Under the Industrial Relations Code, 2020, what is the threshold number of workers for an industrial establishment to require prior Government permission before effecting a  lay-off, retrenchment, or closure ?

Solution

One of the most significant changes introduced by the Industrial Relations Code, 2020 is the  upward revision of the threshold  for prior Government permission for lay-off, retrenchment, or closure. Under the old Industrial Disputes Act, 1947, this threshold was  100 workers . The Code has raised this limit to  300 workers , meaning establishments employing fewer than 300 workers can now carry out lay-offs, retrenchments, or closures  without prior government approval , though compensation obligations still apply. This change was aimed at improving  ease of doing business  by giving employers greater flexibility in workforce management. However, States have been given the power to increase this threshold further beyond 300 by notification