A conciliation proceeding
shall be deemed to have commenced on the date on which the first meeting is held by
the conciliation officer in an industrial dispute after the receipt of the notice of strike or
lock-out by the conciliation officer.
(2) A conciliation proceeding shall be deemed to have concluded—
(a) where a settlement is arrived at, when a memorandum of the settlement is
signed by the parties to the dispute;
(b) where no settlement is arrived at, and failure of conciliation is recorded by
the conciliation officer; or
(c) when a reference is made to a National Industrial Tribunal, under this Code,
during the pendency of conciliation proceedings.
(3) Proceedings before an arbitrator or a Tribunal or a National Industrial Tribunal
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under this Code shall be deemed to have commenced on the date of filing application
or appeal or on the date of reference of the dispute for arbitration or adjudication, as
the case may be, and such proceedings shall be deemed to have concluded on the
date on which the award becomes enforceable.
Corresponding Law: S. 20 of Industrial Disputes Act, 1947.
61. Certain matters to be kept confidential.—There shall not be included in any
report or award under this Code, any information obtained by a conciliation officer,
arbitrator, Tribunal or National Industrial Tribunal, in the course of any investigation or
inquiry as to a Trade Union or as to any individual business (whether carried on by a
person, firm or company) which is not available otherwise than through the evidence
given before such conciliation officer, arbitrator, Tribunal, or National Industrial
Tribunal, if the Trade Union, person, firm or company, in question has made a request
in writing to the conciliation officer, arbitrator, Tribunal or National Industrial Tribunal,
as the case may be, that such information shall be treated as confidential; nor shall
such conciliation officer, or the arbitrator, or the presiding officer of a Tribunal or a
National Industrial Tribunal or any person present at or concerned in the proceedings
disclose any such information without the consent in writing of the secretary of the
Trade Union or the person, firm or company in question, as the case may be:
Provided that nothing contained in this section shall apply to a disclosure of any
such information for the purposes of a prosecution under Section 193 of the Indian
Penal Code (45 of 1860).
Corresponding Law: S. 21 of Industrial Disputes Act, 1947.
Chapter VIII
STRIKES AND LOCK-OUTS
62. Prohibition of strikes and lock-outs.—(1) No person employed in an industrial
establishment shall go on strike, in breach of contract—
(a) without giving to the employer notice of strike, as hereinafter provided,
within sixty days before striking; or
(b) within fourteen days of giving such notice; or
(c) before the expiry of the date of strike specified in any such notice; or
(d) during the pendency of any conciliation proceedings before a conciliation
officer and seven days after the conclusion of such proceedings; or
Corresponding Law: S. 22(1) of Industrial Disputes Act, 1947.
(e) during the pendency of proceedings before a Tribunal or a National Industrial
Tribunal and sixty days, after the conclusion of such proceedings; or
(f) during the pendency of arbitration proceedings before an arbitrator and sixty
days after the conclusion of such proceedings, where a notification has been
issued under sub-section (5) of Section 42; or
(g) during any period in which a settlement or award is in operation, in respect
of any of the matters covered by the settlement or award.
Corresponding Law: S. 23 of Industrial Disputes Act, 1947.
(2) No employer of an industrial establishment shall lock-out any of his workers—
(a) without giving them notice of lock-out as hereinafter provided, within sixty
days before locking-out; or
(b) within fourteen days of giving such notice; or
(c) before the expiry of the date of lock-out specified in any such notice as
aforesaid; or
(d) during the pendency of any conciliation proceedings before a conciliation
officer and seven days after the conclusion of such proceedings; or
Corresponding Law: S. 22(2) of Industrial Disputes Act, 1947.
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(e) during the pendency of proceedings before a Tribunal or a National Industrial

Tribunal and sixty days, after the conclusion of such proceedings; or
(f) during the pendency of arbitration proceedings before an arbitrator and sixty
days after the conclusion of such proceedings, where a notification has been
issued under sub-section (5) of Section 42; or
(g) during any period in which a settlement or award is in operation, in respect
of any of the matters covered by the settlement or award.
Corresponding Law: S. 23 of Industrial Disputes Act, 1947.
(3) The notice of strike or lock-out under this section shall not be necessary where
there is already in existence a strike or, as the case may be, lock-out, but the
employer shall send intimation of such lock-out or strike on the day on which it is
declared, to such authority as may be specified by the appropriate Government either
generally or for a particular area or for a particular class of services.
Corresponding Law: S. 22(3) of Industrial Disputes Act, 1947.
(4) The notice of strike referred to in sub-section (1) shall be given by such number
of persons to such person or persons and in such manner, as may be prescribed.
Corresponding Law: S. 22(4) of Industrial Disputes Act, 1947.
(5) The notice of lock-out referred to in sub-section (2) shall be given in such
manner as may be prescribed.
Corresponding Law: S. 22(5) of Industrial Disputes Act, 1947.
(6) If on any day an employer receives from any person employed by him any such
notices as are referred to in sub-section (1) or gives to any person employed by him
any such notices as are referred to in sub-section (2), he shall within five days thereof
report to the appropriate Government or to such authority as that Government may
prescribe and to the conciliation officer, the number of such notices received or given
on that day.
Corresponding Law: S. 22(6) of Industrial Disputes Act, 1947.
63. Illegal strikes and lock-outs.—(1) A strike or lock-out shall be illegal, if it is—
(i) commenced or declared in contravention of Section 62; or
(ii) continued in contravention of an order made under sub-section (7) of Section
42.
(2) Where a strike or lock-out in pursuance of an industrial dispute has already
commenced and is in existence at the time of the filing of the application relating to
such industrial dispute in the Tribunal or of the reference of such industrial dispute to
an arbitrator or a National Industrial Tribunal, the continuance of such strike or lock-
out shall not be deemed to be illegal, provided that such strike or lock-out was not at
its commencement in contravention of the provisions of this Code or the continuance
thereof was not prohibited under sub-section (7) of Section 42.
(3) A lock-out declared in consequence of an illegal strike or a strike declared in
consequence of an illegal lock-out shall not be deemed to be illegal.
Corresponding Law: S. 24 of Industrial Disputes Act, 1947.
64. Prohibition of financial aid to illegal strikes or lock-outs.—No person shall
knowingly spend or apply any money in direct furtherance or support of any illegal
strike or lock-out.
Corresponding Law: S. 25 of Industrial Disputes Act, 1947.
Chapter IX
LAY-OFF, RETRENCHMENT AND CLOSURE
65. Application of Sections 67 to 69.—(1) Sections 67 to 69 (both inclusive) shall
not apply to industrial establishments to which Chapter X applies; or
(a) to industrial establishments in which less than fifty workers on an average
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per working day have been employed in the preceding calendar month; or
(b) to industrial establishments which are of a seasonal character or in which
work is performed intermittently.
(2) If a question arises whether an industrial establishment is of a seasonal
character or whether work is performed therein only intermittently, the decision of the
appropriate Government thereon shall be final.
Explanation.—In this section and in Sections 67, 68 and 69, industrial
establishment shall mean a—
(i) factory as defined in clause (m) of Section 2 of the Factories Act, 1948 (63 of
1948); or
(ii) mine as defined in clause (j) of sub-section (1) of Section 2 of the Mines Act,
1952 (35 of 1952); or
(iii) plantation as defined in clause (f) of Section 2 of the Plantations Labour Act,
1951 (69 of 1951).
Corresponding Law: S. 25-A of Industrial Disputes Act, 1947.
66. Definition of continuous service.—In this Chapter, continuous service in relation
to a worker, means the uninterrupted service of such worker, including his service
which may be interrupted on account of sickness or authorised leave or an accident or
a strike which is not illegal or a lock-out or a cessation of work which is not due to any
fault on the part of the worker.
Explanation 1.—For the purposes of this section, where a worker is not in
continuous service for a period of one year or six months, he shall be deemed to be in
continuous service under an employer—
(a) for a period of one year, if the worker during a period of twelve months
preceding the date with reference to which calculation is to be made has
actually worked under the employer for not less than—
(i) one hundred and ninety days in the case of a worker employed below
ground in a mine; and
(ii) two hundred and forty days, in any other case;
(b) for a period of six months, if the worker during a period of six months
preceding the date with reference to which calculation is to be made has
actually worked under the employer for not less than—
(i) ninety-five days in the case of worker employed below ground in a mine;
and
(ii) one hundred and twenty days, in any other case.
Explanation 2.—For the purposes of Explanation 1, the number of days on which a
worker has actually worked under an employer shall include the days on which—
(i) he has been laid-off under an agreement or as permitted by or under this
Code or any other law applicable to the industrial establishment for the time
being in force; or
(ii) he has been on leave on full wages earned in the previous years; or
(iii) he has been absent due to temporary disablement caused by accident
arising out of and in the course of his employment; or
(iv) in the case of a female, she has been on maternity leave, so however, that
the total period of such maternity leave does not exceed the period as
specified in the Maternity Benefit Act, 1961 (53 of 1961).
Corresponding Law: S. 25-B of Industrial Disputes Act, 1947.
67. Rights of workers laid-off for compensation, etc.—Whenever a worker (other
than a badli worker or a casual worker) whose name is borne on the muster rolls of an
industrial establishment and who has completed not less than one year of continuous
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service under an employer is laid-off, whether continuously or intermittently, he shall

be paid by the employer for all days during which he is so laid-off, except for such
weekly holidays as may intervene, compensation which shall be equal to fifty per cent
of the total of the basic wages and dearness allowance that would have been payable
to him, had he not been so laid-off:
Provided that if during any period of twelve months, a worker is so laid-off for more
than forty-five days, no such compensation shall be payable in respect of any period of
the lay-off after the expiry of the first forty-five days, if there is an agreement to that
effect between the worker and the employer:
Provided further that it shall be lawful for the employer in any case falling within
the foregoing proviso to retrench the worker in accordance with the provisions
contained in Section 70 at any time after the expiry of the first forty-five days of the
lay-off and when he does so, any compensation paid to the worker for having been laid
-off during the preceding twelve months may be set off against the compensation
payable for retrenchment.
Explanation.— For the purposes of this section “badli worker” means a worker who
is employed in an industrial establishment in the place of another worker whose name
is borne on the muster rolls of the establishment, but shall cease to be regarded as
such, if he has completed one year of continuous service in the establishment.
Corresponding Law: S. 25-C of Industrial Disputes Act, 1947.
68. Duty of an employer to maintain muster rolls of workers.—Notwithstanding that
workers in any industrial establishment have been laid-off, it shall be the duty of every
employer to maintain for the purposes of this Chapter a muster roll, and to provide for
the making of entries therein by workers who may present themselves for work at the
establishment at the appointed time during normal working hours.
Corresponding Law: S. 25-D of Industrial Disputes Act, 1947.
69. Workers not entitled for compensation in certain cases.—No compensation shall
be paid to a worker who has been laid-off—
(i) if he refuses to accept any alternative employment in the same establishment
from which he has been laid-off, or in any other establishment belonging to
the same employer situate in the same town or village or situate within a
radius of eight kilometres from the establishment to which he belongs, if, in
the opinion of the employer, such alternative employment does not call for
any special skill or previous experience and can be done by the worker,
provided that the wages which would normally have been paid to the worker
are offered for the alternative employment also;
(ii) if he does not present himself for work at the establishment at the appointed
time during normal working hours at least once a day;
(iii) if such laying-off is due to a strike or slowing-down of production on the part
of workers in another part of the establishment.
Corresponding Law: S. 25-E of Industrial Disputes Act, 1947.
70. Conditions precedent to retrenchment of workers.—No worker employed in any
industry who has been in continuous service for not less than one year under an
employer shall be retrenched by that employer until—
(a) the worker has been given one month's notice in writing indicating the
reasons for retrenchment and the period of notice has expired, or the worker
has been paid in lieu of such notice, wages for the period of the notice;
(b) the worker has been paid, at the time of retrenchment, compensation which
shall be equivalent to fifteen days' average pay, or average pay of such days
as may be notified by the appropriate Government, for every completed year
of continuous service or any part thereof in excess of six months; and
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(c) notice in such manner as may be prescribed is served on the appropriate

Government or such authority as may be specified by the appropriate
Government by notification.
Corresponding Law: S. 25-F of Industrial Disputes Act, 1947.
► Conditions precedent for retrenchment — Mandatory nature of.—There is nothing to
indicate that Section 25-F(c) of the Industrial Disputes Act, 1947 was intended to be directory while
the other two sub-sections of the same section were mandatory in nature. Section 25-F(c) is a
condition subsequent, but is still a mandatory condition required to be fulfilled by the employers
before the order of retrenchment of the workman is passed, Raj Kumar v. Director of Education,
(2016) 6 SCC 541.
► Violation of Section 25-F of ID Act, 1947 — Relief.—Relief by way of reinstatement with
back wages is not automatic and compensation instead of reinstatement would meet ends of justice,
Lucknow University v. Akhilesh Kumar Khare, (2016) 1 SCC 521.
► Notice of retrenchment.—Notice of retrenchment to be sent to appropriate Government or
notified authority, is only directory and not mandatory, Manju Saxena v. Union of India, (2019) 2
SCC 628.
► Impleadment of holding/parent company in ongoing industrial dispute.—Whenever an
application is filed for impleadment of a third party, who is not a party to the reference under
Industrial Disputes Act or any other proceedings pending before the court, what is required to be
considered is whether such party is either necessary or proper party to decide the lis and it all
depends on facts of each case; allegations made and nature of adjudication proceedings etc.
Further, test to be applied while considering application filed under Order 1 Rule 10 CPC is: (i) there
must be a right to some relief against such party in respect of controversies involved in proceedings;
(ii) no effective decree can be passed in its absence, Globe Ground (India) Employees Union v.
Lufthansa German Airlines, (2019) 15 SCC 273.
71. Procedure for retrenchment.—Where any worker in an industrial establishment
who is a citizen of India, is to be retrenched and he belongs to a particular category of
workers in that establishment, then, in the absence of any agreement between the
employer and the worker in this behalf, the employer shall ordinarily retrench the
worker who was the last person to be employed in that category, unless for reasons to
be recorded the employer retrenches any other worker.
Corresponding Law: S. 25-G of Industrial Disputes Act, 1947.
72. Re-employment of retrenched worker.—Where any worker is retrenched and the
employer proposes to take into his employment any person within one year of such
retrenchment, he shall, in such manner as may be prescribed, give an opportunity to
the retrenched workers who are citizens of India to offer themselves for re-
employment and such retrenched workers who offer themselves for re-employment
shall have preference over other persons.
Corresponding Law: S. 25-H of Industrial Disputes Act, 1947.
► Applicability of Section 25-H of ID Act.—To attract Section 25-H, it must be proved by
workman that he was “retrenched employee”, his ex-employer had decided to fill up vacancies and
hence, he was entitled to claim preference against other applicants, Barara Coop. Mktg.-Cum-
Processing Society Ltd. v. Pratap Singh, (2019) 2 SCC 743.
73. Compensation to workers in case of transfer of establishment.—Where the
ownership or management of an establishment is transferred, whether by agreement
or by operation of law, from the employer in relation to that establishment to a new
employer, every worker who has been in continuous service for not less than one year
in that establishment immediately before such transfer shall be entitled to notice and
compensation in accordance with the provisions of Section 70 as if the worker had
been retrenched:
Provided that nothing in this section shall apply to a worker in any case where there
has been a change of employers by reason of the transfer, if—
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(a) the service of the worker has not been interrupted by such transfer;
(b) the terms and conditions of service applicable to the worker after such
transfer are not in any way less favourable to the worker than those applicable
to them immediately before the transfer; and
(c) the new employer is, under the terms of such transfer or otherwise, legally
liable to pay to the worker, in the event of his retrenchment, compensation on
the basis that his service has been continuous and has not been interrupted
by the transfer.
Corresponding Law: S. 25-FF of Industrial Disputes Act, 1947.
74. Sixty days' notice to be given of intention to close down any undertaking.—(1)
An employer who intends to close down an undertaking shall serve, at least sixty days
before the date on which the intended closure is to become effective, a notice, in such
manner as may be prescribed, on the appropriate Government stating clearly the
reasons for the intended closure of the undertaking:
Provided that nothing in this section shall apply to—
(i) an industrial establishment in which less than fifty workers are employed or
were employed on any day in the preceding twelve months;
(ii) an industrial establishment set up for the construction of buildings, bridges,
roads, canals, dams or for other construction work or project.
(2) Notwithstanding anything contained in sub-section (1), the appropriate
Government may, if it is satisfied that owing to such exceptional circumstances as
accident in the undertaking or death of the employer or an extraordinary situation
such as natural calamities or the like, it is necessary so to do, by order, direct that the
provisions of sub-section (1) shall not apply in relation to such undertaking for such
period, as may be specified in the order.
Corresponding Law: S. 25-FFA of Industrial Disputes Act, 1947.
75. Compensation to workers in case of closing down of undertakings.—(1) Where
an establishment is closed down for any reason whatsoever, every worker who has
been in continuous service for not less than one year in that undertaking immediately
before such closure shall, subject to the provisions of sub-section (2), be entitled to
notice and compensation in accordance with the provisions of Section 70, as if the
worker had been retrenched:
Provided that where the undertaking is closed down on account of unavoidable
circumstances beyond the control of the employer, the compensation to be paid to the
worker under clause (b) of Section 70, shall not exceed his average pay for three
months.
Explanation.—An industrial establishment which is closed down by reason merely
of—
(i) financial difficulties (including financial losses); or
(ii) accumulation of un-disposed stocks; or
(iii) the expiry of the period of the lease or license granted to it; or
(iv) in case where the undertaking is engaged in mining operations, exhaustion
of the minerals in the area in which operations are carried on,
shall not be deemed to be closed down on account of unavoidable circumstances
beyond the control of the employer within the meaning of the proviso to this sub-
section.
(2) Notwithstanding anything contained in sub-section (1), where an undertaking
engaged in mining operations is closed down by reason merely of exhaustion of the
minerals in the area in which such operations are carried on, no worker referred to in
that sub-section shall be entitled to any notice or compensation in accordance with the
provisions of Section 70, if—
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(a) the employer provides the worker, at the place located within a radius of
twenty kilometres from such undertaking engaged in mining operation is
closed down, with alternative employment with effect from the date of closure
at the same remuneration as he was entitled to receive, and on the same
terms and conditions of service as were applicable to him, immediately before
the closure;
(b) the service of the worker has not been interrupted by such alternative
employment; and
(c) the employer is, under the terms of such alternative employment or
otherwise, legally liable to pay to the worker, in the event of his retrenchment,
compensation on the basis that his service has been continuous and has not
been interrupted by such alternative employment.
(3) For the purposes of sub-sections (1) and (2), the expressions “minerals” and
“mining operations” shall have the meanings respectively assigned to them in clauses
(a) and (d) of Section 3 of the Mines and Minerals (Regulation and Development) Act,
1957 (67 of 1957).
(4) Where any undertaking set up for the construction of buildings, bridges, roads,
canals, dams, or other construction work is closed down on account of the completion
of the work within two years from the date on which the undertaking had been set up,
no worker employed therein shall be entitled to any compensation under clause (b) of
Section 70, but if the construction work is not so completed within two years, he shall
be entitled to notice and compensation under that section for every completed year of
continuous service or any part thereof in excess of six months.
Corresponding Law: S. 25-FFF of Industrial Disputes Act, 1947.
76. Effect of laws inconsistent with this Chapter.—(1) The provisions of this Chapter
shall have effect notwithstanding anything inconsistent therewith contained in any
other law including standing orders made under Chapter IV:
Provided that where under the provisions of any other Act or rules, orders or
notifications issued thereunder or under any standing orders or any award, contract or
service or otherwise, a worker is entitled to benefits in respect of any matter which are
more favourable to him than those to which he would be entitled under this Code, the
worker shall continue to be entitled to the more favourable benefits in respect of that
matter, notwithstanding that he receives benefits in respect of other matters under
this Chapter.
(2) For the removal of doubts, it is hereby declared that nothing contained in this
Chapter shall be deemed to affect the provisions of any other law for the time being in
force in any State in so far as that law provides for the settlement of industrial
disputes, but the rights and liabilities of employers and workers in so far as they relate
to lay-off and retrenchment shall be determined in accordance with the provisions of
this Chapter.
Corresponding Law: S. 25-J of Industrial Disputes Act, 1947.
Chapter X
SPECIAL PROVISIONS RELATING TO LAY-OFF, RETRENCHMENT AND CLOSURE IN
CERTAIN ESTABLISHMENTS
77. Application of this Chapter.—(1) The provisions of this Chapter shall apply to an
industrial establishment (not being an establishment of a seasonal character or in
which work is performed only intermittently) in which not less than three hundred
workers, or such higher number of workers as may be notified by the appropriate
Government, were employed on an average per working day in the preceding twelve
months.
(2) If a question arises whether an industrial establishment is of a seasonal
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character or whether work is performed therein only intermittently, the decision of the
appropriate Government thereon shall be final.
Corresponding Law: S. 25-K of Industrial Disputes Act, 1947.
(3) For the purposes of this Chapter, “ industrial establishment” means—
(i) a factory as defined in clause (m) of Section 2 of the Factories Act, 1948 (63
of 1948);
(ii) a mine as defined in clause (j) of sub-section (1) of Section 2 of the Mines
Act, 1952 (35 of 1952); or
(iii) a plantation as defined in clause (f) of Section 2 of the Plantations Labour
Act, 1951 (69 of 1951).
► Benefit under Section 25-K of ID Act.—This section is applicable if unit has more than 100
workers. Findings of High Court regarding disputes as to whether unit has more than 100 workmen,
status of employee, whether workman or supervisor, did not warrant interference under Article 136
of the Constitution as it involved questions of fact, National Kamgar Union v. Kran Rader (P) Ltd.,
(2018) 1 SCC 784.
78. Prohibition of lay-off.—(1) No worker (other than a badli worker or a casual
worker) whose name is borne on the muster rolls of an industrial establishment to
which this Chapter applies shall be laid-off by his employer except with the prior
permission of the appropriate Government, obtained on an application made in this
behalf, unless such lay-off is due to shortage of power, natural calamity, and in the
case of a mine, such lay-off is due to fire, flood, excess of inflammable gas or
explosion.
(2) An application for permission under sub-section (1) shall be made by the
employer electronically or otherwise in the prescribed manner stating clearly the
reasons for the intended lay-off and a copy of such application shall also be served
simultaneously on the workers concerned in such manner as may be prescribed.
(3) Where the workers (other than badli workers or casual workers) of industrial
establishment, being a mine, have been laid-off under sub-section (1) for reasons of
fire, flood or excess of inflammable gas or explosion, the employer, in relation to such
establishment, shall, within a period of thirty days from the date of commencement of
such lay-off, apply, in such manner as may be prescribed, to the appropriate
Government for permission to continue the lay-off.
(4) Where an application for permission under sub-section (1) or sub-section (3)
has been made, the appropriate Government, after making such enquiry as it thinks fit
and after giving a reasonable opportunity of being heard to the employer, the workers
concerned and the persons interested in such lay-off, may, having regard to the
genuineness and adequacy of the reasons for such lay-off, the interests of the workers
and all other relevant factors, by order and for reasons to be recorded in writing, grant
or refuse to grant such permission and a copy of such order shall be communicated to
the employer and the workers.
(5) Where an application for permission under sub-section (1) or sub-section (3)
has been made and the appropriate Government does not communicate the order
granting or refusing to grant permission to the employer within a period of sixty days
from the date on which such application is made, the permission applied for shall be
deemed to have been granted as applied for on the expiration of the said period of
sixty days and the application shall be deemed to have been disposed of accordingly
by the appropriate Government.
(6) An order of the appropriate Government granting or refusing to grant
permission shall, subject to the provisions of sub-section (7), be final and binding on
all the parties concerned and shall remain in force for one year from the date of such
order.
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(7) The appropriate Government may, either on its own motion or on the application
made by the employer or any worker, review its order granting or refusing to grant
permission under sub-section (4) within the prescribed time from the date on which
such order is made or refer the matter or, as the case may be, cause it to be referred,
to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this sub-
section, it shall pass an award within a period of thirty days from the date of such
reference.
(8) Where no application for permission under sub-section (1) is made, or where no
application for permission under sub-section (3) is made within the period specified
therein, or where the permission for any lay-off has been refused, such lay-off shall be
deemed to be illegal from the date on which the workers had been laid-off and the
workers shall be entitled to all the benefits under any law for the time being in force as
if they had not been laid-off.
(9) Notwithstanding anything contained in the foregoing provisions of this section,
the appropriate Government may, if it is satisfied that owing to such exceptional
circumstances as accident in the establishment or death of the employer or the like, it
is necessary so to do, by order, direct that the provisions of sub-section (1), or, as the
case may be, sub-section (3) shall not apply in relation to such establishment for such
period as may be specified in the order.
(10) The provisions of Section 67 (other than the second proviso thereto) shall
apply to cases of lay-off referred to in this section.
Explanation.—For the purposes of this section, a worker shall not be deemed to be
laid-off by an employer if such employer offers any alternative employment (which in
the opinion of the employer does not call for any special skill or previous experience
and can be done by the worker) in the same establishment from which he has been
laid-off or in any other establishment belonging to the same employer, situate in the
same town or village, or situate within such distance from the establishment to which
he belongs that the transfer will not involve undue hardship to the worker having
regard to the facts and circumstances of his case, subject to the condition that the
wages which would normally have been paid to the worker are offered for the
alternative appointment also.
Corresponding Law: S. 25-M of Industrial Disputes Act, 1947.
79. Conditions precedent to retrenchment of workers to which Chapter X applies.—
(1) No worker employed in any industrial establishment to which this Chapter applies,
who has been in continuous service for not less than one year under an employer shall
be retrenched by that employer until,—
(a) the worker has been given three month's notice in writing indicating the
reasons for retrenchment and the period of notice has expired, or the worker
has been paid in lieu of such notice, wages for the period of the notice; and
(b) the prior permission of the appropriate Government has been obtained on an
application made in this behalf.
(2) An application for permission under sub-section (1) shall be made by the
employer electronically or otherwise in the prescribed manner stating clearly the
reasons for the intended retrenchment and a copy of such application shall also be
served simultaneously on the workers concerned in such manner as may be
prescribed.
(3) Where an application for permission under sub-section (1) has been made, the
appropriate Government, after making such enquiry as it thinks fit and after giving a
reasonable opportunity of being heard to the employer, the workers concerned and the
persons interested in such retrenchment, may, having regard to the genuineness and
adequacy of the reasons stated by the employer, the interests of the workers and all
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other relevant factors, by order and for reasons to be recorded in writing, grant or
refuse to grant such permission and a copy of such order shall be communicated to
the employer and the workers.
(4) Where an application for permission has been made under sub-section (1) and
the appropriate Government does not communicate the order granting or refusing to
grant permission to the employer within a period of sixty days from the date on which
such application is made, the permission applied for shall be deemed to have been
granted on the expiration of the said period of sixty days and the application shall be
deemed to have been disposed of accordingly by the appropriate Government.
(5) An order of the appropriate Government granting or refusing to grant
permission shall, subject to the provisions of sub-section (6), be final and binding on
all the parties concerned and shall remain in force for one year from the date of such
order.
(6) The appropriate Government may, either on its own motion or on the application
made by the employer or any worker, review its order granting or refusing to grant
permission under sub-section (3) within the prescribed time from the date on which
such order is made or refer the matter or, as the case may be, cause it to be referred
to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this sub-
section, it shall pass an award within a period of thirty days from the date of such
reference.
(7) Where no application for permission under sub-section (1) is made, or where
the permission for any retrenchment has been refused, such retrenchment shall be
deemed to be illegal from the date on which the notice of retrenchment was given to
the worker and the worker shall be entitled to all the benefits under any law for the
time being in force as if no notice had been given to him.
(8) Notwithstanding anything contained in the foregoing provisions of this section,
the appropriate Government may, if it is satisfied that owing to such exceptional
circumstances as accident in the establishment or death of the employer or the like, it
is necessary so to do, by order, direct that the provisions of sub-section (1) shall not
apply in relation to such establishment for such period as may be specified in the
order.
(9) Where permission for retrenchment has been granted under sub-section (3) or
where permission for retrenchment is deemed to be granted under sub-section (4),
every worker who is employed in that establishment immediately before the date of
application for permission under this section shall be entitled to receive, at the time of
retrenchment, compensation which shall be equivalent to fifteen days average pay, or
average pay of such days as may be notified by the appropriate Government, for every
completed year of continuous service or any part thereof, in excess of six months.
Corresponding Law: S. 25-N of Industrial Disputes Act, 1947.
80. Procedure for closing down an industrial establishment.—(1) An employer who
intends to close down an undertaking of an industrial establishment to which this
Chapter applies shall, electronically or otherwise, apply in such manner as may be
prescribed, for prior permission at least ninety days before the date on which the
intended closure is to become effective, to the appropriate Government, stating clearly
the reasons for the intended closure of the undertaking and a copy of such application
shall also be served simultaneously on the representatives of the workers in such
manner as may be prescribed:
Provided that nothing in this sub-section shall apply to an undertaking set up for
the construction of buildings, bridges, roads, canals, dams or for other construction
work.
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(2) Where an application for permission has been made under sub-section (1), the
appropriate Government, after making such enquiry as it thinks fit and after giving a
reasonable opportunity of being heard to the employer, the workers and the persons
interested in such closure may, having regard to the genuineness and adequacy of the
reasons stated by the employer, the interests of the general public and all other
relevant factors, by order and for reasons to be recorded in writing, grant or refuse to
grant such permission and a copy of such order shall be communicated to the
employer and the workers.
(3) Where an application has been made under sub-section (1) and the appropriate
Government does not communicate the order granting or refusing to grant permission
to the employer within a period of sixty days from the date on which such application
is made, the permission applied for shall be deemed to have been granted as applied
for on the expiration of the said period of sixty days and the application shall be
deemed to have been disposed of accordingly by the appropriate Government.
(4) An order of the appropriate Government granting or refusing to grant
permission shall, subject to the provisions of sub-section (5), be final and binding on
all the parties and shall remain in force for one year from the date of such order.
(5) The appropriate Government may, either on its own motion or on the application
made by the employer or any worker, review its order granting or refusing to grant
permission under sub-section (2) within the prescribed time from the date on which
such order is made or refer the matter to a Tribunal for adjudication:
Provided that where a reference has been made to a Tribunal under this sub-
section, it shall pass an award within a period of thirty days from the date of such
reference.
(6) Where no application for permission under sub-section (1) is made within the
period specified therein, or where the permission for closure has been refused, the
closure of the undertaking shall be deemed to be illegal from the date of closure and
the workers shall be entitled to all the benefits under any law for the time being in
force as if the undertaking had not been closed down.
(7) Notwithstanding anything contained in the foregoing provisions of this section,
the appropriate Government may, if it is satisfied that owing to such exceptional
circumstances as accident in the undertaking or death of the employer or the like it is
necessary so to do, by order, direct that the provisions of sub-section (1) shall not
apply in relation to such undertaking for such period as may be specified in the order.
(8) Where an undertaking is permitted to be closed down under sub-section (2) or
where permission for closure is deemed to be granted under sub-section (3), every
worker who is employed in that undertaking immediately before the date of application
for permission under this section, shall be entitled to receive compensation which shall
be equivalent to fifteen days average pay, or average pay of such days as may be
notified by the appropriate Government, for every completed year of continuous
service or any part thereof in excess of six months.
Corresponding Law: S. 25-O of Industrial Disputes Act, 1947.
81. Duty of an employer to maintain muster rolls of workers.—Notwithstanding that
workers in any industrial establishment have been laid-off, it shall be the duty of every
employer to maintain for the purposes of this Chapter a muster roll, and to provide for
the making of entries therein by workers who may present themselves for work at the
establishment at the appointed time during normal working hours.
Corresponding Law: S. 25-D of Industrial Disputes Act, 1947.
82. Certain provisions of Chapter IX to apply to industrial establishment to which
this Chapter applies.—The provisions of Sections 66, 71, 72, 73 and Section 76 in
Chapter IX shall, so far as may be, apply also in relation to an industrial establishment
to which the provisions of this Chapter apply.
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Corresponding Law: S. 25-S of Industrial Disputes Act, 1947.

Chapter XI
WORKER RE-SKILLING FUND
83. Worker re-skilling fund.—(1) The appropriate Government shall, by notification,
set up a fund to be called the worker re-skilling fund (hereafter in this section referred
to as “fund”).
(2) The fund shall consist of—
(a) the contribution of the employer of an industrial establishment an amount
equal to fifteen days wages last drawn by the worker immediately before the
retrenchment, or such other number of days as may be notified by the Central
Government, for every retrenched worker in case of retrenchment only;
(b) the contribution from such other sources as may be prescribed by the
appropriate Government.
(3) The fund shall be utilised by crediting fifteen days wages last drawn by the
worker to his account who is retrenched, within forty-five days of such retrenchment,
in such manner as may be prescribed.
Chapter XII
UNFAIR LABOUR PRACTICES
84. Prohibition of unfair labour practice.—No employer or worker or a Trade Union,
whether registered under this Code, or not, shall commit any unfair labour practice
specified in the Second Schedule.
Corresponding Law: S. 25-T of Industrial Disputes Act, 1947.
Chapter XIII
OFFENCES AND PENALTIES
85. Power of officers of appropriate Government to impose penalty in certain cases.
—(1) Notwithstanding anything contained in Section 84, for the purpose of imposing
penalty under sub-sections (3), (5), (7), (8), (9), (10), (11) and (20) of Section 86
and sub-section (7) of Section 89, the appropriate Government may appoint any
officer not below the rank of Under Secretary to the Government of India or an officer
of equivalent rank in the State Government, as the case may be, for holding enquiry in
such manner, as may be prescribed by the Central Government.
(2) While holding the enquiry, the officer referred to in sub-section (1) shall have
the power to summon and enforce attendance of any person acquainted with the facts
and circumstances of the case to give evidence or to produce any document, which in
the opinion of such officer, may be useful for or relevant to the subject matter of the
enquiry and if, on such enquiry, he is satisfied that the person has committed any
offence under the provisions referred to in sub-section (1), he may impose such
penalty as he thinks fit in accordance with such provisions.
(3) Where a person fails to pay the penalty referred to in sub-section (2) within a
period of ninety days from the date of receipt of the copy of the order, he shall be
punishable with fine which shall not be less than fifty thousand rupees but may extend
up to two lakh rupees.
86. Penalties.—(1) An employer who contravenes the provisions of Section 78 or
Section 79 or Section 80 shall be punishable with fine which shall not be less than one
lakh rupees, but which may extend to ten lakh rupees.
Corresponding Law: S. 25-R(1) of Industrial Disputes Act, 1947; S. 25-Q of
Industrial Disputes Act, 1947.
(2) An employer who after conviction for an offence under Section 78 or Section 79
or Section 80 again commits the same offence under Section 78 or Section 79 or
Section 80, then, he shall for the second or subsequent offence be punishable with
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fine which shall not be less than five lakh rupees, but which may extend up to twenty
lakh rupees or with imprisonment for a term which may extend to six months, or with
both.
(3) An employer who contravenes the provisions of Section 67 or Section 70 or
Section 73 or Section 75 shall be punishable with fine which shall not be less than fifty
thousand rupees, but which may extend to two lakh rupees.
(4) An employer who after conviction for an offence under Section 67 or Section 70
or Section 73 or Section 75 again commits the same offence under Section 67 or
Section 70 or Section 73 or Section 75, then, he shall for the second or subsequent
offence be punishable with fine which shall not be less than one lakh rupees, but
which may extend to five lakh rupees or with imprisonment for a term which may
extend to six months, or with both.
(5) Any person who commits any unfair labour practice as specified in the Second
Schedule shall be punishable with fine which shall not be less than ten thousand
rupees, but which may extend to two lakh rupees.
Corresponding Law: S. 25-U of Industrial Disputes Act, 1947.
(6) Any person who after conviction for any unfair labour practice again commits
the same offence, then, he shall, for committing the second or subsequent offence, be
punishable with fine which shall not be less than fifty thousand rupees, but which may
extend to five lakh rupees or with imprisonment for a term which may extend to three
months, or with both.
(7) If default is made on the part of any registered Trade Union in giving any notice
or sending any statement or other document as required by or under any of the
provisions of this Code, every office-bearer or other person bound by the rules of the
Trade Union to give or send the same, or, if there is no such office-bearer or person,
every member of the executive of the Trade Union, shall be punishable with fine which
shall not be less than one thousand rupees, but which may extend to ten thousand
rupees and any continuing default shall be punishable with an additional penalty of
fifty rupees per day so long as the default continues.
Corresponding Law: S. 31(1) Trade Unions Act, 1926.
(8) Any person who wilfully makes, or causes to be made, any false entry in, or any
omission from, the general statement required by Section 26 or in or from any copy of
rules or of alterations of rules sent to the Registrar under that section, shall be
punishable with fine which shall not be less than two thousand rupees, but which may
extend to twenty thousand rupees.
Corresponding Law: S. 31(2) Trade Unions Act, 1926.
(9) Any person who, with intent to deceive, gives to any member of a registered
Trade Union or to any person intending or applying to become a member of such Trade
Union any document purporting to be a copy of the rules of the Trade Union or of any
alterations to the same which he knows, or has reason to believe, is not a correct copy
of such rules or alterations as are for the time being in force, or any person who, with
the intent, gives a copy of any rules of an unregistered Trade Union to any person on
the pretence that such rules are the rules of a registered Trade Union, shall be
punishable with fine which shall not be less than five thousand rupees, but which may
extend to twenty thousand rupees.
Corresponding Law: S. 32 Trade Unions Act, 1926.
(10) An employer who fails to submit draft standing orders as required by Section
30, or who modifies his standing orders otherwise than in accordance with Section 35,
shall be punishable with fine which shall not be less than fifty thousand rupees, but
which may extend to two lakh rupees and in the case of a continuing offence with an
additional fine of two thousand rupees per day till the offence continues.
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Corresponding Law: S. 13(1) of Industrial Employment (Standing Orders) Act,

1946.
(11) An employer who does any act in contravention of the standing orders finally
certified under this Code shall be punishable with fine which shall not be less than one
lakh rupees, but which may extend to two lakh rupees.
Corresponding Law: S. 13(2) of Industrial Employment (Standing Orders) Act,
1946.
(12) Any person who after conviction under sub-section (11) again commits the
same offence, then, he shall, for committing the second or subsequent offence be
punishable with fine which shall not be less than two lakh rupees, but which may
extend to four lakh rupees or with imprisonment for a term which may extend to three
months, or with both.
(13) Any worker who commences, continues or otherwise acts in furtherance of a
strike which is illegal under this Code, shall be punishable with fine which shall not be
less than one thousand rupees, but which may extend up to ten thousand rupees or
with imprisonment for a term which may extend to one month, or with both.
Corresponding Law: S. 26(1) of Industrial Disputes Act, 1947.
(14) Any employer who commences, continues, or otherwise acts in furtherance of a
lock-out which is illegal under this Code, shall be punishable with fine which shall not
be less than fifty thousand rupees, but which may extend to one lakh rupees or with
imprisonment for a term which may extend to one month, or with both.
Corresponding Law: S. 26(2) of Industrial Disputes Act, 1947.
(15) Any person who instigates or incites others to take part in, or otherwise acts in
furtherance of, a strike or lock-out which is illegal under this Code, shall be punishable
with fine which shall not be less than ten thousand rupees, but which may extend to
fifty thousand rupees or with imprisonment for a term which may extend to one
month, or with both.
Corresponding Law: S. 27 of Industrial Disputes Act, 1947.
(16) Any person who knowingly spends or applies any money in direct furtherance
or support of any illegal strike or lock-out shall be punishable with fine which shall not
be less than ten thousand rupees, but which may extend to fifty thousand rupees or
with imprisonment for a term which may extend to one month, or with both.
Corresponding Law: S. 28 of Industrial Disputes Act, 1947.
(17) Any person who commits a breach of any term of any settlement or award,
which is binding on him under this Code, shall be punishable with fine which shall not
be less than twenty thousand rupees, but which may extend to two lakh rupees or
with imprisonment for a term which may extend to three months, or with both.
Corresponding Law: S. 29 of Industrial Disputes Act, 1947.
(18) Where the breach under sub-section (17) is a continuing one, the offender
shall be punishable with an additional fine which may extend to one thousand rupees
for every day during which the breach continues after the first conviction and the court
trying the offence, if it fines the offender, may direct that the whole or any part of the
fine realised from him shall be paid, by way of compensation, to any person who, in its
opinion, has been affected by such breach.
Corresponding Law: S. 29 of Industrial Disputes Act, 1947.
(19) Any person who wilfully discloses any such information as is referred to in
Section 61 in contravention of the provisions of that section shall, on a complaint
made by or on behalf of the Trade Union or individual business affected, be punishable
with fine which may extend to twenty thousand rupees, or with imprisonment for a
term which may extend to one month, or with both.
Corresponding Law: S. 30 of Industrial Disputes Act, 1947.
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(20) Any person who contravenes any other provision of this Code not covered
under sub-sections (1) to (19) or the rules or regulations framed under this Code shall
be punishable with fine which may extend to one lakh rupees.
Corresponding Law: S. 31(2) of Industrial Disputes Act, 1947.
87. Cognizance of offences.—(1) No court shall take cognizance of any offence
punishable under this Code, save on a complaint made by or under the authority of
the appropriate Government.
Corresponding Law: S. 33(2) Trade Unions Act, 1926.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973 (2
of 1974), no court inferior to that of the Metropolitan Magistrate or Judicial Magistrate
of the first class shall try the offences under this Code.
Corresponding Law: S. 33(1) Trade Unions Act, 1926; S. 34 of Industrial Disputes
Act, 1947.
88. Offences by companies.—(1) If the person committing an offence under this
Code is a company, every person who, at the time the offence was committed was in
charge of, and was responsible to, the company for the conduct of business of the
company, as well as the company, shall be deemed to be guilty of the offence and
shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person
liable to any punishment if he proves that the offence was committed without his
knowledge and that he exercised all due diligence to prevent the commission of such
offence.
Corresponding Law: S. 32 of Industrial Disputes Act, 1947.
(2) Notwithstanding anything contained in sub-section (1), where an offence under
this Code has been committed by a company and it is proved that the offence has
been committed with the consent or connivance of, or is attributable to any neglect on
the part of, any director, manager, secretary or other officer of the company, such
director, manager, secretary or other officer shall also be deemed to be guilty of that
offence and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section,—
(a) “company” means any body corporate and includes—
(i) a firm; or
(ii) a limited liability partnership registered under the Limited Liability
Partnership Act, 2008 (6 of 2009); or
(iii) other association of individuals; and
(b) “director” in relation to a firm means a partner in the firm.
89. Composition of offences.—(1) Notwithstanding anything contained in the Code
of Criminal Procedure, 1973 (2 of 1974), any offence punishable under this Code, not
being an offence punishable with imprisonment only, or with imprisonment and also
with fine, may, on an application of the accused person, either before or after the
institution of any prosecution, be compounded by a Gazetted Officer, as the
appropriate Government may, by notification, specify, for a sum of fifty per cent of the
maximum fine provided for such offence punishable with fine only and for a sum of
seventy-five per cent provided for such offence punishable with imprisonment for a
term which is not more than one year or with fine, in the manner as may be
prescribed:
Provided that such amount of composition shall be credited to the Social Security
Fund established under Section 141 of the Social Security Code, 2020.
(2) Nothing contained in sub-section (1) shall apply to an offence committed by a
person for the second time or thereafter within a period of three years from the date—
(a) of commission of a similar offence which was earlier compounded;
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(b) of commission of similar offence for which such person was earlier convicted.
(3) Every officer referred to in sub-section (1) shall exercise the powers to
compound an offence, subject to the direction, control and supervision of the
appropriate Government.
(4) Every application for the compounding of an offence shall be made in such
manner as may be prescribed.
(5) Where any offence is compounded before the institution of any prosecution, no
prosecution shall be instituted in relation to such offence, against the offender in
relation to whom the offence is so compounded.
(6) Where the composition of any offence is made after the institution of any
prosecution, such composition shall be brought by the officer referred to in sub-section
(1) in writing, to the notice of the adjudicating officer appointed under sub-section (1)
of Section 85 before whom the prosecution is pending and on such notice of the
composition of the offence being given, the person against whom the offence is so
compounded shall be discharged.
(7) Any person who fails to comply with an order made by the officer referred to in
sub-section (1), shall be liable to pay a sum equivalent to twenty per cent of the
maximum fine provided for the offence, in addition to such fine.
(8) No offence punishable under the provisions of this Code shall be compounded
except under and in accordance with the provisions of this section.
Chapter XIV
MISCELLANEOUS
90. Conditions of service, etc., to remain unchanged under certain circumstances
during pendency of proceedings.—(1) Where an industrial dispute pertaining to an
establishment or undertaking is already pending before a conciliation officer or an
Arbitrator or a Tribunal or a National Industrial Tribunal, as the case may be, with
regard to matters not covered by the notice of change issued by an employer under
Section 40, no employer shall—
(a) in regard to any matter connected with such dispute, alter to the prejudice of
the workers concerned in such dispute the conditions of service applicable to
them immediately before the commencement of such proceedings; or
(b) for any misconduct connected with the dispute, discharge or punish, whether
by dismissal or otherwise any worker concerned in such dispute,
save with the express permission in writing of the authority before which the
proceeding is pending.
(2) During the pendency of any such proceeding in respect of an industrial dispute
referred in sub-section (1), the employer may, in accordance with standing orders
applicable to a worker concerned in such dispute or, where there are no such standing
orders, in accordance with the terms of the contract, whether express or implied,
between him and the worker—
(a) alter, in regard to any matter not connected with the dispute, the conditions
of service applicable to that worker immediately before the commencement of
such proceeding; or
(b) for any misconduct not connected with the dispute, discharge or punish,
whether by dismissal or otherwise, that worker:
Provided that no such worker shall be discharged or dismissed, unless he has been
paid wages for one month and an application has been made by the employer to the
authority before which the proceeding is pending for approval of the action taken by
the employer.
(3) Notwithstanding anything contained in sub-section (2), no employer shall,
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during the pendency of any proceeding in respect of an industrial dispute, take any
action against any protected worker concerned in such dispute—
(a) by altering, to the prejudice of such protected worker, the conditions of
service applicable to him immediately before the commencement of such
proceeding; or
(b) by discharging or punishing, whether by dismissal or otherwise, such
protected worker,
save with the express permission in writing of the authority before which the
proceeding is pending.
Explanation.—For the purposes of this sub-section, a “protected worker” in relation
to an establishment, means a worker who, being a member of the executive or other
office-bearer of a registered Trade Union connected with the establishment, is
recognised as such in accordance with rules made in this behalf.
(4) In every establishment, the number of workers to be recognised as protected
workers for the purposes of sub-section (3) shall be one per cent of the total number
of workers employed therein subject to a minimum number of five protected workers
and a maximum number of one hundred protected workers and for the aforesaid
purpose, the appropriate Government may make rules providing for the distribution of
such protected workers among various Trade Unions, if any, connected with the
establishment and the manner in which the workers may be chosen and recognised as
protected workers.
(5) Where an employer makes an application to conciliation officer, arbitrator,
Tribunal or National Industrial Tribunal, as the case may be, under the proviso to sub-
section (2) for approval of the action taken by him, the authority concerned shall,
without delay, hear such application and pass, within a period of three months from
the date of receipt of such application, such order in relation thereto as it deems fit:
Provided that where any such authority considers it necessary or expedient so to do,
it may, for reasons to be recorded in writing, extend such period by such further
periods as it may think fit:
Provided further that no proceedings before any such authority shall lapse merely
on the ground that any period specified in this sub-section had expired without such
proceedings being completed.
Corresponding Law: S. 33 of Industrial Disputes Act, 1947.
91. Special provision for adjudication as to whether conditions of service, etc.,
changed during pendency of proceedings.—Where an employer contravenes the
provisions of Section 90 during the pendency of proceedings before conciliation officer,
arbitrator, Tribunal or National Industrial Tribunal, as the case may be, any employee
aggrieved by such contravention, may make a complaint in writing in such manner as
may be prescribed—
(a) to such conciliation officer, and the conciliation officer shall take such
complaint into account in mediating in, and promoting the settlement of, such
industrial dispute; and
(b) to such arbitrator, Tribunal or National Industrial Tribunal and on receipt of
such complaint, the arbitrator, Tribunal or National Industrial Tribunal, as the
case may be, shall adjudicate upon the complaint as if it were a dispute
referred to or pending before it, in accordance with the provisions of this Code
and shall submit his or its award to the appropriate Government and the
provisions of this Code shall apply accordingly.
Corresponding Law: S. 33-A of Industrial Disputes Act, 1947.
► Powers of Industrial Adjudicator.—Section 33-A of ID Act enjoins upon Industrial
Adjudicator, firstly to find out as to whether employer had contravened provisions of Section 33 and
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thereafter to decide whether punishment imposed upon workman was justified in law, which is to be
decided within contours of reference jurisdiction. Once Tribunal had reached conclusion that
domestic enquiry held against workman was fair and proper, no further scrutiny of investigation of
correctness of findings recorded could have been made unless said findings disclosed perversity,
Karur Vysya Bank Ltd. v. S. Balakrishnan, (2016) 12 SCC 221.
92. Power to transfer certain proceedings.—(1) The appropriate Government may,
by order in writing and for reasons to be stated therein, withdraw any proceeding
under this Code pending before a Tribunal and transfer the same to another Tribunal,
as the case may be, for the disposal of the proceeding and the Tribunal to which the
proceeding is so transferred may, subject to special directions in the order of transfer,
proceed either de novo or from the stage at which it was so transferred.
Corresponding Law: S. 33-B(1) of Industrial Disputes Act, 1947.
(2) The Central Government may, by order in writing and for reasons to be stated
therein, withdraw any proceeding pending under this Code before a Tribunal
constituted by the Central Government or the State Government and transfer to a
National Industrial Tribunal for disposal of the proceeding and the National Industrial
Tribunal to which the proceeding is so transferred may, subject to special directions in
the order of transfer, proceed either de novo or from the stage at which it was so
transferred.
(3) The Central Government may, by notification, and for reasons to be stated
therein, empower a Tribunal constituted by the State Government to entertain and
dispose of the cases arising within their respective jurisdiction under the provisions of
this Code where the appropriate Government is the Central Government.
93. Protection of persons.—(1) No person refusing to take part or to continue to
take part in any strike or lock-out which is illegal under this Code shall, by reason of
such refusal or by reason of any action taken by him under this section, be subject to
expulsion from any Trade Union or society, or to any fine or penalty, or to deprivation
of any right or benefit to which he or his legal representatives would otherwise be
entitled, or be liable to be placed in any respect, either directly or indirectly, under any
disability or at any disadvantage as compared with other members of the Union or
society, anything to the contrary in rules of a Trade Union or society notwithstanding.
(2) Nothing in the rules of a Trade Union or society requiring the settlement of
dispute in any manner shall apply to any proceeding for enforcing any right or
exemption secured by this section, and in any such proceeding the civil court may, in
lieu of ordering a person who has been expelled from membership of a Trade Union or
society to be restored to membership, order that he be paid out of the funds of the
Trade Union or society such sum by way of compensation or damages as that court
thinks just.
Corresponding Law: S. 35 of Industrial Disputes Act, 1947.
94. Representation of parties.—(1) A worker who is a party to a dispute shall be
entitled to be represented in any proceeding under this Code by—
(a) any member of the executive or other office-bearer of a registered Trade
Union of which he is a member;
(b) any member of the executive or other office-bearer of a federation of Trade
Unions to which the Trade Union referred to in clause (a) is affiliated;
(c) where the worker is not a member of any Trade Union, any member of the
executive or other office-bearer of any Trade Union connected with, or by any
other worker employed in the industry in which the worker is employed and
authorised in such manner as may be prescribed.
(2) An employer who is a party to a dispute shall be entitled to be represented in
any proceeding under this Code by—
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(a) an officer of an association of employer of which he is a member;

(b) an officer of a federation of associations of employers to which the association
referred to in clause (a) is affiliated;
(c) where the employer is not a member of any association of employers, an
officer of any association of employers connected with, or by any other
employer engaged in, the industry in which the employer is engaged and
authorised in such manner as may be prescribed.
(3) No party to a dispute shall be entitled to be represented by a legal practitioner
in any conciliation proceedings under this Code or any proceedings before Tribunal or
National Industrial Tribunal.
(4) Notwithstanding anything contained in sub-section (3), in any proceeding
before a Tribunal or a National Industrial Tribunal, a party to a dispute may be
represented by a legal practitioner with the consent of the other parties to the
proceeding and with the leave of the Tribunal or National Industrial Tribunal, as the
case may be.
Corresponding Law: S. 36 of Industrial Disputes Act, 1947.
95. Removal of doubts in interpretation of award or settlement.—(1) If, in the
opinion of the appropriate Government, any difficulty or doubt arises as to the
interpretation of any provision of an award or settlement, it may refer the question to
such Tribunal or National Industrial Tribunal as it may think fit.
(2) A Tribunal or National Industrial Tribunal to which such question is referred
shall, after giving the parties an opportunity of being heard, decide such question and
its decision shall be final and binding on all such parties.
Corresponding Law: S. 36-A of Industrial Disputes Act, 1947.
96. Power to exempt.—(1) Where the appropriate Government is satisfied in
relation to any industrial establishment or undertaking or any class of industrial
establishments or undertakings that adequate provisions exist to fulfil the objects of
any provision of this Code, it may, by notification, exempt, conditionally or
unconditionally such establishment or undertaking or, class of establishments or
undertakings from that provision of this Code.
Corresponding Law: S. 36-B of Industrial Disputes Act, 1947; S. 14 of Industrial
Employment (Standing Orders) Act, 1946.
(2) Notwithstanding anything contained in sub-section (1), where the appropriate
Government is satisfied in relation to any new industrial establishment or new
undertaking or class of new industrial establishments or new undertakings that it is
necessary in the public interest so to do, it may, by notification, exempt, conditionally
or unconditionally, any such new establishment or new undertaking or class of new
establishments or new undertakings from all or any of the provisions of this Code for
such period from the date of establishment of such new industrial establishment or
new undertaking or class of new establishments or new undertakings, as the case may
be, as may be specified in the notification:
Provided that any notification issued by a State Government under the Industrial
Disputes Act, 1947 (14 of 1947), prior to the commencement of this Code, to achieve
the purpose as is specified in this sub-section in the State, shall remain in force after
such commencement for its remaining period as if the provisions of this Code have not
been brought into force to the extent they defeat any purpose to be achieved by such
notification issued by that State Government.
Explanation.—For the purposes of this sub-section, the expression “new industrial
establishment or new undertaking or class of new industrial establishments or new
undertakings” means such industrial establishment or undertaking or class of
industrial establishments or undertakings which are established within a period as
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may be specified in the notification.

97. Jurisdiction of civil courts barred.—No civil court shall have jurisdiction in
respect of any matter to which any provision of this Code applies and no injunction
shall be granted by any civil court in respect of anything which is done or intended to
be done by or under this Code.
98. Protection of action taken in good faith.—No suit, prosecution or other legal
proceeding shall lie against any person for anything which is in good faith done or
intended to be done in pursuance of this Code or any rules made thereunder.
Corresponding Law: S. 37 of Industrial Disputes Act, 1947.
99. Power of appropriate Government to make rules.—(1) The appropriate
Government may, subject to the condition of previous publication, make rules for the
purpose of giving effect to the provisions of this Code:
Provided that the appropriate Government may, if it is satisfied that circumstances
exist which render it necessary or expedient in the public interest so to do, dispense
with the condition of previous publication or reduce the required time period for
inviting objections or suggestions on such previous publication to the extent as it may
deem fit.
(2) In particular and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely:—
(a) written agreement between the employer and worker arrived at otherwise
than in the course of conciliation proceeding to arrive at a settlement under
clause (zi) of Section 2;
(b) constitution of Works Committee and choosing of representatives of employer
and workers engaged in the establishment under Section 3;
(c) manner of choosing members from the employer and the workers for
Grievance Redressal Committee under sub-section (2) of Section 4;
(d) application in respect of any dispute to be filed before the Grievance
Redressal Committee by any aggrieved worker under sub-section (5) of
Section 4;
(e) manner of filing application for the conciliation of grievance as against the
decision of the Grievance Redressal Committee to the conciliation officer under
sub-section (8) of Section 4;
(f) the payment of a subscription by members of the Trade Union and donation
from such members and others under clause (f) of Section 7;
(g) manner of annual audit under clause (j) of Section 7;
(h) form of declaration to be made by an affidavit and the manner of making the
same under clause (a) of sub-section (1) of Section 8;
(i) general statement of the assets and liabilities of the Trade Union prepared in
such form and containing such particulars under sub-section (2) of Section 8;
(j) the form of application for registration under sub-section (1), and the form of
issuing certificate of registration to be issued by the Registrar to the applicant
Trade Union under sub-section (2) of Section 9;
(k) the form of entering the name and other particulars of Trade Union in a
register maintained by the Registrar in this behalf under sub-section (3) of
Section 9;
(l) verification of application of the Trade Union under sub-section (5) of Section
9;
(m) period within which appeal is to be preferred by Trade Union to Tribunal
under sub-section (1) of Section 10;
(n) sending of communication and notices under sub-section (1) and the manner
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to inform the Registrar under sub-section (3) of Section 11;

(o) matters on which negotiating union or negotiating council, as the case may
be, in an industrial establishment may negotiate with the employer of the
industrial establishment under sub-section (1) and the criteria to be followed
by the employer of industrial establishment under sub-section (2) of Section
14;
(p) manner of verification of workers on the muster roll of the industrial
establishment, under sub-sections (3) and (4) and the facilities to be provided
by industrial establishment to a negotiating union or negotiating council under
sub-section (7) of Section 14;
(q) the objects under sub-section (1) and sub-section (2) and the subscription
payable under sub-section (4) of Section 15;
(r) manner of making application for adjudication before the Tribunal under sub-
section (1) of Section 22;
(s) manner of amalgamation under sub-section (2), and the manner of sending
signed amalgamation to the Registrar of a different State under sub-section
(3) of Section 24;
(t) distribution of funds of the Trade Union on dissolution by Registrar under sub-
section (2) of Section 25;
(u) the date before which a general statement shall be forwarded annually to the
Registrar, the particulars to be contained in general statement and its form,
the person by whom and the manner in which such general statement shall be
audited under clause (a) of sub-section (1) of Section 26;
(v) manner and purpose of recognition of a Trade Union or a federation of Trade
Unions by the State Government as a State Trade Union at the State level and
the authority and the manner of deciding dispute by it under sub-section (2)
of Section 27;
(w) the manner of forwarding information to the certifying officer under sub-
section (3) of Section 30 and the period within which the amendment of
standing order is to be done as observed by the certifying officer under the
proviso thereof;
(x) manner of choosing representatives of the workers of the industrial
establishment or undertaking for issuing notice by certifying officer, where
there is no Trade Union operating, under sub-section (5) and the manner of
authentication of certified standing orders under sub-section (8) of Section
30;
(y) statement to be accompanied with draft standing orders under sub-section
(9) of Section 30;
(z) conditions for submission of draft standing orders by group of employers in
similar establishment under sub-section (10) of Section 30;
(za) manner of disposal of appeal by the appellate authority under Section 32;
(zb) the manner of sending copies of the order of the appellate authority under
sub-section (1) and the language and the manner of maintaining standing
order under sub-section (2) of Section 33;
(zc) form of register for filing finally certified standing orders by the certifying
officer and fee for furnishing certified copy of such orders under Section 34;
(zd) application for modification of standing orders to be made before certifying
officer under sub-section (2) of Section 35;
(ze) the manner of giving of notice of the nature of the change proposed to be
effected under clause (i) of Section 40;
(zf) form of arbitration agreement and the manner to be signed by the parties
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thereto under sub-section (3) of Section 42;

(zg) manner of issuance of notification where an industrial dispute has been
referred to arbitration under sub-section (5) of Section 42;
(zh) manner of choosing representatives of the workers where there is no Trade
Union under the proviso to sub-section (5) of Section 42;
(zi) manner of filling up the vacancy under sub-section (9) of Section 44;
(zj) the procedure for selection, salaries and allowances and other terms and
conditions of Judicial and Administrative Members of the National Industrial
Tribunal under sub-section (6) of Section 46;
(zk) such other matters in respect of which a conciliation officer, Tribunal and
National Industrial Tribunal shall have the same powers as are vested in a civil
court under the Code of Civil Procedure, 1908 (5 of 1908) under sub-section
(3) of Section 49;
(zl) manner of holding conciliation proceedings under sub-section (1), form of
full report under sub-section (4), and the form of application and the manner
of deciding such application under sub-section (6), of Section 53;
(zm) the number of persons by whom the notice of strike shall be given, the
person or persons to whom such notice shall be given, and the manner of
giving such notice, under sub-section (4) of Section 62;
(zn) manner of giving notice of lock-out under sub-section (5) and the authority
under sub-section (6) of Section 62;
(zo) manner of serving notice before retrenchment of a worker employed in the
industry who has been in continuous service for not less than one year by an
employer on the appropriate Government or such authority as may be
specified by the appropriate Government by notification under clause (c) of
Section 70;
(zp) manner in which the employer shall give an opportunity to the retrenched
workers who are citizens of India to offer themselves for re-employment under
Section 72;
(zq) manner in which the employer shall serve notice on the appropriate
Government stating clearly the reasons for the intended closure of the
undertaking under sub-section (1) of Section 74;
(zr) manner of making application by the employer stating clearly the reasons for
the intended lay-off and the manner of serving copy of such application to
workers under sub-section (2) of Section 78;
(zs) manner of applying to the appropriate Government for permission to
continue the lay-off by the employer under sub-section (3) of Section 78;
(zt) time-limit for review under sub-section (7) of Section 78;
(zu) manner of making application by the employer stating clearly the reasons
for the intended retrenchment and the manner of serving copy of such
application to workers under sub-section (2) of Section 79;
(zv) time-limit for review under sub-section (6) of Section 79;
(zw) manner of making application by the employer stating clearly the reasons
for the intended closing down of an undertaking of an industrial establishment
and the manner of serving copy of such application to the representatives of
workers under sub-section (1) of Section 80;
(zx) time-limit for review under sub-section (5) of Section 80;
(zy) contribution from such other sources to be made to the worker re-skilling
fund under clause (b) of sub-section (2) of Section 83;
(zz) manner of utilisation of fund under sub-section (3) of Section 83;
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(zza) manner of composition of offence by a Gazetted Officer specified under sub

-section (1) of Section 89;
(zzb) manner of making application for the compounding of an offence specified
under sub-section (4) of Section 89;
(zzc) manner of making complaint by an aggrieved employee under Section 91;
(zzd) manner of authorisation of worker for representing in any proceeding under
sub-section (1) of Section 94;
(zze) manner of authorisation of employer for representing in any proceeding
under sub-section (2) of Section 94;
(zzf) any other matter which is required to be, or may be, prescribed under the
provisions of this Code.
(3) The Central Government shall make rules for the—
(a) manner of recognition of a Trade Union or federation of Trade Unions by the
Central Government as a Central Trade Union at the Central level and the
authority and the manner of deciding dispute by it under sub-section (1) of
Section 27; and
(b) manner of holding an enquiry under sub-section (1) of Section 85.
(4) All rules made under this section by the State Government shall, as soon as
possible after they are made, be laid before the State Legislature.
(5) Every rule made under this section and notification issued under clause (p) of
Section 2, by the Central Government shall be laid, as soon as may be after it is made,
before each House of Parliament while it is in session for a total period of thirty days
which may be comprised in one session or in two or more successive sessions, and if,
before the expiry of the session immediately following the session or the successive
sessions aforesaid, both Houses agree in making any modification in the rule or
notification, or both Houses agree that the rule or notification should not be made, the
rule or notification shall thereafter have effect only in such modified form or be of no
effect, as the case may be; so, however, that any such modification or annulment shall
be without prejudice to the validity of anything previously done under that rule or
notification.
Corresponding Law: S. 38 of Industrial Disputes Act, 1947; S. 15 of Industrial
Employment (Standing Orders) Act, 1946; S. 29 Trade Unions Act, 1926.
100. Delegation of powers.—The appropriate Government may, by notification,
direct that any power exercisable by it under this Code or rules made thereunder shall,
in relation to such matters and subject to such conditions, if any, as may be specified
in the direction, be exercisable also,—
(a) where the appropriate Government is the Central Government, by such officer
or authority subordinate to the Central Government or by the State
Government, or by such officer or authority subordinate to the State
Government, as may be specified in the notification;
(b) where the appropriate Government is a State Government, by such officer or
authority subordinate to the State Government as may be specified in the
notification.
Corresponding Law: S. 39 of Industrial Disputes Act, 1947; S. 14-A of Industrial
Employment (Standing Orders) Act, 1946.
101. Power to amend Schedules.—(1) The Central Government may, by notification,
add to or alter or amend the First Schedule or the Second Schedule or the Third
Schedule and on any such notification being issued, the First Schedule or the Second
Schedule or the Third Schedule, as the case may be, shall be deemed to be amended
accordingly.
Corresponding Law: S. 40(2) of Industrial Disputes Act, 1947.
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(2) Every notification issued by the Central Government under sub-section (1) shall
be laid as soon as may be after it is made before each House of Parliament while it is
in session for a total period of thirty days which may be comprised in one session or in
two or more successive sessions, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the notification, or both Houses agree that the modification
should not be made, the notification shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done in
pursuance of that notification.
Corresponding Law: S. 40(3) of Industrial Disputes Act, 1947.
102. Amendment of Act 7 of 2017.—In the Finance Act, 2017, in the Eighth
Schedule, against serial number 1,—
(a) in column (2), for the words “Industrial Tribunal constituted by the Central
Government”, the words, brackets and figures “Industrial Tribunal constituted
by the Central Government under sub-section (1) of Section 44 of the
Industrial Relations Code, 2020” shall be substituted;
(b) in column (3), for the words and figures “The Industrial Disputes Act, 1947
(14 of 1947) ”, the words and figures “The Industrial Relations Code, 2020”
shall be substituted.
103. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the
provisions of this Code, the Central Government may, by order published in the Official
Gazette, make such provisions, not inconsistent with the provisions of this Code as
may appear to it to be necessary for removing the difficulty:
Provided that no order shall be made under this section after the expiry of three
years from the date of commencement of this Code.
(2) Every order made under this section shall be laid before each House of
Parliament.
Corresponding Law: S. 36-A of Industrial Disputes Act, 1947.
104. Repeal and savings.—(1) In the notification issued under sub-section (3) of
Section 1 for the commencement of any provision of this Code, the Central
Government may specify that the provisions of—
(a) the Trade Unions Act, 1926 (16 of 1926);
(b) the Industrial Employment (Standing Orders) Act, 1946 (20 of 1946); and
(c) the Industrial Disputes Act, 1947 (14 of 1947),
shall stand repealed with effect from the date appointed in the notification in this
behalf and the remaining provisions of the enactments referred to in clauses (a) to (c)
shall remain in force till they are repealed by like notifications in the like manner.
(2) Notwithstanding such repeal under sub-section (1), anything done or any action
taken under the provisions of the enactments so repealed including any rule,
regulation, notification, nomination, appointment, order or direction made thereunder
shall be deemed to have been done or taken under the corresponding provisions of
this Code and shall be in force to the extent they are not contrary to the provisions of
this Code.
(3) Without prejudice to the provisions of sub-section (2), the provisions of Section
6 of the General Clauses Act, 1897 (10 of 1897) shall apply to the repeal of such
enactments.
THE FIRST SCHEDULE
[See Sections 2 (zj), 30 (1), (6) and 101 (1)]
MATTERS TO BE PROVIDED IN STANDING ORDERS UNDER THIS CODE
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1. Classification of workers, whether permanent, temporary, apprentices,

probationers, badlis or fixed term employment.
2. Manner of intimating to workers periods and hours of work, holidays, pay-days
and wage rates.
3. Shift working.
4. Attendance and late coming.
5. Conditions of, procedure in applying for, and the authority which may grant leave
and holidays.
6. Requirement to enter premises by certain gates, and liability to search.
7. Closing and reporting of sections of the industrial establishment, temporary
stoppages of work and the rights and liabilities of the employer and workers
arising therefrom.
8. Termination of employment, and the notice thereof to be given by employer and
workers.
9. Suspension or dismissal for misconduct, and acts or omissions which constitute
misconduct.
10. Means of redress for workers against unfair treatment or wrongful exactions by
the employer or his agents or servants.
11. Any other matter which may be specified by the appropriate Government by
notification.
THE SECOND SCHEDULE
[See Sections 2 (zo), 84, 86 (5) and 101(1)]
UNFAIR LABOUR PRACTICES
I. ON THE PART OF EMPLOYERS AND TRADE UNIONS OF EMPLOYERS
(1) To interfere with, restrain from, or coerce, workers in the exercise of their right
to organise, form, join or assist a Trade Union or to engage in concerted activities
for the purposes of collective bargaining or other mutual aid or protection, that is
to say,—
(a) threatening workers with discharge or dismissal, if they join a Trade Union;
(b) threatening a lock-out or closure, if a Trade Union is organised;
(c) granting wage increase to workers at crucial periods of Trade Union
organisation, with a view to undermining the efforts of the Trade Union
organisation.
(2) To dominate, interfere with or contribute support, financial or otherwise, to any
Trade Union, that is to say,—
(a) an employer taking an active interest in organising a Trade Union of his
workers; and
(b) an employer showing partiality or granting favour to one of several Trade
Unions attempting to organise his workers or to its members, where such a
Trade Union is not a recognised Trade Union.
(3) To establish employer sponsored Trade Unions of workers.
(4) To encourage or discourage membership in any Trade Union by discriminating
against any worker, that is to say,—
(a) discharging or punishing a worker, because he urged other workers to join or
organise a Trade Union;
(b) discharging or dismissing a worker for taking part in any strike (not being a
strike which is deemed to be an illegal strike under this Code);
(c) changing seniority rating of workers because of Trade Union activities;
(d) refusing to promote workers to higher posts on account of their Trade Union
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activities;
(e) giving unmerited promotions to certain workers with a view to creating
discord amongst other workers, or to undermine the strength of their Trade
Union;
(f) discharging office-bearers or active members of the Trade Union on account of
their Trade Union activities.
(5) To discharge or dismiss workers,—
(a) by way of victimisation;
(b) not in good faith, but in the colourable exercise of the employer's rights;
(c) by falsely implicating a worker in a criminal case on false evidence or on
concocted evidence;
(d) for patently false reasons;
(e) on untrue or trumped up allegations of absence without leave;
(f) in utter disregard of the principles of natural justice in the conduct of
domestic enquiry or with undue haste;
(g) for misconduct of a minor or technical character, without having any regard
to the nature of the particular misconduct or the past record or service of the
worker, thereby leading to a disproportionate punishment.
(6) To abolish the work of a regular nature being done by workers, and to give such
work to contractors as a measure of breaking a strike.
(7) To transfer a worker mala fide from one place to another, under the guise of
following management policy.
(8) To insist upon individual workers, who are on a legal strike to sign a good
conduct bond, as a precondition to allowing them to resume work.
(9) To show favouritism or partiality to one set of workers regardless of merit.
(10) To employ workers as badli workers, casuals or temporaries and to continue
them as such for years, with the object of depriving them of the status and
privileges of permanent workers.
(11) To discharge or discriminate against any worker for filing charges or testifying
against an employer in any enquiry or proceeding relating to any industrial
dispute.
(12) To recruit worker during a strike which is not an illegal strike.
(13) Failure to implement award, settlement or agreement.
(14) To indulge in acts of force or violence.
(15) To refuse to bargain collectively, in good faith with the recognised Trade
Unions.
(16) Proposing or continuing a lock-out deemed to be illegal under this Code.
II. ON THE PART OF WORKERS AND TRADE UNIONS OF WORKERS
(1) To advise or actively support or instigate any strike deemed to be illegal under
this Code.
(2) To coerce workers in the exercise of their right to self-organisation or to join a
Trade Union or refrain from, joining any Trade Union, that is to say—
(a) for a Trade Union or its members to picketing in such a manner that non-
striking workers are physically debarred from entering the work places;
(b) to indulge in acts of force or violence or to hold out threats of intimidation in
connection with a strike against non-striking workers or against managerial
staff.
(3) For a recognised union to refuse to bargain collectively in good faith with the
employer.
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(4) To indulge in coercive activities against certification of a bargaining

representative.
(5) To stage, encourage or instigate such forms of coercive actions as wilful, “go-
slow”, squatting on the work premises after working hours or “gherao” of any of
the members of the managerial or other staff.
Explanation 1.—For the removal of doubts, it is clarified that “go-slow” shall mean an
occasion when more than one worker in an establishment conjointly work more slowly
and with less effort than usual to try to persuade the employer of the establishment to
agree to higher pay or better service condition or such other demand.
Explanation 2.—For the purposes of Explanation 1, the expression “usual” shall mean,
—
(i) where the standard has been specified for a worker for his work either daily,
weekly or monthly basis, such work; and
(ii) where no such standard has been specified such rate of work which is the
average of work in the previous three months calculated on daily or weekly or
monthly basis, as the case may be.
(6) To stage demonstrations at the residence of the employers or the managerial
staff members.
(7) To incite or indulge in wilful damage to employer's property connected with the
industry.
(8) To indulge in acts of force or violence or to hold out threats of intimidation
against any worker with a view to prevent him from attending work.
THE THIRD SCHEDULE
[See Sections 40 and 101(1)]
CONDITIONS OF SERVICE FOR CHANGE OF WHICH NOTICE IS TO BE GIVEN
1. Wages, including the period and mode of payment.
2. Contribution paid, or payable, by the employer to any provident fund or pension
fund or for the benefit of the workers under any law for the time being in force.
3. Compensatory and other allowances.
4. Hours of work and rest intervals.
5. Leave with wages and holidays.
6. Starting, alteration or discontinuance of shift working otherwise than in
accordance with standing orders.
7. Classification by grades.
8. Withdrawal of any customary concession or privilege or change in usage.
9. Introduction of new rules of discipline, or alteration of existing rules, except in so
far as they are provided in standing orders.
10. Rationalisation, standardisation or improvement of plant or technique which is
likely to lead to retrenchment of workers.
11. Any increase or reduction (other than casual) in the number of persons
employed or to be employed in any occupation or process or department or shift,
not occasioned by circumstances over which the employer has no control.
———
1.Received the assent of the President on September 28, 2020 and published in the Gazette of India, Extra., Part
II, Section 1, dated 29th September, 2020, pp. 1-56, No. 60

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