Industrial Relations Code Amendment Act 2026 Operationalised: Major Labour Laws Repealed for Simplification

Industrial Relations Code Amendment Act 2026 Operationalised: Major Labour Laws Repealed for Simplification

Trade Unions Act, Standing Orders Act, and Industrial Disputes Act Officially Repealed

Government Pushes for Ease of Doing Business and Streamlined Compliance

By Legal Reporter

New Delhi: February 22, 2026:

India’s labour law regime has entered a new phase with the Industrial Relations Code (Amendment) Act, 2026, which came into effect from November 21, 2025. The amendment, passed by Parliament in February 2026, repeals three historic labour legislations — the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947.

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The move is part of the government’s broader effort to consolidate 29 central labour laws into four comprehensive codes:

1. Code on Wages, 2019
2. Code on Social Security, 2020
3. Industrial Relations Code, 2020
4. Occupational Safety, Health and Working Conditions Code, 2020

Together, these codes are now fully operational from January 2026, marking the most ambitious overhaul of India’s labour laws since independence.

Background of the Amendment

• The Industrial Relations Code, 2020 had already subsumed several provisions of older laws.
• However, ambiguity remained regarding the continuity and repeal of the three enactments.
• The Industrial Relations Code (Amendment) Act, 2026 substitutes Section 104(1) of the Code, making it clear that the three laws stand repealed from the date notified.
• The amendment was introduced as Bill No. 33 of 2026 in the Lok Sabha and received Presidential assent on February 16, 2026.

Key Provisions of the Amendment

• Repeal of Historic Laws:
  • Trade Unions Act, 1926
  • Industrial Employment (Standing Orders) Act, 1946
  • Industrial Disputes Act, 1947
• Clarity in Continuity: The amendment removes legal ambiguity about whether the older laws still apply.
• Operationalisation of Labour Codes: All four labour codes are now fully functional, replacing 29 central labour laws.

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Government’s Stand

Union Labour and Employment Minister Mansukh Mandaviya emphasized that the amendment was necessary to avoid “unwarranted complications” in industrial relations. He argued that the consolidation of laws would:

• Promote ease of doing business.
• Reduce compliance burden for employers.
• Provide greater protection to workers, including those in new categories such as gig and platform workers.

Opposition’s Concerns

Opposition parties criticized the move, calling it “anti-worker and pro-corporate.”

• They argued that repealing historic labour laws weakens collective bargaining rights.
• Trade unions staged nationwide strikes, alleging that the government was prioritizing industrialists over workers.
• Critics fear that the new codes may dilute protections for workers in disputes and retrenchments.

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Wider Implications

The operationalisation of the Industrial Relations Code and its amendment has far-reaching consequences:

• For Employers: Simplified compliance and reduced litigation.
• For Workers: Expanded coverage, but concerns about reduced bargaining power.
• For Industrial Relations: Greater clarity in dispute resolution mechanisms under the new code.

Comparison Table

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Expert Views

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Legal experts and industry analysts are divided:

• Supporters: “This is the biggest labour law reform in decades. It will improve India’s global competitiveness,” said a corporate law expert.
• Critics: “The repeal of historic laws risks weakening worker protections. The government must ensure safeguards are not diluted,” argued a labour rights activist.

Conclusion

The Industrial Relations Code (Amendment) Act, 2026 marks a turning point in India’s labour law history. By repealing three foundational legislations and consolidating 29 laws into four codes, the government has sought to simplify compliance and modernize industrial relations. While employers welcome the clarity and reduced burden, workers and unions remain cautious about the impact on their rights. The coming years will reveal whether this ambitious reform achieves its stated goal of balancing ease of doing business with worker protection.

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