Industrial Relations Code 2020

Applies to

Industrial establishments. Certified Standing Orders and prior-government-permission-for-retrenchment thresholds are raised to 300 workers. In force from 21 November 2025; Central Rules notified 8 May 2026.

Key points

• Standing Orders + prior-permission-for-retrenchment threshold raised from 100 to 300 workers.
• Fixed-term employment recognised with pro-rata statutory benefits.
• Negotiating union / council based on 51% membership; re-skilling fund for retrenched workers.

Applicability triggers

• Industrial establishment with ≥300 workers (Standing Orders / retrenchment permission)
• Any industrial establishment (dispute-resolution and union provisions)

Practitioner questions

• Does the 300-worker threshold change our retrenchment / closure permission requirement?
• Are our fixed-term contracts compliant with the IR Code's pro-rata-benefit rule?

Sources

• Industrial Relations Code 2020 (India Code)
• Ministry of Labour & Employment