Industrial Relations Code, 2020

By Lakshmi Kushwaha
 THE INDUSTRIAL RELATIONS CODE, 2020
• The Industrial Relations Code, 2020 provides provisions to protect
the rights of workers to make unions, to maintain relations between
the employers, and workers and to provide regulations for settlement
of industrial disputes.
• The Code is prepared after amalgamating, simplifying and repealing
following 3 central labour Acts:
• The Trade Unions Act, 1926
• The Industrial Employment (Standing Orders) Act, 1946
• The Industrial Disputes Act, 1947
 CHAPTER I
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.
• (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.
Definitions

Sec 2(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;
 Sec 2 (b) Appropriate Govt
Central Government State Govt

• Central Government : • in relation to any other industrial establishment,

• any industrial establishment or undertaking carried including State public sector undertakings, subsidiary
on by or under the authority of the Central companies set up by the principal undertaking and
Government or autonomous bodies owned or controlled by the State
• or the establishment of railways including metro Government
railways, 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
Sec 2 (b) Appropriate Govt
• 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, which has control over such
industrial establishment;
Sec 2(c) : Arbitrator
• "arbitrator" includes an umpire;

Sec 2(d) : Average pay

• "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,
Sec 2(e) : Award
• 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;

Sec 2(f) Banking Company

• a banking company as defined in section 5 of the Banking Regulation Act, 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,
• 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,
• a corresponding new bank constituted under section 3 of the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1980;
Sec 2(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;

Sec (h) : "closure"

• means the permanent closing down of a place of
employment or part thereof

Sec (i) "conciliation officer"

• means a conciliation officer appointed under section 43;
Sec 2 (j) "conciliation proceeding"
• means any proceeding held by a conciliation officer under this Code;

Sec 2 (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;
Sec 2(l) "employee"
• means any person (other than an apprentice engaged under the Apprentices Act,
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;
 Sec 2(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

any other establishment,

and where the of the department, and in the person who, or the
establishment is relation to an authority which has
department of the Central establishment carried on Factory ultimate control over the legal representative of a
Government or the State affairs contractor
by a local authority, the occupier, manager deceased employer;
Government, chief executive of that a manager or managing
head of the department authority, and includes director
Sec 2(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
Sec (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;
Sec 2 (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;
Sec 2(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
Sec2(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 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;
Sec 2(s) "insurance company"
• means a company as defined in section 2 of the Insurance Act, 1938;

(t) “Lay-off"
• 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 (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)
Sec 2 (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;
Sec 2 (v) "major port"
• means a major port as defined in clause (8) of section 3 of the Indian Ports Act, 1908;

Sec 2 (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;
Sec 2 (x) "mine"
• means a mine as defined in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952;
Sec 2 (y) "National Industrial Tribunal"
• means a National Industrial Tribunal constituted under section 46;

Sec 2(z) "negotiating union or negotiating council"

• means the negotiating union or negotiating council referred to in section 14;

Sec 2(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;

Sec 2 (zb) "office-bearer",

• in relation to a Trade Union, includes any member of the executive thereof, but does not include
an auditor;

Sec 2 (zc) "prescribed"

• means prescribed by rules made under this Code;
Sec 2(zd) "railway"
• means the railway as defined in clause (31) of section 2 of the Railways Act, 1989;

Sec 2 (ze) "registered office"

• means that office of a Trade Union which is registered under this Code as the head office
thereof;
Sec 2(zf) "registered Trade Union"
• means a Trade Union registered under this Code;

Sec 2 (zg) "Registrar"

• means a Registrar of Trade Unions appointed by the State Government under section 5;
Sec 2(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;
 Sec 2(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

Sec 2(zj) "standing orders"

• means orders relating to matters set-out in the First Schedule;

Sec 2(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
 Sec 2 (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 abusiness or of
instruction in any profession, trade or handicraft;
 Sec 2 (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;

Sec 2(zn) "Tribunal"

• means an Industrial Tribunal constituted under section 44

Sec 2(zo) "unfair labour practice"

• means any of the practices specified in the Second Schedule

Sec 2(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;
 Sec 2(zq) : Wages
Wages

• means all remuneration whether by way of salaries, allowances

or otherwise, expressed in terms of money or capable of
• 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
 Wages Does Not Include

• (a)any bonus payable 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 pension or provident fund, and the interest which may have accrued
• (d)any conveyance allowance or the value of any travelling concession;
• (e)sum paid 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;
• (k) any retrenchment compensation or other retirement benefit, ex -gratia
 Deemed Remuneration : after calculating the wages

• if payments made by the employer to the employee under clauses (a) to clause
(i)
• exceeds one-half, or such other per cent. as may be notified by the Central
Government, of the all remuneration calculated under this clause,
• the amount which exceeds such one-half, or the per cent. so notified, shall be
deemed as remuneration and shall be accordingly added in wages under this
clause
• any remuneration in kind by his employer, the value of such remuneration in
kind which does not exceed 15%per cent. of the total wages payable to him,
shall be deemed to form part of the wages of such employee
• 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.
 Sec 2( zr) "worker"
• means any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 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 and sales promotion employees as defined in clause (d) of section
2 of the Sales Promotion Employees (Conditions of Service) Act, 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, or the Army Act, 1950, or the Navy Act, 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"—
• (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.
 CHAPTER II
BI-PARTITE FORUM
Sec 3 : Works Committee
• any industrial establishment in which 100 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:
• the number of representatives of workers in such Committee shall not be less
than the number of representatives of the employer.
• The representatives of the workers shall be chosen, 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
Sec 4 : Grievance Redressal Committee

• (1) Every industrial establishment employing 20 or more workers shall have one or more Grievance
Redressal Committees
• (2) The Grievance Redressal Committee shall consist of equal number of members representing the
employer and the workers
• (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 10
• 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.
Sec 4 : Grievance
Redressal Committee
• (5) An application may be filed before the Grievance Redressal Committee by any aggrieved worker within
one year from the date on which the cause of action of dispute arises.
• (6) The Grievance Redressal Committee may complete its proceedings within 30 days of receipt of the
application
• (7) The decision of the Grievance Redressal Committee on any application filed 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 within a period of
60 days from the date of the decision of the Grievance Redressal Committee ,file an application for the
conciliation of such grievance to the conciliation officer through the Trade Union, of which he is a member,
Sec 4 : Grievance Redressal Committee
• (10) 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 45 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 2 years from
the date of discharge, dismissal, retrenchment or otherwise termination of service as specified in sub-section (9).
 CHAPTER III
TRADE UNIONS
Sec 5 : Registrar of Trade Unions

• 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 as the State
Government may, by notification, specify from time to time
Sec 6 : Criteria for
registration.
• Any 7 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
• No Trade Union of workers shall be registered unless at least 10% of the workers
or 100 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.
Sec 6 : Criteria for registration.
• Application for registration 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.
• (4) A registered Trade Union of workers shall at all times
continue to have not less 10% of the workers or 100
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.
Sec 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
• (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 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;
Sec 7 : Provisions to be contained in constitution or rules of Trade
Union
• (f) the payment of a subscription by members of the Trade Union from such members
and others
• (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.
Sec 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.
 Sec 8 : Application for
registration, alteration of
name and procedure
thereof
• (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
• 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
• (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.
Sec 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
• Register the Trade Union by entering in a register, to be maintained in such
form as may be prescribed
• (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
• (4) Every Trade Union registered under the Trade Unions Act, 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
Sec 9 : Registration of Trade Union and cancellation thereof
• (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 Union
• (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
Sec 10 :Appeal against non-registration or cancellation of registration.
• Any person aggrieved by the refusal of the Registrar to grant registration to a Trade Union by
cancellation of a certificate of registration prefer an appeal to the Tribunal within such period as may
be prescribed
• (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

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

• (1) All communications and notices to a registered Trade Union shall be sent, to the address of the
head office of the Trade Union as entered in the register maintained by the Registrar.
• (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.
Sec 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

Sec 13. The provisions of the following Acts, namely:—

• (a) the Societies Registration Act, 1860;
• (b) the Co-operative Societies Act, 1912;
• (c) the Multi-State Co-operative Societies Act, 2002;
• (d) the Companies Act, 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.
Sec 14 :Recognition of negotiating union or negotiating council.
• 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 ,the employer of
such industrial establishment shall, subject to such criteria, 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, supporting that Trade Union shall be recognised
by the employer of the industrial establishment, as the sole negotiating
union of the workers
Sec 14 :Recognition of negotiating
union or negotiating council.
• (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,
• 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
• 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
Sec 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.
• (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.
• (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,
• (4) The subscriptions payable by the members of the Trade Union shall be such
as may be prescribed
Sec 16 : Immunity from civil suit in certain cases
• No suit or other legal proceeding shall be maintainable in any civil court
against any registered Trade Union or any office-bearer or member
• 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
• 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.
Sec 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 120B of the Indian Penal Code 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.

Sec 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
Sec 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

Sec 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
Sec 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;
• (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
Sec 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.
• (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).
Sec 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
• (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 (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.)
Sec 24 : Change of name, amalgamation, notice of change and its effect.
• Any registered Trade Union may, with the consent of not less than two-third of the total
number of its members change its name
• Any two or more registered Trade Unions may be amalgamated in such manner as may be
prescribed
• 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
• 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
• 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.
• 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
 CHAPTER IV
Standing Orders
 Application of this
Sec 28 Chapter
• (1) The provisions of this Chapter shall apply to every industrial establishment
wherein 300 or more than 300 workers, are employed, or were employed on any
day of the preceding twelve months
• (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
 Making of model standing orders
Sec 29 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.
 Preparation of draft standing orders by
Sec 30 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
• (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 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
 Sec 30 Preparation of draft standing orders by
employer and procedure for certification
• (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
 Preparation of draft standing orders by
Sec 30 employer and procedure for certification
• 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
• (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.
 Preparation of draft standing orders by
Sec 30 employer and procedure for certification
• (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.
• (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 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).
• (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.
• (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.
 Certifying officer and appellate authority to
Sec 31 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) 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

Sec 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.
 Date of operation of standing order sand its
Sec 33 availability.
• 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.
• (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

Sec 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 acopy thereof to any person applying therefor on
payment of such fee as may be prescribed
 Duration and modification of standing
Sec 35 orders.
• 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
• (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,

Oral evidence in contradiction of standing

Sec 36 orders no 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
 Interpretation, etc., of
Sec 37 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 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
 Time-limit for completing disciplinary proceedings and liability to
Sec 38 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 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.

Sec 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
 Chapter V
Notice Of Change
 Sec 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
Gazette, apply;
• (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
 Sec 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
 Chapter VI
VOLUNTARY REFERENCE OF DISPUTES TO ARBITRATION
 Voluntary reference of
Sec 42 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;
(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, shall apply to
arbitrations under this section.
 Chapter VII
MECHANISM FOR RESOLUTION OF INDUSTRIAL DISPUTES
 Sec 43 Conciliation officers
• 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

Sec 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 by or under that Act
(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:
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.
(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.
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
 Sec 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

Sec 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.
• (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.
• (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.
• (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.
• (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.
 Decision of Tribunal or National Industrial
Sec 47 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.

Disqualifications for members of Tribunal and

Sec 48 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.
• 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
 Sec Procedure and powers of arbitrator,
conciliation officer, Tribunal and
49 National Industrial Tribunal.
• (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, 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
• (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 Tribunal
 Powers of Tribunal and National Industrial
Sec 50 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
 Sec 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, shall be transferred to the Tribunal having
corresponding jurisdiction under this Code;
• (b) in the National Tribunal constituted under the Industrial Disputes Act,
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
Sec 52 Adjustment o 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, 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.
 Conciliation and adjudication of
Sec 53 dispute.
• (1) Where any industrial dispute exists or is apprehended or a notice has been given, the conciliation officer
shall, hold conciliation proceedings in such manner as may be prescribed (shall not hold any such
proceedings relating to the industrial dispute after two years from the date on which such industrial
dispute arose)
• (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
• (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
• (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
(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
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
 Reference to and functions of
Sec 54 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.
 Form of award, its communication
Sec 55 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, both the Judicial Member
and the Administrative Member or either by the Judicial Member or the Administrative Member by whom the
award is delivered.
• (2) Every arbitration award and every award of Tribunal or National Industrial Tribunal shall be communicated to
the parties concerned and the appropriate Government 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 thirty days.
(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.

(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).

(6) Subject to the provisions of sub-section (3) and sub-section (5) regarding
 Payment of full wages to worker
Sec 56 pending proceedings in higher
Court
• . 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.
 Persons on whom settlements
Sec 57 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 maybe, records the opinion that they
were so summoned without proper cause;
• (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.
 Period of operation of
Sec 58
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: (extend the period, 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
 Recovery of money due from
Sec 59 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 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:
• (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
• (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)
 Commencement and conclusion of
Sec 60 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 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.
 Certain matters to be kept
Sec 61 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;
• Do not 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
 Chapter VIII
STRIKES AND LOCK-OUTS
 Sec 62 : Prohibition of strikes and lock-outs.
Sec 62(1) : Prohibition of strikes : No person employed in
Sec 62(2) :Prohibition of Lockout : No employer of an
an industrial establishment shall go on strike, in breach of
industrial establishment shall lock-out any of his workers—
contract—
• (a) without giving to the employer notice of strike, as • (a) without giving them notice of lock-out as hereinafter
hereinafter provided, within sixty days before striking; provided, within sixty days before locking-out; or
or • (b) within fourteen days of giving such notice; or
• (b) within fourteen days of giving such notice; or • (c) before the expiry of the date of lock-out specified in
• (c) before the expiry of the date of strike specified in any any such notice as aforesaid; or
such notice; or • (d) during the pendency of any conciliation proceedings
• (d) during the pendency of any conciliation proceedings before a conciliation officer and seven days after the
before a conciliation officer and seven days after the conclusion of such proceedings; or
conclusion of such proceedings; or • (e) during the pendency of proceedings before a Tribunal
• (e) during the pendency of proceedings before a Tribunal or a National Industrial Tribunal and sixty days, after the
or a National Industrial Tribunal and sixty days, after conclusion of such proceedings; or
the conclusion of such proceedings; or • (f) during the pendency of arbitration proceedings before
• (f) during the pendency of arbitration proceedings an arbitrator and sixty days after the conclusion of such
before an arbitrator and sixty days after the conclusion proceedings, where a notification has been issued under
of such proceedings, where a notification has been sub-section (5) of section 42; or
issued under sub-section (5) of section 42; or • (g) during any period in which a settlement or award is in
• (g) during any period in which a settlement or award is in operation, in respect of any of the matters covered by
operation, in respect of any of the matters covered by the settlement or award
the settlement or award.
(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.

(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.

(5) The notice of lock-out referred to in sub-section (2) shall be given in such manner as may be
prescribed.

(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.
 Sec 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.

Sec 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.
 Chapter IX
LAY-OFF, RETRENCHMENT AND CLOSURE
 Application of sections 67 to
Sec 65 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 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.
• 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; or
• (ii) mine as defined in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952; or
• (iii) plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951.
 Sec 66 Definition of continuous service.
• worker, means the uninterrupted service of such worker, including his service which may be interrupted on account of sicknessor
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.
• —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.
• .—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
 Rights of workers laidoff for
Sec 67 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 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 ( 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)
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.

.— 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
 Sec 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.

Sec 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.
 Conditions precedent to
Sec 70 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
• (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
 Sec 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.

Sec 72 Reemployment 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.
 Compensation to workers in case
Sec 73 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—
• (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.
 Sec 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.
 Compensation to workers in case
Sec 75 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.
• —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
(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—

(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.
 Sec 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
 Chapter X
SPECIAL PROVISIONS RELATING TO LAY-OFF,
RETRENCHMENT AND CLOSURE IN CERTAIN
ESTABLISHMENTS
 Sec 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 character or
whether work is performed therein only intermittently, the decision of the appropriate
Government thereon shall be final.
• (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;
• (ii) a mine as defined in clause (j) of sub-section (1) of section 2 of the Mines Act,
1952; or
• (iii) a plantation as defined in clause (f) of section 2 of the Plantations Labour Act,
1951.
 Sec 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 permissision 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.

(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 within a period of thirty days from made to a Tribunal under this sub-section, it shall pass an
award the date of such reference
 Sec 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 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
 Procedure for closing down
Sec 80 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
• 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.
• (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
 Sec 81 Duty of an employer to maintain muster rolls of workers.
• 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.

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

Sec 82 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
 Chapter XI
WORKER RE-SKILLING FUND
 Worker reskilling
Sec 83 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

Prohibition of unfair
Sec 84 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.
 Chapter XIII
OFFENCES AND PENALTIES
 Sec 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.
 Sec 86 Penalities
Sec 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

Sec 88 Offences by companies.

 Chapter XIV
MISCELLANEOUS
 Conditions of service, etc., to remain
Sec 90 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) (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, 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

—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
 Special provision for adjudication as to whether
Sec 91 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.
 Sec 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.
• (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.
 Sec 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.
 Sec 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—
• (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
 Removal of doubts in
Sec 95 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
 Sec 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:

Sec 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 cas may be, shall be
deemed to be amended accordingly.

Sec 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;
• (b) the Industrial Employment (Standing Orders) Act, 1946; and
• (c) the Industrial Disputes Act, 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.
THE FIRST SCHEDULE (sections 2 (zj), 30 (1), (6) and 101 (1) - matters to be
provided in standing orders under this code

THE SECOND SCHEDULE (sections 2 (zo), 84, 86 (5) and 101(1) -unfair labour
practices
I. on the part of employers and trade unions of employers
II. on the part of workers and trade unions of workers

THE THIRD SCHEDULE (sections 40 and 101 (1) - conditions of service for change of
which notice is to be given

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