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Industrial Relations Code, 2020 · CHAPTER III — TRADE UNIONS

Section 18: Enforceability of agreements

Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026

Section 18 — Governs enforceability of agreements and the rights, duties, powers or procedure expressly stated in this section. Key operative text: Notwithstanding anything contained in any other law for the time being in force, an agreement between the members of a registered Trade Union shall not be void or voidable merely by reason of the fact that any of the objects…

Full official textSource checked: 20 August 20260 direct Central Rule link(s)

Current-law status

All provisions were brought into force from 21 November 2025 under S.O. 5320(E); use the current India Code consolidation because the Code also reflects the 2026 amendment/transition framework.

Primary sources

Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗

Finin2min analysis — what the section actually does

Operative clauses

Notwithstanding anything contained in any other law for the time being in force, an agreement between the members of a registered Trade Union shall not be void or voidable merely by reason of the fact that any of the objects of the agreement are in restraint of trade:
Provided that nothing in this section shall enable any civil court to entertain any legal proceedings instituted for the purpose of enforcing or recovering damages for the breach of any agreement concerning the conditions on which any members of a Trade Union shall or shall not sell their goods, transact business, work, employ or be employed.

Provisos, explanations & qualifications

Provided that nothing in this section shall enable any civil court to entertain any legal proceedings instituted for the purpose of enforcing or recovering damages for the breach of any agreement concerning the conditions on which any members of a Trade Union shall or shall not sell their goods, transact business, work, employ or be employed.

Thresholds and timelines in the text

No explicit day/month/year/hour/percentage/rupee expression was detected in this section text.

Actors expressly appearing in the text

Trade union

Full statutory text — Section 18

Official English text transcribed from the current India Code consolidation; page headers/line breaks are normalised for web reading. The Gazette/India Code PDF remains authoritative for typography, amendment footnotes and schedules.

18. Enforceability of agreements.—Notwithstanding anything contained in any other law for the
time being in force, an agreement between the members of a registered Trade Union shall not be void
or voidable merely by reason of the fact that any of the objects of the agreement are in restraint of trade:
   Provided that nothing in this section shall enable any civil court to entertain any legal proceedings
instituted for the purpose of enforcing or recovering damages for the breach of any agreement
concerning the conditions on which any members of a Trade Union shall or shall not sell their goods,
transact business, work, employ or be employed.

How to apply this provision

Primary statutory test — Notwithstanding anything contained in any other law for the time being in force, an agreement between the members of a registered Trade Union shall not be void or voidable merely by reason of the fact that any of the objects of the agreement are in restraint of trade:
Additional operative limb — Provided that nothing in this section shall enable any civil court to entertain any legal proceedings instituted for the purpose of enforcing or recovering damages for the breach of any agreement concerning the conditions on which any members of a Trade Union shall or shall not sell their goods, transact business, work, employ or be employed.
Qualification / exception to test — Provided that nothing in this section shall enable any civil court to entertain any legal proceedings instituted for the purpose of enforcing or recovering damages for the breach of any agreement concerning the conditions on which any members of a Trade Union shall or shall not sell their goods, transact business, work, employ or be employed.
Evidence file — retain facts and records proving the role/status of: Trade union.

Why this is section-specific: the operative-clause, exception, threshold and cross-reference panels above are extracted from Section 18 itself rather than a generic “trigger/control/evidence” template.

Rules, forms and cross-references

Direct 2026 Central Rule mapping

None expressly mapped in the current concordance.

Forms mapped

No prescribed form is directly mapped in the current concordance.

Other sections cited in this text

None expressly mapped in the current concordance.

Related Labour Hub resources

Model Standing Orders, 2026 Labour litigation

A direct concordance is not exhaustive. Central/State jurisdiction, schemes, authority appointments, saved instruments and later notifications may change the practical route without changing the section wording.

Worked example

Suppose an industrial establishment reaches a step governed by enforceability of agreements. HR/IR should create a dated file showing coverage, the competent authority/union status, required notice or application, service proof and the result. One operative text point to test is: “Notwithstanding anything contained in any other law for the time being in force, an agreement between the members of a registered Trade Union shall not be void or voidable merely by reason of the fact that any of the objects of the agreement are in restraint of trade:” Also test the express qualification/proviso before concluding the result.

Illustration only; it is not statutory text or a substitute for applying the actual facts, jurisdiction, current rule/scheme and official instrument.

Q&A — Section 18

What does Section 18 of the Industrial Relations Code cover?

What is the main legal requirement or power in Section 18?

The first operative clause identified from the official text is: “Notwithstanding anything contained in any other law for the time being in force, an agreement between the members of a registered Trade Union shall not be void or voidable merely by reason of the fact that any of the objects of the agreement are in restraint of trade:” Read it with the remaining subsections and any proviso below.

Does Section 18 contain a proviso or explanation?

Yes. A qualification extracted from the official text is: “Provided that nothing in this section shall enable any civil court to entertain any legal proceedings instituted for the purpose of enforcing or recovering damages for the breach of any agreement concerning the conditions on which any members of a Trade Union shall or shall not sell their goods, transact business, work, employ or be employed.”

What time limit, percentage or amount appears in Section 18?

No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.

Which 2026 Central Rules are linked to Section 18?

No direct Central Rule is recorded in the current concordance. That does not exclude a relevant scheme, notification, State rule or enabling provision.

Is Section 18 currently operative?

All provisions were brought into force from 21 November 2025 under S.O. 5320(E); use the current India Code consolidation because the Code also reflects the 2026 amendment/transition framework.

Source & verification trail

Act: Industrial Relations Code, 2020 — official India Code PDF ↗

Central Rules: Industrial Relations (Central) Rules, 2026 — G.S.R. 342(E), 8 May 2026 ↗

Official library: Ministry of Labour & Employment — Labour Codes ↗

Source check: 20 August 2026. Individual professional interpretation should be re-reviewed when the section, rules, notification, scheme, State overlay or controlling judgment changes.

Reliance note: This page is an educational legal-reference layer. Verify the current official text, the applicable Central/State rules, notifications, schemes and judicial decisions before acting on a live matter.