Draft Central Labour Rules 2025 Operationalising India’s Four Labour Codes
Draft Central Labour Rules 2025 Operationalising India’s Four Labour Codes
Contents 1.
Draft Industrial Relations (Central) Rules, 2025
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2.
Draft Code on Wages (Central) Rules, 2025
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3.
Draft Code on Social Security (Central) Rules, 2025
10
4.
Draft Occupational Safety, Health and Working Conditions (Central) Rules, 2025
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Introduction On 30th December, 2025, the Central Government notified a comprehensive set of draft Central Rules under India’s four consolidated labour codes – namely, the Industrial Relations Code, 2020, the Code on Wages, 2019, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020. These draft rules are intended to operationalise the labour codes by replacing multiple legacy rules with a unified, standardised, and largely digitised compliance framework. The draft rules prescribe detailed procedures relating to industrial relations, wage fixation, social security administration, occupational safety, and working conditions. Stakeholders have been invited to submit objections and suggestions within the timelines specified in the respective Gazette notifications, reflecting the Government’s consultative approach prior to finalisation. The key highlights of the draft Central Rules under the four labour codes are divided into Parts I, II, III and IV, as set out below:
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1. Draft Industrial Relations (Central) Rules, 2025 The Central Government has notified the draft Industrial Relations (Central) Rules, 2025 under section 99 of the Industrial Relations Code, 2020, in supersession of the Industrial Disputes (Central) Rules, 1957 and the Industrial Employment (Standing Orders) Central Rules, 1946. The draft rules lay down provisions relating to settlements, works committees, grievance redressal committees, trade unions, standing orders, strikes, layoffs, retrenchments, closures, and dispute resolution. Section 99 of the Industrial Relations Code, 2020, empowers the appropriate Government to make rules for giving effect to the provisions of the Code. Objections and Suggestions can be submitted within 30 days from the date of publication in the Official Gazette. The key highlights of the draft Industrial Relations (Central) Rules, 2025 are as follows: a.
Constitution of Works Committee – As per the draft rules, employers must constitute a Works Committee to promote measures to secure and preserve amity and good relations between the employer and workers. The Committee must be composed of no more than 20 members, with the number of worker representatives not less than that of employer representatives.
b.
Formation of Grievance Redressal Committee – The draft rules prescribe the formation of a Grievance Redressal Committee comprising an equal number of members representing the employer and workers, with a maximum of 10 members. There must be adequate representation of women workers on the Committee, and such representation must not be less than the proportion of women workers to total workers employed in the establishment. The tenure of members of the Committee must be three years.
c.
Memorandum of Settlement – The settlement arrived at in the course of conciliation proceedings or a written agreement between the employer and worker arrived at other than in the course of conciliation proceedings must be in Form I. The employer or his authorised agent must sign the settlement, or where the employer is an incorporated company or other body corporate, by the agent, manager or other principal officer of the company or such body corporate. Further, on behalf of workers, the settlement must be signed by any of the office bearers of the Trade Union, including the President, Vice President, Secretary, Joint Secretary or any other office bearer of the Trade Union authorised by the President and Secretary of the Union.
d.
Manner of Recognition of Negotiating Union or Negotiating Council – The draft rules specify the manner of recognition of Negotiating Union or Negotiating Council, which covers the following: •
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Matters for negotiation between the negotiating union or negotiating council and the employer for the workers employed in industrial establishments;
Draft Central Labour Rules 2025
Operationalising India’s Four Labour Codes
•
Criteria for recognising a single registered Trade Union of workers as the sole negotiating union of workers;
•
Manner of verification of membership of Trade Unions in industrial establishments;
•
Verification of membership of Trade Unions through a secret ballot;
•
Recognition of the Trade Union as the negotiating union;
•
Facilities to be provided by industrial establishments to a negotiating union or negotiating council;
•
Manner of making an application for adjudication of a dispute before the Tribunal
e.
Voluntary Reference of Disputes to an Arbitrator – The draft rules set out a formal agreement process for voluntary arbitration, specifying who may sign on behalf of employers and workers, and mandating written consent from arbitrators. The agreement must be accompanied by the arbitrator’s or arbitrators’ consent, either in writing or electronically.
f.
Procedure for Strikes and Lockouts – The draft rules formalise the procedures for strikes and lockouts. The notice of strike must be given to the employer of an industrial establishment in Form XI, which must be duly signed by the Secretary and five elected representatives of the workers. The employer must give the notice of lockout in Form-XII to the Secretary of every registered trade union by registered post, speed post or electronically. Employers issuing lockout notices must notify labour authorities and display the notice on a notice board or an electronic board at the main entrance.
g.
Special Provisions Relating to Lay-offs, Retrenchment and Closure – As per the draft rules, the employer must submit applications for permission for Lay-offs, retrenchment and Closure in Form-XIV, and a copy of the application must be served simultaneously to the workers electronically, in person or by registered or speed post. The application must also be displayed by the employer on the notice board or on the electronic board at the main entrance of the industrial establishment.
h.
Worker Re-skilling Fund – The draft rules require employers who retrench a worker to electronically transfer an amount equivalent to 15 days’ last drawn wages of the retrenched worker into the accounts to be maintained by the Chief Labour Commissioner (Central)/Office of the Deputy Chief Labour Commissioner (Central)/ Office of the Regional Labour Commissioner (central)/Office of the Assistant Labour Commissioner (Central) as required. The worker must utilise the amount for his reskilling.
i.
Protected Workers – The draft rules mandate that every registered Trade Union connected with an industrial establishment must communicate to the employer before the 30th April of every year, the names and addresses of the officers of the Union who are employed in the establishment and who, in the opinion of the Union, must be recognised as protected workers.
j.
Manner of Composition of Offence by a Gazetted Officer – Under the draft rules, the officer notified by the Central Government for compounding of offences must
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send a notice to the accused in Form-XV, consisting of three parts, through the designated portal of the Ministry of Labour and Employment. In Part I of the Form, the compounding officer must specify the name of the offender and his other particulars, details of the offence and the section under which the offence has been committed. Part II of the Form specifies the consequences if the offence is not compounded, and Part III of the Form must contain the application to be filed by the accused if he desires to compound the offence.
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Draft Central Labour Rules 2025
Operationalising India’s Four Labour Codes
2. Draft Code on Wages (Central) Rules, 2025 The Central Government has notified the draft Code on Wages (Central) Rules, 2025 under section 67 of the Code on Wages, 2019. The draft rules seek to consolidate and replace multiple rules issued under the Payment of Wages Act, the Minimum Wages Act, the Payment of Bonus Act, and the Equal Remuneration Act, which are now repealed. Objections and suggestions have been invited within forty-five days from the date of publication in the Official Gazette. The following are the key highlights of the draft Rules: a.
Fixation of Minimum Wages – Minimum wages are proposed to be fixed on a dayto-day basis, taking into account a standard working-class family, prescribed calorie intake, clothing requirements, housing rent, fuel, electricity, education, medical needs, recreation, and contingencies. Further, geographical area, experience and level of skill are to be considered while fixing minimum wages. Occupations are proposed to be categorised as unskilled, semi-skilled, skilled and highly skilled.
b.
Technical Committee for Wage Determination – The draft rules provide for the constitution of a technical committee to advise the Central Government on the skill categorisation of occupations, the arduousness of work, hazardous processes, and other related matters.
c.
Variable Dearness Allowance – The cost-of-living allowance and the cash value of concessions are proposed to be revised twice a year, on 1st April and 1st October. Such revision shall be based on the Average Consumer Price Index for Industrial Workers published by the Labour Bureau.
d.
Working Hours and Rest Days – Provisions have been prescribed regarding normal working hours, the spread of work, weekly rest days, and substituted rest days. Specific rules have also been provided for night shifts and certain categories of work where normal working hours may be exceeded.
e.
Floor Wages – Floor wages are proposed to be fixed by the Central Government in consultation with the Central Advisory Board. The views of State Governments must be considered before finalisation. Floor wages may be revised ordinarily at intervals not exceeding five years, with periodic adjustment for the cost of living.
f.
Registers, Returns and Forms – The draft rules prescribe the standardised maintenance of registers for employees, wages and attendance, whether electronically or in physical form. Mandatory issuance of wage slips has been provided. Prescribed forms have also been laid down for applications, appeals, nominations, enquiries, composition of offences and filing of annual returns.
g.
Payment of Wages and Deductions – Detailed procedures have been laid down for the payment of wages, the imposition of fines, and various types of deductions. Recovery of advances, damages and losses is subject to prescribed limits and procedural safeguards. Mandatory intimation to the Inspector-cum-Facilitator has been provided in specified cases. Draft Central Labour Rules 2025
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3. Draft Code on Social Security (Central) Rules, 2025 The Government has issued the draft Code on Social Security (Central) Rules, 2025 (‘SS Rules’), on 30th December, 2025, which proposes to supersede various existing social security rules. These draft rules have been published following the enactment of the Code on Social Security, 2020, and the public is invited to submit objections or suggestions within 45 days from the date the Gazette notification is made available. Objections should be addressed to the Deputy Secretary, Ministry of Labour and Employment, either via post or email. The key highlights of the draft Code on Social Security (Central) Rules, 2025 are as follows: a.
Electronic Registration of Unregistered Establishments via Shram Suvidha Portal – Under draft SS rules, all unregistered establishments would be required to apply for electronic registration via the Shram Suvidha Portal using a common online form. Employers are responsible for the accuracy of submitted information. Registration certificates shall be issued electronically within 7 days; if not issued within this period, registration shall be deemed granted.
b.
Employers Must Update Establishment Details on the Portal Within 30 Days – Employers must comply with registration directives issued by authorities and update establishment details on the portal within 30 days of any change. The registration certificate must be prominently displayed at the workplace. If an establishment is closing, the employer must apply online for cancellation, which is approved after verification and clearance of dues. Registrations obtained through misrepresentation can be cancelled, but the employer must first be given a 30-day notice to show cause.
c.
Central Board to Be Responsible for EPF Fund Deposits, Investments and Disbursements With Checks on Misuse – The Central Board would be responsible for managing and administering EPF funds, including deposits, investments, and payments to members, nominees, or legal heirs. The Board ensures that EPF funds are used only for legitimate member benefits. The Executive Committee of the Board shall include government nominees, as well as employer and employee representatives elected by the Board, and shall oversee the proper administration and implementation of policy.
d.
Tribunal Proceedings to Be in English; Appeals to Be Filed in Form I With ₹5,000 Fee – Tribunal proceedings would be conducted in English, and appeals shall be filed in Form I with a fee of Rs. 5,000, either electronically or in person. Strict procedural rules govern service of notices, hearing dates, ex parte proceedings, and communication of orders.
e.
DG to Function as ESIC’s CEO With Powers to Implement Decisions, Manage Investments, and Ensure Compliance – As per draft SS Rules, the Director General (DG) shall act as the CEO of ESIC, implementing decisions, managing investments, entering contracts, and ensuring compliance with
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regulations. State Governments nominate representatives to the Corporation. The Medical Benefit Committee advises ESIC on hospital standards, medical benefits, rehabilitation measures, and professional conduct of medical personnel employed under the scheme. f.
Dependent Parents Are Eligible for ESIC Benefits if Monthly Income Doesn’t Exceed ₹9,000. Under Chapter IV of the Employees’ State Insurance Corporation (ESIC) provisions, dependent parents of an insured employee are eligible to receive benefits, provided they meet the prescribed income criteria. Specifically, the monthly income of the dependent parent(s) should not exceed Rs. 9,000, or any revised limit as may be notified by the Central Government from time to time.
g.
Gratuity Nomination, Application, and Payment Process – Employees must submit nomination forms (Form-III) for gratuity payments. Applications for gratuity are handled by the competent authority using Form IV, which schedules hearings and issues orders. Gratuity for minors is invested in term deposits with nationalised banks. Provisions exist for late nominations or applications, ensuring that all employees or nominees can correctly claim gratuity.
h.
Maternity Benefit Claims, Crèche Facilities, and Compliance Mechanism – Women claiming maternity benefits would be required to provide certificates (Form-X) confirming pregnancy, delivery, miscarriage, or related conditions and submit a notice (Form-XI) to the employer. Establishments with 50 or more employees must provide a crèche for children under six years, or pay a crèche allowance if facilities are unavailable. Complaints regarding maternity benefits can be submitted using Form-XIII-A/B, and the Inspector-cumFacilitator ensures compliance by the employer.
i.
Collection, Reporting, and Administration of Cess for Building and Construction Workers – Employers shall submit information on construction work and cess payments using Form-XV within 60 days of commencing work. Advance cess must be self-assessed and certified by a chartered engineer. Collected cess is electronically transferred to the State Board, reconciled periodically, and half-yearly reports are submitted to the State and Central Governments.
j.
Refund of Excess Cess and Scrutiny of Employer Submissions – Employers who reduce or stop construction work may claim a refund of excess cess via Form-XVII. Assessing officers review claims within 30 days, conduct site inspections if necessary, and finalise assessment orders specifying amounts due, paid, or refundable.
k.
Composition, Tenure, and Functions of the National Social Security Board (NSSB) – The Board represents unorganised, gig, and platform workers, experts in labour welfare, finance, law, and administration, as well as members of Parliament, Ministries, States, and Union Territories. Non-ex officio members of the NSSB serve for 3 years, with a maximum of 2 terms.
l.
Board for Gig Workers to Comprise Equal Aggregator and Worker Members With Experts; Quorum Fixed at Six – The Board for gig and platform workers includes five members representing aggregators, five representing workers, and five expert members. A minimum of 6 members is required for a quorum during meetings. The
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Board may form committees to advise on welfare measures, worker numbers, types of aggregators, and other related matters. m.
12
State Building Workers’ Welfare Boards to Implement Insurance, Education, and Medical Aid Schemes – State Building Workers’ Welfare Boards implement schemes such as group insurance, educational support for beneficiaries’ children, and medical expense coverage for major ailments. The Central Government may introduce additional welfare schemes to improve the overall well-being of construction workers.
Draft Central Labour Rules 2025
Operationalising India’s Four Labour Codes
4. Draft Occupational Safety, Health and Working Conditions (Central) Rules, 2025 The Central Government has notified the draft Occupational Safety, Health and Working Conditions (Central) Rules, 2025. The draft rules are proposed in supersession of multiple existing central rules relating to employees’ safety, health and welfare. Objections or suggestions may be submitted within 45 days from publication in the Official Gazette. Govt. Releases the Draft Code on Social Security (Central) Rules, 2025 The key highlights of the draft Occupational Safety, Health and Working Conditions (Central) Rules, 2025 are as follows: a.
Supersession of Multiple Legacy Labour Rules – The draft Rules propose to consolidate and supersede 13 existing Central Rules framed under laws relating to factories, mines, contract labour, construction workers, dock workers, working journalists, cine-workers, and sales promotion employees, ensuring a unified compliance framework.
b.
Mandatory Electronic Registration on the Shram Suvidha Portal – Under draft rules, employers must apply for registration electronically in Form I, with the registration certificate auto-generated if not issued within 7 days. Existing establishments are required to update particulars within six months.
c.
Deemed Registration and Cancellation Safeguards – If an application for registration is submitted but the authority does not communicate approval or rejection within the prescribed period, the registration shall be deemed to have been granted. Once issued, registration may be cancelled only on grounds of fraud, false information, or non-compliance, and cancellation may be effected only after allowing the employer to be heard. Additionally, employers are required to notify the registering authority of any change in ownership, management, or key personnel within 30 days of such change, failing which penalties and compliance actions may follow.
d.
Enhanced Employer Obligations on Health and Safety – It shall be the duty of the Safety Officer in a mine to assist the manager in any other matter relating to safety in the mine; and ensure that an appropriate emergency plan as required under these regulations is put in place and the requirements of the same are implemented.
e.
Compulsory Appointment Letters – Issuance of appointment letters with detailed employment particulars is mandated for all employees, thereby strengthening transparency and formalising employment.
f.
Stricter Accident, Dangerous Occurrence, and Disease Reporting – Time-bound electronic reporting of fatal and non-fatal accidents, dangerous occurrences, and notified occupational diseases has been prescribed, along with detailed schedules. Reporting must be done within a specified time frame via an electronic portal
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(Labour Ministry/inspector-cum-facilitator platform). Further, Reports must be filed in prescribed digital formats (portal upload). g.
Strengthened Employee Rights and Duties – Employees are empowered to report unsafe conditions, while employers are obligated to take immediate remedial action and inform Inspector-cum-Facilitator.
h.
Institutional Framework for Occupational Safety – Detailed provisions for the constitution, functioning, and governance of the National Occupational Safety and Health Advisory Board and Technical Committees have been specified. The Central Government shall appoint the Members of the National Board
i.
Mandatory Safety Committees and Safety Officers – Safety Committees are prescribed for establishments employing 500 or more workers, with sector-specific thresholds for mines, docks, and construction works; the qualifications and duties of Safety Officers are clearly laid down.
j.
Uniform Norms on Working Hours and Leave – Codification of working hours, overtime, holidays, and an exhaustive leave framework for working journalists and sales promotion employees, including earned leave, medical leave, quarantine leave, and cash compensation.
k.
Digitised Registers, Returns, and Inspections – Registers and returns may be maintained electronically, with a unified annual return prescribed; Inspector-cumFacilitator is empowered to issue improvement or prohibition notices.
l.
Inspection-cum-facilitation Approach Reinforced – Sampling, inspections, and enforcement to be conducted as per risk-based inspection schemes under the Shram Suvidha Portal, strengthening transparency and ease of compliance.
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Draft Central Labour Rules 2025
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