Contents of the Industrial Relations Code

The Industrial Relations Code, 2020

Section 77. Application of this Chapter

In force since 21 Nov 2025Chapter X — Special Provisions Relating to Lay-off, Retrenchment and Closure in Certain Establishments

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In simple words

  • The special lay-off, retrenchment and closure rules in this Chapter apply to factories, mines and plantations with not less than three hundred workers on average per working day in the preceding twelve months, or a higher notified number s. 77(1), (3).
  • Seasonal establishments and those where work is only intermittent are excluded s. 77(1).

An explanation, not the law. The official text below prevails.

Official text

(1) The provisions of this Chapter shall apply to an industrial establishment (not being an establishment of a seasonal character or in which work is performed only intermittently) in which not less than three hundred workers, or such higher number of workers as may be notified by the appropriate Government, were employed on an average per working day in the preceding twelve months.

(2) If a question arises whether an industrial establishment is of a seasonal character or whether work is performed therein only intermittently, the decision of the appropriate Government thereon shall be final.

(3) For the purposes of this Chapter,"industrial establishment" means—

(i) a factory as defined in clause (m) of section 2 of the Factories Act, 1948;

(ii) a mine as defined in clause (j) of sub-section (1) of section 2 of the Mines Act, 1952; or

(iii) a plantation as defined in clause (f) of section 2 of the Plantations Labour Act, 1951.

Source: The Industrial Relations Code, 2020, Act No. 35 of 2020 — Gazette of India, pp. 35–36 of the PDF. Open our copy at p. 35 · official download · all sources

Acts cited in the margin: 63 of 1948 · 35 of 1952 · 69 of 1951

What the Labour Ministry says

  • “Industries having 300 workers on any day of previous year will need prior permission from the Government.” Q12, Myths and Realities of the IR Code, 23 Dec 2025: official copy · our copy

    The Code's own test differs: workers employed on an average per working day in the preceding twelve months [s. 77(1)]. The Code prevails.

This is the Ministry's explanation, not the law. Its FAQs and Handbook say the Codes prevail.

Explained simply in: Leaving a job guide

Compliance obligations under this provision

Commencement In force since 21 Nov 2025

Notification wording (1)
  • S.O. 5320(E), in force from 21 Nov 2025: “the Central Government hereby appoints the 21st day of November, 2025 as the date on which the provisions of the said Code, shall come into force”