Dialogue over Discord
The Industrial Relations Code, 2020 (“Code”) represents a significant step towards consolidating and rationalising India’s labour law framework, particularly in the domain of industrial harmony and collective labour relations. Among its core pillars are bi-partite forums and trade unions, which function as institutional mechanisms for dialogue, participation and dispute resolution between employers and workers. By providing structured platforms such as works committees, grievance redressal committees, negotiating unions and councils and by redefining the legal architecture governing trade unions, the Code seeks to promote cooperative industrial relations, reduce adversarial conflicts and ensure timely resolution of workplace issues. These mechanisms underscore the shift from reactive dispute settlement to preventive and participatory governance in industrial establishments.
What is a Works Committee and when can it be constituted?
A Works Committee is a bipartite body constituted in an industrial establishment where one hundred or more workers are employed or have been employed on any day during the preceding twelve months. The appropriate government may require the employer to constitute such a committee through a general or special order.
How is the Works Committee composed?
The Works Committee consists of representatives of the employer and the workers engaged in the establishment. The number of worker representatives must not be less than the number of employer representatives, ensuring balanced participation.
How are the representatives of workers selected for the Works Committee?
Worker representatives are chosen from among the workers engaged in the establishment. Their selection is carried out in consultation with the registered trade union, if any, connected with the establishment.
What are the duties and functions of the Works Committee?
The primary duty of the Works Committee is to promote harmony and good relations between the employer and workers. It comments on matters of common interest or concern and endeavours to resolve material differences of opinion relating to such matters.
What is a Grievance Redressal Committee?
A Grievance Redressal Committee is a forum established in every industrial establishment employing twenty or more workers, for the resolution of disputes arising out of individual grievances.
How is the Grievance Redressal Committee constituted?
The committee consists of an equal number of representatives of the employer and the workers, selected in a prescribed manner. The total membership cannot exceed ten members.
How is the chairperson of the Grievance Redressal Committee selected?
The chairperson is selected alternately from among employer and worker representatives on a rotational basis every year.
Is representation of women workers mandatory in the Grievance Redressal Committee?
Yes. Adequate representation of women workers is mandatory, and such representation must not be less than the proportion of women workers employed in the establishment.
Who can file a grievance before the Grievance Redressal Committee and within what time?
Any aggrieved worker may file an application relating to an individual grievance within one year from the date on which the cause of action arises.
What is the time limit for disposal of grievances by the Committee?
The Grievance Redressal Committee is required to complete its proceedings within thirty days from the date of receipt of the application.
How are decisions taken by the Grievance Redressal Committee?
Decisions are taken based on the majority view of the committee, provided that more than half of the worker representatives agree. If this condition is not met, it is deemed that no decision has been reached.
What remedy is available if a worker is dissatisfied with the decision or delay?
If a worker is aggrieved by the decision or if the grievance is not resolved within the stipulated time, the worker may apply for conciliation through the trade union within sixty days.
How are disputes relating to discharge, dismissal, retrenchment or termination treated?
Any dispute arising from discharge, dismissal, retrenchment or termination of an individual worker is deemed to be an industrial dispute, even if no other worker or trade union is involved.
Can a worker directly approach adjudication authorities?
Yes. After forty-five days from applying for conciliation, the worker may directly approach the Tribunal for adjudication. Such application must be made within two years from the date of termination.
Who appoints the authority responsible for trade union registration?
The State Government appoints a Registrar of Trade Unions, along with Additional, Joint or Deputy Registrars, who exercise powers and perform duties as notified by the government.
Who can apply for registration of a trade union?
Any seven or more members may apply for registration by subscribing to the trade union’s rules and complying with prescribed requirements.
What minimum membership is required for registration?
A trade union of workers must have at least ten per cent of the workers or one hundred workers, whichever is less, employed in the establishment or industry concerned.
Does withdrawal of some applicants invalidate the registration application?
No. The application remains valid even if some applicants withdraw, provided such withdrawal does not exceed half of the original applicants.
Is continued minimum membership mandatory after registration?
Yes. A registered trade union must continuously maintain at least ten per cent or one hundred workers, whichever is less, subject to a minimum of seven members.
Can a wrongly issued registration certificate be cancelled by the Registrar?
If a certificate is issued due to incorrect assessment or non-application of mind by the Registrar, it cannot be cancelled by the Registrar himself. Such errors can only be corrected by an appellate authority or a writ court.
What provisions must be included in the rules of a trade union?
The rules must include the name, objects, use of general funds, maintenance of member lists, admission of members, subscriptions, benefits and penalties, annual meetings, election and removal of office bearers, audit and custody of funds, amendment of rules, and dissolution procedures.
What documents must accompany an application for registration?
The application must include a declaration by affidavit, the trade union’s rules, resolutions adopting the rules, authorising the application, and in case of federations, resolutions of member unions.
Are additional disclosures required for older trade unions?
Yes. If the trade union has existed for more than one year, a statement of assets and liabilities must be submitted.
Can the Registrar seek further information?
Yes. The Registrar may require additional information and may refuse registration until compliance is ensured.
What happens if the proposed name is deceptive or identical?
If the proposed name is identical or deceptively similar to an existing registered trade union, the Registrar will require alteration and refuse registration until corrected.
Can a trade union practice gender discrimination?
No. Any rule or bye-law that discriminates on the basis of gender is unconstitutional and impermissible, even if approved by the Registrar.
What happens upon successful registration?
The Registrar enters the trade union’s particulars in a register and issues a certificate of registration, which is conclusive evidence of registration.
Can registration be cancelled?
Yes. Registration may be cancelled on the trade union’s application, for contravention of law or rules, or if membership falls below the prescribed minimum, after giving prior notice.
Is cancellation permissible at the instance of third parties?
No. Cancellation cannot be initiated on the application of any person other than the trade union itself or through Registrar’s own action as permitted.
Is appeal available against refusal or cancellation?
Yes. An aggrieved person may appeal to the Tribunal, which may condone delay for sufficient cause and pass appropriate orders.
How are communications made to a trade union?
All communications are sent to the registered address of the head office as recorded by the Registrar.
What legal status does a registered trade union enjoy?
A registered trade union becomes a body corporate with perpetual succession, a common seal, and the capacity to own property, contract, sue and be sued.
Are registered trade unions governed by other registration laws?
No. Laws relating to societies, cooperatives or companies do not apply to registered trade unions, and any such registration is void.
What is a negotiating union or negotiating council?
It is a representative body recognised for negotiating with the employer on prescribed matters.
How is a sole negotiating union recognised?
If only one registered trade union exists, it is recognised as the sole negotiating union subject to prescribed criteria.
What if multiple trade unions exist?
If one union has majority support, it is recognised as the sole negotiating union. Otherwise, a negotiating council is formed with proportional representation of unions having at least twenty per cent support.
How long does recognition remain valid?
Recognition or constitution of the negotiating council is valid for three years, extendable up to five years by mutual agreement.
What are the permissible uses of general funds?
General funds may be spent only on prescribed lawful objects.
Can trade unions engage in political activities?
Yes, through a separate political fund. Contribution to such fund is voluntary and non-contributors cannot be discriminated against.
Do trade unions enjoy immunity from civil suits?
Yes, for acts done in contemplation or furtherance of industrial disputes, subject to limitations.
Are trade union members protected from criminal conspiracy charges?
Yes, unless the agreement involves committing an offence.
Are agreements between members enforceable?
Agreements are not void merely because they restrain trade, though courts cannot enforce agreements regulating work conditions.
Who can inspect trade union records?
Office-bearers and members may inspect books of account and member lists as per the union’s rules.
Can minors be members of trade unions?
Yes. Persons aged fourteen or above employed in non-hazardous industries may become members.
Who is disqualified from being an office-bearer?
Persons below eighteen, convicted for moral turpitude offences (within five years of release), disqualified by Tribunal, ministers, and holders of offices of profit unrelated to the industry are disqualified.
How are internal trade union disputes resolved?
Specified disputes relating to registration, management, elections or membership are adjudicated exclusively by the Tribunal.
Are there restrictions on outsiders as office-bearers?
Yes. A majority of office-bearers must be connected with the industry, with limited exceptions.
How can a trade union change its name or amalgamate?
Name change requires consent of two-thirds of members. Amalgamation requires prescribed procedure and notice to the Registrar.
What is the effect of name change or amalgamation?
Neither affects existing rights, obligations, legal proceedings, nor creditors’ rights.
How is dissolution of a trade union effected?
Upon dissolution, notice must be sent to the Registrar, and funds are distributed as per rules or as prescribed.
What are the annual compliance requirements?
Trade unions must submit audited financial statements, changes in office-bearers, updated rules, and allow inspection by the Registrar.
Can trade unions be recognised at Central or State level?
Yes. Governments may recognise trade unions or federations at Central or State level, and disputes relating to such recognition are decided by prescribed authorities.
Therefore, bi-partite forums and trade unions under the Code together form the backbone of collective labour engagement and industrial peace. While bi-partite forums encourage direct communication, mutual trust, and early resolution of grievances at the establishment level, trade unions continue to play a pivotal role in collective bargaining, representation, and protection of workers’ rights. The Code attempts to balance flexibility for employers with safeguards for workers by prescribing clear thresholds, democratic processes and accountability mechanisms. If implemented in both letter and spirit, these provisions have the potential to strengthen social dialogue, minimise industrial unrest and foster a stable and productive industrial environment aligned with contemporary economic realities.
Muneeb Rashid Malik is an Advocate. He tweets @muneebmalikrash.
