The main parties involved in the IR system are:

i.) Employers - They are the ones who possess the rights to hire the employees and remove them. They also possess the rights to relocate, close or merge the business. They can opt for technological changes as and when they see it in the interest of business.

ii.) Employees - They are actually the ones who keep the business moving. They possess the rights to voice their opinions and feelings while striving for betterment. They usually form the unions to negotiate with the employers.

iii.) Government - Government is the one who influences the IR system with laws, rules, agreements, awards of court etc. They also include third parties & labour and tribunal courts to manage the IR system.