Draft Punjab Labour Rules 2026: Key Provisions under Wages, Industrial Relations and Social Security

On 29-12-2026, the Government of Punjab proposed the following Rules to operationalise central labour codes at the state level:

• Code on Wages (Punjab) Rules, 2026

• Industrial Relations (Punjab) Rules, 2026

• Social Security (Punjab) Rules, 2026.

The draft rules are issued for feedback from all concerned stakeholders within thirty days.

Key Highlights of Code on Wages (Punjab) Rules, 2026:

1. These Rules aim to consolidate wage-related laws and cover all establishments in Punjab covered under Code on Wages, 2019.

2. Chapter 2 of the proposed Rules state the scientific and consumption-based method for fixing minimum wages. The calculation includes:

   • Food requirement: 2,700 calories per consumption unit per day

   • Clothing: 66 metres per family per year

   • Housing: 10% of food and clothing expenditure

   • Fuel, electricity & miscellaneous expenses: 20% of minimum wages

   • Education, medical, recreation & contingencies: 25% of minimum wages

3. The draft Rules classify occupations into:

   • Unskilled

   • Semi-skilled

   • Skilled

   • Highly skilled

4. Total deductions in any wage period will not exceed 50% of wages, with excess recoverable only in subsequent periods. All deductions, whether due to fines, damage or loss, advances, or loans, will follow due process.

5. The Labour Commissioner, Punjab will be designated as the competent authority, and the Inspector-cum-Facilitator will play a key role in monitoring compliance.

6. The employers are required to ensure transparency through conspicuous display of wage notices, timely intimation of deductions, and adherence to inspection and enforcement provisions under the Code.

7. Chapter 5 proposes the formation of State Advisory Board is constituted with equal representation of employers and employees, along with nominated independent members, and is chaired by the Labour Minister.

8. When the payments are due under Section 44(1)(a) of the Code after his death or when his whereabouts are not known, the employer will be required to deposit the dues with Punjab Labour Welfare Board.

9. Thereafter the Board will release those dues to legal heirs or nominees. The unclaimed dues if pending beyond 3 years will become part of Board’s fund and will be utilised for welfare purposes.

10. Compoundable offences will be settled by the officer under Chapter 9, on application by the accused, on payment of 50% of the maximum fine prescribed, and intimation of such composition is sent to the competent authority where prosecution has already begun.

11. Contractors will ensure timely payment of wages and statutory compliances (EPF, ESI, etc.)

12. These Rules replace multiple earlier enactments:

    • Punjab Payment of Wages Rules, 1937 and

    • Punjab Minimum Wages Rules, 1950

Key Highlights of Code on Industrial Relations (Punjab) Rules, 2026:

1. These Rules seek to lay down the detailed procedures to implement Industrial Code, 2020 in Punjab.

2. A key focus of the draft rules is institutionalised dialogue at the workplace. Major provisions include:

   ⮚ Works Committee:

   • Mandatory for establishments notified under the Code

   • Between 6 and 12 members, with worker representatives not less than employer representatives

   ⮚ Grievance Redressal Committee (‘GRC’):

   • Equal representation of employers and workers

   • Mandatory proportionate representation of women workers

   • Fixed tenure of three years.

3. Chapter 3 deals with the provisions of Trade Unions, both ordinary and honorary members will pay subscriptions as prescribed by the State Government.

4. Trade union funds will be deposited in a scheduled bank, with limited cash for routine needs, and are subject to annual audit by an eligible independent auditor.

5. Chapter 4 prescribes the manner in which the Central Government’s Model Standing Orders will be adopted by the employers the employers. If no observations are issued within 30 days, the standing orders are deemed approved.

6. In the absence of a registered negotiating union or council, worker representatives are elected (one per 50 workers, minimum three) under the supervision of a Conciliation Officer for consultation on draft standing orders.

7. Employers and workers can refer disputes to arbitration through a signed Form-IX agreement, with written/electronic consent of the arbitrator by authorized representatives.

8. A strike notice will be issued to the employer in Form-XIII, duly signed by trade-union office-bearers and supported by a resolution approved by the majority of members.

9. Employers will be required to issue lock-out notice in Form-XIV to trade unions, with copies to authorities and display it publicly, and both strike and lock-out notices must be reported within five days to labour authorities.

10. Employers retrenching workers will deposit an amount equal to 15 days’ last drawn wages per worker within 10 days, which the State Government transfers to workers’ bank accounts within 45 days for re-skilling support.

11. The Punjab Government will appoint officers to hold enquiries, and compoundable offences can be settled by payment of a prescribed amount through a notified process, resulting in closure of proceedings and discharge of the accused.

12. Under Rule 62, Trade unions or negotiating councils will submit names of office-bearers to be recognized as protected workmen before 31 December each year, with updates within 15 days of any change. Protection will apply for 12 months from communication.

13. The aggrieved workers will be able to file complaints in Form-XVIII, to be resolved within 30 days, and can authorize a representative through Form-X if not union members.

14. These Rules replace multiple earlier enactments:

    • Industrial Disputes (Punjab) Rules, 1958

    • Industrial Employment (Standing Orders) Punjab Rules, 1978

    • Punjab registered trade union Regulations, 1927.

Key Highlights of Social Security (Punjab) Rules, 2026:

1. These Rules are formulated under the provisions of Code on Social Security, 2020.

2. Chapter 2 of the proposed Rules provides that members will hold office for a term not exceeding three years, be eligible for re-nomination, may resign by written intimation, ensure representation of Scheduled Castes and women, and that no business will be transacted without a quorum of one-third of total members.

3. Rule 16 provides that an insured person or the Corporation can file a second appeal within 90 days from receipt of the Medical Appeal Tribunal’s order, in prescribed Forms (Form I/Form II) and following the specified procedure and fee requirements.

4. Rule 18- 22 provides provisions regarding Gratuity, stating that where the nominee or legal heir is a minor, the gratuity amount shall be invested by the competent authority in a term deposit with a Nationalised Bank in the name of the minor till attainment of 18 years of age.

5. The time, forms, and manner for nomination, notice, payment, and mode of gratuity are also prescribed, requiring employers to issue notices within 15 days, verify claims, make payments through bank transfer or demand draft, and intimate the competent authority accordingly.

6. Maternity Rules states that complaints regarding non-payment or wrongful withholding of maternity benefits shall be filed in Form XIV. The situation will be enquired by Inspector cum Facilitator who will direct the employer to make payment.

7. Both complaints and appeals will be disposed of within 90 days, with up to three opportunities for appearance, and may also be filed on plain paper if all particulars are provided.

8. These Rules ensure that the employers pay the construction cess within 30 days of project completion or assessment (and annually for projects exceeding 1 year).

9. Any appeal under Section 105 will be accompanied by a non-refundable fee of 0.5% of the disputed amount, capped at ₹25,000, payable on the portal to the Building and Other Construction Workers (‘BOCW’) Welfare Board.

10. Rule 40 lays down the complete procedure for compounding of offences, including issuance of a compounding notice in Form XXIII.

11. The application and payment will be done within 15 days, issuance of a composition certificate within 10 days, and permitting compounding even after prosecution has begun as per applicable criminal procedure.

12. These Rules replace multiple earlier enactments:

    • Punjab Maternity Benefit Rules, 1967

    • Punjab Payment of Gratuity Rules, 1973

    • Punjab Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 2008

    • Punjab Unorganised Workers Rules, 2012

    • Workmen’s Compensation Rules, 1924.