Draft rules for Industrial Relations Code- To be implemented by April, 2021.

The Ministry of Labour have notified the draft rules for the Industrial Relations Code, 2020. These rules have to be  implemented by April, 2021.


The Ministry of Labour and Employment introduced four Bills in September 2019 in order to consolidate 29 central laws.  These bill were introduced to regulate and consolidate laws on Wages, Industrial Relations,  Social Security and Occupational Safety, Health & Working Conditions.

Industrial Relations Code, 2020

  • The code states that the industrial establishments with up to 300 workers will not require a standing order on conditions of employment and rules of conduct for workmen. The new provision for standing order will be applicable on industrial establishment with 300 or more than 300 workers.
  • The code also introduced new conditions to carry out a legal strike. It has added a provision of  arbitration proceedings for workers before going on a legal strike.  It states, no person shall go on strike without a 60-day notice, during the pendency of proceedings before a Tribunal or a National Industrial Tribunal and sixty days after proceedings are concluded.
  • The code also include provision of  re-skilling fund for training of workers of an amount equal to 15 days that has been last drawn by the worker.
  • The code has kept out the eminent institutes related to defence and space such as DRDO and ISRO out of its purview.

Need of the reform?

The central government stated that there are over 100 state and 40 central laws that regulate the various aspects of labour such as resolution of industrial disputes, working conditions, social security and wages.  So, the Second National Commission on Labour (2002) had found existing legislation complex. It also highlighted some of the archaic provisions and inconsistent definitions. Thus, for the ease of compliance and to ensure uniformity in labour laws it has recommended the consolidation of existing laws.

Who regulate the labour?

Labour is categorized under the Concurrent List of the Constitution.  Thus, both Parliament and state legislatures can make regulating labour laws.

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