Industrial Relations Code — key thresholds

Grievance Redressal Committee (20+), works committee (100+), standing orders (300+), prior permission for lay-off, retrenchment and closure (300+), and a notice before strikes.

RequirementThreshold
Grievance Redressal Committee (s. 4)20 or more workers
Works committee (s. 3)100 or more workers (when ordered by the appropriate government)
Standing orders (s. 28)300 or more workers
Prior permission for lay-off, retrenchment or closure (Chapter X)300 or more workers in a factory, mine or plantation
Notice of closure (s. 74)60 days, where 50 or more workers
Strike or lock-out (s. 62)14 days' notice within 60 days before, in every industrial establishment
  • Fixed-term employment: the same hours, wages, allowances and benefits as permanent workers doing the same work. Gratuity is pro rata.
  • Negotiating union: a trade union with 51% of workers is the sole negotiating union. Otherwise a negotiating council is formed.
  • Worker re-skilling fund: 15 days' last drawn wages for each retrenched worker, paid within 45 days.

Last reviewed 17-10-2026. General information, not legal advice for a specific case. Check the latest Act, Rules and notifications of the appropriate government before acting.

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