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

Pune Auto Components Ltd employed 120 workers on one day in the preceding twelve months. The appropriate Government wants a Works Committee set up there. Under the Code, what is the position?

The appropriate Government may, by general or special order, require the employer to constitute a Works Committee because 120 workers meet the threshold of one hundred or more. The Committee is not automatic, and neither the union nor a 300-worker threshold governs it.

  1. AThe appropriate Government may by general or special order require the employer to constitute a Works CommitteeCorrect
  2. BThe Works Committee is automatically formed once 100 workers are employed, with no order needed
  3. COnly the Trade Union may decide to constitute it
  4. DIt can be required only if 300 or more workers are employed

Explanation

Section 3(1) applies where one hundred or more workers are employed or have been employed on any day in the preceding twelve months; the appropriate Government may by order require constitution. It is not automatic, and the threshold is not 300.

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