| Industrial Relations (Central) Rules, 2026 (“IR Rules”) |
| Grievance Redressal Committees (GRCs) |
The IR Code had introduced constitution of GRC for industrial establishments employing twenty (20) or more workers. The IR Rules now prescribe: the composition and tenure of GRCs;representation requirements for women workers;timelines for filing and resolution of grievances; andthe mechanism for escalation to Conciliation Officers. |
| Negotiating Unions and Negotiating Councils |
The IR Code introduced the concept of negotiating unions and negotiating councils for collective bargaining purposes. The IR Rules now operate this framework by prescribing: recognition related thresholds for negotiating unions; verification mechanisms through secret ballot processes;matters that may be negotiated through recognized unions/councils; and in industrial establishments employing three hundred (300) or more workers, employers may also need to plan for infrastructural support requirements such as suitable office accommodation for negotiating unions/councils. |
| Standing Orders |
The IR Code revamped the Standing Orders framework and increased the applicability threshold to industrial establishments employing three hundred (300) or more workers. The Central Government has notified the Model Standing Orders, 2026 vide a notification issued under Section 29 of the IR Code for the manufacturing, mines, and service sectors. Notably, the notified Model Standing Orders for the service sector formally recognizes ‘work from home’,‘remote work’ and ‘virtual workplace’ arrangements, indicating towards evolving workplace models. The IR Rules also simplify the certification framework by introducing provision on deemed certification where no objections are raised within the prescribed timeline. |
| Retrenchment and Worker Re-Skilling Fund |
The IR Code introduced a provision on setting up of a Worker Re-Skilling Fund for retrenched workers. This fund has now been set up vide a separate notification issued under Section 83(1) of the IR Code. The IR Rules specify the employer contribution mechanism, timelines and retrenchment-related procedural requirements, including preparation of seniority lists and re-employment preferences. |
| Appointment of Officers |
The Central Government, vide various notifications dated 08 May 2026, has appointed officers such as certifying officers, listing officers, conciliation officers, etc. for effective implementation and enforcement of the relevant provisions under the IR Code. |
| Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (“OSH Rules”) |
| Contract Labour Compliance |
The OSH Code has strengthened accountability in contract labour arrangements. The OSH Rules now prescribe: wage payment timelines for contractors; principal employer’s liability in case of non-payment by the contractor; issuance of experience certificates on demand; and common licensing mechanisms. Notably, the OSH Rules also contemplate a dedicated grievance redressal mechanism for contract labour which is required to be set up by the principal employer. |
| Health, Safety and Welfare Standards |
The OSH Code has introduced a consolidated framework governing workplace safety and welfare. The OSH Rules now prescribe standards relating to: cleanliness and ventilation; sanitation and drinking water; welfare facilities; canteens and crèches; and medical examinations in specified sectors. The OSH Code and the corresponding OSH Rules provide for constitution of Safety Committee in every establishment employing five hundred (500) or more workers and in case of mines the threshold prescribed is hundred (100) or more workers. The OSH Rules have also mandated annual health examination for employees above forty (40) years of age and employed in factory, mine, dock, building or any other construction work. |
| Women Employees and Night Shift Work |
The OSH Code enabled employment of women across all establishments and shifts, subject to prescribed safeguards. The OSH Rules now operates this framework by prescribing certain conditions relating to: written consent; transportation facilities; workplace facilities such as drinking water, well-lit entry and exit; safety measures such as installing CCTV cameras, etc. |
| Compliance Simplification and Documentation |
The OSH Rules also move towards compliance consolidation by introducing: consolidated registers; a single Annual Return framework; and deemed registration upon expiry of prescribed timelines. |
| Working Hours and Overtime |
The OSH Code introduced a more uniform framework around working hours and overtime payments. The OSH Rules now prescribe: eight (8) hour daily working limit for daily wagers;forty-eight (48) hour weekly working limit for workers; and overtime wages at twice the rate of wages. |
| Appointment of Designated Authority |
The Central Government, vide its notification dated 13 May 2026, has appointed a designated authority to advise the appropriate government on determining whether the activity carried out by an establishment qualifies as a core activity or not. |
| Social Security (Central) Rules, 2026 (“SS Rules”) |
| Gig and Platform Workers |
The SS Code formally recognized gig and platform-based workers within India’s social security framework. The SS Rules has now operationalised this framework by prescribing: registration requirements for aggregators and gig workers; portal-based compliance processes; and eligibility-related conditions for social security benefits such as gig and platform workers cease to be eligible for benefits of social security schemes, when they attain age of sixty (60) years. Aggregators and platform-based businesses may now need to build systems for tracking worker engagement periods and maintaining platform-worker records for compliance purposes. |
| Gratuity and the Definition of Wages |
The SS Code linked gratuity calculations to the definition of “wages”. Interestingly, while the Draft Rules had proposed express exclusions for certain salary components, the notified SS Rules do not retain those clarifications. This is likely to shift focus on interpretation of the wage definition and FAQs released by the Ministry for gratuity purposes. The SS Rules also reinforce gratuity entitlement for fixed-term employees upon completion of one (1) year of service on a pro-rata basis, further strengthening parity between fixed-term and permanent employees. |
| Maternity benefit |
The SS Rules expressly sets out specific acts which would qualify as gross misconduct on the part of an employee and the commission of which may disentitle her from claiming maternity benefit that would otherwise be payable to her under the SS Code. Notably, this provision is not new and was also recognized under the erstwhile maternity benefit framework. Acts constituting gross misconduct are: willful destruction of employer’s property; orassault any employee at the place of work; orany criminal offence that involves moral turpitude which results in conviction; oracts constituting theft, fraud or dishonesty; orwillful non-observance of safety measures and rules. |
| Voluntary Exit from Employee Provident Fund (“PF”) or Employee State Insurance (“ESI”) Coverage |
An employer who has voluntarily opted into PF or ESI coverage may apply for withdrawal of such coverage, but only after five (5) years of enrolment, with majority employee consent in writing, and subject to there being no pending dues or returns. |
| Self- assessment by Employer in respect of Building and Other Construction Workers |
Every employer is now required to pay the applicable cess in advance, based on a self-assessment of the estimated cost of construction, which must be certified by a chartered engineer, and this payment must be made either at the time of obtaining approval for the work or before the work commences. |
| Appointment of Officers |
The Central Government, vide notifications dated 09 May 2026 and 12 May 2026, has appointed officers such as Inspector-cum-Facilitator, authorized officer for ESIC, recovery officers, compounding officers etc. for effective implementation and enforcement of the relevant provisions under the SS Code. |
| Code on Wages (Central) Rules, 2026 (“Wages Rules”) |
| Wage Calculation and Overtime |
The Wages Code introduced a more standardized approach towards wage administration and overtime. The Wages Rules now prescribe: overtime entitlement where prescribed working hour thresholds are exceeded; and payment of overtime wages at twice the normal rate of wage. The Wages Rules also clarify treatment of weekly rest and wage calculations for night shifts extending beyond midnight, reflecting a more structured approach to shift-based workforce administration. |
| Skill-Based Wage Categorization |
The Wages Rules also require employers to classify employees into: unskilled; semi-skilled; skilled; and highly skilled categories. This may become relevant for wage fixation and classification-related assessments. |
| Principal Employer’s Liability in Contractor Arrangements |
The Wages Rules clarify that principal employers may become liable in certain situations where contractors fail to discharge statutory payment obligations, including minimum bonus obligations. |
| Wage Deductions and Claims |
The Wages Rules also formalise mechanisms relating to authorised deductions, recovery limits and wage-related claims and appeals. |
| Appointment of Officers |
The Central Government, vide various notifications dated 12 May 2026, has notified the appointment of officers such as Inspector-cum-Facilitators, appellate authority etc. for effective implementation and enforcement of the relevant provisions under the Wage Code. |
