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Standing orders, grievances, retrenchment and strikes

What the Industrial Relations Code asks for: standing orders at 300 workers, a grievance committee at 20, fixed-term employment, retrenchment compensation and the re-skilling fund.

Applies to:
All India (Central); states make rules
For:
HR, Leadership
Last reviewed:

The thresholds

WorkersObligation
20 or moreA grievance redressal committee for individual grievances
300 or moreStanding orders on conditions of service (model standing orders apply until yours are certified)
300 or moreGovernment permission before lay-off, retrenchment or closure (was 100)
Any14 days’ notice before a strike or lock-out, and no strike during conciliation

Fixed-term employment

Workers may be employed for a fixed term, for any kind of work, on the same hours, wages, allowances and benefits as permanent workers doing the same work. Their contract ends when the term ends without retrenchment compensation, but they get gratuity after one year, pro rata.

Retrenchment

  • One month’s notice (or wages in lieu), and compensation of 15 days’ average pay for every completed year of service.
  • In addition, the employer pays 15 days’ last wages per retrenched worker into the re-skilling fund, which is credited to the worker.
  • Last in, first out within a category, unless there are recorded reasons otherwise; retrenched workers get preference when rehiring.
In WebHR

WebHR’s exit management records the type of exit, the reason, the notice period and the last working day. The final settlement works out unpaid salary, leave encashment, gratuity and notice recovery; enter retrenchment compensation as other earnings. The re-skilling fund contribution is paid to the fund, outside the settlement.

References

  1. The Industrial Relations Code, 2020 (India Code)
  2. DLA Piper — Labour Codes: a new era of compliance
  3. Cyril Amarchand Mangaldas — guide to the new Labour Codes

Related

Plain-language guidance for HR teams, not legal advice. Checked against the sources above on 29 September 2026; the notification or your authority’s portal is final. Spotted something out of date? Tell us.