Why Civil Courts Have "NO ENTRY" in Industrial Disputes: The IR Code 2020 Explained

The Industrial Relations Code, 2020 has quietly but decisively redrawn the legal map for workplace disputes in India. One of its most significant shifts is the exclusion of civil courts from matters that now fall exclusively under the jurisdiction of Industrial Tribunals. For HR and IR professionals, this is not just a procedural change, it is a jurisdictional finality that alters how disputes must be managed.

The Biggest Shift Employers Must Internalize

Civil courts no longer have jurisdiction over:

  • Trade union registration or recognition
  • Internal union disputes
  • Service conditions
  • Matters assigned to Industrial Tribunals

This means that forum selection is no longer a formality, it is a risk decision. Filing in the wrong forum can lead to dismissed cases, delayed resolutions, and escalated unrest.

Industrial Tribunal = Exclusive Domain

Single-Member Bench (Speedy Disposal)

Handles individual service disputes, including:

  • Termination, dismissal, disciplinary actions
  • Wage fixation & allowances
  • Bonus, leave & service benefits
  • EPF appeals & social security matters

Double-Member Bench (Collective Wisdom)

Handles collective or high-impact disputes, including:

  • Trade union disputes
  • Large-scale retrenchment or closure
  • Interpretation of Standing Orders
  • Industry-wide or state-wide impact issues
  • Matters notified by the Government

Why This Matters to HR, IR & Compliance Teams

  • Dismissed cases: Filing in civil courts will be rejected outright.
  • Delayed resolutions: Misfiling prolongs disputes and increases costs.
  • Escalated unrest: Wrong forum selection can fuel industrial disputes.
  • Audit exposure: Non-compliance with IR Code procedures invites penalties.

In the IR Code era, Industrial Tribunals are the only valid forum for workplace disputes. Employers must update compliance manuals and train HR teams accordingly.

Compliance Risk Matrix

Dispute TypeForumRisk if Filed in Civil Court
Termination/DismissalIndustrial Tribunal (Single Bench)Case dismissed
Trade Union RecognitionIndustrial Tribunal (Double Bench)Case dismissed
Wage FixationIndustrial TribunalCase dismissed
Retrenchment/ClosureIndustrial Tribunal (Double Bench)Case dismissed

Strategic Advice for Employers

  • Update HR Policies: Clearly state that disputes are to be referred to Industrial Tribunals.
  • Train HR & Legal Teams: Ensure they understand jurisdictional boundaries.
  • Audit Standing Orders: Misinterpretation now falls under Tribunal jurisdiction.
  • Engage Proactively: Early resolution at Tribunal level reduces litigation costs.