Background
The Industrial Disputes Act, 1947 is the central legislation enacted to provide a framework for investigation and settlement of industrial disputes, ensuring industrial harmony and protecting the rights of both employers and workmen. The Rajasthan Industrial Disputes Rules, 1958 were framed under the Act to prescribe the procedure, forms, and administrative details for its implementation within the State of Rajasthan. Together, they lay down the mechanism for conciliation, adjudication, arbitration, retrenchment, lay-off, compensation, and grievance redressal in industrial establishments.
Applicability
The Act and Rules apply to industrial establishments operating in Rajasthan, covering employers, workmen, trade unions, conciliation officers, arbitrators, labour courts, industrial tribunals, and other authorities dealing with industrial disputes.
Compliance requirements under the Act in accordance with the Rules
Form A: Application for reference of industrial dispute to a Board or Court in Rajasthan (Section 10(2) / Rule 3)
An application for the reference of an industrial dispute to a Board, Court, Labour Court or Tribunal shall be made in Form-A to the Secretary to the Government in charge of Labour (in triplicate), the Commissioner of Labour and the Conciliation Officer of the area concerned. The application shall be accompanied by a statement setting forth the parties to the dispute, the specific matters in dispute, the total number of workmen employed in the undertaking affected, an estimate of the number of workmen affected or likely to be affected by the dispute, and the efforts made by the parties themselves to adjust the dispute. Breach of this requirement is punishable with fine not exceeding fifty rupees.
Form C: Arbitration Agreement by Industrial Establishment (Section 10A / Rule 7, 8)
An arbitration agreement for reference of an industrial dispute to an arbitrator shall be made in Form-C to be delivered personally or forwarded by registered post to the Secretary to Government in charge of Labour, Commissioner of Labour and Conciliation Officer concerned. The agreement shall be accompanied by written consent of the arbitrator(s). Copies must also be forwarded to the Chief Labour Commissioner (Central), Regional Labour Commissioner, and Assistant Labour Commissioner. Breach of this requirement is punishable with fine not exceeding fifty rupees.
Form E: Notice of change of condition of service (Section 9A / Rule 34)
Any employer intending to effect a change in the service conditions of workmen in respect of matters in the Fourth Schedule shall give at least 21 days’ notice in Form E. Such notice shall be displayed at the main entrance and manager’s office, and if a registered union exists, a copy must be served to its secretary. Breach of this requirement is punishable with fine not exceeding fifty rupees.
Works Committee to be formed by employer (Section 3 / Rule 38)
Employers must constitute a Works Committee with Chairman, Vice-Chairman, Secretary and Joint Secretary, having a 2-year term of representatives. Committee meetings must be held at least quarterly. Membership should not exceed 20 and must provide fair representation of workmen categories and employer officials. Breach of this requirement is punishable with fine not exceeding fifty rupees.
Election of workmen representatives (Section 3 / Rule 42-50)
Employer shall conduct elections for workmen’s representatives to the Works Committee in two groups—union members and non-union members. Voters shall be divided into constituencies. Workmen aged 19+ with at least one year’s service are eligible to contest. For new establishments under one year, service qualification does not apply. Breach of this requirement is punishable with fine not exceeding fifty rupees.
Form H: Memorandum of settlement (Rule 58)
Settlements must be in Form H and signed by employer/authorised representative and by trade union officer or five authorised workmen. If reached in conciliation, the Conciliation Officer forwards a copy to State Government. If reached outside conciliation, parties must jointly send copies to State Government, Labour Commissioner and Conciliation Officer. Breach of this requirement is punishable with fine not exceeding fifty rupees.
Form O-1, O-2: Notice of lay-off (Section 25A / Rule 75A)
Employers must give notice of commencement and termination of lay-off in Forms O-1 and O-2 within three days of such event, irrespective of entitlement of compensation under Section 25C. Breach of this requirement is punishable with fine not exceeding fifty rupees.
Form O-3: Application for permission for lay-off (Section 25M / Rule 75B)
Employers with 300 or more workmen must apply in Form O-3 for permission to lay-off or continue lay-off (other than badli or casual workmen). Permission granted requires employer to notify commencement and termination in Forms O-1 and O-2. Lay-off without permission is punishable with imprisonment up to 3 months or fine up to Rs. 2000 or both (Sec 25Q state amendment).
Maintenance of seniority list of workmen (Section 25H / Rule 77)
Employer must prepare category-wise seniority list before retrenchment, display it on notice board at least 7 days prior to retrenchment. Breach of this requirement is punishable with fine not exceeding fifty rupees.
Re-employment of retrenched workmen by employer (Section 25H / Rule 78)
Employers must display vacancies on notice board and intimate eligible retrenched workmen at least 10 days before filling. Obligation does not apply to vacancies less than 1 month. If a workman declines re-employment without cause, employer need not notify him of future vacancies. Trade unions must also be informed of vacancies filled. Breach of this requirement is punishable with fine not exceeding fifty rupees.
Submission of disputes for arbitration to Registrar (Section 10B, 10C)
A copy of submission to arbitration shall be sent to Registrar for registration and publication. Submissions are irrevocable unless revoked by giving three months’ notice. Parties may agree to extend submission before expiry.
Grievance Redressal Committee (Section 9CC)
Industrial establishments with 20 or more workmen must form a Grievance Redressal Committee with equal representation from employer and workmen, alternating chairperson annually. Maximum members: six, with proportionate women members.
Right of workmen laid-off for compensation (Section 25C)
Workman with at least one year’s continuous service, if laid-off, shall be paid 50% of wages plus DA for lay-off days. Does not apply to establishments with 100+ workmen (non-seasonal), less than 50 workmen, or seasonal establishments.
Prohibition of workmen’s lay-off by employer (Section 25M)
Employers cannot lay-off workmen without prior permission of prescribed authority, except in cases of shortage of power, natural calamity, or mine-specific emergencies. Application must state reasons and copy served to workmen. Mine employers must apply within 30 days to continue lay-off. Lay-offs without permission are punishable with imprisonment up to 3 months or fine up to Rs. 2000 or both (Sec 25Q state amendment).
Payment of wages during proceedings pending in Courts (Section 17B)
Where reinstatement is ordered and employer challenges award in High Court/Supreme Court, employer must pay full wages last drawn to workman during pendency, unless Court finds he was gainfully employed elsewhere.
Retrenchment of workman (Section 25G)
Retrenchment must be on “last in, first out” basis. Employers with 300+ workmen must file notice/application in Form PA. Workmen with at least one year service must be given Form F-G notice to authorities, one month’s notice and compensation (15 days’ average pay). For establishments under Sec 25K, 3 months’ notice applies.
Muster rolls of workmen (Section 25D)
Employer must maintain muster-roll for workmen, even during lay-offs, to enable workmen to record attendance. Provision not applicable to Chapter VB establishments, those with fewer than 50 workmen, or seasonal/intermittent units.
Compensation to workmen in case of transfer of undertakings (Section 25FF)
Workmen are entitled to notice and compensation on transfer of ownership, unless service is not interrupted, post-transfer conditions are not less favourable, and transferee assumes retrenchment liability treating service as continuous.
Compensation for lay-off beyond 45 days (Section 25C)
If lay-off exceeds 45 days in 12 months, no compensation is payable after 45 days if agreed by workman and employer. Employers may retrench after 45 days under Sec 25F, setting off lay-off compensation already paid. Exemptions: establishments under Chapter VB, those with fewer than 50 workmen, and seasonal units.
Penalty & Punishments
3. Contravenes such an order as is referred to in clause (b) passed as a result of review under sub-section (7) of section 25-Mshall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to two thousand rupees or with both (Sec 25Q state amendment)
Conclusion
The Rajasthan Industrial Disputes Rules, 1958, supplement the Industrial Disputes Act, 1947, by providing procedural clarity and standardised documentation for dispute settlement, arbitration, retrenchment, compensation, and maintenance of industrial peace. Employers must ensure timely compliance with prescribed forms, notices, elections, and committees, while workmen are guaranteed representation, protection from arbitrary retrenchment/lay-off, and access to redressal mechanisms. Non-compliance generally attracts monetary fines, while serious violations (e.g., illegal lay-off or retrenchment without permission) may lead to imprisonment and higher penalties. Adherence to these provisions promotes orderly resolution of disputes and helps maintain stable industrial relations within Rajasthan.
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