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Section 4 of the Industrial Relations Code, 2020: The Grievance Redressal Committee

Every industrial establishment employing twenty or more workers shall have one or more Grievance Redressal Committees (s.4(1)). It has equal employer and worker members, at most...

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Labour Laws
Published
September 30, 2026
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Last updated: October 2026Verified against: Government sources

Section 4 of the Industrial Relations Code, 2020 requires every industrial establishment employing twenty or more workers to have a Grievance Redressal Committee for individual grievances, and it sets a ladder of time limits: one year to apply, thirty days for the committee, sixty days to move to conciliation, and forty-five days before a worker can go straight to the Tribunal. This article takes the eleven sub-sections in order.

Who must have one and how it is built

Threshold and duty (s.4(1))

An industrial establishment employing twenty or more workers must have one or more Grievance Redressal Committees for resolution of disputes arising out of individual grievances. Unlike the Works Committee in section 3, this committee needs no Government order: the duty is in the Code itself. "Workers" is as defined in s.2(zr); see the definition of worker.

Employers can get help designing the forum through our employment and labour law advisory service.

Composition (s.4(2) to (4))

Sub-sectionRule
4(2)Equal number of members representing the employer and the workers, chosen in the prescribed manner
4(3)The chairperson is selected from employer and worker representatives alternately, on a rotational basis every year
4(4)Total members not more than ten; adequate representation of women workers, not less than their proportion to total workers

The Central Rules, 2026 (Central-sphere establishments)

Rule 6 of the Industrial Relations (Central) Rules, 2026 (G.S.R. 342(E), 8 May 2026) fills in the prescribed manner for establishments where the Central Government is the appropriate Government. State Governments make their own rules where the State is the appropriate Government.

  • Employer representatives are nominated by the employer, as far as possible officials in direct touch with the establishment, preferably heads of major departments (rule 6(2)).
  • Worker representatives: nominated by the negotiating union (s.14(2) or (3)); or in proportion to membership by the registered Trade Unions in a negotiating council (s.14(4)); or, where there is neither, chosen by the workers among themselves, with an option for the employer to use an electronic platform (rule 6(3)).
  • The term of members is three years (rule 6(4)).
  • A dispute about choosing worker representatives, where there is no recognised negotiating union or council, may be referred to the Regional Labour Commissioner (Central), whose decision is final (rule 6(5)).

The procedure and the time limits

Step 1: application to the committee (s.4(5))

An aggrieved worker may file an application before the committee, in the prescribed manner, within one year from the date the cause of action arises. Rule 7 of the Central Rules says the application states the worker's name, designation, worker code or token number, department, length of service in years, category of worker, address, contact number, details of the grievance and the relief sought. It may be sent electronically or otherwise and must be filed within one year of the cause of action.

Step 2: the committee decides (s.4(6) and (7))

  • The committee may complete its proceedings within thirty days of receipt of the application (s.4(6)). The word is "may": the text does not make thirty days a hard deadline, though it starts the next clock.
  • A decision is made on the majority view, provided more than half of the worker-side members agree; otherwise it is deemed that no decision could be arrived at (s.4(7)).

Step 3: conciliation (s.4(8))

A worker aggrieved by the decision, or whose grievance is not resolved within the thirty-day period, may within sixty days from the date of the decision, or from the date the thirty-day period expires, file an application for conciliation with the conciliation officer through the Trade Union of which he is a member, in the prescribed manner. Rule 8 of the Central Rules allows the application online on the designated portal of the Ministry of Labour and Employment, by speed post or in person, and the conciliation officer digitises manually received applications and informs the Trade Union and worker.

Step 4: direct access to the Tribunal (s.4(10) and (11))

Notwithstanding s.4 or s.53, a worker may apply directly to the Tribunal for adjudication after the expiry of forty-five days from the date he applied to the conciliation officer of the appropriate Government. The Tribunal then has the powers and jurisdiction it has for an application under s.53(6). Under s.4(11) that application must be made before the expiry of two years from the date of discharge, dismissal, retrenchment or termination.

StageTime limitSource
Apply to Grievance Redressal CommitteeWithin 1 year of cause of actions.4(5)
Committee completes proceedingsMay complete within 30 days of receipts.4(6)
Apply to conciliation officerWithin 60 days of decision or of end of the 30 dayss.4(8)
Apply directly to TribunalAfter 45 days from conciliation applications.4(10)
Outer limit for termination casesWithin 2 years from terminations.4(11)

Terminations and industrial disputes (s.4(9))

Where an employer discharges, dismisses, retrenches or otherwise terminates the services of an individual worker, any dispute or difference between the worker and the employer connected with or arising out of the termination is deemed to be an industrial dispute, even if no other worker and no Trade Union is a party. This mirrors the individual-dispute limb in the definition; see industrial dispute under s.2(q).

Points the text leaves open

  • The section does not say what happens if the employer fails to constitute the committee; look to the penalty provisions and s.86(20) for residual penalties and take advice.
  • The committee deals with individual grievances; collective disputes go through the other chapters.
  • The Code says the conciliation application goes "through the Trade Union, of which he is a member". It does not say how a worker with no union membership proceeds under s.4(8); the direct route in s.4(10) and the Rules should be read together for that case.

Example. A worker at a 60-worker unit is refused a leave encashment he claims on 10 April. He files with the committee on 20 April. The committee meets but the worker-side members do not agree on a decision by 20 May. On 20 May the thirty days expire; he has sixty days from then, to 19 July, to apply for conciliation through his union. If he files on 1 July, the forty-five days expire on 15 August, so he may apply to the Tribunal after that, from 16 August (on the usual way of counting days; confirm the counting for your case).

Need help setting up or using the committee?

Setting up the committee, choosing representatives and recording decisions is routine for HR but easy to get wrong. Our employment and labour law advisory team can help you design the forum and the record-keeping, or advise a worker or union on the next step. Bring your worker list and any grievance policy you currently follow.

Key takeaways

  • Twenty or more workers means at least one Grievance Redressal Committee, with no Government order needed.
  • Equal employer and worker members, at most ten, chair rotating yearly, women adequately represented.
  • One year to apply, thirty days for the committee, sixty days to seek conciliation, forty-five days before going to the Tribunal.
  • A termination dispute is deemed an industrial dispute even if no union is a party.
  • The Central Rules, 2026 cover Central-sphere establishments; State rules apply elsewhere.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Section 4

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who must set up a Grievance Redressal Committee?

Every industrial establishment employing twenty or more workers (s.4(1)).

How many members can it have?

Equal employer and worker members, with a total of not more than ten (s.4(2) and (4)).

Do not copy last year's filing without checking whether last year's law still applies.

— TaxClue Compliance Desk

Section 4: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Every industrial establishment employing twenty or more workers (s.4(1)).

Equal employer and worker members, with a total of not more than ten (s.4(2) and (4)).

The chair rotates every year between employer and worker representatives (s.4(3)).

Within one year from the date the cause of action arises (s.4(5)).

A decision needs a majority including more than half of worker-side members; otherwise it is deemed that no decision could be arrived at (s.4(7)), and the worker may seek conciliation.

After forty-five days from his conciliation application (s.4(10)), and within two years of termination in the cases in s.4(11).