Background
Industrial Relations Code, 2020 consolidates and replaces three earlier central labour statutes — the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947 into a single framework governing trade union registration, conditions of service, standing orders, dispute resolution, and lay-off, retrenchment and closure of industrial establishments. Rajasthan Industrial Relation Rules, 2026, notified by the State Government under its rule-making powers, prescribe the State-level procedural framework for giving effect to the Code within Rajasthan, covering the constitution and functioning of Works Committees and Grievance Redressal Committees, the process for certification and modification of standing orders, the notice and permission procedures governing lay-off, retrenchment, transfer and closure, and the prescribed forms through which employers discharge these obligations.
Together, the Code and the Rajasthan Rules introduce a structured compliance mechanism built around statutory committees for workplace dialogue and grievance resolution, standardised standing orders governing conditions of service, defined notice periods and compensation formulae for lay-off, retrenchment and closure, and a consolidated penalty framework under Section 86 of the Code covering employers, workers and Trade Unions.
Applicability
The Rules apply to industrial establishments in Rajasthan across categories of size and activity: establishments subject to a Government order under Section 3(1) of the Code employing 100 or more workers must constitute a Works Committee, while all establishments employing 20 or more workers must constitute a Grievance Redressal Committee; establishments to which Chapter IX applies (generally those employing 50 or more but fewer than 300 workers on average) are subject to lay-off compensation and related obligations, whereas larger establishments falling under Chapter X (300 or more workers) are additionally subject to prior-permission requirements before lay-off, retrenchment or closure; every employer employing workers governed by standing orders must prepare, certify, display and, where applicable, modify such standing orders; and every employer effecting a change in service conditions, transfer of ownership, retrenchment, lay-off or closure — as well as every worker and registered Trade Union — remains bound by the notice, compensation, dispute-resolution and unfair-labour-practice provisions of the Code, regardless of establishment size.
Key Requirement Under Rajasthan Industrial Relations Code 2026
Every employer to whom an order made by the State Government under Section 3(1) of the Industrial Relations Code, 2020 relates shall forthwith proceed to constitute a Works Committee to promote measures for securing and preserving amity and good relations between the employer and workers, and to that end, to comment upon matters of common interest or concern. The number of worker representatives on the Committee shall not be less than the number of employer representatives, and the total membership shall not exceed twenty, fixed so as to afford representation to the various categories, groups and classes of workers and to the sections, shops or departments of the establishment. The Committee shall also have the right to co-opt, in a consultative capacity, persons employed in the establishment who possess particular or special knowledge of a matter under discussion; such co-opted members are not entitled to vote.
The employer shall ensure that the Works Committee has not more than twenty members, with worker representatives not fewer than employer representatives. Representation shall be fixed to afford coverage to the various categories, groups and classes of workers and the sections, shops or departments of the establishment. Where women workers are employed, their representation on the Committee shall not be less than their proportion in the total workforce of the establishment.
Employer representatives on the Works Committee shall be nominated by the employer and shall, as far as possible, be officials in direct touch with or associated with the working of the industrial establishment.
Where workers are members of a registered Trade Union or Trade Unions, the employer shall ask such Trade Union(s) to inform the employer in writing of the number of workers who are members. A Trade Union that fails to furnish this information within one month of the request shall be treated as not existing for this purpose. Where the employer has reason to believe the information furnished is false, the employer shall, after informing the Trade Union, refer the matter to the Labour Commissioner or the officer notified by the State Government, whose decision on the matter shall be final.
On receipt of Trade Union membership information, the employer shall provide for the choosing of worker representatives as follows: (a) where a negotiating union exists under Section 14(2) or (3), that union shall nominate the worker representatives; (b) where a negotiating council exists under Section 14(4), nomination shall be in proportion to each constituent union’s membership; and (c) where no negotiating union or council exists, workers shall elect their representatives from among themselves. The employer may deploy an electronic platform to facilitate such elections.
Where an election is required, the employer shall fix a schedule allowing at least three working days for filing nominations, with the election date fixed not earlier than three days and not later than fifteen days after the nomination closing date. Notice of the election date, specifying the number of seats, shall be affixed on the notice board (or electronic notice board) with adequate publicity at least seven days in advance. Where validly nominated candidates equal the number of available seats, they shall be declared elected without a vote; where nominations exceed the seats available, voting shall be conducted on the fixed date and the results declared and published.
Every nomination for election as a worker representative on the Works Committee shall be made on a nomination paper provided by the employer, copies of which shall be supplied to workers who require them. Each nomination paper shall be signed by the candidate and attested by at least two other voters belonging to the group, section, shop or department the candidate seeks to represent, and delivered to the employer in accordance with the election process.
On the day following the last day fixed for filing nomination papers, the employer shall scrutinise the nomination papers in the presence of the candidates and attesting persons (or their duly authorised nominee, where a candidate or attesting person is unable to attend) and shall reject nominations that are not valid — that is, where the candidate is ineligible under Rule 4(7) or the requirements of Rule 4(10) have not been complied with.
A candidate whose nomination for election as worker representative on the Works Committee has been accepted may withdraw candidature within forty-eight hours of completion of scrutiny of the nomination papers. The employer shall process such withdrawal within the prescribed period and proceed with the election on the basis of the final list of candidates.
The Works Committee shall have among its office-bearers a Chairman, a Vice-Chairman, a Secretary and a Joint-Secretary. The Chairman shall be nominated by the employer from among employer representatives and shall, as far as possible, be the head of the establishment; the Vice-Chairman shall be elected by worker representatives from among themselves, without participation by employer representatives in that election. The Secretary and Joint-Secretary shall be elected every year from alternate sides, such that where the Secretary is from the employer side the Joint-Secretary is from the worker side and vice versa, and no representative of either side shall hold the post of Secretary or Joint-Secretary for three consecutive years.
The term of office of Works Committee members, other than those filling casual vacancies, shall be three years. A member chosen to fill a casual vacancy holds office only for the remainder of the predecessor’s term. Any member who, without obtaining leave from the Committee, fails to attend three consecutive meetings shall forfeit membership. Where a worker representative ceases to be a member by reason of forfeiture, cessation of employment, resignation or death, the resulting vacancy shall be filled from the same group to which the vacating member belonged, for the remaining period of the Committee’s term.
The Works Committee shall meet as often as necessary for its functions, but not less frequently than once in every three months. At its first meeting the Committee shall regulate its own procedure. The employer shall provide suitable accommodation for holding meetings and all necessary facilities to the Committee and its members. Meetings shall ordinarily be held during working hours on a working day, and worker representatives attending shall be deemed to be on duty while doing so.
Where a worker representative ceases to be a member of the Works Committee by reason of forfeiture, cessation of employment, resignation, death or otherwise, the employer shall facilitate selection of a successor, in accordance with the prescribed procedure, from the same group to which the vacating member belonged. The successor shall serve only for the remaining period of the Committee’s term.
The employer shall provide suitable accommodation for holding meetings of the Works Committee and all necessary facilities to the Committee and its members for carrying out its work, and shall treat worker representatives attending meetings during working hours as being on duty. The Secretary of the Works Committee may, with the prior concurrence of the Chairman, put up notices regarding the work of the Committee on the notice board of the establishment.
Every industrial establishment employing twenty or more workers shall constitute one or more Grievance Redressal Committees for resolution of disputes arising out of individual grievances. Each Committee shall consist of equal numbers of members representing the employer and workers, not exceeding ten in total, and shall provide adequate representation to women workers, in a proportion not less than their share of the total workforce.
Employer representatives on the Grievance Redressal Committee shall be nominated by the employer, preferably from the heads of major departments, while worker representatives shall be chosen through the negotiating union, the negotiating council (in proportion to membership), or by direct worker selection where no such body exists. The Committee shall have equal numbers of employer and worker representatives, subject to a total membership not exceeding ten, with adequate representation of women workers not less than their proportion in the total workforce. The Chairperson shall be selected from employer and worker representatives on a rotational basis every year.
The tenure of members of the Grievance Redressal Committee shall be three years from the date of their selection. The employer shall ensure continuity and reconstitution of the Committee’s membership on expiry of each three-year term, in accordance with the applicable selection and nomination process.
The employer shall ensure that the Grievance Redressal Committee receives and processes applications relating to individual grievances in accordance with the prescribed procedure. An aggrieved worker may submit an application, electronically or otherwise, stating their name, designation, employee code, department, length of service, category of worker, correspondence and contact details, particulars of the grievance, and the relief sought. Such an application must be filed within one year from the date on which the cause of action arose.
The Grievance Redressal Committee shall consider an application received from an aggrieved worker and complete proceedings, issuing its decision, within thirty days of receipt. The decision shall be based on the majority view of the Committee, and requires the agreement of more than half of the members representing workers; where such majority agreement is not obtained, it shall be deemed that no decision could be arrived at.
An employer adopting the Model Standing Orders provided by the Central Government for the applicable sector must notify the Certifying Officer of the specific date of adoption; the adopted Model Standing Orders then apply to the establishment and all its units across the country from that date. Where the Certifying Officer observes that the establishment undertakes activities not covered by the adopted Model Standing Orders, they may, within thirty days of receipt of the intimation, direct inclusion of the relevant provisions, with which the employer must comply within thirty days by submitting a compliance report. Where no observation is made by the Certifying Officer within thirty days of the intimation, the standing orders shall be deemed to have been adopted.
The employer shall prepare draft standing orders within six months of commencement of the applicable provisions of the Code, after consulting the concerned Trade Union or negotiating body, and submit them for certification to the Certifying Officer together with the prescribed statement of establishment and worker particulars.
The employer shall maintain the text of the standing orders as finally certified, or deemed certified, or the adopted Model Standing Orders, in Hindi or in English. Where the standing orders are submitted in English, a true translation in Hindi shall also be maintained. The certified standing orders shall be sent to all concerned parties and displayed at the premises of the establishment.
An application for modification of existing standing orders shall be submitted electronically or otherwise to the Certifying Officer, and shall contain particulars of the standing orders proposed to be modified; a tabular statement setting out each provision currently in force alongside the proposed modification, with reasons; and details of all registered Trade Unions operating in the establishment. The application shall be signed by a person authorised by the establishment, workers, Trade Union, or other representative body of workers.
Certified or modified standing orders shall provide for payment of subsistence allowance to a worker suspended pending investigation or inquiry into complaints or charges of misconduct, at the rate of fifty per cent of the wages the worker was entitled to immediately before suspension for the first ninety days of suspension, and seventy-five per cent of such wages for the remaining period of suspension, provided the delay in completion of disciplinary proceedings is not directly attributable to the worker’s conduct.
An employer intending to effect a change in the conditions of service applicable to any worker, in respect of any matter specified in the Third Schedule to the Code, shall give notice in Form-VIII specifying the nature of the proposed change to the workers likely to be affected. The notice shall be displayed conspicuously on the notice board at the main entrance of the establishment and at the office of the concerned Manager, and, where a registered Trade Union is connected with the establishment, a copy shall also be served on its Secretary. No such change shall be effected within twenty-one days of giving the notice; notice is not required where the change is made pursuant to a settlement or award.
Where an employer and workers agree to refer an industrial dispute to voluntary arbitration under Section 42 of the Code, the parties shall execute a written arbitration agreement in Form-IX, signed by the parties in the prescribed manner and accompanied by the written or electronic consent of the arbitrator(s). A copy of the arbitration agreement shall be forwarded to the Conciliation Officer and to the Secretary to the Government of Rajasthan, Labour Department.
An employer intending to declare a lock-out shall give notice in Form-XVI to the Secretary of every registered Trade Union connected with the establishment, endorsing copies electronically or otherwise to the concerned Conciliation Officer, Labour Commissioner, District Magistrate, and the Secretary to the Government, Labour Department, Rajasthan. The notice shall be displayed conspicuously on a notice board or electronic board at the main entrance of the establishment. No employer shall declare a lock-out without giving notice at least sixty days before locking out, and no lock-out may commence within fourteen days of giving such notice, before the specified lock-out date, or during the pendency of conciliation, adjudication or arbitration proceedings or while a settlement or award is in operation.
Where an employer receives from any person employed by them a notice of strike as referred to in Section 62(1) of the Code, the employer shall, within five days of receiving such notice, intimate the same electronically or otherwise to the concerned Conciliation Officer and the Labour Commissioner.
Where an employer gives any person employed by them a notice of lock-out, the employer shall, within five days from the date of such notice, intimate the same electronically or otherwise to the concerned Conciliation Officer and the Labour Commissioner.
No employer of an industrial establishment shall lock out any worker: (a) without giving notice of lock-out at least sixty days before locking out; (b) within fourteen days of giving such notice; (c) before expiry of the lock-out date specified in the notice; (d) during the pendency of conciliation proceedings and for seven days after their conclusion; (e) during the pendency of proceedings before a Tribunal or National Industrial Tribunal and for sixty days after their conclusion; (f) during pendency of arbitration and for sixty days after its conclusion, where notification has been issued; or (g) during any period a settlement or award is in operation in respect of the matters covered.
This obligation applies to industrial establishments employing fifty or more but fewer than three hundred workers on average per working day over the preceding twelve months, and not of a seasonal or intermittent nature. Where a worker (other than a badli or casual worker) on the muster rolls, who has completed not less than one year of continuous service, is laid off — continuously or intermittently — the employer shall pay compensation for all days of lay-off (excluding weekly holidays) equal to fifty per cent of the total of basic wages and dearness allowance that would otherwise have been payable. Where total lay-off in any twelve months exceeds forty-five days and there is an agreement to that effect, no compensation is payable beyond the first forty-five days.
Every employer covered under Chapter IX or Chapter X of the Code shall maintain a muster roll at all times, including during periods of lay-off, notwithstanding that workers have been laid off. The muster roll shall be available so that workers who present themselves for work during normal working hours at the appointed time may make entries therein.
No lay-off compensation is payable to a worker who has been laid off: (i) where the worker refuses to accept suitable alternative employment in the same establishment, or in any other establishment of the same employer within a radius of eight kilometres, at the same wages, where such work does not require special skill or previous experience; (ii) where the worker does not present themself for work at the establishment at the appointed time during normal working hours at least once a day; or (iii) where the lay-off is due to a strike or slowing-down of production by workers in another part of the establishment.
An employer intending to retrench a worker who has been in continuous service for not less than one year shall: (a) give the worker one month’s written notice stating the reasons for retrenchment, or pay wages in lieu of notice; (b) pay retrenchment compensation equivalent to fifteen days’ average pay for every completed year of continuous service, or any part thereof exceeding six months; and (c) within three days of serving notice on the worker or paying wages in lieu, give notice of the retrenchment in Form-XVII to the State Government and the concerned Joint Labour Commissioner by e-mail, registered post or speed post, with a copy shared electronically with the Director General, Labour Bureau in auto-mode.
Where a vacancy occurs in an industrial establishment within one year of a proposal to fill it, and there are workers retrenched within that year who are citizens of India and have expressed willingness for re-employment, the employer shall give them preference over other persons based on their service seniority. The vacancy shall be displayed on the notice board at least fifteen days before it is to be filled, and intimation shall also be sent to every eligible retrenched worker by registered post, speed post or e-mail.
Where the ownership or management of an industrial establishment is transferred, whether by agreement or by operation of law, every worker with not less than one year of continuous service immediately before the transfer shall be entitled to notice and compensation under Section 70 of the Code as if retrenched, unless: (a) the worker’s service is not interrupted by the transfer; (b) the terms and conditions of service after transfer are not less favourable than before; and (c) the new employer is legally liable to pay retrenchment compensation on the basis that the worker’s service has been continuous.
An employer intending to close down an industrial establishment shall, at least sixty days before the intended date of closure, give notice of such closure stating the reasons in Form-XVII to the State Government, with a copy to the concerned Joint Labour Commissioner, by e-mail, registered post or speed post. A copy of Form-XVII shall also be shared electronically with the Director General, Labour Bureau in auto-mode.
Where an industrial establishment is closed down for any reason, every worker with not less than one year of continuous service immediately before the closure shall be entitled to notice and compensation under Section 70 of the Code as if retrenched. Where the closure is due to unavoidable circumstances beyond the employer’s control, compensation shall not exceed the worker’s average pay for three months; financial difficulties, undisposed stocks, expiry of a lease or licence, and exhaustion of minerals are not treated as unavoidable circumstances for this purpose.
An employer of a Chapter X establishment intending to lay off workers shall, unless an exemption applies, obtain prior permission from the State Government by applying in Form-XVIII, clearly stating the reasons for the intended lay-off. A copy shall be served simultaneously on the concerned workers, electronically and by registered post or speed post, and shall be displayed conspicuously on the notice board or electronic board at the main entrance of the establishment, with a copy shared electronically with the Director General, Labour Bureau in auto-mode. Prior permission is not required for lay-off due to shortage of power or natural calamity, or, in a mine, due to fire, flood, excess of inflammable gas or explosion.
An employer of a Chapter X establishment seeking permission to retrench workers shall submit Form-XVIII electronically to the State Government, clearly stating the reasons for the intended retrenchment. A copy of the application shall be provided to the concerned workers electronically and by registered post or speed post, and displayed conspicuously on the notice board or electronic board at the main entrance of the establishment, with a copy shared electronically with the Director General, Labour Bureau in auto-mode.
An employer of a Chapter X establishment shall not retrench a worker with one or more years of continuous service without giving three months’ written notice stating the reasons for retrenchment (or paying wages in lieu of notice) and obtaining the prior permission of the State Government; retrenchment shall take effect only after expiry of the notice period unless wages in lieu are paid. Where permission has been granted or is deemed to have been granted, the employer shall pay retrenchment compensation equivalent to fifteen days’ average pay for every completed year of continuous service, or any part thereof exceeding six months, at the time of retrenchment.
An employer intending to close down an industrial establishment to which Chapter X of the Code applies shall apply electronically in Form-XVIII to the State Government for prior permission at least ninety days before the intended date of closure, clearly stating the reasons for the proposed closure. A copy shall simultaneously be provided to the representatives of the workers electronically and by registered post or speed post, with a copy shared electronically with the Director General, Labour Bureau in auto-mode.
An employer who retrenches workers shall, within ten days of the date of retrenchment, electronically or otherwise transfer an amount equivalent to fifteen days of each retrenched worker’s last-drawn wages to the account of the State Government (details of which are displayed on the website of the Labour Department of Rajasthan). The employer shall also submit a list containing each retrenched worker’s name, the corresponding fifteen days’ wage amount, and bank account details, to enable the State Government to transfer the amount to the worker’s account, which it shall do within forty-five days of receiving the funds from the employer.
No employer, worker, or Trade Union — whether registered or not — shall commit any unfair labour practice specified in the Second Schedule to the Code. These practices include interfering with workers’ right to organise or join Trade Unions; dominating or funding Trade Unions; establishing employer-sponsored Trade Unions; discriminating against workers on the basis of Trade Union membership or activity; wrongful discharge or dismissal; contracting out work to break a legal strike; mala fide transfers; insisting on good-conduct bonds for workers returning from a legal strike; recruiting workers during a legal strike; failing to implement awards, settlements or agreements; committing acts of force or violence; and refusing to bargain collectively in good faith with the recognised Trade Union.
Where an industrial dispute is pending before a conciliation officer, arbitrator, Tribunal or National Industrial Tribunal, the employer shall not, in regard to any matter connected with the dispute: (a) alter, to the prejudice of the concerned workers, the conditions of service applicable to them immediately before commencement of the proceedings; or (b) discharge or punish any worker concerned in the dispute for misconduct connected with the dispute — except with the express written permission of the authority before which the proceedings are pending.
During the pendency of industrial dispute proceedings, the employer may, in accordance with the applicable standing orders or contract terms, alter conditions of service for matters not connected with the dispute, or discharge or punish a worker for misconduct not connected with the dispute; however, such a worker shall not be discharged or dismissed unless the employer has paid the worker wages for one month and has applied to the authority before which the proceedings are pending for approval of the action taken. No action — whether connected or unconnected with the dispute — may be taken against a protected worker during this period without the express written permission of the authority before which the proceeding is pending.
Where a Tribunal or National Industrial Tribunal directs reinstatement of a worker by its award, and the employer challenges that award before a High Court or the Supreme Court, the employer shall be liable to pay the worker, during the pendency of such proceedings, full wages last drawn — inclusive of any admissible maintenance allowance — provided the worker has not been employed in any establishment during that period and has filed an affidavit to that effect before the Court.
Penalty and Consequences
Section 86(1): Contravention of Prior-Permission Requirements for Lay-Off, Retrenchment or Closure
An employer who contravenes the provisions of Section 78, Section 79 or Section 80 of the Code shall be punishable with a fine which shall not be less than one lakh rupees, but which may extend to ten lakh rupees.
Section 86(3): Contravention of Lay-Off, Retrenchment, Transfer or Closure Provisions
An employer who contravenes the provisions of Section 67, Section 70, Section 73 or Section 75 of the Code shall be punishable with a fine which shall not be less than fifty thousand rupees, but which may extend to two lakh rupees.
Section 86(5): Commission of Unfair Labour Practices
Any person who commits any unfair labour practice specified in the Second Schedule to the Code shall be punishable with a fine which shall not be less than ten thousand rupees, but which may extend to two lakh rupees.
Section 86(7): Default by a Registered Trade Union in Furnishing Notices or Documents
Where default is made by a registered Trade Union in giving any notice or sending any statement or other document required under the Code, every office-bearer or other person bound by the rules of the Trade Union to give or send the same shall be punishable with a fine which shall not be less than one thousand rupees, but which may extend to ten thousand rupees; a continuing default shall attract an additional penalty of fifty rupees per day for as long as the default continues.
Section 86(10): Failure to Submit or Unauthorised Modification of Standing Orders
An employer who fails to submit draft standing orders as required by Section 30, or who modifies standing orders otherwise than in accordance with Section 35, shall be punishable with a fine which shall not be less than fifty thousand rupees, but which may extend to two lakh rupees, and, in the case of a continuing offence, with an additional fine of two thousand rupees per day for as long as the offence continues.
Section 86(11): Contravention of Certified Standing Orders
An employer who does any act in contravention of the standing orders finally certified under the Code shall be punishable with a fine which shall not be less than one lakh rupees, but which may extend to two lakh rupees.
Section 86(13): Participation in an Illegal Strike
Any worker who commences, continues, or otherwise acts in furtherance of a strike that is illegal under the Code shall be punishable with a fine which shall not be less than one thousand rupees, but which may extend to ten thousand rupees, or with imprisonment for a term which may extend to one month, or with both.
Section 86(14): Declaration of an Illegal Lock-Out
Any employer who commences, continues, or otherwise acts in furtherance of a lock-out that is illegal under the Code shall be punishable with a fine which shall not be less than fifty thousand rupees, but which may extend to one lakh rupees, or with imprisonment for a term which may extend to one month, or with both.
Section 86(20): General Penalty for Other Contraventions
Any person who contravenes any other provision of the Code not covered under Section 86(1) to 86(19), or the rules or regulations framed under the Code, shall be punishable with a fine which may extend to one lakh rupees.
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