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NIRC was created in the year 1972 by amending IRO 1969 and was maintained by successive statutes namely IRO 2002, IRA 2008, IR0 2011 and is now constituted under Section 53 of IRA 2012.

NIRC regulates relation between employers and workers inter se. It deals with the unfair labour practice on the part of employers and workers, resolution of industrial disputes, registration of transprovisional trade union and unions in Islamabad, federation and determination of Collective Bargaining Agents. It is headed by retired or serving judge of the Supreme Court of Pakistan and its members are retired or serving District & Session Judges, Federal Government Officers, Registrar of the NIRC. It plays important roles in promoting industrial peace which is necessary for high productivity in the commercial institutions.