Section 96: Power to exempt
Reviewed by Finin2min Editorial Desk · Last reviewed 30 August 2026
Section 96 — Defines the statutory power concerning exempt and the conditions attached to its exercise. Key operative text: (2) Notwithstanding anything contained in sub-section (1), where the appropriate Government is satisfied in relation to any new industrial establishment or new undertaking or class of new industrial establishments or new…
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.
Provision / India Code ↗ · Official Act PDF ↗ · 2026 Central Rules ↗
Finin2min analysis — what the section actually does
Operative clauses
- (2) Notwithstanding anything contained in sub-section (1), where the appropriate Government is satisfied in relation to any new industrial establishment or new undertaking or class of new industrial establishments or new undertakings that it is necessary in the public interest so to do, it may, by notification, exempt, conditionally or unconditionally, any such new establishment or new undertaking or class of new…
- Provided that any notification issued by a State Government under the Industrial Disputes Act, 1947 (14 of 1947), prior to the commencement of this Code, to achieve the purpose as is specified in this sub- section in the State, shall remain in force after such commencement for its remaining period as if the provisions of this Code have not been brought into force to the extent they defeat any purpose to be…
- Explanation.—For the purposes of this sub-section, the expression "new industrial establishment or new undertaking or class of new industrial establishments or new undertakings" means such industrial establishment or undertaking or class of industrial establishments or undertakings which are established within a period as may be specified in the notification.
Provisos, explanations & qualifications
- Provided that any notification issued by a State Government under the Industrial Disputes Act, 1947 (14 of 1947), prior to the commencement of this Code, to achieve the purpose as is specified in this sub- section in the State, shall remain in force after such commencement for its remaining period as if the provisions of this Code have not been brought…
- Explanation.—For the purposes of this sub-section, the expression "new industrial establishment or new undertaking or class of new industrial establishments or new undertakings" means such industrial establishment or undertaking or class of industrial establishments or undertakings which are established within a period as may be specified in the…
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
Appropriate Government, State Government
Full statutory text — Section 96
96. Power to exempt.—(1) Where the appropriate Government is satisfied in relation to any
industrial establishment or undertaking or any class of industrial establishments or undertakings that
adequate provisions exist to fulfil the objects of any provision of this Code, it may, by notification,
exempt, conditionally or unconditionally such establishment or undertaking or, class of establishments
or undertakings from that provision of this Code.
(2) Notwithstanding anything contained in sub-section (1), where the appropriate Government is
satisfied in relation to any new industrial establishment or new undertaking or class of new industrial
establishments or new undertakings that it is necessary in the public interest so to do, it may, by
notification, exempt, conditionally or unconditionally, any such new establishment or new undertaking
or class of new establishments or new undertakings from all or any of the provisions of this Code for
such period from the date of establishment of such new industrial establishment or new undertaking or
class of new establishments or new undertakings, as the case may be, as may be specified in the
notification:
Provided that any notification issued by a State Government under the Industrial Disputes Act, 1947
(14 of 1947), prior to the commencement of this Code, to achieve the purpose as is specified in this sub-
section in the State, shall remain in force after such commencement for its remaining period as if the
provisions of this Code have not been brought into force to the extent they defeat any purpose to be
achieved by such notification issued by that State Government.
Explanation.—For the purposes of this sub-section, the expression "new industrial establishment or
new undertaking or class of new industrial establishments or new undertakings" means such industrial
establishment or undertaking or class of industrial establishments or undertakings which are established
within a period as may be specified in the notification.How to apply this provision
- Primary statutory test — (2) Notwithstanding anything contained in sub-section (1), where the appropriate Government is satisfied in relation to any new industrial establishment or new undertaking or class of new industrial establishments or new undertakings that it is necessary in the public interest so to do, it may, by notification, exempt, conditionally or unconditionally, any such new establishment or new undertaking or class of new…
- Additional operative limb — Provided that any notification issued by a State Government under the Industrial Disputes Act, 1947 (14 of 1947), prior to the commencement of this Code, to achieve the purpose as is specified in this sub- section in the State, shall remain in force after such commencement for its remaining period as if the provisions of this Code have not been brought into force to the extent they defeat any purpose to be…
- Qualification / exception to test — Provided that any notification issued by a State Government under the Industrial Disputes Act, 1947 (14 of 1947), prior to the commencement of this Code, to achieve the purpose as is specified in this sub- section in the State, shall remain in force after such commencement for its remaining period as if the provisions of this Code have not been brought…
- Evidence file — retain facts and records proving the role/status of: Appropriate Government, State Government.
Rules, forms and cross-references
Direct 2026 Central Rule mapping
Forms mapped
No prescribed form is directly mapped in the current concordance.
Other sections cited in this text
Related Labour Hub resources
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 power to exempt. 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) Notwithstanding anything contained in sub-section (1), where the appropriate Government is satisfied in relation to any new industrial establishment or new undertaking or class of new industrial establishments or new undertakings that it is necessary in the public interest so” 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 96
What does Section 96 of the Industrial Relations Code cover?
Section 96 — Defines the statutory power concerning exempt and the conditions attached to its exercise. Key operative text: (2) Notwithstanding anything contained in sub-section (1), where the appropriate Government is satisfied in relation to any new industrial establishment or new undertaking or class of new industrial establishments or new…
What is the main legal requirement or power in Section 96?
The first operative clause identified from the official text is: “(2) Notwithstanding anything contained in sub-section (1), where the appropriate Government is satisfied in relation to any new industrial establishment or new undertaking or class of new industrial establishments or new undertakings that it is necessary in the public interest so to do, it may, by notification, exempt, conditionally or unconditionally, any such new establishment or new undertaking or class of new…” Read it with the remaining subsections and any proviso below.
Does Section 96 contain a proviso or explanation?
Yes. A qualification extracted from the official text is: “Provided that any notification issued by a State Government under the Industrial Disputes Act, 1947 (14 of 1947), prior to the commencement of this Code, to achieve the purpose as is specified in this sub- section in the State, shall remain in force after such commencement for its remaining period as if the provisions of this Code have not been brought…”
What time limit, percentage or amount appears in Section 96?
No explicit day/month/year/hour/percentage/rupee expression was detected in the official section text.
Which 2026 Central Rules are linked to Section 96?
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 96 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.