Notice of Change, Grievance Redressal and Works Committees

Most workplace disputes are best settled inside the establishment, before they become formal industrial disputes. The Industrial Relations Code provides two bi-partite forums for this, the Works Committee and the Grievance Redressal Committee, and requires an employer to give notice before changing important conditions of service. It also allows the parties to choose their own arbitrator. This note covers each, and the route a grievance takes from the shop floor to the Tribunal.

1. The Two Bi-partite Forums

Grievance Redressal Committee and Works Committee compared

Figure 1: Grievance Redressal Committee and Works Committee compared

Works Committee, s.3. Promotes measures for securing amity and good relations between employer and workers, comments on matters of common interest and tries to resolve material differences of opinion. Worker representatives are chosen in consultation with the union, if any.
Grievance Redressal Committee, s.4. Resolves disputes arising out of individual grievances. It carries forward s.9C of the 1947 Act and links the GRC directly to conciliation and the Tribunal.
Constitutional link. Both forums reflect Article 43A, which directs the State to secure the participation of workers in management (Topic 2)

2. From Grievance to Tribunal

The route of an individual dispute under section 4

Figure 2: The route of an individual dispute under section 4

Decisions. By majority, provided more than half of the members representing the workers agree.
Time limit for applying. An application to the GRC must be made within one year of the cause of action.

3. Notice of Change, Section 40

Rule. An employer proposing to change any condition of service listed in the Third Schedule must give the affected workers notice, and may not make the change within 21 days of the notice.
Exceptions. Changes made under a settlement or award; changes for workers governed by notified service rules; emergency changes in shifts, after consulting the GRC; and changes made under a Government order or agreement.
Exemption, s.41. The appropriate Government may exempt a class of establishments or workers where applying s.40 would cause serious repercussions on the industry and the public interest requires it.

Matters in the Third Schedule

Figure 3: Matters in the Third Schedule

4. Voluntary Arbitration, Section 42

Reference. Where a dispute exists or is apprehended, the employer and workers may refer it to arbitration by written agreement; an even number of arbitrators must appoint an umpire.
Copies and notification. The agreement goes to the appropriate Government and the conciliation officer. Where the parties represent a majority, the Government may notify the reference so that others can appear.
Strikes. The Government may prohibit any strike or lock-out connected with a notified reference.
Arbitration Act excluded. The Arbitration and Conciliation Act, 1996 does not apply to arbitration under s.42.

⚠ Exam trap

Thresholds: GRC at 20 workers, Works Committee at 100, standing orders at 300. The GRC has at most ten members, decides within 30 days, and its majority must include more than half the workers' side. Conciliation is sought within 60 days; the worker may go directly to the Tribunal 45 days after applying for conciliation, and within two years of termination. Notice of change is 21 days for Third Schedule matters. The Arbitration and Conciliation Act does not apply to s.42.

5. Frequently Asked Questions

When must a Grievance Redressal Committee be set up?

Every industrial establishment employing twenty or more workers must have one or more GRCs under section 4, with equal numbers of employer and worker representatives, not more than ten members in all, a chairperson alternating yearly between the two sides, and women represented in proportion to the women workers.

What is notice of change under the IR Code?

Under section 40, an employer who wants to change a condition of service listed in the Third Schedule, such as wages, hours, leave, shifts or discipline rules, must give notice to the affected workers and wait twenty-one days before making the change, unless an exception applies.

6. Related Topics

Topic 12: Standing Orders. Written conditions of service.
Topic 14: Dispute Resolution Machinery. Conciliation and the Tribunals.