President authorises LGs, administrators to exercise powers under Industrial Relations Code

By Rajnish Singh
New Delhi [India], January 6 : In a significant administrative decision, President Droupadi Murmu has authorised the administrators and Lieutenant Governors of all the Union Territories to exercise the powers and discharge the functions of the "appropriate government" under the Industrial Relations Code, 2020.
The move is aimed at ensuring clarity and uniformity in the implementation of labour laws across Union Territories.
The directive has been issued pursuant to clause (1) of Article 239 of the Constitution and supersedes earlier notifications issued on January 16, 2023, and June 22, 2023.
The fresh notification, issued on January 2 by the Ministry of Home Affairs, however, specifies that actions already taken or omitted under the earlier notifications will remain unaffected, providing continuity and legal certainty.
As per the notification, the administrators or Lieutenant Governors of the National Capital Territory of Delhi, Andaman and Nicobar Islands, Dadra and Nagar Haveli and Daman and Diu, Chandigarh, Puducherry, Lakshadweep, Ladakh, and Jammu and Kashmir will, subject to the control of the President and until further orders, exercise the powers of the appropriate government or state government under the Industrial Relations Code, 2020.
"In pursuance of clause (1) of article 239 of the Constitution and in supersession of the notificatior numbers S.O. 273(E), dated the 16th January, 2023, S.O. 2750(E), dated the 22nd June, 2023 and S.O. 2752 (E), dated the 22nd June, 2023, except as respects things to be done or omitted to be done before such supersession, the President hereby directs that the Administrator or Lieutenant Governor of the National Capital Territory of Delhi. Andaman and Nicobar Islands, Dadra and Nagar Haveli and Daman and Diu, Chandigarh, Puducherry, Lakshadweep, Ladakh and Jammu and Kashmir shall, subject to the control of the President and until further orders, exercise the powers and discharge the functions of the appropriate Government or State Government under the Industrial Relations Code, 2020 (35 of 2020), for the areas where the said Union territories are required to function as the appropriate Government or state government," reads the notification.
These powers will apply in areas where the concerned Union Territories are required to function as the appropriate government under the law.
The Industrial Relations Code, 2020, which consolidates and amends laws relating to trade unions, conditions of employment in industrial establishments, and dispute resolution, is a key pillar of India's labour reforms. Effective implementation of the Code requires clearly defined administrative authority, particularly in Union Territories where governance structures differ from those of full-fledged states.
Officials said the latest directive removes ambiguity regarding who will exercise statutory powers under the Code in Union Territories, thereby facilitating smoother administration, quicker decision-making and more effective handling of industrial relations matters.
It is also expected to help employers, workers, and trade unions by providing a clear point of authority for approvals, registrations, and dispute resolution.
The order reinforces the constitutional framework under which Union Territories function, with administrators and Lieutenant Governors acting on behalf of the President. By vesting them with defined powers under the Industrial Relations Code, the Centre aims to ensure consistent application of labour laws while maintaining oversight through presidential control.
The decision is part of the government's broader efforts to streamline governance and strengthen the implementation of major legislative reforms.
With labour codes gradually being operationalised across the country, clarity in administrative jurisdiction is essential to achieving the intended objectives of improved industrial harmony, worker protection, and ease of doing business.