Labour Ministry Notifies Industrial Relations Rules 2026, Brings IR Code Into Force

The new rules, which were issued after considering stakeholder feedback on the draft rules published in December 2025, replace relevant provisions of the Industrial Disputes (Central) Rules, 1957 and the Industrial Employment (Standing Orders) Central Rules, 1946. New Rules For Worker Representation The framework introduces electronic filing, online submissions, and digital maintenance of records, reflecting the government’s push to modernise labour administration and reduce procedural delays. Under the new framework, establishments employing 20 or more workers must constitute Grievance Redressal Committees with equal representation from employers and workers. The rules also mandate adequate representation of women workers in such committees in proportion to their workforce participation. In addition, a formal mechanism has been introduced for recognising negotiating unions and negotiating councils through membership verification and secret ballot procedures where multiple trade unions operate within an establishment. The rules also simplify the adoption of model standing orders for industrial establishments across manufacturing, mining and service sectors. Employers adopting model standing orders must notify certifying officers digitally, and if no objections are raised within 30 days, the standing orders will be deemed certified. Clear Timelines For Layoffs And Closures Clear timelines have also been laid out for workforce restructuring decisions. Employers must seek approval at least 15 days before layoffs, 60 days before retrenchment, and 90 days before closure of establishments. The rules further mandate contributions to a Worker Re-skilling Fund in retrenchment cases to support affected workers. Additionally, the framework provides detailed procedures for arbitration, conciliation proceedings, industrial dispute settlements, and recovery of worker dues. The rules aim to improve transparency, streamline dispute resolution, and create a more structured industrial relations ecosystem, though their effectiveness will depend on implementation at the ground level. (KNN Bureau)