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Section 90 of the Industrial Relations Code, 2020: Conditions of Service to Remain Unchanged During Pendency of Proceedings

While an industrial dispute is pending before a conciliation officer, Arbitrator, Tribunal or National Industrial Tribunal on matters not covered by an employer's notice of change...

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Labour Laws
Published
September 30, 2026
Last updated
Oct 7, 2026
Reading time
9 min
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Last updated: October 2026Verified against: Government sources

Section 90 freezes the service conditions of workers involved in a pending industrial dispute and stops the employer from punishing them for misconduct connected with it, unless the authority hearing the dispute gives written permission. Unconnected matters can proceed, but a dismissal needs one month's wages and an approval application. Protected workers get stronger cover.

Sub-section by sub-section

Sub-sectionRule
90(1)Where an industrial dispute pertaining to an establishment or undertaking is pending before a conciliation officer, Arbitrator, Tribunal or National Industrial Tribunal, on matters not covered by the notice of change under s.40, no employer shall, save with the express permission in writing of the authority: (a) in any matter connected with the dispute, alter to the prejudice of the workers concerned the conditions of service applicable immediately before the proceedings began; or (b) for any misconduct connected with the dispute, discharge or punish, whether by dismissal or otherwise, any worker concerned.
90(2)During pendency, the employer may, in accordance with standing orders (or, if none, the express or implied contract): (a) alter conditions of service in a matter not connected with the dispute; or (b) discharge or punish for misconduct not connected with the dispute. Proviso: no such worker may be discharged or dismissed unless he has been paid wages for one month and the employer has applied to the authority for approval of the action.
90(3)Despite (2), no employer shall, during pendency, take action against a protected worker concerned in the dispute by altering service conditions to his prejudice or by discharging or punishing him, save with the express written permission of the authority. Explanation: a protected worker is a member of the executive or other office-bearer of a registered Trade Union connected with the establishment, recognised as such in accordance with the rules.
90(4)In every establishment, the number of protected workers is one per cent of the total workers, subject to a minimum of five and a maximum of one hundred; the appropriate Government may make rules on distribution among unions and on how they are chosen and recognised.
90(5)On an approval application under the proviso to (2), the authority shall hear it without delay and pass an order within three months of receipt. The authority may, for reasons recorded in writing, extend the period. No proceeding lapses merely because the period expired.

How the freeze works

Connected versus unconnected matters

The split is the heart of the section.

ActionConnected with the disputeNot connected with the dispute
Alter service conditions to the workers' prejudiceOnly with express written permission (s.90(1)(a))Allowed under standing orders or contract (s.90(2)(a))
Discharge or punish for misconductOnly with express written permission (s.90(1)(b))Allowed, but a discharge or dismissal needs one month's wages and an approval application (s.90(2)(b) and proviso)
Action against a protected worker concerned in the disputeExpress written permission (s.90(3))Express written permission (s.90(3), which applies "notwithstanding" (2))

What triggers the freeze

The pending dispute must be before a conciliation officer, Arbitrator, Tribunal or National Industrial Tribunal; see conciliation officers and Tribunals and voluntary arbitration. The wording "with regard to matters not covered by the notice of change issued by an employer under section 40" links to the notice scheme in sections 40 and 41. The text does not say when a dispute becomes "pending" for this purpose beyond the reference to these authorities, so take advice on the start date for your facts.

The one-month-wages rule

The proviso to (2) requires two things before a discharge or dismissal for unconnected misconduct: payment of one month's wages and an application for approval. The text does not say that the dismissal waits for the order; it says the worker shall not be discharged or dismissed "unless" both steps have been done. Employers should keep proof of the payment and the application.

The three-month decision period

Under s.90(5) the authority passes an order on the approval application within three months, may extend for recorded reasons, and the proceedings do not lapse because time ran out.

If you are an HR head managing discipline during a live dispute, our employment and labour law advisory team can help classify each action as connected or not and prepare the permission or approval application.

Protected workers: rule 39 of the Central Rules, 2026

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

RuleRequirement (G.S.R. 342(E), 8 May 2026)
39(1)Every registered Trade Union connected with the establishment communicates to the employer before 30 April every year the names and addresses of the officers employed in that establishment who, in the union's opinion, should be recognised as protected workers.
39(2)A change in incumbency of any such officer is communicated within fifteen days.
39(3)The employer, within fifteen days of receipt, recognises such workers as protected workers, subject to s.90(3) and (4), and communicates the list to the union in writing, for a period of twelve months from the date of communication.
39(4)If names exceed the maximum admissible under s.90(4), the employer recognises the maximum. With more than one union, the maximum is distributed in practically the same proportion as membership, and each union's President or Secretary is told in writing. If a union's allotment falls short, it selects its officers and communicates the selection within five days of the employer's written intimation.
39(5)A dispute over recognition is referred to the Deputy Chief Labour Commissioner (Central), Regional Labour Commissioner (Central) or Assistant Labour Commissioner (Central), whose decision is final.

See rule 39. For the worked arithmetic: an establishment with 420 workers has 1 per cent = 4.2, below the minimum, so five protected workers; one with 15,000 workers would reach the cap of one hundred. The text does not say how a fraction above the minimum is rounded, so check the State or Central practice when the figure is not a whole number.

Consequences and remedies

A worker aggrieved by a contravention of s.90 can complain under section 91, which the conciliation officer takes into account in mediation and the Arbitrator or Tribunal adjudicates as if it were a dispute referred to it. A contravention of s.90 is not named in s.86(1) to (4); the residual s.86(20) would cover it on the text. Discharging a worker for union activity or filing charges may also be an unfair labour practice; see the Second Schedule, Part I.

Example. A dispute over a wage revision is pending before a Tribunal. The employer wants to shift the night shift allowance downward for the workers in the dispute: this is connected, so it needs express written permission. Separately, it finds a worker outside the dispute absent without leave for a week. Under s.90(2) it may act under standing orders, but to dismiss him it must pay one month's wages and apply to the Tribunal for approval. Had the worker been a recognised protected worker concerned in the dispute, s.90(3) would require the Tribunal's written permission first.

Need help with discipline during a pending dispute?

A wrong step here becomes a fresh complaint in the same forum. Our employment and labour law advisory team can review the proposed action, draft the permission or approval application and check the protected-worker list against rule 39. Bring the dispute papers and the standing orders.

Key takeaways

  • While a dispute is pending, no prejudicial change or punishment connected with it without written permission.
  • Unconnected actions are allowed, but dismissal needs one month's wages and an approval application.
  • Protected workers (1 per cent, minimum 5, maximum 100) need written permission for any adverse action.
  • The authority decides an approval application within three months, extendable for recorded reasons.
  • Central-sphere unions nominate by 30 April each year; the employer recognises within fifteen days, for twelve months.

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 Section 90

  • 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.

Can an employer dismiss a worker during a pending dispute?

For misconduct connected with the dispute, only with the authority's written permission. For unconnected misconduct, the employer may act under standing orders or contract, but must pay one month's wages and apply for approval.

Who is a protected worker?

A member of the executive or other office-bearer of a registered Trade Union connected with the establishment, recognised under the rules (s.90(3) Explanation).

An honest "we were late" filed today is better than a perfect return filed next quarter.

— TaxClue Compliance Desk

Section 90: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Questions, answered

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

For misconduct connected with the dispute, only with the authority's written permission. For unconnected misconduct, the employer may act under standing orders or contract, but must pay one month's wages and apply for approval.

A member of the executive or other office-bearer of a registered Trade Union connected with the establishment, recognised under the rules (s.90(3) Explanation).

One per cent of the workers, minimum five, maximum one hundred (s.90(4)).

Three months from receipt, extendable for reasons recorded in writing (s.90(5)).

No. The second proviso to s.90(5) says no proceeding lapses merely because the period expired.

Before 30 April every year (rule 39(1)).