Notice of change
Section 40 of the Industrial Relations Code, 2020 deals with notice of change. No employer, who proposes to effect any change in the conditions of service applicable to any worker in respect of any matter specified in the Third Schedule, shall effect such change,--- (i) without giving to the workers likely to be affected by such change a notice in such manner as may be prescri The Act was enacted on 28 Sep 2020.
No employer, who proposes to effect any change in the conditions of service applicable to any worker in respect of any matter specified in the Third Schedule, shall effect such change,---
(i) without giving to the workers likely to be affected by such change a notice in such manner as may be prescribed of the nature of the change proposed to be effected; or
(ii) within twenty-one days of giving such notice:
Provided that no notice shall be required for effecting any such change---
(a) where the change is effected in pursuance of any settlement or award;
(b) where the workers likely to be affected by the change are persons to whom the Fundamental and Supplementary Rules, Civil Services (Classification, Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised Leave Rules, Civil Services Regulations, Civilians in Defence Services (Classification, Control and Appeal) Rules or the Indian Railway Establishment Code or any other rules or regulations that may be notified in this behalf by the appropriate Government in the Official Gazette, apply;
(c) in case of emergent situation which requires change of shift or shift working, otherwise than in accordance with standing orders, in consultation with Grievance Redressal Committee;
(d) if such change is effected in accordance with the orders of the appropriate Government or in pursuance of any settlement or award.
Section 40, The Industrial Relations Code, 2020 (Act 35 of 2020).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Caparo Engineering India LTD vs Mohanlal
Court's Decision & Legal Precedent
Transferring workmen some 900 km from Dewas to Chopanki, redesignating them as supervisors and thereby reducing the number of workmen in the establishment was a change in conditions of service falling within the Fourth Schedule, and could not be effected without the statutory notice of change; effected at the fag end of the workmen's service it was mala fide victimisation, and the concurrent findings of the Labour Court and High Court awarding arrears and consequential benefits were upheld with costs.
On this section: Directly construes the notice-of-change obligation that section 40 carries forward, holding that a transfer which alters service conditions or reduces the number of workers is a scheduled matter requiring prior notice.
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J.d. Orgochem Limited vs Dyes, Chemical Workers Union
Court's Decision & Legal Precedent
Where an employer has given the statutory notice of change and conciliation on it has ended in a failure report without the Government making a reference, the employer is entitled to implement the noticed change; the statutory scheme requires the status quo to be maintained only while proceedings are pending, and implementation after the notice period is not by itself an unfair labour practice.
On this section: Works out the other half of section 40 - what an employer may lawfully do once the notice has been given and the notice period and conciliation have run their course.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 40
What have the courts held on Section 40 of the Industrial Relations Code?
Caparo Engineering India LTD vs Mohanlal (26 Oct 2021) is the leading judgment on this section among those set out below: Directly construes the notice-of-change obligation that section 40 carries forward, holding that a transfer which alters service conditions or reduces the number of workers is a scheduled matter requiring prior notice. Another 1 judgment on this section is set out below, 1 of them from the Supreme Court. They run from 2012 to 2021.
How do I find court cases under Section 40 of the Industrial Relations Code?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Industrial Relations Code 40, section 40 Industrial Relations Code, section 40 of the Industrial Relations Code. People searching for it also type industrial relations code 2020 section 40. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Caparo Engineering India LTD vs Mohanlal (26 Oct 2021).
What should I read with Section 40 of the Industrial Relations Code, and has it changed?
3 other provisions in this corpus refer back to it.
When was Section 40 of the Industrial Relations Code enacted?
Section 40 of the Industrial Relations Code, cited as Industrial Relations Code 40, was enacted on 28 Sep 2020 as Act 35 of 2020. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions3327 words
- 99. Power of appropriate Government to make rules1827 words
- 86. Penalties1320 words
- 30. Preparation of draft standing orders by employer and procedure for certification942 words
- 78. Prohibition of lay-off858 words
- 79. Conditions precedent to retrenchment of workers to which Chapter X applies706 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.