India: Indian Ministry of Labour and Employment Notifies Central Rules and Appropriate Authorities under the Labour Codes

Authors: Avik Biswas, Ivana Chatterjee, and Kevin Kennedy

On 08 May 2026, the Ministry of Labour and Employment notified the Central Rules under the Labour Codes, marking a significant step towards the operationalisation and implementation of India’s labour law reforms. The Ministry has also notified the Model Standing Orders for the manufacturing and services sectors and has designated certain appropriate authorities for the administration and enforcement of the Labour Codes at the Central level.

 

Background

On 21 November 2025, the Ministry of Labour and Employment brought into effect 4 labour codes, namely, the Code on Wages, 2019 (“Wage Code”), the Code on Social Security, 2020 (“SS Code”), the Occupational Safety, Health and Working Conditions Code, 2020 (“OSH Code”), and the Industrial Relations Code, 2020 (“IR Code”), thereby consolidating 29 Central labour legislations into a unified statutory framework.

On 08 May 2026, the Ministry notified the Central Rules under the Labour Codes, taking a significant step towards operationalising India’s labour law reform framework and bringing certain provisions of the Labour Codes into force for certain categories of establishments. In parallel, the Labour Ministry has also notified the appropriate authorities at the Central level to facilitate the implementation and enforcement of the IR Code and the SS Code.

While a few States have notified rules under the Labour Codes, most States are yet to finalise and notify their respective rules. It is expected that the State rules will broadly align with the Central Rules, subject to State-specific nuances.

 

Applicability of the Central Rules vis-à-vis the State Rules:

Labour and employment laws in India fall within the ‘concurrent list’ of the Constitution of India and therefore, the Central Government as well as the respective State Governments have been vested with the power to enact labour and employment legislations. Typically, employment legislations are supported by either Central rules or State-specific rules wherein the substantive legal framework is set out under the legislation, and the procedural requirements are prescribed under the rules.

The same framework applies to the Labour Codes. The Central Rules notified under the Labour Codes primarily set out the procedural and operational framework for implementation of the Labour Codes in relation to specified categories of establishments. These rules apply to establishments operating under the authority or control of the Central Government (including public sector undertakings), as well as establishments engaged in certain specified sectors which inter alia include telecommunications, air transport, banking, and insurance, where the ‘Appropriate Government’ has been designated as the Central Government.

Separately, under the SS Code, the Central Government is designated as the Appropriate Government for establishments operating in more than one State. Accordingly, the Central Rules framed under the SS Code would apply to establishments having a presence across multiple States in India.

 

Key Considerations under the Central Rules under the Labour Codes:

Set out below are some of the key considerations arising under the Central Rules in relation to each of the Labour Codes:

• Wage Code: The Central Rules framed under the Wage Code, inter alia, prescribe detailed requirements relating to fixation and payment of wages, working hours, weekly rest days, overtime wages, deductions from wages, and statutory bonus payments.
• OSH Code: The Central Rules under the OSH Code, inter alia, prescribe detailed requirements relating to registration of establishments, working hours, overtime, appointment letters, maintenance of registers and records, filing of returns, and workplace health, safety, and welfare conditions, including conditions applicable to employment of women during night shifts. The rules also prescribe sector-specific standards and welfare requirements for factories, construction establishments, mines, plantations, and motor transport undertakings.
• SS Code: The Central Rules under the SS Code, inter alia, prescribe detailed provisions relating to provident fund and ESI coverage, gratuity entitlement for fixed-term employees, maternity benefits, crèche facilities, contributions, and benefits payable under the ESI framework.
• IR Code: The Central Rules under the IR Code, inter alia, prescribe procedural and operational requirements relating to industrial relations, standing orders, grievance redressal mechanisms, conciliation proceedings, strikes and lockouts, retrenchment, lay-offs, and closure of establishments.

Notification of the Model Standing Orders:

On 08 May 2026, the Central Government notified the Model Standing Orders for the mining sector, manufacturing sector, and the services sector respectively.

The IR Code requires every industrial establishment employing 300 or more ‘workers’ (employees who are individual contributors) to prepare and submit draft standing orders based on the model standing orders notified under the IR Code.

The Model Standing Orders prescribe detailed service conditions and workplace conduct requirements applicable to workers, including provisions relating to classification of workers, attendance and working hours, shift working, and suspension and disciplinary action, amongst others.

Under the erstwhile regime, model standing orders were governed through State-specific frameworks under the Industrial Employment (Standing Orders) Act, 1946 and the rules framed thereunder. In contrast, under the IR Code, this has been brought under the ambit of the Central Government with an intention to provide a more standardised framework.

Notifications under the IR Code and the SS Code:

On 08 May 2026, the Labour Ministry also notified the following under the IR Code and the SS Code, in relation to establishments for which the Central Government is the Appropriate Government:

• The constitution of the “Worker Re-skilling Fund” under the IR Code to facilitate reskilling of retrenched workers in accordance with the framework prescribed under the Central Rules to the IR Code. Employers are required to contribute to the fund at the time of ‘retrenchment’ of a ‘worker’, in the manner prescribed.
• Provisions requiring employers in both the public and private sectors to report vacancies to the concerned career centres within 90 days from the notification of the relevant provisions under the SS Code.
• The appointment and authorisation of various authorities and officers under the IR Code and the SS Code, including certifying officers, conciliation officers, appellate authorities, Inspector-cum-Facilitators, and officers authorised to conduct inspections and inquiries, recover contributions and damages, impose penalties, sanction and initiate prosecution, and compound offences under the respective codes.
• The allocation of territorial and functional jurisdiction across different regions of India and the designation of officers, including Labour Commissioners and officers of the Employees’ State Insurance Corporation such as Insurance Commissioners, Directors, and Social Security Officers, to exercise powers and discharge functions under the IR Code and the SS Code.

Key Action Points for Human Resources and In-house Counsel:

In light of the notification of the Central Rules under the Labour Codes and the Model Standing Orders, employers should proactively assess the applicability and operational impact on their establishments and prepare for the corresponding compliance and implementation requirements. In particular, employers should:

• Assess whether the Central Rules notified under the Labour Codes are applicable to their establishments, including determining whether the Central Government or the relevant State Government constitutes the Appropriate Government for their operations and undertake the necessary compliance measures under the applicable Labour Codes and the rules framed thereunder.
• Closely monitor the notification of State-specific rules under the Labour Codes, as most States are yet to finalise and notify their respective rules.
• Assess the financial and operational implications arising from the constitution of the Worker Re-skilling Fund under the IR Code and closely monitor any further notifications and implementation-related requirements that may be issued in this regard.
• Assess the applicability of the Model Standing Orders under the IR Code and ensure compliance with the requirements prescribed thereunder.
• Review and implement processes for compliance with the employment exchange / career centre notification requirements under the SS Code, including mechanisms for reporting vacancies to the concerned career centres within the prescribed timelines.