Rule 4 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 4 fixes the form and signing of a settlement. A settlement reached in conciliation, or a written agreement between employer and worker outside conciliation, must be in Form I. It says who signs for the employer, who signs for the workers, where copies go, and what the conciliation officer's register must contain. It is made under section 99(2)(a) of the Code, for a written agreement outside conciliation under clause (zi) of section 2.
A settlement in conciliation, or a written agreement outside conciliation, shall be in Form I (rule 4(1)). The employer or authorised agent signs (an incorporated company signs by its agent, manager or other principal officer); workers sign through the trade union's President, Vice-President, Secretary (including General Secretary), Joint Secretary, an authorised office bearer, or five authorised representatives of workers (rule 4(2)). For an individual worker, the employer and the worker sign (rule 4(3)). A settlement outside conciliation is jointly sent electronically or by speed post to the Deputy Chief Labour Commissioner (Central) and the conciliation officer (rule 4(5)). A mutually agreed format other than Form I is not prohibited (second proviso).
Rule 4 at a glance
| Sub-rule | Subject |
|---|---|
| 4(1) | Settlement or written agreement shall be in Form I |
| 4(2)(a) | Signed for the employer by the employer or authorised agent; for a company, by the agent, manager or other principal officer |
| 4(2)(b) | Signed for workers by a union office-bearer (six alternatives) |
| 4(3) | Individual worker dispute: signed by employer and the worker |
| 4(4) | Conciliation settlement: officer sends report and copy to the Central Government |
| 4(5) | Settlement outside conciliation: parties jointly send a copy to the Deputy Chief Labour Commissioner (Central) and the conciliation officer |
| 4(6), (7) | Register of settlements kept by the conciliation officer, with prescribed columns |
| Provisos | No conciliation officer signature needed outside conciliation; other formats allowed on mutual terms |
What Form I contains
Form I is headed "Memorandum of settlement arrived at in the course of conciliation proceedings or otherwise". It has places for the names of the parties (those representing employers and those representing workers), a short recital of the case, the terms of settlement, the signatures of the parties, two witnesses, and a signature line for the conciliation officer marked with an asterisk. A note at the end says that where a settlement is reached between employer and workers outside conciliation, the copy of the memorandum "shall be marked to the concerned Deputy Chief Labour Commissioner (Central)".
For the definition of "settlement" and how it binds parties, see our articles on section 2 and sections 56 and 57. If a settlement is being negotiated for your establishment, our legal dispute resolution team can help you draft the terms and complete Form I.
Who signs: rule 4(2) and (3)
For the employer: rule 4(2)(a)
The settlement is signed "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". For Government and railway establishments, the person who counts as the employer is set by rule 3 (see rule 3).
For the workers: rule 4(2)(b)
On behalf of workers, the signatory must be one of these office-bearers of the Trade Union:
- the President;
- the Vice-President;
- the Secretary (including the General Secretary);
- the Joint Secretary;
- any other office bearer authorised by the President and Secretary of the Union; or
- five representatives of workers duly authorised at a meeting of the workers held for the purpose.
The sixth option is the route where no union signs, since the authorisation comes from a workers' meeting.
Individual worker: rule 4(3)
In an industrial dispute between an individual worker and the employer, "the settlement shall be signed by the employer and the worker concerned".
What happens after signing
In conciliation: rule 4(4)
Where a 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". The conciliation officer also signs Form I (the asterisk line).
Outside conciliation: rule 4(5)
Where a settlement is reached between employer and worker otherwise than in conciliation, "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". "Electronically" has the meaning in rule 2(1)(b): email, portal upload or digital payment (see rules 1 and 2). The first proviso adds that the conciliation officer's signature on the agreement "shall not be necessary where the agreement for settlement is arrived at outside conciliation".
The register: rule 4(6) and (7)
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". The register contains "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".
Is Form I compulsory?
The second proviso to rule 4(7) says "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". So the Rules set Form I as the standard form under rule 4(1), but allow another format for a settlement on mutually agreed terms. Read the two together. If you need the settlement to fit the statutory route of rule 4 (for example the copy to the Deputy Chief Labour Commissioner), using Form I is the safe course. Check with the authority if you use another format, because the Rules do not say what follows from the choice.
Practical example
Example (invented). A company and a union settle a wage revision outside conciliation. The company's principal officer signs. The union's Secretary signs for the workers. Two witnesses sign. The parties jointly email a copy to the concerned Deputy Chief Labour Commissioner (Central) and to the conciliation officer. The conciliation officer need not sign, since the settlement was outside conciliation, but files the settlement in his register with the serial number, parties, date and a remark that it was by mutual negotiation.
This applies to Central-sphere establishments. Where the State Government is the appropriate Government, the State's own rules apply.
Need help with a settlement?
A settlement binds the parties, so its signatories, form and filing matter. Our legal dispute resolution team can help draft the terms, check the signatories under rule 4(2) and prepare the filing.
Key takeaways
- Form I is the prescribed form for settlements and written agreements (rule 4(1)).
- The employer signs, or a company signs by its agent, manager or principal officer.
- Workers sign through a union office-bearer or five authorised representatives.
- In conciliation, the officer sends a report and the signed copy to the Central Government.
- Outside conciliation, the parties jointly send a copy to the Deputy Chief Labour Commissioner (Central) and the conciliation officer.
- The conciliation officer keeps a register of settlements.
- A mutually agreed format other than Form I is not prohibited.
Read next
- Rule 3: references to authorities and employer of industrial establishments
- Section 56-57: wages pending proceedings and persons bound by settlements and awards
- Section 58: period of operation of settlements and awards
- Section 42: voluntary reference of disputes to arbitration
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.