The Code does not settle it. Under section 3 of the Industrial Relations Code 2020, a works committee exists only where the appropriate government orders one, in an industrial establishment with 100 or more workers, and its worker members are chosen "from among the workers engaged in the establishment". Whether contract labour counts toward the 100, votes, or stands is a question the Code leaves open, and the site's own counsel has to answer it.
When a site needs a works committee
When the appropriate government orders it, and not before. Section 3(1) applies to an industrial establishment in which 100 or more workers are employed, or were employed on any day in the preceding twelve months, and says the government "may by general or special order" require the employer to constitute one. That makes it different from the grievance committee next to it in the Code, which every establishment of twenty or more workers must have without any order.
The committee's job, under section 3(3), is to promote amity and good relations between employer and workers, comment on matters of common interest, and try to compose material differences of opinion. It does not negotiate wages; that is the negotiating union or council under section 14. The OSH Code's annual return, Form XVII, asks each establishment whether its works committee is functioning.
| Committee | Law | When it is needed | Size |
|---|---|---|---|
| Works Committee | IR Code s.3; IR (Central) Rules 2026 r.5 | 100 or more workers, and a government order | Up to 20; workers' side at least equal to employer's |
| Grievance Redressal Committee | IR Code s.4 | 20 or more workers, no order needed | Up to 10; equal sides |
| Negotiating union or council | IR Code s.14 | A registered trade union in the establishment | Set by union support on the muster roll |
| Safety Committee | OSH Code s.22 | 500 workers under the Central rules; 250, or 50 in hazardous work, under Tamil Nadu's draft | Covered in our safety committee post |
Where contract workers fit
In the definitions, but not in section 3 itself. A contract worker is a "worker" under section 2(zr), which covers anyone employed in an industry to do manual, skilled, technical, clerical or supervisory work for hire. Their employer, though, is the contractor: section 2(m)(iii) lists the contractor among the persons who count as employer. Section 3 then uses two different words. The threshold counts workers "employed" in the industrial establishment; the representatives are chosen from workers "engaged" in it.
The Code does not say whether a contractor's crew on the site's floor is employed in the site's establishment for the count, or engaged in it for representation. Compare the OSH Code, which names contract labour expressly when it wants them counted, as it does for the canteen threshold. Section 14 adds a third measure, "workers on the muster roll of that industrial establishment", for verifying union support. How each of those applies to a site's contract labour, and whether its order from the government says anything on the point, is for the site's counsel to settle before the first election.
How the committee is formed
Rule 5 of the Industrial Relations (Central) Rules 2026 sets out the process for establishments the Central Government orders.
- Size and balance. No more than 20 members, with the workers' representatives at least equal in number to the employer's, and women represented at least in proportion to their share of the workforce (r.5(2)).
- The employer's side. Nominated by the employer, as far as possible officials in direct touch with the establishment's working (r.5(3)). The chair is nominated from among them, ideally the head of the establishment (r.5(14)).
- The workers' side. Nominated by the negotiating union, or by the unions on the negotiating council in proportion to membership; where there is neither, elected by the workers, with an electronic election allowed (r.5(5)).
- Who can stand and vote. A candidate must be at least 19 with a year's service in the establishment; a voter at least 18 with six months' continuous service (r.5(7) and (8)). For contract labour, whose service is often recorded by the contractor rather than the site, that is a second question to settle.
- Term and meetings. Three-year terms (r.5(15)); meetings at least once in three months, in working hours, with workers' representatives treated as on duty (r.5(18) and (19)).
A Tamil Nadu factory or warehouse takes its order, and its procedure, from the State Government and the State's own IR rules [VERIFY: whether Tamil Nadu's IR rules follow the Central rule 5 on composition, eligibility and term].
What a site with contract labour should settle
- Whether an order exists. A works committee is owed only under a government order, so the first step is to find it, in the site's own correspondence or with the labour department, and read what it covers.
- The headcount, split by employer. Direct workers and each contractor's crew recorded separately, so the 100-worker count can be run either way when counsel decides how contract labour is treated.
- Contract labour's role, before the election. Whether contract workers are counted, can vote or can stand, decided once and written down, with the contractor told so that its crew gets the election notice if they are included.
- Service records that answer the eligibility test. The contractor's joining dates for each worker, kept with the gate register, so that a year's or six months' service can be shown if it is needed.
- The other routes for contract workers. Whatever the answer on the works committee, the grievance committee and the principal employer's own grievance channel stay open to them.
How Velura Services helps
We keep our crew informed of how your committees work and nominate representatives where your structure provides for them. Our supervisors bring issues raised by the crew to your HR team through an agreed route, so contract workers have a voice whichever way the committee question is settled.
Sources
- Industrial Relations Code, 2020 (Act 35 of 2020), Gazette of India Extraordinary, 29 September 2020 — s.2(m) (employer includes contractor), s.2(zr) (worker), s.3 (Works Committee: 100 workers, government order, representatives from workers engaged, duties), s.4(1), (2) and (4) (Grievance Redressal Committee: twenty workers, equal sides, ten members), s.14 (negotiating union or council, muster-roll verification). Opened and read.
- Industrial Relations (Central) Rules, 2026, Gazette of India, 8 May 2026 — r.5 (Works Committee: size, women's representation, nomination and election, eligibility, term, meetings, facilities). Opened and read.
- Occupational Safety, Health and Working Conditions (Central) Rules, 2026, G.S.R. 345(E) dated 8 May 2026 — Form XVII Part I, section F (whether the Works Committee is functioning). Opened and read from a mirrored copy of the Gazette [VERIFY: against the e-Gazette original].