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Section 84: Penalty for closure without permission

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

Statutory Mandate
Chapter X: Special Provisions (300+ Workers)
Competent Labour Forum
Act No. 35 of 2020
Section 83 All 104 Sections of Industrial Relations Code, 2020 Section 85

Legal Commentary & Landmark Judgments: Section 84

Section 84 of the Industrial Relations Code, 2020 enacts an absolute statutory prohibition against employers, workers, and trade unions committing any 'unfair labour practice' enumerated in the Second Schedule, establishing statutory parity and curbing employer victimisation as well as coercive union agitation.

  • Tripartite Statutory Ban: Expressly prohibits: (a) any employer or employers' association; (b) any worker; and (c) any trade union (whether registered under Chapter III of the Code or not) from committing any unfair labour practice specified in the Second Schedule.
  • The Second Schedule as an Exhaustive Code: The Second Schedule codifies unfair labour practices in two distinct parts: Part I covers employer practices (victimizing workers for union activity, dominating or financing unions, discharging union activists, maintaining artificial breaks in service to keep workers temporary, badli exploitation); Part II covers worker/union practices (instigating illegal strikes, staging coercive gheraos, coercive demonstrations at managerial residences, refusing collective bargaining in good faith).
  • Dual Civil and Penal Character: An unfair labour practice constitutes both an actionable civil wrong warranting interim and permanent injunctive relief before the Industrial Tribunal, and a punishable statutory offence attracting substantial monetary fines under Section 86.
Key Landmark Precedents:
  • Cipla Ltd. v. Maharashtra General Kamgar Union (2001) 3 SCC 101: The Supreme Court held that jurisdiction under unfair labour practice legislation is summary and specialized; where the foundational master-servant relationship is disputed, a claim of unfair labour practice cannot be entertained without prior adjudication of employment status.
  • Hindustan Lever Ltd. v. Ashok Vishnu Kate (1995) 6 SCC 326: The Supreme Court ruled that industrial adjudicators possess preventive and injunctive jurisdiction under labor statutes to restrain impending unfair labour practices; workmen need not wait until termination is consummated before invoking protective remedies.
  • General Labour Union (Red Flag) v. B.V. Chavan (1985) 1 SCC 212: Held that imposing artificial breaks in service, repeatedly employing workers as casuals or temporary hands for years to deprive them of permanent status constitutes a flagrant unfair labour practice under the statutory schedule.
Courtroom Practice & Strategic Litigation Guidance:

Employers must audit employment practices, vendor contracts, and union interactions against the Second Schedule. Discontinue the practice of employing contract labor or fixed-term workers on back-to-back contracts for regular core production. If a trade union stages demonstrations at directors' personal residences or physically confines managers (gherao), immediately file a complaint under Section 84 read with Section 86 and seek interim injunctive relief before the Industrial Tribunal.

Section 83 All 104 Sections of Industrial Relations Code, 2020 Section 85