Chapter V · Industrial Relations Code

Notice of Change

This chapter bars an employer from changing a worker's conditions of service on any matter listed in the Third Schedule without first giving notice to the workers likely to be affected and then waiting 21 days. It lists the situations where no notice is needed and lets the government exempt whole classes of establishments or workers. For an employer it sets the minimum lead time for such changes; for workers it means 21 days' warning before the change takes effect.

2 sections ~2 min read Official text, PDF pp. 20–21

HR managersFactory ownersIndustrial relations managersTrade union representatives

Key points

1An employer who wants to change any condition of service covered by the Third Schedule must first give notice of the proposed change to the workers likely to be affected, in the manner prescribed by rules made under the Code. §40
2The change cannot be made until 21 days have passed after that notice is given. §40
3No notice is needed when the change is made under a settlement or award, or under orders of the appropriate Government. §40
4An emergency that needs a change of shift or shift working outside the standing orders can be handled without notice, if it is done in consultation with the Grievance Redressal Committee. §40
5The notice rule does not apply to workers covered by government service rules such as the Fundamental and Supplementary Rules, the Civil Services rules or the Indian Railway Establishment Code, or by other rules the government notifies. §40
6The appropriate Government can, by notification, switch off the notice rule, fully or with conditions, for a class of establishments or workers where applying it could seriously harm the industry and public interest requires it. §41

At a glance

21 daysWaiting period after notice before a change can be madeSection 40

Earlier law:Industrial Disputes Act, 1947

Notice of change

In plain words

An employer cannot change a worker's conditions of service on a matter in the Third Schedule without giving the affected workers notice in the manner prescribed by rules, or within 21 days of that notice, unless the change follows a settlement, award or government order, concerns workers under government service rules, or is an emergency shift change made in consultation with the Grievance Redressal Committee.

No employer, who proposes to effect any change in the conditions of service applicable to any worker in respect of any matter specified in the Third Schedule, shall effect such change,—

(i)

without giving to the workers likely to be affected by such change a notice in such manner as may be prescribed of the nature of the change proposed to be effected; or

(ii)

within twenty-one days of giving such notice:

Proviso

Provided that no notice shall be required for effecting any such change—

(a)

where the change is effected in pursuance of any settlement or award;

(b)

where the workers likely to be affected by the change are persons to whom the Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Services Regulations, Civilians in Defence Services (Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or any other rules or regulations that may be notified in this behalf by the appropriate Government in the Official Gazette, apply;

(c)

in case of emergent situation which requires change of shift or shift working, otherwise than in accordance with standing orders, in consultation with Grievance Redressal Committee;

(d)

if such change is effected in accordance with the orders of the appropriate Government or in pursuance of any settlement or award.

Source: The Industrial Relations Code, 2020, official gazette copy, page 20

In plain words

For employers

Check the Third Schedule first: only changes to the matters listed there need this notice. Dating the notice and keeping proof of how it reached workers makes the 21-day count easy to show later.

Did you know?

The Code asks for notice and a 21-day wait, not the workers' agreement: once the 21 days after notice have run, nothing in this chapter requires their consent to make the change.

Did you know?

An emergency shift change outside the standing orders needs no notice at all, but only if the Grievance Redressal Committee is consulted.

Power of appropriate Government to exempt

In plain words

The appropriate Government can, by notification, exclude a class of industrial establishments or workers from section 40, or apply it with conditions, where applying it could cause serious repercussions on the industry and public interest requires it.

Where the appropriate Government is of the opinion that the application of the provisions of section 40 to any class of industrial establishments or to any class of worker employed in any industrial establishment affect the employers in relation thereto so prejudicially that such application may cause serious repercussion on the industry concerned and that public interest so requires, the appropriate Government may, by notification, direct that the provisions of the said section shall not apply or shall apply, subject to such conditions as may be specified in the notification, to that class of industrial establishments or to that class of workers employed in any industrial establishment.

Source: The Industrial Relations Code, 2020, official gazette copy, page 21

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