TL;DR
- Every industrial establishment employing 20 or more workers must have one or more grievance redressal committees under section 4(1) of the Industrial Relations Code 2020.
- The committee has equal employer and worker members, no more than ten in all, with women represented at least in proportion to women workers.
- A worker applies within one year, the committee may decide within 30 days, and a worker who is not satisfied may apply for conciliation within 60 days, through the worker's trade union.
Quick Answer: Every industrial establishment employing 20 or more workers must set up a grievance redressal committee under section 4(1) of the Industrial Relations Code 2020. It has equal employer and worker members, no more than ten in all, with women fairly represented. A worker applies within one year, and the committee may decide within 30 days.
The grievance redressal committee is the first stop for an individual worker's dispute under the Industrial Relations Code 2020 (IR Code), which commenced on 21 November 2025. It sits inside the establishment, before conciliation or a tribunal. Procedure comes from rules 6 to 8 of the Industrial Relations (Central) Rules 2026.
Grievance redressal committee at a glance
| Point | Position | Provision |
|---|---|---|
| Who must have one | Every industrial establishment employing 20 or more workers | Section 4(1), IR Code |
| Members | Equal numbers representing the employer and the workers | Section 4(2) |
| Chairperson | Chosen alternately from each side, on rotation every year | Section 4(3) |
| Size and women | No more than ten members; women at least in proportion to women workers | Section 4(4) and proviso |
| Time to apply | Within one year of the cause of action | Section 4(5) |
| Time to decide | The committee may complete proceedings within 30 days | Section 4(6) |
| Next step | Application for conciliation within 60 days, through the worker's trade union | Section 4(8) |
Who Must Set Up a Grievance Redressal Committee Under Section 4?
Every industrial establishment employing twenty or more workers, under section 4(1) of the IR Code 2020. The section allows one or more committees, so a large establishment may run several. An establishment below 20 workers has no statutory duty to constitute one.
Does the Count Include Contract Workers?
Section 4(1) counts workers employed in the industrial establishment. Whether contract labour engaged through a contractor counts towards the 20 depends on how the establishment's workforce is defined for the IR Code, so take advice from a labour law consultant where the direct headcount sits just below 20.
How Is the Committee Composed and How Does It Work?
Under section 4 and rule 6 of the IR (Central) Rules 2026, notified as G.S.R. 342(E) on 8 May 2026, the committee is built in equal halves. For an establishment in the State sphere, check the State's position in the multi-state labour law compliance checklist.
| Element | Requirement | Source |
|---|---|---|
| Employer members | Nominated by the employer | Rule 6 |
| Worker members | From the negotiating union, or proportionately from the negotiating council, or chosen by the workers, including electronically | Rule 6 |
| Term | Three years | Rule 6 |
| Disputes over representation | Where there is no negotiating union or council, may be referred to the Regional Labour Commissioner (Central), whose decision is final | Rule 6 |
| Application | Contents set by rule 7, within the one-year limit | Rule 7 |
How Does the Committee Decide?
By majority, but only if more than half the worker members agree, under section 4(7). If that condition is not met, the committee is deemed to have reached no decision, and the worker may move to conciliation.
How Should an Employer Constitute the Committee?
Four steps follow from section 4 and rule 6 of the IR Central Rules. Confirm the headcount is 20 or more. Nominate the employer members. Obtain the worker members from the negotiating union or council, or through a choice by the workers, which may be electronic. Then fix the first chairperson, record the three-year term and set the annual rotation of the chair.
What Are the Time Limits and the Appeal Route?
A worker applies within one year of the cause of action under section 4(5). The committee may complete its proceedings within thirty days under section 4(6); the Code says "may", not "shall". The FAQ on myths and realities of the IR Code covers other common misreadings.
| Stage | Time limit | Provision |
|---|---|---|
| Application to the committee | Within one year of the cause of action | Section 4(5); Rule 7 |
| Committee proceedings | May complete within 30 days | Section 4(6) |
| Application to the conciliation officer | Within 60 days of the decision, or of the 30-day period ending | Section 4(8); Rule 8 |
| Direct application to the Tribunal | 45 days after applying for conciliation (section 4(10)); in a discharge or termination dispute, within 2 years of termination (section 4(11)) | Sections 4(10) and 4(11) |
How Does a Worker Reach Conciliation?
Through the trade union of which the worker is a member, under section 4(8). Rule 8 lets the application go to the conciliation officer online, by speed post or in person. Labour law compliance software can track each 60-day conciliation window alongside the wider IR Code duties. A dispute over discharge or termination is deemed an industrial dispute under section 4(9).
How Are Committees Tracked Across Establishments?
Each establishment at 20 or more workers needs its own committee, with a three-year term under the Central Rules that lapses quietly. A compliance management platform holds each committee's constitution record and term end date, with supporting documents as evidence.
LexComply does not constitute committees or decide grievances; the employer and workers do. To see how committees would be tracked, get in touch.
Common Mistakes to Avoid
- Setting the threshold at 50 or 100 workers. Section 4(1) applies at twenty or more workers.
- Appointing more than ten members. Section 4(4) caps the committee at ten.
- Under-representing women. The proviso to section 4(4) requires women at least in proportion to women workers in the establishment.
- Keeping the same chairperson every year. Section 4(3) rotates the chair annually between the employer and worker sides.
- Treating 30 days as a hard deadline. Section 4(6) says the committee may complete proceedings within 30 days; conciliation is available within 60 days after it.
- Citing section 4(7) for conciliation. Section 4(7) covers majority decisions; conciliation is section 4(8).
Legal Disclaimer
This article is general information on Indian labour law, current as at the date shown above. It is not legal advice and does not take account of any particular establishment's facts. State rules may differ from the Central Rules. Obtain professional advice before acting on any position described here.