The IR Code, 2020 consolidates three central acts: The Trade Unions Act, 1926, The Industrial Employment (Standing Orders) Act, 1946, and The Industrial Disputes Act, 1947.
1. Key Reforms and Threshold Modifications
- Standing Orders (Chapter IV): The threshold for compulsory standing orders governing service conditions has been raised from 100 workers to 300 workers, giving employers immense flexibility in smaller units.
- Prior Permission for Lay-Off, Retrenchment, & Closure (Chapter X): The threshold for compulsory prior government permission under the counterpart of Chapter V-B has been raised from 100 workers to 300 workers.
- Sole Negotiating Union: Introduces the concept of a sole negotiating union. If an establishment has multiple trade unions, the union with at least 51% support on the muster roll will be recognized as the sole negotiating union.
- Mandatory Strike Notice: The requirement of a 14-day notice for strikes has been extended to all industrial establishments, completely eliminating sudden "wildcat" strikes in non-public utility sectors.