The Union Territory of Lakshadweep has released the Draft Industrial Relations (Lakshadweep) Rules, 2025, under the Industrial Relations Code, 2020. The draft rules have been placed in the public domain for consultation and feedback.
The Department of Labour, Employment & Training has invited suggestions, objections, and comments from stakeholders, industry bodies, workers’ unions, and the general public. These must be submitted within 45 days from the date of notification September 19th 2025, and should reach the department by 5:00 PM
The draft rules aim to establish a framework for harmonious industrial relations in Lakshadweep, covering topics such as Works Committees, Grievance Redressal Mechanisms, Worker Reskilling Funds, and compounding of offences under the Industrial Relations Code.
🔍 Key Highlights of the Draft Rules
⚖️ Applicability & Commencement
- The rules are titled The Industrial Relations (Lakshadweep) Rules, 2025.
- Applicable throughout the Union Territory of Lakshadweep, except in areas where the Central Government is the appropriate authority.
- Will come into effect from the date of publication in the Official Gazette.(September 19th 2025).
🤝 Bi-Partite Forums: Ensuring Workplace Representation
1. Works Committee (Section 3 of the Code)
- Every employer directed under Section 3 must constitute a Works Committee.
- The committee:
- Shall have a maximum of 20 members.
- Must provide equal or greater representation to workers than employers.
- Employer’s representatives are nominated; worker representatives are either:
- Nominated by registered trade unions based on membership strength, or
- Elected by workers in absence of unions.
- Office-bearers include:
- Chairman (from employer’s side)
- Vice-Chairman (elected from worker reps)
- Secretary and Joint Secretary (rotated annually between employer/worker reps)
- The Committee must meet at least once every three months and may co-opt specialists (without voting rights).
- Worker members are deemed to be on duty while attending meetings.
- Employer must provide the necessary infrastructure and facilities.
2. Grievance Redressal Committee (Section 4)
- A Grievance Redressal Committee (GRC) is to be established with:
- Equal number of representatives from employer and workers (up to 10 total).
- Representation of women workers proportionate to their presence in the workforce.
- Worker representatives:
- Selected by registered trade unions.
- If no union exists, chosen by the workers themselves.
- Tenure of GRC members:
- Co-terminus with that of trade union members.
- Two years in absence of a trade union.
- Disputes regarding union membership strength can be referred to the Labour Commissioner, UT of Lakshadweep, whose decision is final.
👷♂️ Worker Re-skilling Fund (Section 83)
To support workers affected by retrenchment, the draft rules establish a Worker Re-skilling Fund mechanism:
- Employers must, within 10 days of retrenchment, transfer an amount equal to 15 days’ last drawn wages per worker to a designated account (details to be published by the UT Administration).
- The UT of Lakshadweep Administration will ensure transfer of this amount to workers’ bank accounts within 45 days to facilitate re-skilling.
- Employers must also submit a detailed list of retrenched workers with wage and bank details to enable disbursement.
🚨 Compounding of Offences (Section 89)
To streamline enforcement and reduce litigation, the draft rules provide for the compounding of offences under the Industrial Relations Code:
- A Gazetted Officer, designated as Compounding Officer, will issue notices through the Samadhan Portal using Form XI.
- Accused individuals can respond and pay the compounding fee within 15 days of receiving the notice.
- If prosecution has already been initiated, the accused may apply to the court for permission to compound the offence.
- On compounding:
- No prosecution will be launched (if pre-litigation).
- Ongoing court cases will be withdrawn (if post-litigation), upon court approval.
- All procedures are to be carried out electronically, ensuring speed and transparency.
📬 Submission of Comments
Members of the public, worker representatives, trade unions, employers, and other stakeholders can submit their suggestions or objections by:
- Registered Post, or
- Email to the address mentioned in the official notification.
Deadline: Comments must reach the Department before 5:00 PM
🏛️ Purpose & Impact
The draft Industrial Relations Rules are part of the broader implementation of the Industrial Relations Code, 2020, aiming to:
- Promote harmonious industrial relations,
- Ensure fair representation of workers in decision-making,
- Provide efficient grievance redressal mechanisms, and
- Ensure a social security net through re-skilling support.
This draft is a step toward labour reforms and decentralization, empowering Union Territories like Lakshadweep to tailor labour policies to local conditions while adhering to national standards.
📌 Conclusion
The Industrial Relations (Lakshadweep) Rules, 2025, once finalized, will provide a strong legal foundation for managing workplace relationships in the Union Territory. The government has demonstrated its commitment to transparency by inviting public feedback. Stakeholders are encouraged to participate actively in this consultative process to help shape an inclusive and effective labour framework for Lakshadweep.