Industrial Relations Code Amendment Bill 2026: Provisions and Significance

Study Industrial Relations Code Amendment Bill 2026 for UPSC. Covers new provisions, policy intent, labour reforms impact, and relevance for Prelims and Mains preparation.

Table of Contents

Context

The Lok Sabha passed a Bill to help avoid any “future unwarranted complication” over the continuity of certain laws replaced by the Industrial Relations Code of 2020.

Purpose of the Amendment

To remove ambiguity regarding the repeal of earlier labour enactments.
To ensure continuity, legal certainty, and smooth transition under the Industrial Relations Code framework.
To pre-empt potential legal challenges based on procedural interpretation.

Key Legal Clarification Introduced

The amendment reinforces Section 104 of the Industrial Relations Code.
It clarifies that:
- Repeal of earlier laws occurred automatically through the Code itself.
- The repeal was not dependent on executive action or delegated authority.
This eliminates the risk of misinterpretation in future litigation.

Laws Affected by the Industrial Relations Code

The Code replaced three major labour laws:
- Trade Unions Act, 1926
- Industrial Employment (Standing Orders) Act, 1946
- Industrial Disputes Act, 1947
These laws governed trade unions, service conditions, and dispute resolution.

Broader Labour Reform Framework

The Industrial Relations Code is part of four labour codes implemented recently.
According to the government, these codes aim to ensure:
- Statutory minimum wages
- Mandatory appointment letters
- Equal wages for equal work, irrespective of gender

About the Four Labour Codes

The Four Labour Codes, covering Wages, Industrial Relations, Social Security, & Occupational Safety, unify & modernise India’s fragmented labour laws to ensure greater clarity and protection of worker welfare.

Code on Wages, 2019

● Unified Definition: Consolidates four laws to establish a single definition of wages, reducing litigation and compliance burdens.

● Wage includesbasic pay, dearness allowance, and retaining allowance, which form the basis for benefits and social security contributions.

● Minimum Wage:Extends statutory minimum wage entitlement to all workers across sectors, replacing the earlier limit to scheduled employment only.

● Wage Floor: Introduces a National Floor Wage that states must adhere to in order to ensure consistent living standards and minimise regional wage disparities.

● Payment Rules: Standardises payment deadlines for wages and requires issuing physical or digital wage slips to enhance accountability.

● Gender Equality: Prohibits gender-based wage discrimination to promote “equal pay for equal work”.

Industrial Relations Code, 2020

● Worker Definition: Replaces three previous laws and broadens the definition of worker to include employees earning less than ₹18,000.

● Layoff Threshold: Raises prior-approval requirements for layoffs, retrenchments, and closures from 100 to 300 workers to enhance operational flexibility.

● Fixed‑Term Employment: Introduces fixed-term employment with wage and benefit parity, and ensures gratuity after one year of continuous service.

● Strike Regulation: Expands strike-notice requirements and widens the definition of strike to include mass casual leave by more than half the workforce.

Code on Social Security, 2020

● Legal Recognition: Amalgamates nine social security laws and, for the first time, legally defines ‘gig workers’ and ‘platform workers’.

● Unified Access: Mandates social security funds and creates a national portal with Aadhaar-linked identification for unorganised, gig, and platform workers.

● Expanded Coverage: Expands EPFO and ESIC coverage to more establishments, regions, and includes compulsory coverage for hazardous jobs.

Occupational Safety, Health and Working Conditions (OSH) Code, 2020

● Safety Expansion: Consolidates 13 laws to extend safety, health, and welfare regulations to all workplaces with over 10 workers, as well as to all mines and docks.

● Health Provision: Requires free annual health check-ups for workers aged 40 or older and mandates safety committees in large workplaces.

● Night-Shift: Permits women to work night shifts with their consent and with safety measures in place.

● Migrant Redefinition: Expands the definition of interstate migrant workers to include directly hired and self-migrating workers.

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