Cabinet approves Industrial Relations Code, 2019

On November 21, 2019, the Union Cabinet approved the introduction of Industrial Relations Code, 2019. This is the third code under labor reforms. Under the new code, forty-four laws are to be amalgamated into four codes. The four codes include wage rates, social security, industrial relations and industrial security and labor welfare.

Features of the code

The code intends to simplify and rationalize the Trade Union Act, 1926, Industrial Disputes Act, 1947, Industrial Employment Act, 1946. The code also features to set up a two-member tribunal to fasten the disposal of cases.

The code allows the companies to hire fixed-term contract workers. It defines fixed-term employment as a worker who can be hired for a duration of 3 months or 6 months or a year based on the season and orders.


With the amalgamation of the laws, the process of registration and filing of returns will get streamlined. The process will help in improving ease of business and hence employments will increase. With the amalgamation of labor laws, the GoI intends to bring maximum governance with minimum laws.

The Economic Survey, 2018 highlighted that the labor reforms in Rajasthan increased growth rates of firms. The change was highly evident in firms that were employing more than 100 workers.




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