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Section 4: Works Committee

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

Statutory Mandate
Chapter II: Bi-Partite Forums
Competent Labour Forum
Act No. 35 of 2020
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Legal Commentary & Landmark Judgments: Section 4

Section 4 of the Industrial Relations Code, 2020 institutes a mandatory, time-bound Grievance Redressal Committee (GRC) in every industrial establishment employing 20 or more workers, establishing an internal bipartite forum of equal worker and employer representation to resolve individual employee grievances within a strict 30-day statutory adjudication window.

  • Universal 20-Worker Applicability Threshold & Numerical Ceiling: Unlike the discretionary Works Committee, Section 4(1) imposes a mandatory obligation on every industrial establishment employing twenty or more workers to constitute one or more Grievance Redressal Committees. Section 4(2) restricts total membership to a maximum of ten, requiring equal representation of the employer and the workers.
  • Mandatory Proportional Female Representation & Alternating Chairmanship: Section 4(3) prescribes that the chairperson of the Grievance Redressal Committee shall be selected alternately from among the employer and worker representatives on an annual rotational basis. Section 4(2) proviso statutorily mandates that female workers must be adequately represented in the committee in proportion to the total number of female workers employed in the establishment.
  • Strict 30-Day Resolution Window & Conciliation Appeal Mechanism: Under Section 4(5), an aggrieved worker must submit an application regarding an individual dispute within one year from the date the cause of action arises; the Committee is statutorily mandated to conclude proceedings within thirty days. If unresolved, or if the worker is aggrieved by the GRC decision, Section 4(8) grants a statutory right of appeal to the Conciliation Officer within sixty days.
Key Landmark Precedents:
  • Rajasthan State Road Transport Corpn. v. Krishna Kant (1995) 5 SCC 75: The Supreme Court established that where a statutory internal grievance redressal machinery is enacted, individual employees must exhaust the specialized remedy before seeking common law remedies or writ jurisdiction, reinforcing the primacy of internal bipartite dispute resolution.
  • B.E.S.T. Undertaking v. B.E.S.T. Kamgar Sena (2005) 3 SCC 315: The Supreme Court recognized that statutory grievance committees serve as the initial bulwark against industrial unrest, guaranteeing individual workers a fair and speedy hearing on issues of misclassification, fines, and disciplinary penalties.
  • General Manager, Northern Railway v. Sarvesh Chopra (2002) 4 SCC 45: Held that prescribed statutory time-limits for administrative and internal dispute disposal create substantive procedural rights; failure of internal committees to decide within statutory deadlines entitles the aggrieved party to approach higher statutory forums immediately.
Courtroom Practice & Strategic Litigation Guidance:

Human Resource departments in establishments with 20+ workers must formally constitute the GRC via documented office orders, ensuring equal numbers (e.g., 2+2, 3+3, or 5+5) and verifying that female representation precisely mirrors the female worker percentage on the muster roll. Establish a digital Grievance Logbook recording the date of receipt, hearing notices, and written speaking orders. To insulate decisions from being set aside on appeal under Section 4(8), ensure every grievance is decided and formally communicated in writing to the worker within the strict 30-day limitation period.

Section 3 All 104 Sections of Industrial Relations Code, 2020 Section 5