Rules 27-29 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.
Rule 27 says how an employer tells the Central Government about a retrenchment under section 70 (Form XIII, within three days of the worker's notice or pay in lieu). Rule 28 sets the seniority list and re-employment preference. Rule 29 sets the sixty-day closure notice, also on Form XIII.
For a worker with at least one year's continuous service, the employer serves Form XIII on the Central Government and the Deputy Chief Labour Commissioner (Central) by email or speed post, within three days of the worker's notice, or of paying one month's wages in lieu; for retrenchment under an agreement, at least one month before the agreed date. Rule 28 requires a seniority list on the notice board at least seven days before retrenchment and preference in re-employment within one year. Rule 29 requires Form XIII at least sixty days before closure. Central-sphere establishments only.
The Code behind the rules
Section 70 of the Industrial Relations Code, 2020 bars retrenchment of a worker in continuous service for not less than one year until (a) one month's written notice with reasons has been given and expired, or wages in lieu have been paid; (b) compensation equal to fifteen days' average pay (or other notified days) for every completed year of continuous service or part in excess of six months has been paid at the time of retrenchment; and (c) notice in the prescribed manner is served on the appropriate Government or specified authority. Section 71 says the last person employed in that category is ordinarily retrenched first unless reasons are recorded. Section 72 gives retrenched citizens of India preference in re-employment within one year. Section 74 requires notice of closure on the appropriate Government at least sixty days before the intended closure, but not for an establishment with fewer than fifty workers in the preceding twelve months or one set up for construction work. Read sections 68 to 70, sections 71 and 72 and section 74.
Retrenchment has several parallel duties, so a checklist helps. Our labour law compliance team can prepare the Form XIII notice, the seniority list and the payment workings together.
Rule 27: Form XIII for retrenchment
The employer serves prior notice in Form XIII on the Central Government and the concerned Deputy Chief Labour Commissioner (Central) by email or speed post:
| Case | When to send |
|---|---|
| (a) Notice given to the worker under s.70(a) | Within three days from the date the notice is served on the worker |
| (b) No notice to the worker; one month's wages paid in lieu | Within three days from the date the wages are paid |
| (c) Retrenchment under an agreement that specifies a termination date | So as to reach the Central Government, with a copy to the Deputy Chief Labour Commissioner (Central), at least one month before that date |
| Proviso to (c) | If the agreed termination date is within thirty days of the agreement, send within three days of the agreement |
The rule applies where the worker has been in continuous service for not less than one year, the same threshold as section 70.
What Form XIII contains
Form XIII is "Notice of Retrenchment/Closure to Central Government under Chapter IX of the Industrial Relations Code, 2020". It is to be submitted online, or on paper in case of exigencies. It carries the name of the establishment and a Labour Identification Number, and is addressed to the Secretary, Ministry of Labour and Employment. It records the number of workers to be retrenched out of the total and the date; the reason; the date of the one month's notice or of pay in lieu; a declaration that dues and compensation have been or will be paid before or on expiry of the notice period (or a statement that insolvency proceedings are on); a declaration of compliance with sections 71 and 72; a declaration on pending court cases; and a declaration of accuracy. Copies go to the Deputy Chief Labour Commissioner (Central) and the registered unions or authorised representatives of workers.
The form carries a note that the intimation for closure or retrenchment is served sixty days and thirty days before commencement respectively. That note does not match the rule text for retrenchment, which ties the notice to three days after the worker's notice or payment. Follow the rule as the operative text and check the notified portal version before filing.
Rule 28: seniority list and re-employment
| Sub-rule | Requirement |
|---|---|
| 28(1) | List of all workers in the category from which retrenchment is contemplated, by seniority in that category, pasted on a notice board at least seven days before the actual date of retrenchment |
| 28(2) | Where a vacancy occurs and workers were retrenched within one year before the proposal to fill it, the employer gives preference by seniority to those who are citizens of India and have given their willingness |
| 28(3) | Display vacancy details on the notice board at least fifteen days before the vacancies are filled, and inform eligible retrenched workers by speed post or email at their latest address or email |
| 28(4) | Then inform the negotiating union, the constituent of the negotiating council or the Trade Unions of the number of vacancies and names of retrenched workers informed |
Provisos: if vacancies are fewer than retrenched workers, it is enough to inform the most senior retrenched workers, double the number of vacancies; there is no obligation for a vacancy of less than one month; a retrenched worker who, without sufficient cause shown in writing, does not offer himself on the specified date or dates will not be informed of later vacancies. Sub-rule (4) need not be complied with where information has gone to every worker in the sub-rule (1) list.
The seniority list supports the last-in-first-out principle of section 71. Our post on LIFO in retrenchment under the Industrial Disputes Act explains the old-law idea.
Rule 29: closure notice
If an employer intends to close down an industrial establishment, it gives notice in Form XIII at least sixty days before the date of intended closure to the Central Government, with a copy to the concerned Deputy Chief Labour Commissioner (Central), by email or speed post. A copy also goes to the registered Trade Unions or authorised representatives of workers operating in the establishment. The s.74(1) proviso exempts establishments with fewer than fifty workers and construction projects. If the closure is of an establishment under Chapter X, prior permission is needed under section 80; see rules 35 and 36.
Example. A Central-sphere employer with 120 workers decides to retrench ten workers in one category, each with over one year's service. It gives each one month's written notice on 1 June and, by 3 June, emails Form XIII to the Central Government and the Deputy Chief Labour Commissioner (Central). It pastes the seniority list of the category on the notice board seven days before the retrenchment date. Four months later, when a vacancy arises, it displays the vacancy fifteen days before filling it and writes to the eligible retrenched workers, preferring the most senior who have given their willingness.
Need help with retrenchment or closure notices?
Retrenchment combines notice, compensation, seniority and reporting, and closure notices add their own time limit. Our labour law compliance team can work through the sequence with you, prepare Form XIII and set up the re-employment register.
Key takeaways
- Form XIII goes to the Central Government and the Deputy Chief Labour Commissioner (Central) within three days of the worker's notice or pay in lieu.
- For an agreed termination date, send at least a month before, or within three days if the date falls within thirty days.
- Post the seniority list seven days before retrenchment.
- Preference in re-employment within one year, for willing Indian citizens, by seniority; vacancy notice fifteen days ahead.
- Closure: Form XIII at least sixty days before, with copies to unions.
Read next
- Sections 68 to 70: laid-off workers and conditions precedent to retrenchment
- Sections 71 and 72: procedure for retrenchment and re-employment
- Section 74: sixty days' notice of closure
- Retrenchment compensation: formula and examples
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.