Industrial Relations Act, 2012 — section 27

27. Workers’ Participation in Management..—(1) In every factory/establishment employing fifty persons of more there shall be elected or nominated workers’ representatives to participate to the extent of fifty per cent in the management of the factory/establishment: Provided that there shall be elected or nominated at least one worker’s representative to participate in the management of such factory establishment: Provided further that, for the purpose of determining the number of workers’ representatives in the management of the factory/establishment, fractions equal to, or greater than one half shall be regarded as one and lesser fractions shall be ignored.

(2)The workers representatives shall be workmen employed in the same factory/establishment and shall,

(a)where there is a collective bargaining agent in the factory/ establishment, be nominated by it, or

(b)where there is no collective bargaining agent in the factory/establishment, be elected by simple majority at a secret ballot by all workmen employed in the factory/establishment.

(3)The workers representative shall hold office for a period of two years from the date of their election of their election or nomination, as the case may be.

(4)The workers’ representatives shall participate in all the meetings of the management committee constituted in the prescribed manner and all matters relating to the management of the factory/establishment, except commercial and financial transaction, may be discussed in such meetings.

(5)The management shall not take any decision in the following matters without the advice in writing of the workers’ representative, namely:

(a)framing of services rules and policy about promotion and discipline of workers;

(b)changing physical working conditions in the factory/ establishment;

(c)in-service training of workers;

(d)recreation and welfare of workers;

(e)regulation of daily working hours and breaks;

(f)preparation of leave schedule; and

(g)matters relating to the order and conduct of workers within the factory/establishment.

(6)The workers’ representatives may on their own initiative give advice in writing concerning the matters specified in sub-section (5) and, where they do so, the management shall convene a meeting within two weeks of the receipt of the advice to discuss its merits with them.

(7)The management shall give reply to the workers’ representative within two weeks of the receipt of their advice given under sub-section (5) or sub-section (6) and any such advice shall not be rejected except by the person holding the highest position in the management of the factory/establishment.

(8)In case the advice of the workers’ representatives is rejected by the management of the factory/establishment, the matter may, within fifteen days of the advice being so rejected, be taken up by the collective bargaining agent in the Works Council for bilateral negotiations and thereupon the provisions of Section 35 shall apply as they apply to the settlement of an industrial dispute in relation to which the views of the employer or the collective bargaining agent have been communicated to the Works Council under sub-section (1) of the section.