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LabourIR CodeCentral Rules
G.S.R. 342(E) · 8 May 2026

Rule 4 — Memorandum of settlement

Rule-level Gazette text, enabling sections, prescribed forms, owner, evidence and consequence.

Legal identity

InstrumentIndustrial Relations (Central) Rules, 2026
Rule4
ChapterCHAPTER I — PRELIMINARY
Effective8 May 2026

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Exact rule text

Exact Gazette text extracted from the official English notification
4. Memorandum of settlement.– (1) The settlement arrived at in the course of conciliation proceedings or a written
agreement between the employer and worker arrived at otherwise than in the course of conciliation proceeding shall be
in Form I.

(2) The settlement shall be signed, ––

     (a) by the employer or by his authorised agent, or where the employer is an incorporated company or other body
     corporate, by the agent, manager or other principal officer of such company or such other body corporate; and

     (b) on behalf of workers, by any of the following office bearers of Trade Union, namely: –

         (i)    the President; or

         (ii)   the Vice-President; or

         (iii) the Secretary (including the General Secretary); or

         (iv) the Joint Secretary; or

         (v)    any other office bearer of the Trade Union authorised in this behalf by the President and Secretary of the
                Union; or

         (vi) five representatives of workers duly authorised in this behalf at the meeting of the workers held for the
              purpose.

(3) In case of an industrial dispute between individual worker and employer, the settlement shall be signed by the
employer and the worker concerned.

(4) Where the settlement is arrived at in the course of conciliation proceedings, the conciliation officer shall send a
report thereof to the Central Government together with a copy of the memorandum of settlement signed by the parties
to the dispute.

(5) Where a settlement is arrived at between an employer and his worker otherwise than in the course of conciliation
proceedings, the parties to the settlement shall jointly send a copy thereof electronically or by speed post to the concerned
Deputy Chief Labour Commissioner (Central) and to the conciliation officer.

(6) The conciliation officer shall file all settlements effected under this rule in respect of industrial disputes in the area
within his jurisdiction in the register maintained electronically or otherwise.

(7) The register referred to in sub-rule (6), shall contain the details including serial number, name of the industry, parties
to the settlement, date of settlement, remarks and whether settlement was arrived at after the intervention of conciliation
officer or by mutual negotiation:

          Provided that signature of the conciliation officer on the agreement shall not be necessary where the agreement
for settlement is arrived at outside conciliation:

        Provided further that nothing in this rule shall prohibit a settlement between a worker or workers or Trade
Union and an employer on mutually agreed terms and such settlement may be in a format other than in Form I.

                                                          CHAPTER II

                                                     BI-PARTITE FORUMS

Code concordance

Primary operative section

Forms and records

Implementation owner

HR/employee relations with legal review and the authorised signatory specified by the rule.

System control

Create a workflow that blocks completion until every mandatory field, attachment, service method and timeline is satisfied.

Evidence

Preserve the exact filed form, annexures, electronic receipt, delivery proof, hearing material and final order.

Failure consequence

The underlying Code section may create invalidity, compensation, appeal, recovery, unfair-practice or penalty exposure.

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