Notified Industrial Relations (Central) Rules, 2026: What Employers Need To Know

Vide notification dated May 08, 2026, the Ministry of Labour and Employment, Government of India has notified the Industrial Relations (Central) Rules, 2026 (“IR Rules”), which are finalised after public consultation on the draft “Industrial Relations (Central) Rules, 2025” (published December 2025), incorporating stakeholder feedback. The IR Rules are framed under Section 99 of the Industrial Relations Code, 2020 (“IR Code”) , which itself came into force on 21 November 2025.

The IR Rules provide the detailed procedural framework to operationalise the IR Code, which consolidated the Trade Unions Act, 1926; Industrial Employment (Standing Orders) Act, 1946; and Industrial Disputes Act, 1947. The IR Rules have been notified in supersession of the relevant provisions of the Industrial Disputes (Central) Rules, 1957 and the Industrial Employment (Standing Orders) Central Rules, 1946.

The IR Rules operationalise several transformative concepts introduced by the IRC viz.:

• negotiating unions/councils;
• fixed-term employment;
• mandatory grievance redressal committees;
• stricter strike and lockout regulation;
• reskilling fund contributions;
• electronic compliance and digital filing.

The key features of the notified IR Rules are summarized below:

1. Grievance Redressal Committee (“GRC”)

• Every industrial establishment employing twenty (20) or more workers is required to constitute GRCs
• The GRC must consist of equal representation from the employer and workers, subject to a maximum of ten (10) members
• Adequate representation of women workers is mandatory and must not be less than the proportion of women workers in the establishment
• The representatives of the employer in the GRC shall be nominated by the employer and shall, as far as may be possible, be officials in direct touch with or associated with the working of the industrial establishment, preferably the heads of major departments
• Worker representatives in the GRC are to be nominated by the negotiating union / negotiating council, where recognized; in establishments without a recognized negotiating union / negotiating council, worker representatives are to be chosen by workers
• The tenure of members of the GRC is prescribed as three (3) years
• Aggrieved workers may file applications electronically or otherwise before the GRC within one (1) year from the date on which the cause of action arose
• The IR Rules prescribe the details to be included in a grievance application, including worker particulars, nature of grievance and relief sought
• A worker aggrieved by the decision of the GRC, or where the grievance is not resolved within thirty (30) days, may approach the conciliation officer within sixty (60) days through the concerned trade union
• The IR Rules also provide for digitisation of manually filed applications before conciliation officers

2. Standing Orders

• The IR Rules notify separate model standing orders (“MSOs”) for industrial establishments in the mine sector, manufacturing sector and service sector
• Where an employer adopts the applicable MSOs, the employer is required to inform the certifying officer electronically, in person or by speed post, specifying the date from which the MSOs have been adopted
• Upon receipt of the employer’s intimation, the certifying officer is required to enter the details of the industrial establishment in the prescribed register of standing orders
• If the certifying officer does not raise any observation within thirty (30) days from receipt of the employer’s intimation, the MSOs are deemed to have been certified
• The adopted MSOs come into force from the date specified by the employer in the intimation furnished to the certifying officer
• Certified standing orders or modifications are required to be authenticated by the certifying officer and sent electronically and by speed post within seven (7) days from authentication to the employer and concerned Trade Unions or worker representatives; no separate authentication is required in cases of deemed certification or where the employer has adopted the MSOs
• Draft MSOs are required to be accompanied by a statement containing details of the industrial establishment, workers employed, and particulars of Trade Unions, if any
• Groups of employers engaged in similar industrial establishments may submit a joint draft standing order after consultation with the concerned Trade Union
• The text of finally certified standing orders, deemed certified standing orders or adopted MSOs is required to be maintained by the employer in Hindi, English and the local language and is to be displayed in a legible manner at or near the entrance of the industrial establishment and may also upload the same on the establishment’s designated portal or website

3. Notice of Change

• Any employer proposing a change in service conditions relating to matters specified in the Third Schedule to the Code is required to issue a notice of change in Form-IV in the prescribed manner
• The notice is required to be displayed conspicuously at the main entrance of the industrial establishment and at the office of the concerned Trade Union, if any
• The notice is required to be displayed in Hindi, English and the language understood by the majority of workers, and a copy must also be served on the concerned Trade Union, negotiating union, negotiating council or worker representatives, as applicable
• The IR Rules permit issuance, service and maintenance of notices and related records through electronic mode.

4. Mechanism for Resolution of Industrial Disputes

• The Rules prescribe detailed procedures relating to conciliation proceedings, Industrial Tribunals and National Industrial Tribunals, including filing of industrial disputes, applications, statements, evidence, appearance of parties, adjournments and conduct of proceedings
• Conciliation officers may conduct proceedings physically or through electronic mode, and applications, notices, reports, written statements and other communications under the dispute resolution framework may also be submitted electronically or through designated portals
• Settlements arrived at during conciliation proceedings or otherwise are required to be recorded in the prescribed form, signed by the authorised representatives of employers and workers / Trade Unions, and copies thereof are required to be furnished to the appropriate government, conciliation officer and concerned parties
• Conciliation officers are required to maintain electronic or physical registers of settlements, containing details such as the serial number, name of industry, parties to the settlement, date of settlement and whether the settlement was arrived at through conciliation proceedings or mutual negotiation

5. Strikes and Lock-outs

• Notices of strike by workers and notices of lock-out by employers are required to be issued in the prescribed forms and served electronically, in person or by registered / speed post to the concerned parties
• The employer is required to report to the appropriate government and conciliation officer the receipt of any notice of strike or the occurrence of a lock-out within 5 days in the prescribed manner
• Employers are also required to report the commencement and cessation of strikes and lock-outs to the appropriate government and conciliation officer in the prescribed forms
• The IR Rules provide for electronic filing, service and maintenance of records relating to strike notices, lock-out notices and related communications

6. Lay-off, Retrenchment and Closure

• Employers proposing retrenchment of workers with continuous service of not less than one (1) year are required to serve notice in Form-XIII on the Central Government and the concerned Deputy Chief Labour Commissioner (Central) through e-mail or speed post within 3 days of notice to the worker / payment in lieu thereof, or at least one (1) month prior to termination where retrenchment is under an agreement
• Employers are required to prepare and display a seniority list of workers proposed to be retrenched at least seven (7) days prior to retrenchment, and where vacancies arise within one (1) year of retrenchment, eligible retrenched workers are required to be given preference for re-employment, with vacancy details being displayed fifteen (15) days prior to filling such vacancies
• Employers intending to close down an industrial establishment are required to issue notice in Form-XIII at least sixty (60) days prior to the intended closure to the Central Government and the concerned Deputy Chief Labour Commissioner (Central), with copies also furnished to the concerned Trade Unions or worker representatives
• For establishments covered under Chapter X, applications seeking prior permission for lay-off, retrenchment or closure are required to be made in Form-XIV, with closure applications to be submitted at least ninety (90) days before the intended closure becomes effective, and review applications against orders relating to lay-off, retrenchment or closure may be filed within thirty (30) days, to be disposed of by the Central Government within two (2) months

7. Worker Re-skilling Fund

• The IR Rules operationalise the Worker Re-skilling Fund (“Fund”) under Section 83 of the IR Code for crediting employer contributions in respect of retrenched workers.
• Employers are required to contribute an amount equivalent to fifteen (15) days’ wages last drawn by the retrenched worker to the Fund.
• The contribution is required to be transferred by the employer to the account specified by the Central Government within ten (10) days of retrenchment.

8. Offences and Penalties

• The IR Rules prescribe the procedure for compounding of offences, including issuance of notice by the notified compounding officer in Form XV through the designated portal of the Ministry of Labour and Employment.
• An accused person seeking compounding is required to submit the prescribed application and deposit the compounding amount electronically within fifteen (15) days of receipt of the notice.
• Where prosecution has already been instituted before a competent court, the accused may apply before the court seeking permission for composition of the offence in accordance with Section 89 of the IR Code and the prescribed procedure.
• Upon composition of the offence, no prosecution is to be instituted or continued against the accused, and where proceedings are pending before a court or authority, the compounding officer is required to intimate the same for closure of proceedings or discharge of the accused, as applicable.

Anhad Law’s Perspective

Significantly, under the framework of the labour codes in India, the applicability of the Central Rules and the State Rules depends upon which authority is designated as the “appropriate government” for a particular establishment. The Central Rules are applicable to establishments and sectors where the Central Government is recognised as the appropriate government under the relevant labour laws. These typically include industries and establishments operating under the authority or control of the Central Government, such as the banking sector, insurance companies, telecommunications, civil aviation, major ports, mines, oil fields, railways, and central public sector enterprises (CPSUs). Accordingly, employers operating in these sectors are required to comply with the IR (Central) Rules which have been brought into force on May 08,2026.

In contrast, for most other establishments, including private limited companies engaged in IT/ITES, software development, consulting and other services, trading, and manufacturing activities, the appropriate government is generally the respective State Government in which location the establishment is situated. Consequently, although the labour codes have been enacted at the central level, the operational implementation for such establishments will substantially depend upon the notification and enforcement of the corresponding State Rules by the concerned State Governments. Therefore, companies having offices, factories, or operations in different States will need to monitor the status of the State Rules in each relevant jurisdiction, as the compliance obligations under the labour codes would become fully applicable only upon notification and enforcement of the respective State Rules by those states.

Notwithstanding the same, the notification of the IR Rules is a significant step towards operationalisation of the IR Code. In parallel, several State Governments are also in the process of publishing and finalising their respective draft rules under the IR Code. Once notified, establishments falling under the jurisdiction of the respective State Governments will be required to comply with the applicable State-specific rules framed under the IR Code.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.