Centre Sets February Deadline for Industrial Relations Code Rules Finalisation
The Central government has informed the Delhi High Court that the rules under the Industrial Relations Code 2020 will be finalized by the end of February. This announcement came during Monday's hearing of a petition concerning the implementation of the landmark labour laws enacted in 2020.
Court Hearing Reveals Progress on Labour Law Implementation
During the proceedings before a bench comprising Chief Justice DK Upadhyaya and Justice Tejas Karia, Solicitor General Tushar Mehta and Additional Solicitor General Chetan Sharma provided crucial updates. They confirmed that public suggestions have been carefully considered and the framing of rules is currently under active consideration by the authorities.
The Industrial Relations Code 2020 represents a significant consolidation of all existing laws pertaining to trade unions, employment conditions in industrial establishments, and the settlement of industrial disputes. This comprehensive legislation aims to streamline labor regulations across the country.
Petitioners Raise Concerns About Implementation Gaps
Meanwhile, petitioners NA Sebastian and Sunil Kumar highlighted several implementation challenges. They pointed out that although the Central government published a gazette notification on November 21, 2025, officially notifying the Industrial Relations Code 2020, the necessary rules for implementation remain unframed.
The petitioners emphasized that without these rules, the new regime cannot be properly implemented, and the tribunals required under the code have not yet been constituted. This situation, they argued, creates practical difficulties in the transition from old to new labor regulations.
Government Addresses Transition Concerns
Solicitor General Mehta clarified that the Centre has already issued two separate notifications to address existing gaps in the new labour code and ensure a smoother transition process. He explained that while the old labour laws have been officially scrapped since November 21, 2025, the existing tribunals established under previous legislation will continue functioning until new statutory bodies are established under the current code.
The court subsequently closed the proceedings, observing that the petitioners' immediate concerns had been adequately addressed through these government assurances and notifications.
Court Leaves Door Open for Future Concerns
However, the bench made an important clarification regarding future implementation challenges. The court indicated that if any "hiccups" occur in implementing the new labour code after the rules are formally framed, the petitioners would be free to raise these issues through a fresh petition at that appropriate stage.
The petitioners had contended that the absence of rules would create a legal vacuum where authorities functioning under earlier laws would be unable to operate effectively. The court, however, deemed this apprehension unfounded given the government's transitional arrangements.
Specific Concerns About Tribunal Transfers
Among the specific concerns raised was the code's provision for transferring all pending cases to tribunals that do not currently exist. The petitioners argued that this creates practical difficulties, with the entire functioning of industrial tribunals and labour courts in Delhi reportedly coming to a standstill amid widespread confusion about procedural matters.
Background on New Labour Codes
The government's labour reform initiative, launched in November, merges 29 existing laws into four comprehensive labour codes. This consolidation aims to promote ease of business while simultaneously protecting workers' rights through modernized regulations.
The four codes include:
- The Code on Wages
- Industrial Relations Code
- Social Security Code
- Occupational Safety Code
These codes introduce several progressive provisions:
- Equality for women in workplace environments
- Gratuity benefits for fixed-term employees after one year of service
- Free annual health check-ups for workers
- Double pay for overtime work
The latest labour codes are expected to impact more than 400 million workers across both formal and informal sectors, representing one of the most significant labor law reforms in recent Indian history.
