The Industrial Relations Code, 2020 restructured how industrial disputes are handled in India -- grievance redressal committees are mandatory in establishments with 20 or more workers, a 14-day strike/lockout notice now applies to all industrial establishments rather than just public utilities, and Industrial Tribunals are now two-member benches meant to speed up adjudication.
Grievance Redressal Committees and Negotiating Unions
The Industrial Relations Code, 2020 requires establishments with 20 or more workers to set up a Grievance
Redressal Committee to resolve individual worker grievances at the establishment level before they escalate
further. The Code also introduces the concept of a “Negotiating Union” -- a trade union with
support from more than 51% of workers is recognized as the sole body for collective bargaining with the
employer; where no single union crosses that threshold, a proportionally represented Negotiating Council is
formed from unions with at least 20% membership support.
Strikes and lockouts -- notice requirements now apply universally
Previously, the 14-day cooling-off notice requirement before a strike or lockout under the old Industrial
Disputes Act, 1947 applied only to “public utility services.” Under the Industrial Relations Code,
a 14-day notice requirement before a strike or lockout now applies to all industrial establishments -- a
significant tightening of the practical right to strike across sectors that previously had no such
restriction. Strikes and lockouts also remain prohibited during and shortly after conciliation proceedings and
Industrial Tribunal proceedings.
Two-member Industrial Tribunals and direct access
Industrial Tribunals under the Code are now constituted as two-member benches -- one judicial member and
one administrative/technical member -- replacing the earlier single-member Labour Court/Industrial Tribunal
structure, with the aim of faster adjudication. In many cases, parties can now approach the Tribunal directly
after conciliation fails, without waiting for a government reference order, which was often a procedural
bottleneck under the old Industrial Disputes Act regime. This is particularly relevant for NRI-owned or
NRI-managed businesses operating in India, since disputes involving workmen at an Indian branch or subsidiary
now move through this faster, more predictable process, and the mandatory Grievance Redressal Committee
creates a documented internal record that can be useful evidence if a dispute later escalates to a Tribunal.
Can any establishment’s workers go on strike without giving notice?
No -- under the Industrial Relations Code, 2020, a 14-day notice requirement before a strike or lockout
now applies to all industrial establishments, not just public utility services as under the older law, making
unnotified strikes more restricted than they were before across most sectors.
Does a small company with 15 employees need a Grievance Redressal Committee?
No -- the mandatory Grievance Redressal Committee requirement under the Industrial Relations Code applies
to establishments with 20 or more workers; smaller establishments are not required to constitute one under
this specific provision.
Do I need a government order before taking my dispute to an Industrial Tribunal?
Not necessarily -- the Industrial Relations Code allows direct access to the Tribunal after conciliation
fails in many cases, without needing a government reference order, which is a procedural change from the
older Industrial Disputes Act framework where such a reference was often required first.
