Maharashtra Industrial Relations Draft Rules 2026: HR and Employer Guide

Maharashtra Industrial Relations Draft Rules 2026: HR and Employer Guide

Maharashtra has gazetted the Maharashtra Industrial Relations Rules, 2026 — draft rules implementing the Industrial Relations Code, 2020 (Central Act 35 of 2020). These rules govern trade unions, dispute resolution, Works Committees, and negotiating union recognition — directly impacting every employer with 20 or more workers.

What the Industrial Relations Code Replaces

Old Law	Year	Subject Matter
Trade Unions Act	1926	Registration, rights and immunities of trade unions
Industrial Employment (Standing Orders) Act	1946	Defining conditions of service in writing
Industrial Disputes Act	1947	Conciliation, arbitration, adjudication of disputes

Key Changes at a Glance

Area	Old Position	New Draft Rules 2026
Grievance Redressal Committee	Optional / industry-specific	Mandatory for all establishments with 20+ workers; equal employer-worker; max 10 members; 3-year term
GRC Filing Deadline	No prescribed timeline	Within 1 year of cause of action; GRC must resolve within 30 days
Works Committee	100+ workers in some states	Per State Government order; max 20 members; women representation proportional; 3-year term; quarterly meetings
Trade Union Subscription	No statutory minimum	Minimum ₹10 per member per month
Trade Union Registration Fee	Nominal	≥1,000 members: ₹2,000; <1,000: ₹1,000; duplicate certificate: ₹500
Negotiating Union Recognition	Varied; no uniform rule	Single union ≥30% membership = sole negotiating union; multiple unions → negotiating council via secret ballot; valid 3–5 years
Electronic Voting	Physical ballot only	Electronic voting platform explicitly permitted for Works Committee elections and union membership verification
Settlement Mode	Physical signing and posting	Electronic settlement permitted; copy to Additional/Deputy Commissioner of Labour electronically or by speed/registered post
Negotiation Scope	Not codified	10 specified subject areas: wages, hours, leave, promotion/transfer, safety, housing, standing orders, and more

Grievance Redressal Committee — Most Critical New Requirement (Rule 6)

Every establishment with 20 or more workers must constitute a GRC immediately upon rules coming into force:

• Equal employer and worker representatives; maximum 10 total members
• Women representation: proportional to women workers employed
• 3-year tenure for all members; electronic platform permitted for choosing worker representatives
• Worker must file grievance within 1 year of cause of action
• GRC must resolve within 30 days of receipt; otherwise worker may escalate
• Escalation to conciliation officer: within 60 days of GRC decision or 30-day window expiry, through worker’s trade union

Works Committee (Rule 5)

The Works Committee promotes amity and discusses matters of common concern between employer and workers:

• Maximum 20 members; workers’ representatives ≥ employer representatives
• Candidate eligibility: age ≥19 years; service ≥1 year (waived for establishments under 1 year old)
• Voter eligibility: age ≥18 years; service ≥6 months
• Nomination window: minimum 3 working days; election 3–15 days after nomination close; 7 days advance notice to workers
• Term: 3 years; forfeited if 3 consecutive meetings missed without leave
• Meetings: at least once every quarter
• Annual details submitted as part of unified annual return under OSH Code rules
• Dissolution possible if 2/3 worker representatives miss 3 consecutive meetings without justification

Trade Union Provisions (Rules 9–13)

• Minimum subscription: ₹10 per member per month (collected monthly, quarterly, half-yearly, or annually)
• Registration fees: ₹2,000 for ≥1,000 members; ₹1,000 for <1,000 members
• Annual audit: by Registrar-approved panel auditor or Companies Act auditor; defects rectified within 3 months of audit report
• Registration decision: Registrar must decide within 90 days
• Appeal against refusal/cancellation: within 60 days of receiving order
• Change notifications (name, constitution, rules): to Registrar within 30 days; fee ₹500 per set of alterations

Negotiating Union and Council Recognition (Rule 14)

Sole Negotiating Union: A single registered Trade Union with membership ≥30% of total workers must be recognised by the employer as sole negotiating union.

Where no single union meets 30% threshold: Negotiating Council formed proportionally through secret ballot verification by State-appointed Verification Officer. Key steps:

1. Employer initiates process 3 months before existing recognition expires
2. All costs borne by the employer
3. Verification Officer convenes all unions at least 60 days before voting day to agree on modalities
4. Secret ballot (electronic or physical) under Verification Officer supervision; agents of all unions present during counting
5. Recognition valid for 3 years, extendable to 5 years by mutual agreement

10 mandatory matters for negotiation: Worker grades/categories, standing orders, wages/allowances/bonus/increments, working hours/rest/shifts, leave and holidays, promotion/transfer/discipline, housing policy, safety and health, other conditions of service, and any mutually agreed matters.

Facilities for recognised union/council: Employer must provide notice board, venue for discussions, access for office bearers, and communication facilities.

Employer Compliance Checklist

Action Item	Applicable To	Priority
Constitute Grievance Redressal Committee with charter and meeting schedule	All establishments with 20+ workers	HIGH
Check union membership levels; initiate negotiating union recognition process	Establishments with trade unions	HIGH
Review and reconstitute Works Committee per new Rules 5 requirements	Where State Government order applies	MEDIUM
Create electronic settlement workflow (Form I) with digital signature capability	All employers	MEDIUM
Ensure proportional women representation in Works Committee and GRC	All establishments with women workers	LOW

Frequently Asked Questions

Our establishment has fewer than 100 workers. Does the GRC apply?
Yes. The Grievance Redressal Committee is mandatory for all establishments with 20 or more workers — far broader than what the old Industrial Disputes Act required.

We have a Works Committee under the old IDA. Does it need reconstitution?
Yes. It must be reconstituted per Rule 5 to meet requirements for women representation, updated election timelines, and electronic voting capability.

What happens if our union recognition expires without renewal?
The employer must initiate the Verification Officer process at least 3 months before expiry. Failure creates risk of unions challenging recognition status and disrupting negotiations.

Can electronic voting be used for the Works Committee elections?
Yes. Rule 5(5)(c) explicitly permits employers to deploy an IT application or online platform for Works Committee elections where workers elect their representatives.

Download the Official Draft Rules

How TMS Helps You Navigate Industrial Relations Compliance

The new Industrial Relations framework demands proactive HR management — from ensuring GRCs are properly constituted and functioning, to managing union recognition processes and bipartite negotiations. Companies unprepared face elevated risk of disputes, penalties, and reputational harm.

TMS provides end-to-end industrial relations support:

• GRC setup: Drafting GRC charters, conducting training for employer and worker representatives, and creating electronic grievance filing mechanisms
• Works Committee reconstitution: Managing the election process from nomination to declaration per Rule 5, including electronic voting setup
• Union recognition support: Advising on membership verification processes and facilitating interactions with the State-appointed Verification Officer
• Contract staffing: Contract staffing arrangements where TMS manages industrial relations compliance as principal employer for contract workers — reducing your compliance burden and liability exposure
• Standing orders drafting: Updating standing orders to align with the Industrial Relations Code’s new framework
• HR compliance outsourcing: Comprehensive payroll and compliance outsourcing with ongoing IR compliance monitoring

Contact TMS today to assess your industrial relations compliance readiness before the Maharashtra Industrial Relations Rules come into force.