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Section 39: Power to exempt

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

Statutory Mandate
Chapter IV: Standing Orders
Competent Labour Forum
Act No. 35 of 2020
Section 38 All 104 Sections of Industrial Relations Code, 2020 Section 40

Legal Commentary & Landmark Judgments: Section 39

Section 39 of the Industrial Relations Code, 2020 vests the appropriate Government with statutory delegated power to exempt, by official notification, conditionally or unconditionally, any industrial establishment or class of establishments from all or any provisions of Chapter IV concerning standing orders.

  • Delegated Administrative Exemption Power: Empowers the appropriate Government to exercise sovereign discretion to grant exemptions from the statutory standing orders regime where existing corporate service rules or special operational exigencies justify non-applicability.
  • Conditional or Unconditional Modalities: Exemption notifications may be unconditional or subject to stringent operational safeguards, such as requiring compliance with model disciplinary frameworks or independent appellate review.
  • Constitutional Boundaries & Judicial Review: The exercise of exemption power is administrative and must satisfy Article 14 of the Constitution; arbitrary exemptions without intelligible differentia or rational nexus to public welfare are amenable to writ review under Article 226.
Key Landmark Precedents:
  • Basant Kumar Sarkar v. Eagle Rolling Mills Ltd. (1964) 6 SCR 913 / AIR 1964 SC 1260: Constitution Bench of the Supreme Court held that statutory provisions authorizing the Government to grant exemptions or apply labour enactments selectively based on administrative assessment do not constitute unconstitutional delegation of legislative power.
  • Bharat Electronics Ltd. v. Industrial Tribunal (1990) 2 SCC 314: Supreme Court observed that exemption from certified standing orders or statutory model rules cannot be presumed; an employer claiming immunity must establish strict compliance with the terms of the statutory notification.
Courtroom Practice & Strategic Litigation Guidance:

When representing public sector undertakings or specialized corporations seeking exemption from Chapter IV, prepare a comparative audit demonstrating that internal service regulations provide protections equal to or exceeding model standing orders. Emphasize institutional grievance redressal mechanisms and absence of worker prejudice to survive scrutiny before the Labour Department and High Court.

Section 38 All 104 Sections of Industrial Relations Code, 2020 Section 40