The Assam cabinet has approved the notification of the draft Assam Industrial Relation Rules, 2026, which seek to overhaul the state’s labour governance framework by aligning it with the Union government’s Industrial Relations Code, 2020. The draft rules, published on August 24, 2026, are now open for public consultation, with stakeholders invited to submit objections or suggestions by September 23, 2026.
This significant move aims to consolidate and streamline various labour regulations, replacing three existing state laws that have governed industrial relations for decades. The new rules are designed to foster industrial harmony, enhance ease of doing business, and introduce modern mechanisms for dispute resolution and worker welfare across Assam.
What was announced
The Assam cabinet, in a meeting held on Tuesday, August 18, 2026, approved the notification of the Assam Industrial Relation Rules, 2026, according to Chief Minister Himanta Biswa Sarma. Following this approval, the state’s Labour Welfare Department issued Notification No. E-379170/642 on August 21, 2026. This notification, publishing the draft rules, appeared in the Assam Gazette Extraordinary (No. 465) on August 24, 2026.
The draft rules are formulated under Section 99 of the Industrial Relations Code, 2020, enacted by the Union government. They propose to repeal and replace the Assam Industrial Dispute Rules 1958, the Assam Trade Union Regulations 1927, and the Assam Industrial Employment (Standing Orders) Rules 1947. The government has invited public objections and suggestions on the draft rules for a period of 30 days from the date of their publication in the Official Gazette, setting the deadline around September 23, 2026.
Why it matters
The new rules are poised to significantly impact the industrial landscape of Assam by consolidating fragmented labour laws into a single, comprehensive framework. This harmonisation is expected to simplify compliance for businesses and create a more predictable environment for industrial relations.
Chief Minister Himanta Biswa Sarma stated that these measures are intended to improve the implementation of existing laws and bring greater clarity and efficiency to administrative and labour-related systems in the state. The integration of provisions from the Central Industrial Relations Code, 2020, aims to balance worker protection with business flexibility, potentially boosting productivity and attracting investment.
Key changes include updated thresholds for layoffs and retrenchment, mandating prior government permission for establishments employing 300 or more workers, an increase from the previous 100-worker limit. The rules also introduce a Worker Re-Skilling Fund, requiring employers to contribute 15 days’ last-drawn wages for each retrenched worker within 10 days, to support displaced workers in acquiring new skills.
Background
India’s labour law framework has undergone a significant transformation with the introduction of four new labour codes by the Union government between 2019 and 2020. These codes — the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020 — were designed to replace 29 older central labour laws.
The Industrial Relations Code, 2020, specifically consolidates three major central statutes: the Trade Unions Act, 1926; the Industrial Employment (Standing Orders) Act, 1946; and the Industrial Disputes Act, 1947. This consolidation aimed to reduce compliance complexities and provide uniform definitions for terms like “worker” and “industry,” which were previously fragmented across multiple statutes.
States were empowered to frame their own rules under these central codes, leading to a wave of notifications across the country. The Assam government’s move to introduce its own Industrial Relation Rules, 2026, is part of this broader national effort to modernise and streamline labour legislation, aligning with the “ease of doing business” agenda.
Key details
The draft Assam Industrial Relation Rules, 2026, consist of 61 rules, organised into 13 chapters, and include 34 forms. These comprehensive rules cover various aspects of industrial relations, including trade unions, standing orders, strikes, lockouts, layoffs, retrenchment, and mechanisms for dispute resolution.
Under the proposed rules, Works Committees, which can have up to 20 members, and Grievance Redressal Committees, with a maximum of 10 members, will serve for a term of three years. These committees will also ensure proportionate representation for women workers. A significant provision allows a single trade union with at least 30 percent membership to be recognised as the sole negotiating union for an establishment, with its recognition lasting for three years, extendable to five years.
The rules also streamline the dispute resolution process, stipulating that parties have 90 days to approach the Industrial Tribunal after a failed conciliation. Furthermore, most filings under the new framework can be made online, enhancing administrative efficiency. Employers are mandated to deposit 15 days’ last-drawn wages for each retrenched worker into a district Worker Re-Skilling Fund within 10 days of retrenchment.
The rules formalise fixed-term employment, ensuring that fixed-term employees receive the same wages and benefits as permanent workers performing similar duties. Stricter regulations for strikes and lockouts require workers to provide 14 days’ notice before initiating strike action, even in non-public utility services, aiming to reduce sudden industrial disruptions.
Reactions
“The measures were aimed at improving the implementation of existing laws and bringing greater clarity and efficiency to administrative, child protection and labour-related systems,” Chief Minister Himanta Biswa Sarma said regarding the cabinet’s decisions, which included the labour reforms.
However, the draft rules have drawn criticism from some quarters. The All India Central Council of Trade Unions (AICCTU), along with other central trade unions and civil rights organisations, has expressed concerns. They argue that the central labour codes, on which the state rules are based, are designed to erode workers’ rights and primarily favour corporates.
“To begin with, the state rules formulated by the Assam Government were not even made available in Assamese language, thus making it inaccessible to the common workers. These rules were not even widely circulated to ensure proper feedback from workers. In effect, the entire claim of seeking feedback from workers appears to be a sham,” a summary of comments submitted by AICCTU stated.
Concerns have also been raised by legal analysts regarding the increased threshold for standing orders, layoffs, and retrenchment to 300 workers. Critics suggest this change could reduce protection for workers in industrial establishments employing fewer than 300 individuals, potentially exposing them to arbitrary layoffs and retrenchment without prior government approval.
What’s next
The Government of Assam will now consider all objections and suggestions received from the public and stakeholders regarding the draft Assam Industrial Relation Rules, 2026, by the deadline of September 23, 2026. These inputs will be reviewed by the Senior-Most Secretary to the Government of Assam, Labour Welfare Department.
After this consultation period, the government is expected to finalise the rules, incorporating necessary amendments based on the feedback. The Assam Industrial Relation Rules, 2026, will officially come into force on the date of their final publication in the Official Gazette. Employers and employees in Assam are advised to stay informed about the final notification and its effective date to ensure compliance with the new labour framework.