{"id":374029,"date":"2026-01-29T12:30:31","date_gmt":"2026-01-29T07:00:31","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=374029"},"modified":"2026-01-29T12:24:57","modified_gmt":"2026-01-29T06:54:57","slug":"draft-punjab-labour-rules-notified-for-code-on-wages-industrial-relations-social-security-2026","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/01\/29\/draft-punjab-labour-rules-notified-for-code-on-wages-industrial-relations-social-security-2026\/","title":{"rendered":"Draft Punjab Labour Rules 2026: Key Provisions under Wages, Industrial Relations and Social Security"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p>On 29-12-2026, the Government of Punjab proposed the following Rules<\/span><span style=\"Segoe UI&quot;; font-size: 10.5pt;\"><\/span> to operationalise central <span style=\"font-weight: bold;\">labour codes<\/span> at the state level:<\/span><\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Code on Wages (Punjab) Rules, 2026<\/p>\n<\/li>\n<li>\n<p>Industrial Relations (Punjab) Rules, 2026<\/p>\n<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\">Social Security (Punjab) Rules, 2026.<\/p>\n<\/li>\n<\/ul>\n<p style=\"margin-bottom: 3%;\">The draft rules are issued for feedback from all concerned stakeholders within <span style=\"font-weight: bold;\">thirty days<\/span>.<\/p>\n<h3>Key Highlights of Code on Wages (Punjab) Rules, 2026:<\/h3>\n<ol style=\"list-style-type: decimal;\">\n<li>\n<p>These Rules aim to consolidate wage-related laws and cover all establishments in Punjab covered under <span style=\"font-weight: bold;\">Code on Wages, 2019<\/span>.<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Chapter 2<\/span> of the proposed Rules state the scientific and consumption-based method for fixing minimum wages. The calculation includes:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p><span style=\"font-weight: bold;\">Food requirement:<\/span> 2,700 calories per consumption unit per day<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Clothing:<\/span> 66 metres per family per year<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Housing:<\/span> 10% of food and clothing expenditure<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Fuel, electricity &amp; miscellaneous expenses:<\/span> 20% of minimum wages<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Education, medical, recreation &amp; contingencies:<\/span> 25% of minimum wages<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p>The draft Rules classify occupations into:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Unskilled<\/p>\n<\/li>\n<li>\n<p>Semi-skilled<\/p>\n<\/li>\n<li>\n<p>Skilled<\/p>\n<\/li>\n<li>\n<p>Highly skilled<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p>Total deductions in any wage period will not exceed <span style=\"font-weight: bold;\">50% of wages<\/span>, with excess recoverable only in subsequent periods. All deductions, whether due to fines, damage or loss, advances, or loans, will follow due process.<\/p>\n<\/li>\n<li>\n<p>The Labour Commissioner, Punjab will be designated as the competent authority, and the Inspector-cum-Facilitator will play a key role in monitoring compliance.<\/p>\n<\/li>\n<li>\n<p>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.<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Chapter 5<\/span> proposes the formation of <span style=\"font-weight: bold;\">State Advisory Board<\/span> is constituted with equal representation of employers and employees, along with nominated independent members, and is chaired by the Labour Minister.<\/p>\n<\/li>\n<li>\n<p>When the payments are due under <span style=\"font-weight: bold;\">Section 44(1)(a) of the Code<\/span> after his death or when his whereabouts are not known, the employer will be required to deposit the dues with <span style=\"font-weight: bold;\">Punjab Labour Welfare Board<\/span>.<\/p>\n<\/li>\n<li>\n<p>Thereafter the Board will release those dues to legal heirs or nominees. The unclaimed dues if pending beyond <span style=\"font-weight: bold;\">3 years<\/span> will become part of Board&#8217;s fund and will be utilised for welfare purposes.<\/p>\n<\/li>\n<li>\n<p>Compoundable offences will be settled by the officer under <span style=\"font-weight: bold;\">Chapter 9<\/span>, on application by the accused, on payment of <span style=\"font-weight: bold;\">50% of the maximum fine<\/span> prescribed, and intimation of such composition is sent to the competent authority where prosecution has already begun.<\/p>\n<\/li>\n<li>\n<p>Contractors will ensure timely payment of wages and statutory compliances (EPF, ESI, etc.)<\/p>\n<\/li>\n<li>\n<p>These Rules replace multiple earlier enactments:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Punjab Payment of Wages Rules, 1937 and<\/p>\n<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\">Punjab Minimum Wages Rules, 1950<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<h3>Key Highlights of Code on Industrial Relations (Punjab) Rules, 2026:<\/h3>\n<ol style=\"list-style-type: decimal;\">\n<li>\n<p>These Rules seek to lay down the detailed procedures to implement <span style=\"font-weight: bold;\">Industrial Code, 2020<\/span> in Punjab.<\/p>\n<\/li>\n<li>\n<p>A key focus of the draft rules is institutionalised dialogue at the workplace. Major provisions include:<\/p>\n<p>&#11162; <span style=\"font-weight: bold;\">Works Committee:<\/span><\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Mandatory for establishments notified under the Code<\/p>\n<\/li>\n<li>\n<p>Between 6 and 12 members, with worker representatives not less than employer representatives<\/p>\n<\/li>\n<\/ul>\n<p>&#11162; <span style=\"font-weight: bold;\">Grievance Redressal Committee (&#8216;GRC&#8217;):<\/span><\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Equal representation of employers and workers<\/p>\n<\/li>\n<li>\n<p>Mandatory proportionate representation of women workers<\/p>\n<\/li>\n<li>\n<p>Fixed tenure of three years.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Chapter 3<\/span> deals with the provisions of <span style=\"font-weight: bold;\">Trade Unions<\/span><\/span>,<span style=\"Segoe UI&quot;; font-size: 10.5pt;\"><\/span> both ordinary and honorary members will pay subscriptions as prescribed by the State Government.<\/span><\/p>\n<\/li>\n<li>\n<p>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.<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Chapter 4<\/span> prescribes the manner in which the Central Government&#8217;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.<\/p>\n<\/li>\n<li>\n<p>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 <span style=\"font-weight: bold;\">Conciliation Officer<\/span> for consultation on draft standing orders.<\/p>\n<\/li>\n<li>\n<p>Employers and workers can refer disputes to arbitration through a signed Form-IX agreement, with written\/electronic consent of the arbitrator by authorized representatives.<\/p>\n<\/li>\n<li>\n<p>A <span style=\"font-weight: bold;\">strike notice<\/span> 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.<\/p>\n<\/li>\n<li>\n<p>Employers will be required to issue <span style=\"font-weight: bold;\">lock-out notice<\/span> 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.<\/p>\n<\/li>\n<li>\n<p>Employers retrenching workers will deposit an amount equal to 15 days&#8217; last drawn wages per worker within 10 days, which the State Government transfers to workers&#8217; bank accounts within <span style=\"font-weight: bold;\">45 days for re-skilling support<\/span>.<\/p>\n<\/li>\n<li>\n<p>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.<\/p>\n<\/li>\n<li>\n<p>Under <span style=\"font-weight: bold;\">Rule 62<\/span>, 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 <span style=\"font-weight: bold;\">15 days<\/span> of any change. Protection will apply for 12 months from communication.<\/p>\n<\/li>\n<li>\n<p>The aggrieved workers will be able to file complaints in Form-XVIII, to be resolved within <span style=\"font-weight: bold;\">30 days<\/span>, and can authorize a representative through Form-X if not union members.<\/p>\n<\/li>\n<li>\n<p>These Rules replace multiple earlier enactments:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Industrial Disputes (Punjab) Rules, 1958<\/p>\n<\/li>\n<li>\n<p>Industrial Employment (Standing Orders) Punjab Rules, 1978<\/p>\n<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\">Punjab registered trade union Regulations, 1927.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<h3>Key Highlights of Social Security (Punjab) Rules, 2026:<\/h3>\n<ol style=\"list-style-type: decimal;\">\n<li>\n<p>These Rules are formulated under the provisions of <span style=\"font-weight: bold;\">Code on Social Security, 2020<\/span>.<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Chapter 2<\/span> 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.<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Rule 16<\/span> provides that an <span style=\"font-weight: bold;\">insured person or the Corporation can file a second appeal within 90 days<\/span> from receipt of the Medical Appeal Tribunal&#8217;s order, <span style=\"font-weight: bold;\">in prescribed Forms (Form I\/Form II)<\/span> and following the specified <span style=\"font-weight: bold;\">procedure and fee requirements<\/span>.<\/p>\n<\/li>\n<li>\n<p>Rule 18- 22 provides provisions regarding <span style=\"font-weight: bold;\">Gratuity<\/span>, 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.<\/p>\n<\/li>\n<li>\n<p>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.<\/p>\n<\/li>\n<li>\n<p>Maternity Rules states that complaints regarding non-payment or wrongful withholding of maternity benefits shall be filed in <span style=\"font-weight: bold;\">Form XIV<\/span>. The situation will be enquired by <span style=\"font-weight: bold;\">Inspector cum Facilitator<\/span> who will direct the employer to make payment.<\/p>\n<\/li>\n<li>\n<p>Both complaints and appeals will be <span style=\"font-weight: bold;\">disposed of within 90 days<\/span>, with up to <span style=\"font-weight: bold;\">three opportunities<\/span> for appearance, and may also be filed on <span style=\"font-weight: bold;\">plain paper<\/span> if all particulars are provided.<\/p>\n<\/li>\n<li>\n<p>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).<\/p>\n<\/li>\n<li>\n<p>Any appeal under S<span style=\"font-weight: bold;\">ection 105<\/span> will be accompanied by a non-refundable fee of 0.5% of the disputed amount, capped at &#8377;25,000, payable on the portal to the <span style=\"font-weight: bold;\">Building and Other Construction Workers (&#8216;BOCW&#8217;) Welfare Board<\/span>.<\/p>\n<\/li>\n<li>\n<p><span style=\"font-weight: bold;\">Rule 40<\/span> lays down the complete procedure for compounding of offences, including issuance of a compounding notice in Form XXIII.<\/p>\n<\/li>\n<li>\n<p>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.<\/p>\n<\/li>\n<li>\n<p>These Rules replace multiple earlier enactments:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>\n<p>Punjab Maternity Benefit Rules, 1967<\/p>\n<\/li>\n<li>\n<p>Punjab Payment of Gratuity Rules, 1973<\/p>\n<\/li>\n<li>\n<p>Punjab Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Rules, 2008<\/p>\n<\/li>\n<li>\n<p>Punjab Unorganised Workers Rules, 2012<\/p>\n<\/li>\n<li>\n<p><a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002848292\" target=\"_blank\">Workmen&#8217;s Compensation Rules, 1924<\/a>.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">Punjab Govt notified the Draft Punjab Labour Rules 2026, outlining key provisions, procedural safeguards, and compliance implications for employers and workers.<\/p>\n","protected":false},"author":67525,"featured_media":374032,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4,15],"tags":[97683,93154,93153,97681,97680,71658,93673,97685,47449,43884,42445,97686,96225,10631,32873,97682,97684],"class_list":["post-374029","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legislationupdates","category-rules_regulations","tag-97683","tag-code-on-social-security-2020","tag-code-on-wages-2019","tag-draft-code-on-industrial-relations-punjab-rules-2026","tag-draft-code-on-wages-punjab-rules-2026","tag-employee-rights","tag-employer-compliance","tag-hr-compliance","tag-industrial-relations","tag-industrial-relations-code-2020","tag-labour-code","tag-labour-governance","tag-labour-law-reforms","tag-labour-laws","tag-payment-of-wages","tag-social-security-punjab-rules","tag-wage-regulation"],"yoast_head":"<!-- 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