Asked by a reader in Bengaluru

What happened to the Industrial Disputes Act, and do the codes apply to me now?

Answered by Advocate Sharan Jain··Employment & Labour Law

Legal Shorts · 82 words

The Industrial Relations Code is now the central framework replacing the Industrial Disputes Act and two related labour laws. The transition includes savings for earlier actions and proceedings, so an old case does not simply disappear. Use the current Code when checking worker status, retrenchment and dispute procedures, and check transitional provisions for an earlier dispute. The commencement date and the date of your dismissal both matter. An article using an old section number may need updating before you rely on it.

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The Industrial Relations Code is now the central framework, but an earlier action or pending proceeding may remain governed by a savings provision. Check both the date of the dispute and the operative transitional text before substituting a new section number for an old one.

What was repealed, and by what

The older statutes and their replacements
Repealed enactmentNow governed by
Industrial Disputes Act, 1947Industrial Relations Code, 2020
Industrial Employment (Standing Orders) Act, 1946Industrial Relations Code, 2020, Chapter IV
Trade Unions Act, 1926Industrial Relations Code, 2020
Payment of Wages Act, 1936; Minimum Wages Act, 1948; Payment of Bonus Act, 1965; Equal Remuneration Act, 1976Code on Wages, 2019
Factories Act, 1948; Contract Labour (Regulation and Abolition) Act, 1970; Inter-State Migrant Workmen Act, 1979; Building and Other Construction Workers Act, 1996, among othersOccupational Safety, Health and Working Conditions Code, 2020
Payment of Gratuity Act, 1972, and the other social security enactmentsCode on Social Security, 2020

The repeal of the first three of those is worked by the repeal and savings provision of the Industrial Relations Code itself. The wage statutes went by the repeal provision of the Code on Wages, and the safety and contract labour statutes by the corresponding provision of the Occupational Safety, Health and Working Conditions Code. Our overview of what the four labour codes changed for employees sets out the mapping in more detail.

Nothing you had is lost by the repeal alone
Each Code carries a savings provision, and the general rule in Section 6 of the General Clauses Act, 1897 is expressly applied. Anything done under the repealed enactments, including rules, notifications, appointments and orders, is treated as done under the corresponding provision of the Code so far as it is not contrary to the Code. Proceedings already on foot do not evaporate. What changes is the label you put on the claim and, in some places, the time you have to bring it.

The changes that actually affect an individual employee

  • The operative word is "worker", not "workman". The supervisory wage cut off in the Industrial Relations Code is written as eighteen thousand rupees a month, subject to notification, where the old Act said ten thousand. That widens the band of protected supervisory staff. Our note on whether you count as a worker under the Industrial Relations Code takes that further.
  • Individual termination disputes have a specific route. Sections 4(9) to 4(11) permit an individual worker to apply directly to the Tribunal after forty-five days from applying for conciliation, subject to the two-year termination limit. Section 53 supplies the procedure for other industrial disputes, including its failure-report route and deadlines. Do not treat the ninety-day route as the only route for an individual dismissal.
  • Standing orders now apply at 300 workers. Chapter IV of the Code applies to an industrial establishment with three hundred or more workers, so many mid sized employers have only the contract and the Karnataka Act to fall back on.
  • The special chapter requiring prior government permission for lay-off, retrenchment and closure now starts at three hundred workers rather than one hundred, but it continues to reach only a factory, a mine or a plantation. A Bengaluru office is outside it either way.
  • A worker re-skilling fund was added. The employer contributes an amount equal to fifteen days' wages last drawn, or such other number of days as the Central Government notifies, for every retrenched worker, and that sum is to be credited to the worker's account within forty-five days of the retrenchment.
  • Fixed term employment is defined in the Code, and a fixed term worker is entitled to statutory benefits proportionately and to gratuity on one year of service under the contract.

Do the codes apply to you

  1. Are you a worker? If your work is mainly managerial or administrative, the Industrial Relations Code does not reach you, and your remedy is contractual.
  2. Is your employer carrying on an industry? The Code defines industry as a systematic activity carried on by co-operation between an employer and a worker for the production, supply or distribution of goods or services, which is wide enough to include ordinary commercial offices.
  3. Which chapter are you in? Retrenchment, transfer and closure provisions in the general chapter apply broadly. The lay-off compensation provisions and the prior permission chapter have their own narrower application, and both of those turn on the size and the type of establishment.
  4. Is there a State law that survives? In Karnataka the Shops and Commercial Establishments Act, 1961 was not repealed and remains the practical route for most office terminations.
State rules are a separate question
The Industrial Relations Code (Central) Rules published on 30 December 2025 were draft rules, not a final operative ruleset. Each State makes its own rules on the matters left to it, and forms, timelines and authorities can differ. Where a right depends on a rule or a notification rather than on the text of the Code, confirm the Karnataka position before you rely on a number you read somewhere.

If you are already in a dispute that started under the old Act, do not assume the old three year window. Take the dates to somebody early. Our guide on wrongful termination and employee rights in India sets out the remedies in the order they should be attempted.

Sources

The law this answer relies on, so you can read it yourself.

  1. 1.Industrial Relations Code, 2020 - 104 Read the source
  2. 2.Industrial Relations Code (Amendment) Act, 2026 - sections1-2 Read the source
  3. 3.Section 104, Industrial Relations Code, 2020. Repeal and savings, providing for the repeal of the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946 and the Industrial Disputes Act, 1947, and saving anything done under them. Read the source
  4. 4.Section 69, Code on Wages, 2019. Repeal and savings, repealing the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976. Read the source
  5. 5.Section 143, Occupational Safety, Health and Working Conditions Code, 2020. Repeal and savings, listing the enactments repealed, including the Factories Act, 1948, the Contract Labour (Regulation and Abolition) Act, 1970, the Inter-State Migrant Workmen Act, 1979 and the Building and Other Construction Workers Act, 1996. Read the source
  6. 6.Section 164, Code on Social Security, 2020. Repeal and savings, the provision under which the enactments listed in it stand repealed. Read the source
  7. 7.Section 53, Industrial Relations Code, 2020. Conciliation and adjudication of a dispute. The proviso to sub-section (1) bars conciliation proceedings more than two years after the dispute arose, and sub-section (6) allows ninety days from receipt of the conciliation officer's report to apply to the Tribunal. Read the source
  8. 8.Payment of Gratuity Act, 1972 and the Code on Social Security, 2020. Official consolidated texts on India Code, the Government of India repository, for the current status of the repealed Act and the gratuity Chapter that replaced it. Read the source

The short answer's sources were checked on 12 September 2026. Statutes and judgments can change, so check the current position before you act on anything here.

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Go deeper on this

This answer is the short version. These guides cover the same ground in full, with the procedure, the timelines and the leading cases.

SJ

Answered by

Advocate Sharan Jain

Advocate based in Bangalore, practising before the Karnataka High Court and District, Sessions, Consumer and Family courts. Answers public legal questions to make Indian law more accessible.

This answer is general information on Indian law as at August 10, 2026, published for public education. It is not legal advice, it does not take account of your facts, and reading it does not create an advocate-client relationship. Law changes and every case turns on its own circumstances. Please consult a qualified advocate about your own matter.

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