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Sections 84–85 of the Industrial Relations Code, 2020: Unfair Labour Practices and the Power to Impose Penalty

No employer, worker or Trade Union, whether registered under the Code or not, may commit any unfair labour practice specified in the Second Schedule (s.84). The Schedule has Part...

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Published
September 30, 2026
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Last updated: October 2026Verified against: Government sources

Section 84 prohibits any employer, worker or Trade Union, registered or not, from committing an unfair labour practice listed in the Second Schedule. Section 85 lets the appropriate Government appoint an officer, not below the rank of Under Secretary, to hold an enquiry and impose penalty for a set of offences, and makes non-payment of that penalty a further offence.

Section 84: the prohibition

Section 84 is a single sentence in Chapter XII: no employer or worker or a Trade Union, whether registered under this Code or not, shall commit any unfair labour practice specified in the Second Schedule. Three points follow.

  • Both sides are bound. The prohibition reaches employers, workers and unions, including unregistered unions.
  • The Schedule is the test. The Code defines "unfair labour practice" in s.2 by reference to the Second Schedule, which is the complete list; see the definitions article.
  • The penalty is in s.86(5) and (6), not in s.84. See section 86(1) to (6).

The Second Schedule at a glance

The full text is covered in our articles on Part I, employers and Part II, workers and unions. In outline:

PartWhoHeadline items in the text
I, items (1) to (16)Employers and Trade Unions of employersInterfering with or coercing workers in organising a union; dominating or supporting a union; employer-sponsored unions; discriminating to encourage or discourage membership; victimisation and unjust discharge or dismissal; abolishing regular work to break a strike; mala fide transfers; requiring good-conduct bonds from workers on a legal strike; favouritism; long-term badli, casual or temporary engagement to defeat permanent status; recruiting during a strike that is not illegal; failure to implement an award, settlement or agreement; acts of force or violence; refusing to bargain collectively in good faith with recognised unions; a lock-out deemed illegal
II, items (1) to (8)Workers and Trade Unions of workersSupporting or instigating an illegal strike; coercing workers through physical picketing or force or threats; a recognised union refusing to bargain in good faith; coercive activity against certification of a bargaining representative; wilful "go-slow", squatting after hours, or "gherao"; demonstrations at residences of employers or managers; wilful damage to property; force or intimidation to prevent attendance

Some items tie back to other sections. Item I(13) (failure to implement an award, settlement or agreement) overlaps with the s.86(17) penalty for breach of a settlement or award, and I(16) and II(1) refer to strikes and lock-outs "deemed illegal"; see sections 63 and 64 and section 62.

If you are an employer reviewing disciplinary policy, transfers or contract-engagement practice against Part I, our employment and labour law advisory team can test each against the listed items.

Section 85: who imposes the penalty, and how

Section 85 operates "notwithstanding anything contained in section 84". It creates an administrative enquiry track for certain offences.

Sub-sectionWhat it does
85(1)For imposing penalty under s.86(3), (5), (7), (8), (9), (10), (11) and (20) and s.89(7), the appropriate Government may appoint any officer not below the rank of Under Secretary to the Government of India, or an officer of equivalent rank in the State Government, to hold an enquiry in the manner prescribed by the Central Government.
85(2)The officer has power to summon and enforce attendance of any person acquainted with the facts to give evidence or produce documents. If satisfied on the enquiry that the person has committed an offence under the provisions in (1), the officer may impose such penalty as he thinks fit in accordance with such provisions.
85(3)A person who fails to pay the penalty within ninety days from the date of receipt of the copy of the order is punishable with fine of not less than fifty thousand rupees and up to two lakh rupees.

What falls in the officer's list

ProvisionSubject
s.86(3)Contravention of ss.67, 70, 73 or 75 (lay-off compensation, retrenchment conditions, transfer, closure compensation)
s.86(5)Unfair labour practice
s.86(7) to (9)Trade Union defaults, false entries in the s.26 statement, false copies of rules
s.86(10) and (11)Standing orders defaults
s.86(20)Any other contravention
s.89(7)Failure to comply with a compounding order

Offences outside the list, such as the heavier Chapter X offences under s.86(1) and (2), the repeat offences, and offences relating to illegal strikes and lock-outs, are dealt with through prosecution in court on a complaint of the appropriate Government (s.87); see sections 87 and 88. The text does not say which route a repeat offence under (4) or (6) takes beyond what s.85(1) lists.

What "as he thinks fit in accordance with such provisions" means

The officer's power is bounded by the penalty range in the listed sub-section. For an unfair labour practice, s.86(5) fixes a fine of ten thousand to two lakh rupees, so the officer cannot go outside that range.

Central Rules, 2026: rule 44

These rules apply to Central-sphere establishments. Where the State Government is the appropriate Government, the State's own rules govern the enquiry.

Rule 44 of the Industrial Relations (Central) Rules, 2026 (G.S.R. 342(E), 8 May 2026) prescribes the enquiry. In summary:

  • The complaint is enquired into by an officer not below the rank of Under Secretary to the Government of India, appointed by the Central Government under s.85(1) (rule 44(1)).
  • The officer sends a notice electronically or by speed post, uploads it to the designated portal, and calls the person to appear with documents and witnesses (rule 44(2)).
  • The officer may proceed ex parte if the noticed person fails to appear, and may dismiss the complaint if the complainant is absent on two consecutive dates without information; not more than three adjournments on joint application; video-conferencing is at the officer's discretion (rule 44(4) and (5)).
  • The officer may refuse a complaint filed beyond six months from the date of the offence, among other grounds, for recorded reasons (rule 44(13)).
  • The officer is guided by the Code of Civil Procedure, 1908 with necessary alterations (rule 44(15)).

The full rule is in rule 44.

Example. A union complains that an employer discharged its office-bearer for organising a union. The complaint is about an unfair labour practice in Part I, item (4)(f). It is enquired into by the officer appointed under s.85(1). After hearing both sides, the officer imposes a penalty within the range of s.86(5). If the employer does not pay within ninety days of receiving the order copy, it faces a fine of fifty thousand to two lakh rupees under s.85(3).

The old Industrial Disputes Act, 1947 also listed unfair labour practices in a schedule; our post on industrial disputes under the new Labour Codes gives the overview.

Need help with an unfair labour practice complaint?

A complaint under s.84 turns on matching the facts to a listed item, and on proof. Our employment and labour law advisory team can review discharge, transfer and engagement decisions against the Second Schedule and help prepare a reply to a notice from the enquiry officer. Bring the file and any show-cause correspondence.

Key takeaways

  • Section 84 bars unfair labour practices by employers, workers and Trade Unions, registered or not.
  • The Second Schedule is the list: 16 items for employers, 8 for workers and unions.
  • Section 85 lets an officer not below Under Secretary rank enquire and impose penalty for listed offences.
  • Non-payment within ninety days is a separate offence, fined fifty thousand to two lakh rupees.
  • Central-sphere enquiries follow rule 44; State rules apply elsewhere.

Read next

Disclaimer: Based on the Industrial Relations Code, 2020 (as enacted) and, where noted, the Industrial Relations (Central) Rules, 2026 (G.S.R. 342(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.

Quick recapKey facts & short answers

Key Facts About Sections 84

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Does s.84 apply to an unregistered Trade Union?

Yes. It says "whether registered under this Code, or not".

Where is the penalty for an unfair labour practice?

In s.86(5): a fine of ten thousand to two lakh rupees, with a higher scale for repeat offences in s.86(6).

Pay contributions on the due date; the interest and damages for delay add up faster than expected.

— TaxClue Labour Law Desk

Sections 84: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Yes. It says "whether registered under this Code, or not".

In s.86(5): a fine of ten thousand to two lakh rupees, with a higher scale for repeat offences in s.86(6).

An officer not below the rank of Under Secretary to the Government of India or equivalent in the State Government (s.85(1)).

Yes, s.85(2) gives power to summon and enforce attendance and to call for documents.

Failure to pay within ninety days of receiving the order copy is punishable with a fine of fifty thousand to two lakh rupees (s.85(3)).

Rule 44(13)(b) of the Central Rules lets the officer refuse a complaint filed beyond six months from the date of the offence.