Transition Turmoil: Delhi High Court Questions Centre’s Notification on IR Code

Introduction

The Delhi High Court has recently raised serious concerns over the procedural implementation of the Industrial Relations Code, 2020. While the Central government notified the Code to come into force in November 2025, the Court highlighted that key labour laws intended to be repealed have not been formally revoked.

This oversight has created legal ambiguity, especially regarding the functioning of Labour Courts and Industrial Tribunals, which are yet to be fully transitioned under the new Code. The High Court’s observations underscore the importance of following proper legislative procedures to ensure a smooth transition from old labour laws to the new framework.

Background of the Issue

The case arose from a Public Interest Litigation (PIL) filed by NA Sebastian and another petitioner. The petitioners argued that the government’s notification disrupted the existing labour dispute resolution system by attempting to transfer pending cases to tribunals under the new Code—which have not yet been constituted.

The three foundational labour laws that were supposed to be formally repealed are:

Trade Unions Act, 1926
Industrial Employment (Standing Orders) Act, 1946
Industrial Disputes Act, 1947

The Delhi High Court emphasized:

“There has to be a repealing notification. The notification should contain the declaration of the commencement of the code, and it must also notify the repeal of these Acts. As of today, these acts have not been repealed.”

Government’s Interim Response

In response, Additional Solicitor General Chetan Sharma informed the Court that the government had issued a separate notification under the Industrial Relations Code (Removal of Difficulties) Order, 2025.

This interim measure ensures:

Existing Labour Courts and Industrial Tribunals continue to handle both pending and new cases.
The transition to new tribunals under the Industrial Relations Code will occur once they are formally constituted.

The Court appreciated these efforts but stressed that a formal repealing notification must still be issued to avoid legal confusion.

Legal and Procedural Implications

The High Court’s observations highlight a critical principle of Indian legislative practice:

Explicit Repeal Requirement – When new laws replace old statutes, formal repeal notifications are essential.
Preventing Legal Ambiguity – Without repeal, older laws remain technically in force alongside the new Code.
Labour Dispute Resolution – Pending cases could face procedural complications until the transition is completed.

Failure to issue the repealing notification can result in:

Conflicts between old and new labour laws
Challenges to decisions made under the new Code
Administrative delays and legal uncertainty for employers and employees

Next Steps

The Delhi High Court has scheduled the next hearing on January 12, 2026, to evaluate:

Whether the government has issued the required repealing notification
Whether transitional mechanisms for Labour Courts and Industrial Tribunals are functioning effectively
Formation of new tribunals under the Industrial Relations Code

Stakeholders across industries and legal circles are closely monitoring these developments.

Conclusion

The Court’s intervention serves as a reminder that legislative procedures are as important as the laws themselves. As India transitions to the Industrial Relations Code, 2020, proper notifications and clear legal frameworks are essential to prevent ambiguity and ensure a smooth shift from the old to the new system. Pending cases, employers, employees, and policymakers must all navigate this transition carefully. The next hearing in January 2026 will be crucial in determining whether procedural gaps have been addressed and the Code can operate effectively.