Parliament Passes Industrial Relations Code Amendment Bill 2026

Parliament has passed the Industrial Relations Code (Amendment) Bill, 2026, aiming to bring legal clarity to labour-related provisions under the four labour codes. The legislation was cleared by voice vote in both Lok Sabha and Rajya Sabha amid sharp exchanges between the government and the opposition. While the ruling alliance described it as a historic reform to strengthen labour welfare and industrial growth, opposition parties criticised it as anti-worker and tilted in favour of corporate interests.

Government’s Stand on Labour Reforms

Labour and Employment Minister Mansukh Mandaviya stated that the amendment seeks to remove ambiguities arising after the implementation of the four labour codes nearly three months ago. He emphasised that the codes guarantee minimum wages, mandate issuance of appointment letters, and ensure equal wages for the same work irrespective of gender. According to the government, the reforms aim to protect workers while also promoting ease of doing business. The minister asserted that trade unions and workers support the framework and that the government remains committed to safeguarding both labour rights and industrial stability.

Opposition’s Concerns Over Job Security

Leader of the Opposition Mallikarjun Kharge alleged that the labour codes dilute workers’ rights and threaten job security. He argued that the amendments could enable “ease of firing” without corresponding “ease of hiring”. Congress leader Jairam Ramesh criticised the retrospective amendment of the 2020 law, stating that procedural lapses reflect administrative failure. Opposition members contended that increased working hours and relaxed retrenchment norms could weaken labour protections.

Background of the Industrial Relations Code

The Industrial Relations Code, 2020 consolidated three key labour laws: the Trade Unions Act, 1926; the Industrial Employment (Standing Orders) Act, 1946; and the Industrial Disputes Act, 1947. The consolidation was part of a broader reform exercise to simplify India’s complex labour regulatory framework into four comprehensive codes covering wages, social security, occupational safety, and industrial relations.

Important Facts for Exams

• The Industrial Relations Code, 2020 subsumed three major pre-Independence and post-Independence labour laws.
• India has four consolidated labour codes: Wages, Social Security, Occupational Safety, and Industrial Relations.
• The Trade Unions Act was enacted in 1926 during British rule.
• Labour is placed in the Concurrent List of the Constitution.

Implications for Industry and Workforce

The amendment is expected to provide interpretative clarity and streamline compliance requirements for industries. Supporters argue that uniform definitions and simplified procedures will reduce litigation and encourage investment. Critics, however, warn that flexibility in retrenchment and dispute resolution mechanisms may shift the balance of power towards employers. The debate reflects the continuing tension between labour welfare and industrial competitiveness in India’s evolving economic framework.