Rules 33-34 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 33 sets the Form XIV application to the Central Government for permission to retrench in a Chapter X establishment, with a copy to the workers and display at the entrance. Rule 34 sets the review of the order: thirty days to apply and two months to decide.
In a Chapter X establishment, retrenchment of a worker with at least a year's service needs three months' notice (or pay in lieu) and prior permission of the appropriate Government (s.79(1)). Rule 33 says the employer applies electronically in Form XIV, stating clear reasons, sends a copy to the workers electronically, in person or by speed post, and displays it at the main entrance. Rule 34: an application to review the order within thirty days, disposed of within two months after a hearing. Central-sphere establishments only.
Section 79 in brief
Section 79(1) of the Industrial Relations Code, 2020 says that in an establishment to which Chapter X applies, no worker with continuous service of not less than one year may be retrenched until (a) three months' written notice with reasons has expired or wages for the notice period have been paid, and (b) the prior permission of the appropriate Government has been obtained on an application. The application states the reasons and a copy is served simultaneously on the workers (s.79(2)). The Government hears the employer, workers and interested persons, considers the genuineness and adequacy of reasons, the interests of the workers and other factors, and grants or refuses by a reasoned order (s.79(3)). If no order is communicated within sixty days, permission is deemed granted (s.79(4)). The order is final and stays in force for one year, subject to review or reference to a Tribunal (s.79(5) and (6)). Retrenchment without an application, or after refusal, is deemed illegal from the date notice was given (s.79(7)). On grant, workers get compensation of fifteen days' average pay for each completed year of service or part over six months (s.79(9)). Read section 79. Chapter X applies to factories, mines and plantations with at least three hundred workers, or a higher notified number (section 77).
If you are planning a reduction in force in such an establishment, our labour law compliance team can prepare the Form XIV application, the notices and the worker list.
Rule 33: the application
| Sub-rule | Requirement |
|---|---|
| 33(1) | Application in Form XIV by the employer to the Central Government electronically, stating clearly the reasons for the intended retrenchment; a copy sent to the concerned workers electronically, in person or by speed post |
| 33(2) | The application is also displayed conspicuously on a notice board or electronic board at the main entrance |
Unlike rule 30 for lay-off, rule 33(1) does not use the word "simultaneously" for the copy to workers, but section 79(2) does, so send the copy when you file.
Form XIV for retrenchment
Clause (c) of the form's first paragraph is for retrenchment: "under section 79(2) of the Industrial Relations Code, 2020 ... I/we hereby apply for permission for intended retrenchment of ... workers out of total of ... workers". The form states that the workers concerned were given three months' notice in writing under section 79 (or three months' pay in lieu); that they will be retrenched in compliance with sections 71 and 72; that dues and compensation under section 67 read with section 79 have been or will be paid before or on expiry of the notice period (or a statement on insolvency proceedings); and that no court case is pending, or details are annexed. Annexure I asks for undertaking details, status, CIN and GSTIN, production for three years, audit reports for three years, inter-connected companies, reasons, and details of earlier lay-offs and retrenchment. Annexure II lists affected workers with UAN or CMPFO number, name, category, service date, wage and remarks.
The form's note says retrenchment applications are to be served at least sixty days before the intended date of retrenchment. The rule text does not state a period, and section 79(1) speaks of three months' notice to workers, so read them together and confirm the portal timing. The form is submitted online; on paper only in exigencies.
Rule 34: review of the order
| Sub-rule | Requirement |
|---|---|
| 34(1) | The Central Government may, on its own motion or on an application of the employer or any worker, review its order granting or refusing permission for retrenchment |
| 34(2) | The employer or any worker concerned may apply, along with the order, within thirty days of the order; the Government disposes of it within two months from the application, after giving the parties an opportunity of being heard |
| 34(3) | For review on its own motion, it may act within one month of the order and, after hearing the parties, dispose of the review within two months from the date of the decision to review |
Section 79(6) permits review "within the prescribed time", or reference of the matter to a Tribunal, which must give its award within thirty days of the reference. Rule 34 fixes the thirty days and two months for review.
Timeline at a glance
| Stage | Period | Source |
|---|---|---|
| Notice to worker | Three months, or pay in lieu | s.79(1)(a) |
| Government's order | Sixty days, failing which deemed granted | s.79(4) |
| Application for review | Thirty days from the order | Rule 34(2) |
| Disposal of review application | Two months | Rule 34(2) |
| Own-motion review: steps | Within one month of the order | Rule 34(3) |
| Own-motion review: disposal | Two months from the decision to review | Rule 34(3) |
| Order in force | One year | s.79(5) |
Differences from Chapter IX retrenchment
Chapter IX retrenchment (section 70, rule 27) needs one month's notice and notice to the Government, but no permission. Chapter X retrenchment needs three months' notice and prior permission. Our post on the old law, prior permission for retrenchment under the Industrial Disputes Act, gives background only; the thresholds and procedure here are those of the Code.
Example. A plantation with more than three hundred workers wants to retrench a group of workers with over a year's service. It gives each worker three months' written notice with reasons, files Form XIV electronically and sends each worker a copy, and displays the application at the main entrance. The Government refuses permission for want of adequate reasons. The employer applies for review within thirty days with the order attached; the Government hears it and the workers and decides within two months. Retrenching without permission would be illegal under s.79(7).
Need help with a retrenchment permission?
A Chapter X application is judged on the genuineness and adequacy of the reasons and on proper service. Our labour law compliance team can review your reasons, compile the annexures, draft the notices and prepare any review application.
Key takeaways
- Chapter X retrenchment needs three months' notice or pay in lieu, and prior permission.
- Rule 33: Form XIV electronically, clear reasons, copy to workers, display at the main entrance.
- No order in sixty days means deemed permission (s.79(4)).
- Review: thirty days to apply, two months to decide (rule 34).
- Retrenchment without permission, or after refusal, is deemed illegal.
Read next
- Section 79: prior permission for retrenchment
- Rules 27 to 29: notice of retrenchment, re-employment and closure
- Rules 35 and 36: application for closure and review
- 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.