Lok Sabha Approves Bill Amending Industrial Relations Code of 2020

Bill passed to prevent complications regarding laws replaced by the 2020 Industrial Relations Code.

The Lok Sabha passed the Industrial Relations Code (Amendment) Bill, 2026, to prevent future complications concerning laws replaced by the Industrial Relations Code of 2020. The bill includes savings provisions to ensure continuity and legal certainty. It addresses potential confusion regarding the repeal of previous acts, clarifying that the repeal occurred through Section 104 of the Code itself.

The Industrial Relations Code, 2020, replaces the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947. The four Labour Codes ensure minimum wage, compulsory issuance of appointment letters, and uniform wages regardless of gender.

Key Facts

The Industrial Relations Code (Amendment) Bill, 2026, was passed by the Lok Sabha.

The bill aims to prevent future complications concerning laws replaced by the Industrial Relations Code of 2020.

The bill includes savings provisions to ensure continuity and legal certainty.

The Industrial Relations Code, 2020, replaces the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947.

UPSC Exam Angles

GS Paper 2: Polity and Governance - Labor laws and reforms

Connects to social justice, economic development, and ease of doing business

Potential questions on the impact of labor reforms on workers' rights and industrial relations

Visual Insights

Evolution of Industrial Relations Code

Timeline of key events leading to the Industrial Relations Code (Amendment) Bill, 2026.

The Industrial Relations Code (Amendment) Bill, 2026 is a step towards clarifying and streamlining labour laws in India, building on previous efforts to consolidate and modernize the legal framework.

2015Second National Commission on Labour recommends consolidating labour laws.
2019Code on Wages, 2019 passed.
2020Parliament passes the Industrial Relations Code, 2020 along with other Labour Codes.
2024Government focuses on phased implementation of the Labour Codes across different states.
2026Lok Sabha approves Industrial Relations Code (Amendment) Bill, 2026 to prevent future complications concerning laws replaced by the Industrial Relations Code of 2020.

More Information

Background

The Industrial Relations Code, 2020, represents a significant overhaul of India's labor laws. Historically, labor laws were fragmented and complex, leading to difficulties in implementation and compliance. The need for simplification and consolidation was recognized to promote ease of doing business and protect workers' rights. This led to the formulation of the four Labour Codes, including the Industrial Relations Code, the Code on Wages, the Code on Social Security, and the Occupational Safety, Health and Working Conditions Code. These codes aim to streamline the existing laws and make them more relevant to the current economic scenario. The evolution of labor laws in India can be traced back to the colonial era, with the enactment of the Trade Unions Act, 1926, which provided for the registration and regulation of trade unions. Subsequently, the Industrial Disputes Act, 1947, was enacted to address industrial disputes and promote peaceful resolution. The Industrial Employment (Standing Orders) Act, 1946, mandated employers to define the conditions of employment. Over time, these acts were amended and supplemented, leading to a complex and often contradictory legal framework. The Labour Codes seek to address these issues by consolidating and simplifying the existing laws. The Industrial Relations Code, 2020, specifically aims to consolidate and amend the laws relating to trade unions, conditions of employment in industrial establishments, and investigation and settlement of industrial disputes. It replaces the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947. The Code includes provisions relating to the formation and registration of trade unions, the rights and obligations of employers and employees, and the mechanisms for resolving industrial disputes, such as conciliation, mediation, and adjudication. The Code also addresses issues relating to strikes and lockouts, and provides for the establishment of industrial tribunals to adjudicate disputes. Internationally, many countries have adopted comprehensive labor laws to protect workers' rights and promote harmonious industrial relations. The International Labour Organization (ILO) plays a crucial role in setting international labor standards and promoting social justice. India is a member of the ILO and has ratified several ILO conventions relating to labor rights. The Labour Codes are intended to align India's labor laws with international standards and best practices.

Latest Developments

Recent government initiatives have focused on promoting labor reforms to enhance economic growth and create employment opportunities. The enactment of the four Labour Codes is a key step in this direction. The government aims to implement these codes to simplify labor laws, reduce compliance burden, and promote investment. The focus is on creating a conducive environment for businesses while ensuring the protection of workers' rights. The Ministry of Labour and Employment is actively involved in the implementation of these codes. There are ongoing debates among various stakeholders regarding the impact of the Labour Codes on workers' rights and industrial relations. Trade unions have expressed concerns about the potential dilution of workers' rights and the increased flexibility given to employers. Employers, on the other hand, have welcomed the reforms as they believe it will promote ease of doing business and attract investment. The government is trying to address these concerns through consultations and negotiations with various stakeholders. The role of NITI Aayog is also crucial in providing recommendations and guidance on labor reforms. The future outlook for labor reforms in India is positive, with the government committed to implementing the Labour Codes in a phased manner. The government aims to create a more transparent and efficient labor market that promotes economic growth and social justice. The focus is on skill development, employment generation, and social security for workers. The government is also working on strengthening the enforcement mechanisms to ensure compliance with labor laws. The success of these reforms will depend on effective implementation and collaboration among various stakeholders. Challenges remain in the implementation of the Labour Codes, including the need for capacity building, awareness creation, and effective enforcement. There is also a need to address the concerns of various stakeholders and ensure that the reforms are implemented in a fair and equitable manner. The way forward involves continuous dialogue and consultation among the government, employers, and trade unions to address these challenges and ensure the successful implementation of the Labour Codes.

Practice Questions (MCQs)

1. The Industrial Relations Code, 2020, which was recently amended, replaces which of the following acts? 1. The Trade Unions Act, 1926 2. The Industrial Employment (Standing Orders) Act, 1946 3. The Minimum Wages Act, 1948 Select the correct answer using the code given below:

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: A

The Industrial Relations Code, 2020 replaces the Trade Unions Act, 1926 and the Industrial Employment (Standing Orders) Act, 1946. It does NOT replace the Minimum Wages Act, 1948. Therefore, statements 1 and 2 are correct, while statement 3 is incorrect. The Minimum Wages Act, 1948 is now part of the Code on Wages, 2019.

2. Consider the following statements regarding the Industrial Relations Code (Amendment) Bill, 2026: 1. It aims to prevent future complications concerning laws replaced by the Industrial Relations Code of 2020. 2. It introduces new provisions related to minimum wage standards for unorganized sectors. 3. It clarifies that the repeal of previous acts occurred through Section 104 of the Code itself. Which of the statements given above is/are correct?

A.1 and 2 only
B.1 and 3 only
C.2 and 3 only
D.1, 2 and 3

Show Answer

Answer: B

The Industrial Relations Code (Amendment) Bill, 2026 aims to prevent future complications concerning laws replaced by the Industrial Relations Code of 2020 and clarifies that the repeal of previous acts occurred through Section 104 of the Code itself. It does NOT introduce new provisions related to minimum wage standards for unorganized sectors. Therefore, statements 1 and 3 are correct, while statement 2 is incorrect.

3. Which of the following statements is NOT correct regarding the objectives of the four Labour Codes?

A.Ensuring minimum wage for all workers
B.Compulsory issuance of appointment letters
C.Uniform wages regardless of gender
D.Promoting privatization of public sector undertakings

Show Answer

Answer: D

The four Labour Codes ensure minimum wage, compulsory issuance of appointment letters, and uniform wages regardless of gender. They do NOT aim to promote privatization of public sector undertakings. Therefore, option D is NOT correct. The primary focus of the Labour Codes is to consolidate and simplify labor laws, protect workers' rights, and promote ease of doing business.