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Section 3: Certain provisions not to apply to civil services

The Industrial Relations Code, 2020 (Act No. 35 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter I: Preliminary
Competent Labour Forum
Act No. 35 of 2020
Section 2 All 104 Sections of Industrial Relations Code, 2020 Section 4

Legal Commentary & Landmark Judgments: Section 3

Section 3 of the Industrial Relations Code, 2020 empowers the Appropriate Government to require the constitution of bipartite Works Committees in industrial establishments employing 100 or more workers, establishing an internal deliberative council composed of equal representatives of the employer and workers to compose differences and maintain industrial amity.

  • Statutory Inception Threshold & Discretionary Government Order: Works Committees are not automatically constituted in all establishments; Section 3(1) requires a general or special order by the Appropriate Government directing any industrial establishment in which one hundred or more workers are employed or have been employed on any day in the preceding twelve months to constitute the committee.
  • Parity of Representation & Trade Union Consultation: Section 3(2) mandates that the number of representatives of workers shall not be less than the number of representatives of the employer; worker representatives must be chosen in the prescribed manner from among the workers engaged in the establishment, in direct consultation with their registered Trade Union or negotiating union, if any.
  • Deliberative Scope & Delimitation from Collective Bargaining: The statutory mandate of the Works Committee is strictly consultative and conciliatory—to promote measures for securing amity and good relations, comment on matters of common interest, and endeavor to compose material differences; it lacks statutory power to negotiate collective agreements, alter wages, or displace the functions of recognized negotiating unions.
Key Landmark Precedents:
  • Northbrook Jute Co. Ltd. v. Their Workmen AIR 1960 SC 879: The Supreme Court held that a Works Committee is not an alternative collective bargaining agency and has no power to bind the general body of workmen on substantive matters involving wages, rationalization, or conditions of service, as its jurisdiction is consultative and aimed at workplace friction.
  • Metal Box Co. of India Ltd. v. Their Workmen AIR 1969 SC 612: The Supreme Court affirmed that while recommendations of a Works Committee carry persuasive moral weight in promoting internal amity, they do not possess the binding statutory force of a settlement under industrial law and cannot supersede trade union agreements.
  • Kemp & Co. Ltd. v. Their Workmen (1955) 1 LLJ 48 (LAT): The Labour Appellate Tribunal ruled that the primary function of a Works Committee is to prevent day-to-day industrial friction; any attempt by an employer to use the Works Committee to circumvent the recognized trade union constitutes an unfair labor practice.
Courtroom Practice & Strategic Litigation Guidance:

Employers operating with 100 or more workers upon receiving an order under Section 3 must issue a transparent notification inviting nominations for worker representatives in formal consultation with registered Trade Unions. Ensure meeting minutes are meticulously maintained, signed by both co-chairpersons, and circulated internally. Management must never attempt to resolve general wage revisions, retrenchment proposals, or closure discussions within the Works Committee, keeping its agenda strictly confined to shop-floor welfare, safety conditions, and internal amenities.

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