Labour Hub › Industrial Relations Code › Sections › Section 58

Industrial Relations Code, 2020 · CHAPTER VII — MECHANISM FOR RESOLUTION OF INDUSTRIAL DISPUTES

Section 58: Period of operation of settlements and awards

Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026

Section 58 — Governs period of operation of settlements and awards and the rights, duties, powers or procedure expressly stated in this section. Key operative text: (1) A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the parties to the dispute.

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

(1) A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the parties to the dispute.
(2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the period aforesaid, until the expiry of sixty days from the date on which a notice in writing of an…
Provided that the appropriate Government may reduce the said period and fix such period as it thinks fit:
(4) Where the appropriate Government, whether of its own motion or on the application of any party bound by the award, considers that since the award was made, there has been a material change in the circumstances on which it was based, the appropriate Government may refer the award or part of it to the Tribunal, if the award is made by the Tribunal for decision whether the period of operation should not, by…
(5) Nothing contained in sub-section (3) shall apply to any award which by its nature, terms or other circumstances does not impose, after it has been given effect to, any continuing obligation on the parties bound by the award.

Provisos, explanations & qualifications

Provided that the appropriate Government may reduce the said period and fix such period as it thinks fit:

Thresholds and timelines in the text

(2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the period aforesaid, until the expiry of…
(3) An award shall, subject to the provisions of this section, remain in operation for a period of one year from the date on which the award becomes enforceable under section 55:
Provided further that the appropriate Government may, before expiry of the said period, extend the period of operation by any period not exceeding one year at a time as it thinks fit so, however, that the total period of operation of any award does not exceed three years from the date on which it came into operation.
(6) Notwithstanding the expiry of the period of operation under sub-section (3), the award shall continue to be binding on the parties until a period of sixty days has elapsed from the date on which notice is given by any party bound by the award to the other party or parties intimating its intention to terminate the award.

Actors expressly appearing in the text

Appropriate Government, Tribunal

Full statutory text — Section 58

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.

58. Period of operation of settlements and awards.—(1) A settlement shall come into operation
on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon, on the date
on which the memorandum of the settlement is signed by the parties to the dispute.
     (2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such
period is agreed upon, for a period of six months from the date on which the memorandum of settlement
is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of
the period aforesaid, until the expiry of sixty days from the date on which a notice in writing of an
intention to terminate the settlement is given by one of the parties to the other party or parties to the
settlement.
   (3) An award shall, subject to the provisions of this section, remain in operation for a period of one
year from the date on which the award becomes enforceable under section 55:
       Provided that the appropriate Government may reduce the said period and fix such period as it thinks
fit:
    Provided further that the appropriate Government may, before expiry of the said period, extend the
period of operation by any period not exceeding one year at a time as it thinks fit so, however, that the
total period of operation of any award does not exceed three years from the date on which it came into
operation.
    (4) Where the appropriate Government, whether of its own motion or on the application of any party
bound by the award, considers that since the award was made, there has been a material change in the
circumstances on which it was based, the appropriate Government may refer the award or part of it to
the Tribunal, if the award is made by the Tribunal for decision whether the period of operation should
not, by reason of such change, be shortened and the decision of the Tribunal on such reference shall be
final.

    (5) Nothing contained in sub-section (3) shall apply to any award which by its nature, terms or other
circumstances does not impose, after it has been given effect to, any continuing obligation on the parties
bound by the award.
    (6) Notwithstanding the expiry of the period of operation under sub-section (3), the award shall
continue to be binding on the parties until a period of sixty days has elapsed from the date on which
notice is given by any party bound by the award to the other party or parties intimating its intention to
terminate the award.
   (7) No notice given under sub-section (2) or sub-section (6) shall have effect, unless it is given by a
party representing the majority of persons bound by the settlement or award, as the case may be.

How to apply this provision

Primary statutory test — (1) A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the parties to the dispute.
Additional operative limb — (2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the period aforesaid, until the expiry of sixty days from the date on which a notice in writing of an…
Qualification / exception to test — Provided that the appropriate Government may reduce the said period and fix such period as it thinks fit:
Numerical or timing control — (2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the period aforesaid, until the expiry of…
Evidence file — retain facts and records proving the role/status of: Appropriate Government, Tribunal.

Why this is section-specific: the operative-clause, exception, threshold and cross-reference panels above are extracted from Section 58 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

Section 55

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 period of operation of settlements and awards. 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: “(2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute, and shall continue to be binding on” 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 58

What does Section 58 of the Industrial Relations Code cover?

What is the main legal requirement or power in Section 58?

The first operative clause identified from the official text is: “(1) A settlement shall come into operation on such date as is agreed upon by the parties to the dispute, and if no date is agreed upon, on the date on which the memorandum of the settlement is signed by the parties to the dispute.” Read it with the remaining subsections and any proviso below.

Does Section 58 contain a proviso or explanation?

Yes. A qualification extracted from the official text is: “Provided that the appropriate Government may reduce the said period and fix such period as it thinks fit:”

What time limit, percentage or amount appears in Section 58?

The provision contains this numerical/time expression: “(2) Such settlement shall be binding for such period as is agreed upon by the parties, and if no such period is agreed upon, for a period of six months from the date on which the memorandum of settlement is signed by the parties to the dispute, and shall continue to be binding on the parties after the expiry of the period aforesaid, until the expiry of…” Apply it only in the clause and context in which it appears.

Which 2026 Central Rules are linked to Section 58?

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 58 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.