Section 3 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 3 of the Industrial Relations Code, 2020 lets the appropriate Government require an employer of a large establishment to set up a Works Committee, a joint forum of employer and worker representatives. It does not apply on its own to every 100-worker unit: the duty arises when the Government makes an order. This article explains the section, who sits on the committee and how the Central Rules, 2026 handle elections in Central-sphere establishments.
Where an industrial establishment has one hundred or more workers employed, or employed on any day in the preceding twelve months, the appropriate Government may, by general or special order, require the employer to constitute a Works Committee of employer and worker representatives. Worker representatives cannot be fewer than employer representatives. The committee's duty is to promote amity and good relations, comment on matters of common interest and endeavour to compose material differences of opinion. It is a consultative forum, not a bargaining body.
What section 3 says
| Sub-section | Rule |
|---|---|
| 3(1) | In an industrial establishment 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 general or special order require the employer to constitute a Works Committee in the prescribed manner, consisting of representatives of the employer and of workers. |
| Proviso | The number of worker representatives must not be less than the number of employer representatives. |
| 3(2) | Worker representatives are chosen in the prescribed manner from among the workers engaged in the establishment, and in consultation with their Trade Union, if any, registered in accordance with section 9. |
| 3(3) | The committee's duty is to promote measures for securing and preserving amity and good relations between employer and workers and, to that end, to comment upon matters of common interest or concern and endeavour to compose any material difference of opinion in respect of such matters. |
If you are unsure whether an order covers you, our employment and labour law advisory team can check.
The "100 workers" trigger
The words "have been employed on any day in the preceding twelve months" mean a unit does not escape the threshold because headcount dipped below one hundred on the day the order is considered. A single day at or above the threshold in the preceding twelve months is enough to bring the establishment within the power. The count is of workers as defined in s.2(zr), not all employees; see the definition of worker, which excludes, among others, mainly managerial staff and supervisors above the wage limit.
It is an order-based duty
The Code says the appropriate Government may require. Rule 5(1) of the Industrial Relations (Central) Rules, 2026 (G.S.R. 342(E), 8 May 2026) says every employer to whom an order made by the Central Government under s.3(1) relates shall forthwith proceed to constitute a Works Committee. So the obligation to act starts with the order. The text we work from does not say whether any general order has been issued; check the notifications of the Central Government or your State Government. Who the appropriate Government is depends on s.2(b): see the appropriate Government.
Composition and election under the Central Rules, 2026
These rules apply to Central-sphere establishments. Where the State Government is the appropriate Government, the State's own rules apply and may differ.
Size and balance
- The number of members must give representation to the various categories, groups and classes of workers and to the sections, shops or departments. The total must not exceed twenty (rule 5(2)(ii)).
- Worker representatives must not be fewer than employer representatives. Where women workers are employed there must be adequate representation, not less than the proportion of women workers to total workers (rule 5(2)).
- Employer representatives are nominated by the employer and should, as far as possible, be officials in direct touch with the working of the establishment (rule 5(3)).
How worker representatives are chosen
| Situation | Rule 5(5) |
|---|---|
| Negotiating union under s.14(2) or (3) | The negotiating union nominates the worker representatives |
| Negotiating council under s.14(4) | Each registered Trade Union in the council is nominated in proportion to the number of workers who are its members |
| No recognised negotiating union or council | The workers elect their representatives from among themselves |
For the third case the employer may use an electronic platform for the election. Where registered Trade Unions exist, the employer first asks them for the number of workers who are members; a union that fails to reply within one month is treated as if it did not exist for this rule (rules 5(4) and 5(5)). A dispute over the information can be referred to the Regional Labour Commissioner (Central), whose decision is final.
Who can stand and vote, and the election calendar
| Item | Rule |
|---|---|
| Candidate | Not less than nineteen years old with not less than one year's service in the establishment (service test waived for the first election in an establishment less than a year old); service in two or more establishments of the same employer counts (rule 5(7)) |
| Voter | Not less than eighteen years old with not less than six months' continuous service (rule 5(8)) |
| Nominations | At least three working days to file (rule 5(9)(i)) |
| Election date | Not earlier than three days and not later than fifteen days after the closing date for nominations; notified seven days in advance (rule 5(9)(ii)-(iii)) |
| Nomination paper | Signed by the candidate and attested by at least two other voters of the group, section, shop or department (rule 5(10)) |
| Scrutiny | On the day following the last day for nominations, by the employer in the presence of candidates (rule 5(11)) |
| Withdrawal | Within forty-eight hours of completion of scrutiny (rule 5(12)) |
| Unopposed | Candidates equal to seats are declared elected; otherwise a vote is held (rule 5(13)) |
Office-bearers, term and meetings
- The committee has a Chairperson (nominated by the employer from among employer representatives, as far as possible the head of the establishment), a Vice-Chairperson (elected by worker representatives), a Secretary and a Joint Secretary (elected every year; one from each side; the same side cannot hold a post for three consecutive years) (rule 5(14)).
- Members serve three years; a casual-vacancy member serves the rest of the predecessor's term; a member who misses three consecutive meetings without leave loses membership (rule 5(15)).
- The committee meets as often as necessary but not less often than once in three months (rule 5(18)).
- The employer provides a meeting place and facilities, and worker representatives are deemed on duty while attending (rule 5(19)).
- Details of constitution and functioning are submitted as part of the unified annual return under the rules made in this behalf under the Occupational Safety, Health and Working Condition Code, 2020 (rule 5(20)).
- The Central Government or an authorised officer may dissolve a committee for reasons recorded in writing where it was not properly constituted, where not less than two-thirds of worker representatives failed without reasonable justification to attend three consecutive meetings, or where it has for any other reason ceased to function; the employer may, and if required shall, reconstitute it (rule 5(21)).
The remaining sub-rules of rule 5 are covered in our article on rule 5 of the Central Rules. See also the Grievance Redressal Committee, the other bi-partite forum in Chapter II.
Example. A Central-sphere manufacturing plant had 130 workers on 14 March. By December it had 92. If the Central Government has made an order under s.3(1) covering it, the twelve-month look-back still brings it within the section. There is no recognised union, so the workers elect their representatives; the plant may run the poll on an electronic platform.
Need help setting up the committee?
Constituting a Works Committee involves order tracking, voter lists, nomination forms and the annual return entry. Our employment and labour law advisory team can help you check whether an order applies to your establishment and set up the forum in line with the applicable rules. Bring your worker headcount for the last twelve months.
Key takeaways
- A Works Committee arises where the appropriate Government so orders for an establishment with one hundred or more workers in the preceding twelve months.
- Worker representatives must not be fewer than employer representatives; the Central Rules cap membership at twenty.
- The committee's duty is to promote amity, comment on matters of common interest and endeavour to compose differences.
- For Central-sphere establishments, rule 5 fixes eligibility, election calendar, three-year term and quarterly meetings.
- State-sphere establishments follow their State's rules.
Read next
- Section 4: the Grievance Redressal Committee
- Section 14: negotiating union and negotiating council
- Rule 5: Works Committee constitution and representatives
- 4 New Labour Codes 2020: complete guide
Disclaimer: Based on the Industrial Relations Code, 2020 (as enacted) and, where noted, the Industrial Relations (Central) Rules, 2026 (G.S.R. 342(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.