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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Industrial Relations Code, 2020

Himalaya Steel employed 120 workers on one day in the preceding twelve months. Which statement about a Works Committee under the Code is correct?

Since 120 workers were employed on a day in the past twelve months, the appropriate Government may by order require Himalaya Steel to constitute a Works Committee. Worker representatives must be at least as many as employer representatives, so the employer cannot hold a majority.

  1. AThe appropriate Government may by order require the employer to constitute one, with worker representatives not fewer than employer representativesCorrect
  2. BThe employer must always constitute one automatically, with employer representatives forming the majority
  3. CThe employer must constitute one only if more than 500 workers are employed
  4. DIt can be constituted only with employer representatives, as workers are consulted through the Grievance Redressal Committee

Explanation

Section 3(1) applies where one hundred or more workers are or were employed on any day in the preceding twelve months. The appropriate Government may then require constitution by order, and worker representatives must not be fewer than the employer's. It is not automatic and has no 500-worker threshold.

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