Major Gap in Industrial Relation Code, 2020: Delhi High Court Intervenes Over Non-Constitution of Industrial Tribunals

OPINION PIECE

The Government of India, despite continued opposition from major Central Trade Unions and Opposition parties, has notified the implementation of the four new Labour Codes—formed by merging 29 existing labour laws including the Industrial Disputes Act, 1947; Trade Union Act, 1926; and Factories Act, 1948. Among these, the Industrial Relation Code (IRC), 2020, is considered one of the most critical for workers and Trade Unions as it amalgamates the Industrial Disputes Act and the Trade Union Act.

Nationwide protests were observed on November 26, 2025, by Central Trade Unions demanding the withdrawal of what they termed “anti-worker” Labour Codes. Senior opposition leaders also staged demonstrations in the Parliament complex, alleging that the Codes amount to an “unprecedented assault on workers’ rights.” The Labour Minister, Mansukh Mandaviya, countered these allegations, stating that the Opposition was “misleading the people.”

Delhi High Court Flags Serious Legislative Gap

Amid this charged backdrop, a petition was filed before the Delhi High Court, raising a significant issue concerning Section 51 of the Industrial Relation Code, 2020. The section mandates that, from the commencement of the Code, all pending cases before Labour Courts and Industrial Tribunals constituted under the Industrial Disputes Act must stand transferred to the newly constituted Tribunals under the IRC.

However, the Central Government has not yet constituted the Industrial Tribunals mandated under the new Code.

The High Court observed that, due to the non-availability of these new Tribunals:

All cases pending before earlier Labour Courts/Tribunals as of 21 November 2025 are now in limbo.

No new industrial disputes can be filed since no forum exists for adjudication.

There appears to be no transitional mechanism, indicating a possible oversight by the Central Government.

The Court has issued notice to the Centre seeking immediate remedial steps. The matter will be heard next on December 10, 2025.

Trade Union Leader C. Srikumar Welcomes Court’s Observation

C. Srikumar, National Secretary of AITUC and Deputy General Secretary of WFTU, welcomed the High Court’s intervention, calling the identified gap “a serious flaw in a hastily prepared Code.”

He added that such gaps exist in all four Labour Codes and predicted a surge in litigation across the country.

According to Srikumar:

• The Codes serve the interests of corporates and the private sector.

• India has bypassed several recommendations of the International Labour Organization (ILO).

• The Indian Labour Conference has not been convened for more than a decade, ignoring the consultative framework.

Key Concerns Highlighted by Trade Unions

1. Extended Working Hours

The Government claims the daily work limit remains 8 hours, but the Code reportedly allows authorities to approve up to 12-hour shifts, raising safety and health risk concerns, especially in hazardous sectors like Ordnance Factories.

2. Restrictions on Strikes

Mandatory 60-day strike notice, and strikes becoming illegal once conciliation begins, “virtually eliminates the right to protest,” Trade Unions argue.

3. Hire-and-Fire Policies

Fixed-term employment effectively legalizes “hire and fire,” according to worker organizations.

4. Narrower Definition of ‘Factory’

Raising the applicability threshold to:

20 workers (with power),

40 workers (without power) will exclude numerous units from the Code’s coverage.

5. Outsourcing and Casualisation

Srikumar warned that:

• Outsourcing and contractualisation will surge,

• Apprentices will continue to be exploited as cheap labour,

• Even public sector jobs are becoming insecure.

6. Changed Definition of ‘Wages’

Allowances have been excluded from wage calculation for overtime.

This contradicts the Madras High Court ruling, which mandated inclusion of all allowances—including HRA and transport allowance. The Government has an SLP pending in the Supreme Court, yet has changed the definition through the Code.

7. Exclusion of Key Sectors from Definition of ‘Industry’

The IRC excludes activities of Defence Research, Atomic Energy, and Space establishments from the definition of “industry” under the guise of “sovereign functions.”

Srikumar argues this deprives thousands of workers in these sectors of legal protections, despite increasing private sector participation in these domains.

A Call for Wider Worker Mobilisation

Srikumar stressed that India’s labour laws are the result of decades of struggle, dating back to the pre-Independence era when workers resisted British rule to secure protections like the Trade Union Act of 1926.

He urged the working class to prepare for a unified nationwide struggle to ensure that the newly enacted Labour Codes—“anti-worker and pro-corporate”—are withdrawn, similar to the rollback of the three farm laws.

Views expresses here are those of C. Srikumar, National Secretary of AITUC and Deputy General Secretary of WFTU