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Section 103: Exemption from operation of Code

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter XIV: Miscellaneous
Competent Labour Forum
Act No. 35 of 2020
Section 102 All 104 Sections of Industrial Relations Code, 2020 Section 104

Legal Commentary & Landmark Judgments: Section 103

Section 103 of the Industrial Relations Code, 2020 confers a time-bound statutory power upon the Central Government to issue orders to remove difficulties arising in giving effect to the provisions of the Code within three years of commencement, subject to parliamentary tabling.

  • Time-Bound Executive Power to Remove Difficulties: If any difficulty arises in giving effect to the provisions of this Code, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Code as appear necessary for removing the difficulty.
  • Three-Year Sunset Period: An express statutory proviso mandates that no order under Section 103 shall be made after the expiry of three years from the date of commencement of this Code, preventing permanent executive legislative improvisation.
  • Prohibition of Inconsistency with Parent Code: Orders issued under this section must not alter the substantive legislative policy or core statutory architecture of the Code, and every such order must be laid before each House of Parliament.
Key Landmark Precedents:
  • Jalan Trading Co. (P) Ltd. v. Mill Mazdoor Sabha AIR 1967 SC 691: The Constitution Bench struck down an unguided 'removal of difficulties' clause, ruling that executive orders under Henry VIII clauses cannot amend or rewrite the substantive provisions of an Act passed by Parliament.
  • Madeva Upendra Sinai v. Union of India (1975) 3 SCC 765: The Supreme Court held that the power to remove difficulties is strictly limited to resolving operational friction and facilitating the statutory machinery; it cannot alter the statutory scheme or create new liabilities.
  • Mahabir Vegetable Oils (P) Ltd. v. State of Haryana (2006) 3 SCC 620: Reaffirmed that Henry VIII clauses are constitutional only if restricted to smooth implementation, bounded by time limits, and subject to legislative oversight.
Courtroom Practice & Strategic Litigation Guidance:

If the Central Government issues an order under Section 103 that alters employee thresholds, retrenchment benefits, or dispute procedures, scrutinize whether it exceeds the boundary of resolving practical implementation friction. If it amends substantive statutory policy, challenge the order via writ petition under Article 226/32 as an ultra vires exercise of Henry VIII power under *Jalan Trading*.

Section 102 All 104 Sections of Industrial Relations Code, 2020 Section 104