Industrial Relations Code 2020 - FAQ official link
The Ministry of Labour & Employment has released official FAQs on the new Labour Codes, and these clarifications are highly relevant for HR, payroll, and leadership teams planning their compliance roadmap. These FAQs reduce interpretation risks and give employers clearer policy direction, but they also signal the need to revisit salary structures, appointment letters, payroll logic, contractor engagement, and HR policies in a time‑bound manner. For HR leaders, this is the right time to move from basic awareness to structured readiness through policy reviews, system changes, and focused communication with employees.FAQs on Industrial Relations (IR) Code, 2020
Q1. Does the IR Code take back workers’ right to form trade unions?
Ans: No. Provisions related to registration of trade unions remain intact under Chapter-III of IR Code 2020.
Q2. Does IR Code ban all strikes?
Ans: No. The right to strike remains intact with a mandatory 14-day notice period before going on strike.
Q3. Does a worker need government permission to strike?
Ans: No permission is required. Only a 14-day prior notice is mandatory to facilitate timely conciliation and reduce conflict.
Q4. Does IR Code allow employers to retrench workers freely?
Ans: No. Mandatory one-month notice and retrenchment compensation continue. Prior permission is required for establishments with 300 or more workers.
Q5. Do trade unions lose their grievance redressal role?
Ans: No. Trade unions gain statutory backing as negotiating unions/councils. Bipartite forums like Works Committees and Grievance Redressal Committees ensure time-bound resolution.
Q6. Does the Code end job security and promote hire-and-fire?
Ans: No. Job security provisions remain with notice and compensation. Retrenchment for 300+ workers needs prior permission.
Q7. Is Fixed-Term Employment (FTE) exploitative?
Ans: No. FTE employees get all benefits equal to permanent employees, including gratuity after one year, appointment letters, and skill enhancement opportunities.
Q8. Can employers with less than 300 workers fire without restriction?
Ans: No. Notice and compensation rules apply. A re-skilling fund for retrenched workers is introduced for welfare.
Q9. Is the conciliation mechanism abolished?
Ans: No. It is streamlined with compulsory conciliation for strike notices, fixed timelines, and digital processes for faster dispute resolution.
Q10. Are Labour Courts abolished?
Ans: Labour Courts and Tribunals are replaced with a simplified two-tier tribunal system with two-member panels for speedy justice.
Q11. Can workers still collectively bargain or protest?
Ans: Yes. Mandatory recognition of negotiating unions/councils strengthens structured bargaining.
Q12. Does industry closure no longer need approval?
Ans: No. Lay-off, retrenchment, and closure are regulated. Industries with 300+ workers need prior government permission.
Q13. Is workers’ participation in management removed?
Ans: No. Workers’ participation is ensured through Works Committees and Grievance Redressal Committees.
Q14. Are penalty provisions removed?
Ans: No. Penalties have been substantially increased and made commensurate with offences.
Q15. Does IR Code centralize all labour powers?
Ans: No. Labour is a concurrent subject. States retain powers as appropriate governments under the Codes.
Q16. Will abolition of Labour Courts delay justice?
Ans: No. Two-member Industrial Tribunals will deliver justice faster.
Q17. Does the Code favor employers only?
Ans: No. It protects workers through negotiating unions, committees, safeguards before retrenchment, and effective dispute resolution.
Q18. Are sales promotion employees excluded?
Ans: No. They are recognized under the definition of ‘worker’ in the IR Code.
Q19. Are journalists excluded as freelancers?
Ans: No. Working journalists employed in newspapers/agencies are included under the definition of worker.
