Rules 20-22 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
These three rules implement section 42 of the Industrial Relations Code, 2020 (voluntary arbitration). Rule 20 sets the Form V agreement and who signs it; rule 21 requires a notification, uploaded on the Ministry's website, so that non-parties can present their case; rule 22 lets workers choose their representatives by a Form VI resolution where there is no union.
An employer and workers who agree to arbitrate an industrial dispute sign an arbitration agreement in Form V, with the consent of the arbitrator or arbitrators, given in writing or electronically. The employer signs personally or, for a company, through an authorised agent, manager or officer. Workers sign through an authorised union officer or five representatives authorised at a meeting of the workers. Where the Central Government is satisfied that the reference represents the majority of each party, it issues a notification and uploads it on the Ministry's website. With no union, workers choose a representative by majority resolution in Form VI. Central-sphere establishments only.
Section 42 in brief
Section 42 of the Code lets an employer and workers, where an industrial dispute exists or is apprehended, refer it by a written agreement to an arbitrator or arbitrators named in the agreement. For an even number of arbitrators, the agreement must provide for an umpire. The agreement is in the prescribed form and is signed in the prescribed manner; a copy goes to the appropriate Government and the conciliation officer. Where the Government is satisfied that the persons making the reference represent the majority of each party, it may issue a notification, and employers and workers who are not parties but are concerned must be given an opportunity to present their case. The Arbitration and Conciliation Act, 1996 does not apply to arbitrations under this section (s.42(8)). Read section 42 for the whole provision.
Because the agreement decides who the arbitrators are and what is in dispute, it is worth getting it drafted properly. Our legal dispute resolution team can advise on whether arbitration suits the dispute and prepare the Form V agreement.
Rule 20: Form V and who signs
| Sub-rule | Requirement |
|---|---|
| 20(1) | The employer and workers may agree to refer any industrial dispute to arbitration by an arbitration agreement in Form V |
| 20(2) | Signed by the parties, accompanied by the consent of the arbitrator or arbitrators, in writing or electronically |
| 20(3)(i) | Employer: by the employer himself; or, for an incorporated company or body corporate, by the agent, manager or other officer authorised for the purpose |
| 20(3)(ii) | Workers: by an officer of the registered Trade Union authorised in this behalf, or by five representatives of the workers duly authorised at a meeting of the concerned workers held for the purpose |
| 20(3)(iii) | Individual worker: by the worker himself, or an officer of the registered Trade Union of which he is a member, or another worker in the same establishment duly authorised by him |
Who counts as an "officer"
The Explanation to rule 20 says:
- for an association of employers: any officer of the association authorised for the purpose;
- for a registered Trade Union: the President, the Vice-President, the Secretary (including General Secretary), a Joint Secretary, or any other officer authorised in this behalf by the President and Secretary of the Union.
What Form V asks for
Form V is headed "Agreement for Voluntary Arbitration". It names the parties representing the employer and the workers and the arbitrators, and then records: (i) the specific matters in dispute; (ii) details of the parties, including the name and address of the establishment or undertaking; (iii) the worker's name if he is himself involved, or the union representing workers; (iv) total number of workers employed in the affected undertaking; and (v) estimated number of workers affected or likely to be affected. It includes a statement that the majority decision of the arbitrators is binding and that, where arbitrators are equally divided, they appoint an umpire whose award binds. It also contains a period for the award, counted from the date of publication of the agreement in the Official Gazette by the Central Government, with a statement that if the award is not made in the period, the reference stands automatically cancelled. The form has witness lines and copies to the conciliation officer and the Secretary, Ministry of Labour and Employment.
Some lines in the form are marked with an asterisk, so read the form itself to see what you must strike out. The agreed period is left for the parties to fill in; the Rules do not fix it.
Rule 21: notification for non-parties
Where an industrial dispute has been referred to arbitration and the Central Government is satisfied that the persons making the reference represent the majority of each party, it shall issue a notification and upload it on the website of the Ministry of Labour and Employment. The purpose is to inform employers and workers who are not parties to the agreement but are concerned in the dispute, so that they may present their case before the arbitrator or arbitrators. Compare the wording of s.42(5), which says the Government "may" issue the notification; rule 21 states the procedure once the Government is satisfied.
Rule 22: no Trade Union
Where there is no Trade Union to present the case before the arbitrator or arbitrators, the representative of workers shall be chosen by a resolution passed by the majority of concerned workers in Form VI, authorising the representative. The workers are bound by the acts of the representatives so chosen. Form VI is the authorisation form used also under rules 41 and 42; it names the authority, the proceeding, the parties, the person authorised and the acceptance by the representative.
| Provision | Dispute type (s.42(5) proviso) | Who represents workers |
|---|---|---|
| (i)(a) | Dispute other than individual termination | Negotiating union or council |
| (i)(b) | Same, no negotiating body | Trade Union |
| (i)(c) | Same, no Trade Union | Representatives chosen as prescribed, which is rule 22 |
| (ii) | Termination of an individual worker by discharge, dismissal, retrenchment or otherwise | The worker in person or through an authorised representative |
Rule 22 is the route for row (i)(c).
Example. A manufacturing company and its workers have a dispute over a productivity arrangement. There is no registered union. At a meeting, the workers elect five representatives. They and the company's authorised manager sign a Form V agreement naming an arbitrator, with the arbitrator's written consent attached. Copies go to the conciliation officer and the Secretary, Ministry of Labour and Employment. The Central Government is satisfied that the signatories represent the majority of each party, issues a notification and uploads it, so other workers concerned in the dispute can appear before the arbitrator. A majority resolution in Form VI later names one worker to present the case.
Points to watch
- Attach the arbitrator's consent. Rule 20(2) makes it part of the filing.
- Check who is authorised to sign for a company.
- Decide the award period before signing; Form V leaves it blank.
- Remember the strike and lock-out restrictions linked to arbitration under section 62.
Need help with voluntary arbitration?
Arbitration can be quicker than adjudication, but only if the agreement is complete and the signatories are right. Our legal dispute resolution team can draft the Form V agreement, organise the arbitrator's consent and prepare the Form VI resolution where workers have no union.
Key takeaways
- Voluntary arbitration uses Form V, signed by the parties, with the arbitrator's consent.
- A company signs through an authorised agent, manager or officer; workers through an authorised union officer or five authorised representatives.
- The Central Government notifies and uploads the reference when it is satisfied the signatories represent the majority of each party.
- Where there is no union, workers choose a representative by majority resolution in Form VI.
- Section 42 of the Code governs; the Arbitration and Conciliation Act, 1996 does not apply.
Read next
- Section 42: voluntary reference of disputes to arbitration
- Rule 23: conciliation proceedings
- Section 62: prohibition of strikes and lock-outs
- Industrial disputes under the new labour codes
Disclaimer: Based on the Industrial Relations Code, 2020 (as enacted) and, where noted, the Industrial Relations (Central) Rules, 2026 (G.S.R. 342(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.