The Transition Bridge: Existing Labour Courts to Continue Under the New IR Code Regime

For Human Resources and Industrial Relations (HR & IR) professionals across India, the last few weeks have been a whirlwind of regulatory updates. The long-awaited implementation of the Industrial Relations Code, 2020, finally became a reality with its provisions coming into force on November 21, 2025.

However, as with any major legislative overhaul, the transition from the old era of the Industrial Disputes Act, 1947, to the new Code has raised critical procedural questions. The most pressing among these was the status of the judiciary handling industrial disputes. With the new Code in effect, where do pending cases go? Where should new disputes be filed?

Thankfully, the Ministry of Labour and Employment has moved swiftly to address this ambiguity. On December 8, 2025, the Central Government published the Industrial Relations Code (Removal of Difficulties) Order, 2025 in the Gazette of India.

This blog post decodes what this Order means for employers, unions, and legal practitioners, and why it is a crucial "removal of difficulty" in our current legal landscape.

The Legal Conundrum: A Potential Vacuum?

To understand the relief this Order brings, we must first look at the legal technicality that caused the confusion.

When the provisions of the IR Code were brought into force via the notification dated November 21, 2025, it triggered Section 51 of the Code. Section 51(1) mandates that all cases pending before the existing Labour Courts and Tribunals (constituted under the Industrial Disputes Act, 1947) must be transferred to the new Tribunals having corresponding jurisdiction under the IR Code.

Furthermore, Section 51(2) suggests that these transferred cases would be dealt with de novo (from the beginning) or from the stage they were at pending transfer.

Here lay the problem: While the law for the new Tribunals was active, the actual physical infrastructure and constitution of these new "Industrial Tribunals" and "National Industrial Tribunals" under the 2020 Code might not have been fully completed in all jurisdictions immediately.

This created a risk of a "legal or administrative vacuum". If the old Courts were technically defunct because the old Act was being replaced, but the new Tribunals were not yet sitting, where would an aggrieved workman or an employer go? The machinery of justice cannot simply pause while administrative setups catch up.

The Government’s Solution: The "Removal of Difficulties" Order, 2025

Recognizing this procedural gap, the Central Government invoked Section 103 of the IR Code, which grants the power to make provisions for removing difficulties arising during the implementation of the Code.

The result is the Industrial Relations Code (Removal of Difficulties) Order, 2025, which came into effect immediately on December 8, 2025.

Key Takeaways from the Order:

1. Continuity of Old Forums: The Order clarifies that the existing Labour Courts, Industrial Tribunals, and National Industrial Tribunals—those originally constituted under the Industrial Disputes Act, 1947—will continue to function.

2. Scope of Jurisdiction: These existing bodies are empowered to adjudicate both existing cases AND new cases. This is a critical clarification. It means you do not have to wait for a "New Tribunal" to be notified to file a fresh dispute today.

3. The Timeline: This arrangement is valid until the formal constitution of the new Industrial Tribunals and National Industrial Tribunals under the Industrial Relations Code, 2020.

Why This Matters for HR & IR Practitioners

For those of us on the ground handling disciplinary inquiries, conciliations, and disputes, this Order provides much-needed stability.

1. No Disruption in Litigation: If you have a matter currently pending before a Labour Court, you do not need to worry about the file being in limbo or the court losing jurisdiction overnight. The adjudication process will continue uninterrupted, ensuring that the "continuity of adjudication" is maintained.

2. Clarity for New Filings: Perhaps the most significant aspect is regarding new cases. If an industrial dispute arises tomorrow, we now know for certain that the filing must be done before the existing forums. There is no ambiguity. The existing Labour Courts and Industrial Tribunals are deemed competent to handle new matters arising even after the IR Code has come into effect, pending the setup of the new infrastructure.

3. Seamless Transition: The phrase "avoiding any legal or administrative vacuum" used in the notification captures the intent perfectly. The government has essentially built a bridge. We have left the shore of the ID Act, 1947, and are walking towards the IR Code, 2020. This Order ensures we don't fall into the water in between. The old vessels (Courts) will ferry us until the new ships (Tribunals) are docked and ready to board.

Conclusion

The Industrial Relations Code (Removal of Difficulties) Order, 2025 is a pragmatic step by the Ministry of Labour and Employment. It acknowledges the practical challenges of implementing such a massive legislative change and provides a legal safety net.

As professionals, we must remain vigilant. While the forums remain the same for now (the old Labour Courts), the law they apply will be the new IR Code, 2020, to the extent applicable. We must continue to prepare for the substantive changes the Code brings—regarding standing orders, strikes, and retrenchment—while taking comfort in the fact that the procedural machinery of the courts remains familiar for the time being.

Stay tuned to this space for more updates as we navigate this new era of Indian Industrial Relations together.

Disclaimer: This article is based on the Gazette Notification S.O. 5683(E) dated December 8, 2025. It is for informational purposes only and does not constitute legal advice.