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The Industrial Relations Code covers trade unions, standing orders and industrial disputes, including the rules on lay-off, retrenchment and closure that shape how employment ends.
Check before you rely on thisCheck the implementation status of the Industrial Relations Code, the central and state rules in force, employee thresholds for standing orders and for prior permission on lay-off, retrenchment and closure, the definition of worker and fixed-term employment conditions.
01
The Industrial Relations Code 2020 consolidates the Trade Unions Act 1926, the Industrial Employment (Standing Orders) Act 1946 and the Industrial Disputes Act 1947. It deals with recognition of unions, service conditions set out in standing orders, how disputes are raised and resolved, and the conditions for lay-off, retrenchment and closure.
02
Most provisions apply to industrial establishments and to workers as the Code defines them, which generally excludes people employed mainly in managerial or administrative roles and some supervisory roles above a wage level. Several chapters, including standing orders and prior permission for lay-off or retrenchment, apply only above employee thresholds that the Code sets and governments can vary.
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| Term | What it means |
|---|---|
| Worker | The class of employee most IR protections apply to, as defined in the Code |
| Fixed-term employment | Engagement for a set period, with conditions on parity of terms |
| Retrenchment | Termination by the employer for reasons other than discipline, subject to notice and compensation |
| Standing orders | Written conditions of service that bind employer and workers |
| Reskilling fund | A fund the Code provides for retrenched workers |
05
The four labour codes, passed by Parliament in 2019 and 2020, came into force on 21 November 2025. Final central rules under all four codes were notified on 8 May 2026, and each state frames its own rules, some of which are still in draft. During the transition, the relevant provisions of the earlier Acts and their rules continue to apply, so check which rules govern your establishment in each state.
Most protections apply to workers as defined, and the definition excludes many managerial and administrative roles. Check the definition against each role.
The Code recognises fixed-term employment, subject to conditions such as parity of hours, wages and benefits with permanent workers doing similar work.
Only for establishments above a threshold set in the Code, which states may vary. Check the current threshold for your state.
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