LabourReforms – Government Introduces Industrial Relations Code Amendment Bill

LabourReforms – The Union government has moved to refine the legal structure governing labour relations with the introduction of a fresh amendment to the Industrial Relations Code.

The Industrial Relations Code (Amendment) Bill, 2026, was tabled in the Lok Sabha on Wednesday by Union Labour and Employment Minister Mansukh Mandaviya during Zero Hour. The proposed legislation seeks to address technical and legal ambiguities linked to the Industrial Relations Code, 2020, a central component of India’s labour reform agenda.

Clarifying the Scope of Repeal Provisions

The amendment primarily aims to remove any uncertainty regarding the repeal of earlier labour laws that were subsumed under the 2020 Code. These include the Trade Unions Act of 1926, the Industrial Employment (Standing Orders) Act of 1946, and the Industrial Disputes Act of 1947. The 2020 Code consolidated these statutes into a unified framework covering trade unions, employment conditions in industrial establishments, and the resolution of industrial disputes.

According to the Bill, Section 104 of the Industrial Relations Code already provided for the automatic repeal of these earlier enactments. However, the amendment seeks to explicitly clarify that the repeal took effect by operation of the Code itself, rather than through any discretionary executive action. Officials said this step is intended to prevent potential legal disputes or interpretational challenges in the future.

A notification issued in February 2026 and published in the Official Gazette had reaffirmed that the repeal had come into force under Section 104. The new amendment reinforces this position, aiming to eliminate what the government described as possible “future unwarranted complications.”

Strengthening the Labour Reform Architecture

The Industrial Relations Code, 2020, is one of four labour codes designed to streamline and modernise India’s labour laws. By consolidating multiple statutes into a single legislative instrument, the Code seeks to simplify compliance, promote industrial harmony, and strengthen mechanisms for dispute resolution.

As states and Union Territories move toward operationalising the labour codes, administrative clarity has emerged as a key requirement. Legal experts note that clearly defined jurisdictional authority is essential for ensuring consistent enforcement and avoiding conflicting interpretations across regions.

The government has maintained that transparent implementation will support both worker welfare and business confidence. By clarifying the statutory basis of repeals and authority under the Code, the amendment is expected to provide greater legal certainty to employers, employees, and administrators alike.

Presidential Order on Union Territories

In a related development earlier this year, President Droupadi Murmu authorised administrators and Lieutenant Governors of all Union Territories to exercise the powers of the “appropriate government” under the Industrial Relations Code, 2020. The directive was issued on January 6 under clause (1) of Article 239 of the Constitution.

This authorisation is intended to ensure uniform execution of labour laws in Union Territories, where governance structures differ from those of states. The order also replaced earlier notifications issued in January and June 2023, bringing greater coherence to administrative arrangements.

Officials indicated that the move aligns with the broader objective of harmonising labour regulation across jurisdictions. With the gradual rollout of the labour codes nationwide, clarity in governance roles is considered crucial for avoiding procedural delays and legal disputes.

Focus on Legal Certainty and Implementation

The introduction of the Industrial Relations Code (Amendment) Bill, 2026, signals the government’s effort to fine-tune the legislative framework as implementation progresses. Rather than altering substantive rights or obligations, the amendment concentrates on technical clarity to safeguard the Code’s intended functioning.

As parliamentary discussions proceed, stakeholders across industry and labour groups are expected to closely watch the developments. The amendment underscores the importance of precision in legislative drafting, particularly in wide-ranging reforms that replace decades-old statutes.

If enacted, the changes are likely to reinforce the legal foundation of India’s evolving labour regime while supporting smoother administration across states and Union Territories.