The Government of Andhra Pradesh has issued the Draft Industrial Relations (AP) Rules, 2026, under the Industrial Relations Code, 2020. These rules modernize the state’s labour governance framework by replacing long‑standing regulations, bringing transparency, digitization, and structured dispute‑resolution mechanisms to the forefront.
These draft rules have been opened for public consultation for 30 days, and stakeholders—including employers, HR leaders, trade unions, and workers—are encouraged to provide feedback via the Labour Department portal.
🔎 Key
Highlights at a Glance
- Full transition to IR Code, 2020
for industrial relations governance
- Digital-first compliance – notices,
applications, registers, and records can be filed electronically
- Works Committee & Grievance Redressal Committee mandatory in defined establishments
- Clear procedures for trade union recognition (including secret ballot verification)
- Detailed Model Standing Orders for
Manufacturing & Service Sectors
- Codified procedures for layoffs, retrenchment & closure
- Mandatory Worker Re‑Skilling Fund
contributions by employers
- Streamlined conciliation, arbitration & dispute resolution
🏛️ 1.
Applicability & Legal Foundation
- AP Industrial Disputes Rules, 1958
- AP Trade Union Regulations, 1927
- AP Standing Orders Rules, 1953
The rules take effect upon publication in
the Official Gazette.
🤝 2.
Settlements & Dispute Resolution
2.1 Settlement Procedures
- All settlements must be executed in Form I.
- Settlements outside conciliation must be jointly submitted to
the Deputy Commissioner of Labour.
2.2 Conciliation
- Officers must digitize applications and upload reports within 7
days of conclusion.
- All statements and evidence to be filed in affidavit form.
2.3 Arbitration
- Voluntary arbitration is formalized via Form V with
written consent from arbitrators.
- Government may notify the arbitration for wider participation.
🏭 3.
Works Committee & Grievance Redressal Committee
3.1 Works Committee (for units where
mandated)
- Maximum 20 members
- Worker representation ≥ employer representation
- Mandatory representation of women workers proportional to
their workforce presence
- Worker representatives chosen by:
- Negotiating union / council, OR
- Election (electronic mode allowed)
3.2 Grievance Redressal Committee (≥20
workers)
- Equal employer & worker members (max 10)
- Women representation proportional
- 3‑year tenure
- Applications can be submitted electronically
👥 4.
Trade Union Recognition & Negotiation Framework
4.1 Sole Negotiating Union Criteria
A trade union becomes the sole negotiating
union if it has ≥30% membership of the total workforce.
4.2 Secret Ballot-Based Verification
- Verification Officer appointed by Commissioner of Labour
- Employer must provide records, bear expenses
- 60-day advance scheduling meeting
- Secret ballot—digital voting allowed
4.3 Recognition Validity
- Recognition valid for 3 years, extendable up to 5 years mutually
4.4 Facilities for Recognized Unions
📘 5.
Standing Orders (Manufacturing & Service Sector)
5.1 Key Elements
The Rules provide Model Standing Orders
covering:
- Worker classifications (Permanent, Temporary, Apprentice,
Badli, Fixed-term, Casual)
- Shift changes & notice requirements
- Leave entitlements and procedures
- Wage payment timelines
- Disciplinary procedures & misconduct definitions
- Retirement at 58 years (unless otherwise mutually
agreed)
- Service records & ID card requirements
5.2 Certification Process
- Adoption of model orders must be intimated electronically
- If certifying officer raises no objection within 30 days, deemed certified
⚠️ 6. Layoff,
Retrenchment & Closure Compliance
Timelines Under the Rules
|
Action |
Notice/Application
Requirement |
|
Retrenchment |
30 days before execution (Form XIII) |
|
Closure |
60 days prior |
|
Special
Category Establishments (Chap X) |
Layoff: 15 days; Retrenchment: 60 days;
Closure: 90 days (Form XIV) |
Re-employment Priority
Retrenched workers get preference in
future vacancies within one year.
📚 7.
Worker Re‑Skilling Fund (First Time in AP)
- Employer must deposit 15 days’ last drawn wages for
every retrenched worker within 10 days.
- Payment must be transferred to the worker within 45 days.
⚖️ 8. Offences
& Penalties
- Compounding of offences allowed via Form XV
- Payment within 15 days stops prosecution
- Supervised directly by the State Government
🛡️ 9.
Protected Workers
- Unions must submit names by 30 April every year
- Employer must recognize and notify protected workers for a 12‑month term
💻 10.
Complete Digital Compliance Framework
Nearly all compliance elements can now be
completed electronically, including:
- Applications
- Notices
- Registers
- Records
- Filing appeals
- Submitting Standing Orders
This aligns the State Rules fully with
India’s emerging digital labour compliance ecosystem.
Conclusion
The Industrial Relations (AP) Rules,
2026 – Draft represent a major modernization of labour administration in
Andhra Pradesh. The rules strengthen:
- Worker protection
- Employer clarity
- Digital compliance
- Transparent dispute resolution
- Trade union legitimacy
- Predictability in layoffs, restructuring & closure
processes
