Background
Industrial Relations Code, 2020 (35 of 2020) is one of the four labour codes enacted by Parliament to consolidate and simplify India’s labour laws. It subsumes the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946 and the Industrial Disputes Act, 1947 into a single statute governing trade unions, conditions of employment in industrial establishments, and the investigation and settlement of industrial disputes. The Code was brought into force across India on 21 November 2025, and section 99 empowers the appropriate Government to frame rules to give effect to its provisions.
In exercise of that power, the Government of Uttarakhand, through its Labour Section, notified the Uttarakhand Industrial Relation Rules, 2026 vide Notification No. 1117/VIII-1/2026-39(Labour)2018 dated 25 August 2026, following the publication of the draft rules for public consultation earlier in 2026; the Rules take effect from the date of their publication in the Official Gazette and replace the legacy State-level rules framed under the repealed central labour enactments. This blog covers Rules 1 to 18, which prescribe the form and signatories of settlements (Form A), the constitution, election, functioning, reporting and dissolution of Works Committees, the composition and working of Grievance Redressal Committees, the subscription, donation and audit requirements of Trade Unions, the procedure for registration and deemed registration of Trade Unions and the intimation of changes to the Registrar, and the matters on which employers must negotiate with the negotiating union or negotiating council.
Applicability
Rules apply to every industrial establishment in Uttarakhand and to the registered Trade Unions operating in such establishments: all employers and workers must draw up settlements in the prescribed form and communicate settlements arrived at outside conciliation to the authorities; employers of establishments employing 100 or more workers that are covered by a State Government order under section 3(1) must constitute, conduct elections to, facilitate and report on a Works Committee; employers of establishments employing twenty or more workers must constitute and operate a Grievance Redressal Committee; employers of establishments with a negotiating union or negotiating council must negotiate with it on the prescribed matters; and registered Trade Unions, including those deemed registered under the Trade Unions Act, 1926, must comply with the prescribed subscription, donation, audit, registration and intimation requirements.
Compliance Requirement Under the Rules in Accordance with the Act
Following sets out the key compliance obligations under the Industrial Relations Code, 2020 and the Uttarakhand Industrial Relation Rules, 2026.
Every settlement arrived at in the course of conciliation proceedings, and every written agreement between the employer and workers arrived at otherwise than in the course of conciliation proceedings, shall be drawn up in Form A. The settlement shall be signed on behalf of the employer by the employer or his authorised agent or, where the employer is an incorporated company or other body corporate, by its representative, manager or other principal officer; and on behalf of the workers by the President, Vice-President, Secretary (including General Secretary), Joint Secretary or any other office bearer of the Trade Union authorised by the President and Secretary, or by five representatives of workers duly authorised at a meeting of the workers held for the purpose. In the case of an industrial dispute between any worker and the employer, the settlement shall be signed by the employer and the worker concerned.
Where a settlement is arrived at between an employer and his workers otherwise than in the course of conciliation proceedings, the parties to the settlement shall jointly send a copy thereof electronically, by speed post or by registered post to the Labour Commissioner and to the conciliation officer. A settlement between a worker or workers or a Trade Union and an employer on mutually agreed terms may be in a format other than Form A; however, a copy of every settlement reached outside the conciliation process shall compulsorily be sent to the conciliation officer.
Every employer to whom an order made by the State Government under sub-section (1) of section 3 of the Code 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 their common interest or concern, in the manner specified in the Uttarakhand Industrial Relation Rules, 2026.
The number of members of the Works Committee shall be fixed so as to afford representation to the various categories, groups and classes of workers engaged in, and to the sections or departments of, the industrial establishment. The total number of members shall not exceed twenty, and the number of representatives of the workers shall not be less than the number of representatives of the employer. An industrial establishment in which women workers are employed shall have adequate representation of women workers on the Works Committee, and such representation shall not be less than the proportion of women workers to the total workers employed in the industrial establishment.
Subject to the provisions of Rule 4, the representatives of the employer on the Works Committee 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.
Where the workers of the industrial establishment are members of a registered Trade Union or Trade Unions, the employer shall ask such Trade Union or Trade Unions to inform him in writing of the number of workers who are their members. If the employer has reason to believe that the information furnished is false, he may, after informing the Trade Union, refer the matter to the Deputy/Joint/Additional Registrar, who shall send a report to the Labour Commissioner/Registrar, whose decision shall be final. A Trade Union which fails to furnish the information within one month of the date on which it is called for shall be treated as if it did not exist for the purposes of the rule. Where such a reference has been made, the employer shall hold the process of choosing the workers’ representatives on receipt of the decision of the Labour Commissioner.
On receipt of the information called for under sub-rule (4), the employer shall provide for the choosing of the workers’ representatives on the Works Committee in the following manner: (a) where there is a negotiating union under sub-section (2) or (3) of section 14, such negotiating union shall nominate the workers’ representatives; (b) where there is a negotiating council under sub-section (4) of section 14, every registered Trade Union represented in the council shall be represented on the Committee in proportion to the number of its members in the establishment; and (c) where there is no recognised negotiating union or negotiating council, the workers shall elect the workers’ representatives from amongst themselves. The employer may deploy an electronic platform for conducting the election process.
Any worker of not less than nineteen years of age and with service of not less than one year in the industrial establishment may, if nominated, be a candidate for election as a workers’ representative; the service qualification shall not apply to the first election in an establishment that has been in existence for less than a year. All workers not less than eighteen years of age who have put in not less than six months’ continuous service in the industrial establishment shall be entitled to vote. Continuous service in two or more industrial establishments belonging to the same employer shall be counted for both qualifications. The employer may, if he thinks fit, direct that the workers shall vote by groups, sections, shops or departments.
While fixing the closing date for receiving nominations, the employer shall allow a minimum period of at least three working days for the filing of nominations. The date fixed for holding the election shall not be earlier than three days and not later than fifteen days after the closing date for receiving nominations. The date of election shall be notified to the workers concerned at least seven days in advance by a notice which specifies the number of seats to be elected, is affixed on the notice board or electronic notice board of the industrial establishment, and is given adequate publicity amongst the workers.
Every nomination for election as a workers’ representative on the Works Committee shall be made on a nomination paper provided by the employer, and copies thereof shall be supplied by the employer to the workers requiring them. Each nomination paper shall be signed by the candidate to whom it relates, attested by at least two other voters belonging to the group, section, shop or department which the candidate seeks to represent, and delivered to the employer.
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 the attesting persons and shall reject those nominations which are not valid. A nomination paper shall be held to be not valid if (a) the candidate nominated is ineligible for being a candidate under sub-rule (7), or (b) the requirements of sub-rule (10) have not been complied with. Where a candidate or an attesting person is unable to be present at the time of scrutiny, he may send a duly authorised nominee for the purpose.
Any candidate whose nomination for election has been accepted may withdraw his candidature within forty-eight hours of the completion of scrutiny of the nomination papers. The employer shall process such withdrawals and proceed with the election on the basis of the final list of candidates.
If the number of candidates validly nominated for election as workers’ representatives on the Works Committee is equal to the number of seats, the candidates shall forthwith be declared duly elected. Where the number of candidates validly nominated is more than the number of seats allotted, voting shall take place on the day fixed for the election.
The Works Committee shall have among its office bearers a Chairperson, a Vice-Chairperson, a Secretary and a Joint Secretary. The Chairperson shall be nominated by the employer from amongst the employer’s representatives on the Committee and shall, as far as possible, be the head of the industrial establishment. The Vice-Chairperson shall be elected by the members of the Committee representing the workers from amongst themselves and, in the event of an equality of votes, the matter shall be decided by lottery.
The Secretary and the Joint Secretary of the Works Committee shall be elected every year. Where the Secretary is elected from amongst the representatives of the employer, the Joint Secretary shall be elected from amongst the representatives of the workers, and vice versa. The post of Secretary or Joint Secretary shall not be held by a representative of either the employer or the workers for three consecutive years. The employer’s representatives shall not take part in these elections, only the representatives of the workers being entitled to vote, and in the event of an equality of votes the matter shall be decided by lottery.
The term of office of the members of the Works Committee, other than a member chosen to fill a casual vacancy, shall be three years. Every member chosen to fill a casual vacancy shall hold office for the remaining period of the term of his predecessor. The membership of any member who fails to attend three consecutive meetings of the Committee without obtaining leave from the Committee shall stand ceased.
In the event of a workers’ representative ceasing to be a member under clause (iii) of sub-rule (15), ceasing to be employed in the industrial establishment, or in the event of his resignation, death or otherwise, his successor shall be chosen in accordance with the provisions of Rule 4 for the remaining period of the Committee from the same group to which the member vacating the seat belonged.
The Works Committee may meet as often as necessary but not less often than once in three months, and shall at its first meeting regulate its own procedure. The Committee shall have the right to co-opt, in a consultative capacity, persons employed in the industrial establishment having particular or special knowledge of a matter under discussion; such co-opted members shall not be entitled to vote and shall be present at meetings only for the period during which the particular question is before the Committee.
The employer shall provide a meeting place for holding meetings of the Works Committee and shall also provide all necessary facilities to the Committee and its members for carrying out the work of the Committee. The Committee shall ordinarily meet during the working hours of the industrial establishment on any working day, and the representatives of the workers shall be deemed to be on duty while attending the meeting.
The Secretary of the Works Committee may, with the prior concurrence of the Chairperson, put up notices regarding the functions of the Committee on the notice board of the industrial establishment, and the employer shall permit such display.
The employer shall submit the details of the constitution and the functioning of the Works Committee as a part of the unified annual return provided in the rules made in this behalf under the Occupational Safety, Health and Working Conditions Code, 2020 (37 of 2020). No separate due date is prescribed for this purpose in the Uttarakhand Industrial Relation Rules, 2026.
The State Government, or the officer authorised by it in this behalf, may after inquiry dissolve any Works Committee by an order for reasons recorded in writing, on being satisfied that (a) the Committee has not been constituted in accordance with the provisions of Rule 4; (b) not less than two-thirds of the representatives of the workers have, without reasonable justification, failed to attend three consecutive meetings; or (c) the Committee has, for any other reason, ceased to function. Where the Committee is so dissolved, the employer may, and if so required by the State Government or such officer shall, take steps to reconstitute the Committee in accordance with Rule 4.
The Grievance Redressal Committee in an industrial establishment employing twenty or more workers shall consist of an equal number of members representing the employer and the workers, the total of which shall not exceed ten.
The representatives of the employer on the Grievance Redressal Committee 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 the major departments of the industrial establishment.
The workers’ representatives on the Grievance Redressal Committee shall be chosen as follows: (a) where there is a negotiating union under sub-section (2) or (3) of section 14, such negotiating union shall nominate them; (b) in the case of a negotiating council under sub-section (4) of section 14, every registered Trade Union in the council shall be represented in proportion to its membership; and (c) where there is no recognised negotiating union or negotiating council, the workers shall choose their representatives amongst themselves, for which the employer may deploy an electronic platform. There shall be adequate representation of women workers on the Committee, not less than the proportion of women workers to the total workers employed in the establishment. Where there is no negotiating union or negotiating council, any dispute regarding the choice of representatives may be referred to the Labour Commissioner.
The tenure of the members of the Grievance Redressal Committee shall be three years, and the employer shall ensure that the Committee is reconstituted on the expiry of each term in accordance with Rule 5.
Any aggrieved worker may file an application before the Grievance Redressal Committee stating his name, designation, employee code and department where posted; length of service in years and category of worker; address for correspondence and contact number; and details of the grievance and the relief sought. The application may be sent electronically or otherwise and shall be filed within one year from the date on which the cause of action of the dispute arose. The employer shall ensure that a mechanism is in place to receive and record such applications.
The subscription fee payable by members of a Trade Union shall be Rs. 200 per annum for workers of the unorganised sector and Rs. 300 per annum for workers of the organised sector. The amount of subscription may be amended by the State Government, as and when required, by a general order.
In addition to the subscriptions of members, a Trade Union may accept annual donations of up to Rs. 5,000 from outsiders through electronic or digital means. A receipt for every such donation shall be provided to the donor by the President of the association or other authorised official within one week of the date of the donation.
The annual audit of the accounts of a Trade Union shall be conducted by an auditor qualified under section 141(1) of the Companies Act, 2013. Where the membership of the Trade Union did not exceed 2,500 at any time during the financial year, the audit may instead be conducted by (a) a local auditor in Government service; (b) a person who has served in the State Audit and Accounts Service; (c) an auditor appointed to audit the accounts of a co-operative society; or (d) the Registrar of a co-operative society or of a recognised State co-operative organisation. No person entrusted with any part of the funds or securities of the Union during the year shall audit its accounts. The auditor shall be given access to all the books of the Trade Union, shall verify the annual return with the accounts and vouchers, and shall sign the auditor’s declaration appended to Form-B, stating any payments made without authority, any deficiencies or losses, and any sums not brought to account.
The audit of the political funds of a registered Trade Union shall be carried out along with the audit of the general account of the Trade Union and by the same auditor or auditors.
Every application for registration of a Trade Union shall be made to the Registrar in Form-C, electronically or otherwise, and shall be accompanied by (a) a declaration by affidavit of the titles, names, ages, addresses and occupations of the office bearers as per Schedule I of Form C; (b) a copy of the rules of the Trade Union together with a copy of the resolution adopting such rules (Schedule II of Form C); (c) a copy of the resolution authorising the applicants to apply for registration; (d) the registration fee of Rs. 2,000, or such revised fee as may be notified by the State Government; and (e) in the case of a federation or central organisation of Trade Unions, a copy of the resolution of each member Trade Union. A Trade Union which has been in existence for more than one year shall also deliver a general statement of its assets and liabilities. The proposed name of the Trade Union must not be identical with, or so nearly resemble, the name of an existing registered Trade Union as to be likely to deceive.
Every Trade Union registered under the Trade Unions Act, 1926 (16 of 1926) and having valid registration immediately before the commencement of the Code shall be deemed to have been registered under the Code, provided that such Trade Union files with the Registrar a statement that the constitution of its executive is in accordance with the Code, along with its rules updated in accordance with section 7, whereupon the Registrar shall amend his records accordingly.
All communications and notices to a registered Trade Union shall be sent electronically or by registered post to the address of the head office of the Trade Union as entered in the register maintained by the Registrar.
Where the members of a Trade Union fall below ten per cent of the total workers or one hundred workers, whichever is less, the Trade Union shall inform the Registrar electronically or by registered post within twenty-one days of such facts emerging.
The Trade Union shall inform the Registrar of any change in the particulars furnished in its application for registration and in its constitution or rules, electronically or through registered post, within forty-five days of such changes being effected.
The employer of an industrial establishment shall conduct negotiations through the negotiating union or negotiating council on the following matters: (i) classification of grades and categories of workers; (ii) orders passed by the employer under the standing orders; (iii) wages, including wage period, dearness allowance, bonus, increment, customary concessions or privileges, and compensatory and other allowances; (iv) hours of work, rest days, number of working days in a week, rest intervals and working of shifts; (v) leave with wages and holidays; (vi) promotion and transfer policy and disciplinary procedures; (vii) quarter allotment policy; (viii) safety, health and working conditions; (ix) other conditions of service and terms of employment; and (x) any other matter agreed between the employer and the negotiating union or negotiating council.
Penalty & Consequences
Section 86(7) of the Industrial Relations Code, 2020 – Default by a Registered Trade Union in Giving Notices or Sending Statements
If default is made on the part of any registered Trade Union in giving any notice or sending any statement or other document as required by or under any of the provisions of 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 fine which shall not be less than one thousand rupees but which may extend to ten thousand rupees, and any continuing default shall be punishable with an additional penalty of fifty rupees per day for so long as the default continues.
Section 86(20) of the Industrial Relations Code, 2020 – General Penalty for Contravention of the Code or Rules
Any person who contravenes any provision of the Code, or of the rules or regulations framed under the Code, which is not covered under sub-sections (1) to (19) of section 86 shall be punishable with fine which may extend to one lakh rupees.
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