The three Acts it replaces
| Repealed Act | What it governed |
|---|---|
| Trade Unions Act, 1926 | Registration and rights of trade unions |
| Industrial Employment (Standing Orders) Act, 1946 | Terms of employment, conduct, standing orders |
| Industrial Disputes Act, 1947 | Layoff, retrenchment, closure, dispute resolution |
The thresholds that decide your duties
| Threshold | Duty it triggers |
|---|---|
| 300 workers | Prior government permission needed for retrenchment, layoff or closure (raised from 100) |
| 300 workers | Standing orders required for the establishment |
| 20 workers | A Grievance Redressal Committee must be constituted |
| Fixed-term staff | Entitled to the same benefits pro-rata, including gratuity on completion of term |
Thresholds are as set in the code and the Industrial Relations (Central) Rules 2026; some states apply different figures. Confirm against your state rules.
Fixed-term employment
The code formally recognises fixed-term employment and requires that a fixed-term worker get the same hours, wages, allowances and statutory benefits as a permanent worker doing the same work, on a pro-rata basis, including gratuity once the term is completed. This matters for staffing firms that place workers on defined contracts.
Strikes, notice and standing orders
The code extends notice and conciliation requirements before a legal strike or lock-out and requires model or certified standing orders for establishments above the threshold. The Central Rules 2026 notify the model standing orders and the forms.
Frequently asked questions
What is the 300-worker rule in the IR Code?
An industrial establishment with 300 or more workers must obtain prior government permission before retrenchment, layoff or closure, and must have certified standing orders. The earlier threshold was 100 workers.
Are fixed-term employees entitled to gratuity under the IR Code?
Yes. Fixed-term employees are entitled to the same benefits as permanent employees on a pro-rata basis, including gratuity on completion of their term, without the usual five-year qualifying period applying in the same way.
When is a Grievance Redressal Committee required?
An industrial establishment employing 20 or more workers must constitute a Grievance Redressal Committee under the code.
Which laws did the IR Code replace?
Three: the Trade Unions Act 1926, the Industrial Employment (Standing Orders) Act 1946 and the Industrial Disputes Act 1947.
Manage fixed-term and deployed workers correctly
ZeniaHR tracks fixed-term contracts, pro-rata benefits and worker records across every client site, so IR-Code duties are met by design.
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