Summary: The Industrial Relations Code, 2020 places Works Committees under Chapter II on Bi-partite Forums, with Section 3 providing for a Works Committee in an industrial establishment employing 100 or more workers, or having employed that number on any day during the preceding 12 months, where required through an order of the appropriate Government. The Committee is intended to promote amity and good relations, discuss matters of common interest or concern, and endeavour to resolve material differences of opinion. The Industrial Relations (Central) Rules, 2026 provide that total membership cannot exceed 20, worker representatives cannot be fewer than employer representatives, and women workers must receive representation proportionate to their workforce share. Employer representatives are nominated by the employer, while worker representatives are selected through the prescribed mechanism involving negotiating unions, negotiating councils or elections where applicable. Members have a three-year term and the Committee must meet at least once every three months. The framework also addresses electronic elections and requires employers to maintain records relating to constitution, representation, meetings and follow-up. The Works Committee is distinguished from the Grievance Redressal Committee for individual grievances.
- Introduction
- What is a Works Committee?
- Purpose of the Works Committee
- Composition of the Works Committee
- Who represents the employer?
- How are worker representatives selected?
- Where there is a negotiating union
- Where there is a negotiating council
- Where there is no recognised negotiating union or negotiating council
- Tenure and meetings
- What matters should the Works Committee discuss?
- What does this mean for employers?
- Women's representation
- The larger industrial-relations perspective
- Conclusion
Introduction
The Industrial Relations Code, 2020 (“IR Code”) places Works Committee within Chapter II dealing with Bi-partite Forums. The underlying objective is not merely to create another statutory committee, but to provide a structured platform for employer–worker dialogue and prevention of workplace disputes.
With the Industrial Relations Code now in force and the Industrial Relations (Central) Rules, 2026 notified on 8 May 2026, the framework governing Works Committees has become more operational.
For HR and Industrial Relations professionals, the important point is that the Works Committee should be viewed as a preventive industrial-relations mechanism, rather than as a forum that becomes relevant only after a dispute arises.
What is a Works Committee?
Section 3 of the IR Code provides for a Works Committee in an industrial establishment where 100 or more workers are employed, or have been employed on any day during the preceding 12 months.
Purpose of the Works Committee
The statutory purpose is clearly defined under Section 3(3) of the IR Code.
The Committee is required to:
- promote measures for securing and preserving amity and good relations between the employer and workers;
- discuss and comment upon matters of common interest or concern; and
- endeavour to resolve or compose material differences of opinion concerning such matters.
Therefore, the Works Committee is fundamentally a consultative and preventive forum.
Composition of the Works Committee
The Industrial Relations (Central) Rules, 2026 provide greater clarity on the constitution of the Committee.
The total membership cannot exceed 20 members. The Committee should provide representation to the various categories, groups and classes of workers and the different sections, shops or departments of the establishment.
Most importantly:
Worker representatives cannot be fewer than employer representatives.
In addition, where women workers are employed, the Committee must provide adequate representation of women workers, and such representation cannot be less than their proportion in the total workforce.
This introduces a significant gender-representation consideration while constituting or reconstituting a Works Committee.
Who represents the employer?
Employer representatives are nominated by the employer.
The Rules state that, as far as possible, such representatives should be officials who are in direct touch with, or associated with, the working of the industrial establishment.
From an HR/IR perspective, this is important.
The Committee should ideally not become a forum consisting exclusively of senior corporate representatives who have limited knowledge of day-to-day industrial relations.
Representatives from functions such as:
- HR/IR;
- Operations;
- Production;
- Administration;
- Safety;
- Quality; and
- other relevant operational departments
may provide more meaningful representation, depending on the establishment’s structure.
How are worker representatives selected?
The IR Code requires worker representatives to be chosen in the prescribed manner and in consultation with the registered Trade Union, if any.
The 2026 Central Rules provide a more detailed mechanism.
Broadly:
Where there is a negotiating union
The negotiating union nominates the worker representatives.
Where there is a negotiating council
Registered Trade Unions represented in the negotiating council are represented in proportion to the number of workers belonging to each union.
Where there is no recognised negotiating union or negotiating council
The workers elect representatives from amongst themselves.
The Rules also permit the employer to deploy an electronic platform for conducting the election process.
This is particularly relevant for large establishments where conducting physical elections may be operationally difficult.
Tenure and meetings
Under the 2026 Central Rules, members of the Works Committee have a three-year term.
The Committee is required to meet at least once every three months.
This means that, at the Central level, a Works Committee should not be treated as a committee constituted merely for documentation purposes.
There needs to be a continuing mechanism for consultation and interaction.
What matters should the Works Committee discuss?
The statutory mandate is deliberately broad: matters of common interest or concern between employer and workers.
Depending on the nature of the establishment, this could include issues relating to:
- workplace amenities;
- working conditions;
- welfare facilities;
- canteen and transport arrangements;
- attendance and shift-related operational issues;
- safety and workplace environment;
- employee welfare initiatives;
- communication between management and workers;
- implementation-related concerns; and
- other matters having a bearing on employer-worker relations.
However, the Committee should not be confused with a disciplinary authority or individual grievance forum.
For example, an individual employee’s disciplinary dispute would ordinarily fall outside the principal purpose of a Works Committee. The IR Code separately provides for a Grievance Redressal Committee for individual grievances in establishments employing 20 or more workers.
What does this mean for employers?
For employers covered by an applicable Government order, the focus should move beyond simply constituting the Committee.
A well-functioning Works Committee requires:
Constitution → Representation → Regular Meetings → Meaningful Consultation → Documentation → Follow-up
HR/IR teams should therefore consider maintaining:
1. the Government order requiring constitution of the Committee;
2. Committee constitution records;
3. details of employer representatives;
4. records relating to worker representation/election/nomination;
5. evidence of adequate representation of women workers;
6. meeting notices and agendas;
7. minutes of meetings;
8. action-taken reports; and
9. records of matters discussed and their closure.
This documentation can become particularly important during an IR or labour-law audit.
Women’s representation
One of the notable aspects of the 2026 Central Rules is the explicit requirement concerning representation of women workers.
Where women workers are employed, their representation in the Works Committee must not be less than their proportion in the total workforce.
For example, if women constitute 20% of the workforce, the Committee’s composition should take this proportion into account while determining adequate representation.
This means that the constitution of the Works Committee should be reviewed periodically, particularly where workforce demographics change.
The larger industrial-relations perspective
The real value of a Works Committee lies in early intervention.
Many industrial disputes do not emerge suddenly. They often develop through unresolved operational concerns, communication gaps, perceptions of unfairness, workplace conditions or a lack of structured dialogue.
A properly functioning Works Committee can provide management with an early-warning mechanism.
It gives workers a structured channel to raise matters of common concern and gives management an opportunity to understand workplace issues before they develop into larger industrial-relations problems.
In this sense, the Works Committee is less about “compliance with a committee requirement” and more about building a culture of institutional dialogue.
Conclusion
The Works Committee under the Industrial Relations Code, 2020 represents an important element of India’s evolving industrial-relations framework.
The statutory threshold of 100 or more workers should not, by itself, be read as an automatic obligation in every establishment; Section 3 contemplates a requirement imposed through an order of the appropriate Government. Once such an order applies, however, the constitution and functioning of the Committee assume practical importance.
With the Industrial Relations (Central) Rules, 2026 now providing detailed requirements on composition, worker representation, women’s representation, elections, tenure and meetings, employers should review their existing IR governance framework accordingly.
The Works Committee should not be treated as another statutory register to be maintained. It should be used as a structured mechanism for dialogue, early resolution and stronger employer-worker relations.
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Note: The above article focuses on Section 3 of the Industrial Relations Code, 2020 and the Industrial Relations (Central) Rules, 2026. State-specific rules may apply where the appropriate Government is the State Government and should be examined separately.
