Notification Record & Forms
Notification details and the forms every employer needs, in one place.
- Issuing authority
- Department of Labour, Chandigarh Administration, under the Administrator, UT, Chandigarh
- Notified
- Draft published December 28, 2021
- Objection window
- 30 days from the date of publication in the Official Gazette
- Legal basis
- Section 99 of the Industrial Relations Code, 2020 (Central Act 35 of 2020)
- Supersedes
- Industrial Disputes (Chandigarh) Rules, 1958; Industrial Employment (Standing Orders) Chandigarh Rules, 1978; Trade Union Chandigarh Regulations, 1927
- Current Status
- Draft, final notification not confirmed
The Industrial Relations Code 2020 came into force across India on November 21, 2025, folding three older central laws, the Trade Unions Act 1926, the Industrial Employment (Standing Orders) Act 1946 and the Industrial Disputes Act 1947, into one Code. Every state and Union Territory then had to write its own procedural rules under Section 99 of the Code. The Industrial Relations (Chandigarh) Rules, 2021 is the Union Territory administration's version of these rules. It sets out how employers in Chandigarh register trade unions, run works committees and grievance redressal committees, adopt standing orders, give notice of strikes, lock outs, retrenchment and closure, and how disputes move through conciliation, arbitration and the Industrial Tribunal.
Forms under the State Rules
Due Dates
Compliance deadlines, forms and how often each one recurs.
| Compliance | Form | Compliance Frequency | Due Date |
|---|---|---|---|
| Send signed settlement copy to Conciliation Officer | Form I (Rule 3) | Event based | Immediately after the settlement is signed |
| Give notice of change in service conditions | Form VI (Rule 36) | Event based | Before the change takes effect, and displayed on the notice board |
| Give notice of strike to the employer | Form XI (Rule 43) | Event based | As per the notice period fixed under Section 62 of the Code, before the strike begins |
| Give notice of lock out | Form XII (Rule 44) | Event based | Before the lock out takes effect, and displayed on the notice board |
| Give notice of retrenchment | Form XIII, Part I (Rule 45) | Event based | At least 30 days before the retrenchment date |
| Give notice of closure | Form XIII, Part II (Rule 47) | Event based | At least 60 days before the closure date |
| Apply for lay off permission (Chapter X establishments) | Form XIV (Rule 48) | Event based | Before the lay off begins, with a copy served on the worker |
| Apply for retrenchment permission (Chapter X establishments) | Form XIV (Rule 51) | Event based | Before the retrenchment date |
| Apply for closure permission (Chapter X establishments) | Form XIV (Rule 53) | Event based | At least 90 days before the intended closure date |
| Submit conciliation report | Not applicable (Rule 42(2)) | Event based | Within 7 days of the conciliation proceedings concluding |
| Transfer Worker Reskilling Fund contribution | Not applicable (Rule 55) | Event based | Within 10 days of retrenching a worker |
| File Trade Union annual return | Form II (Rule 25) | Annual | By February 15 each year |
| Submit strike, lock out, lay off, retrenchment and closure statistics | Not applicable (Rule 61) | Periodic | As required by the Government and the Labour Bureau |
Key Provisions
What changed under the Code, and what it means for payroll.
Old Law vs. New Law
What employers followed before, against what applies now — point matched against point.
| On this point | Before — earlier law | Now — the new Code |
|---|---|---|
| Governing framework | Three separate laws, the Trade Unions Act 1926, the Industrial Employment (Standing Orders) Act 1946 and the Industrial Disputes Act 1947, applied separately in Chandigarh | One consolidated Industrial Relations Code 2020, with a single set of Chandigarh Rules covering all three subjects |
| Trade Union registration | No statutory minimum membership was fixed under the Trade Unions Act 1926 | A trade union now needs at least 7 members, or 10 percent of the workers in the establishment, whichever is less, to register |
| Sole negotiating union | No formal statutory mechanism to recognize a single union for negotiation | A union with 51 percent worker support is recognized as the sole negotiating union, or a negotiating council is formed |
| Standing Orders threshold | Applied to establishments with 100 or more workers under the central Act | Chandigarh Rule 35 sets the local threshold at 500 or more workers before Chapter IV applies |
| Lay off, retrenchment and closure permission | Government permission required only in establishments with 100 or more workers | Threshold raised to 300 or more workers under the Code |
| Strike and lock out notice | Only workers in public utility services had to give advance notice | Notice is now required in every industrial establishment, not only public utility services |
| Grievance Redressal Committee | Added later through Section 9C of the Industrial Disputes Act, with no set minimum for women's representation | Mandatory in establishments with 20 or more workers, with a defined minimum representation for women workers |
| Worker Reskilling Fund | Did not exist | New fund requiring employers to pay 15 days wages of every retrenched worker into a reskilling account |
| Compounding of offences | Limited scope to settle offences without prosecution | Rule 57 sets out a clear procedure for a Compounding Officer to settle first time offences without prosecution |
Applicability
Who the Code covers, and who gets special or exempt treatment.
Covered
- All industrial establishments operating within the Union Territory of Chandigarh once the Code and these Rules apply to them
- Establishments with 100 or more workers must form a Works Committee
- Establishments with 20 or more workers must form a Grievance Redressal Committee
- Establishments with 500 or more workers must adopt or get standing orders certified under Chapter IV
- Establishments covered by Chapter X of the Code (300 or more workers) need prior government permission for lay off, retrenchment or closure
- Workers as defined under the Code, including those on fixed term employment
Exempted / special treatment
- None generally, though the specific obligation triggered depends on the worker count thresholds set for each chapter
- Establishments with fewer than 100 workers
- Establishments with fewer than 20 workers
- Establishments employing fewer than 500 workers on any day in the preceding 12 months
- Establishments below the Chapter X threshold, which instead follow the general notice and compensation provisions of the Code
- Persons employed mainly in a managerial or administrative capacity, who fall outside the definition of worker under the Code
Frequently Asked Questions
Answers to what employers ask us most about this rule.
What is the Industrial Relations (Chandigarh) Rules, 2021?
It is the set of procedural rules that the Chandigarh Administration drafted under the Industrial Relations Code 2020 to cover trade unions, works committees, standing orders, strikes, lock outs, retrenchment and closure for establishments in Chandigarh.
Who has to follow these Rules?
Every industrial establishment operating within the Union Territory of Chandigarh, subject to the worker count thresholds set for each specific obligation, such as forming a Works Committee or adopting standing orders.
Has the Chandigarh government finally notified these Rules?
As of August 2026, no confirmed final notification has been traced. The Rules remain at draft stage, and employers should check the current status with the UT Labour Department.
Which older laws do these Rules replace?
They replace the Industrial Disputes (Chandigarh) Rules 1958, the Industrial Employment (Standing Orders) Chandigarh Rules 1978, and the Trade Union Chandigarh Regulations 1927.
Does every establishment in Chandigarh need a Works Committee?
No. A Works Committee is only mandatory where an order under Section 3 of the Code applies, which generally covers establishments with 100 or more workers.
When must an employer set up a Grievance Redressal Committee?
Once an establishment employs 20 or more workers, it must form one or more Grievance Redressal Committees with equal employer and worker representation.
How many members does a trade union need to register?
Under the Code, a trade union needs at least 7 members, or 10 percent of the workers in the establishment, whichever number is less.
What is a sole negotiating union?
It is a trade union recognized as the only union authorized to negotiate with the employer, once it can show 51 percent or more of the establishment's workers as verified members.
Which establishments in Chandigarh must maintain certified standing orders?
Under Rule 35, Chapter IV on standing orders applies only to establishments that employed 500 or more workers on any day in the preceding 12 months.
How much notice does an employer need to give before changing service conditions?
The employer must issue Form VI to affected workers and display the notice on the notice board before making the change, as required under Rule 36 and Section 40 of the Code.
What notice period applies before retrenchment or closure?
Rule 45 requires 30 days notice before retrenchment, and Rule 47 requires 60 days notice before closure, both sent to the Government and the Labour Commissioner.
What is the Worker Reskilling Fund?
It is a fund under Rule 55 where an employer who retrenches a worker must transfer an amount equal to 15 days of that worker's last drawn wages within 10 days of the retrenchment.
Can an employer be penalized for not complying with these Rules?
Yes. Penalties are set out in Section 86 of the parent Industrial Relations Code 2020 and range from a fine of a few thousand rupees to fines running into lakhs, with imprisonment possible for repeat or serious offences.
Can an offence be compounded instead of going to court?
Yes, for offences where compounding is permitted under Section 89 of the Code. Rule 57 lets a Compounding Officer notify the amount due, and paying it within 15 days closes the matter without prosecution.
Where can an employer get help complying with these Rules?
Praans Consultech advises employers across India on labour law compliance, including registrations, filings, audits and representation under the four Labour Codes, and can be reached at 9050576838 or info@praansconsultech.com.
Sources
Where every fact on this page comes from.
- → Industrial Relations (Chandigarh) Rules, 2021, draft notification, Department of Labour, Chandigarh Administration, dated December 28, 2021 (official)
- → The Industrial Relations Code, 2020 (Act No. 35 of 2020), Ministry of Labour and Employment, Government of India (official)
- → Ministry of Labour and Employment notification bringing the Industrial Relations Code, 2020 into force with effect from November 21, 2025 (official)
For informational purposes only — not legal advice. State rules referenced here are subject to change on final notification. Verify current status with our compliance team before acting.