Recently, we received a non-compliance (NC) report during a social audit due to the absence of a works committee. We sought an expert opinion from an industrial lawyer. According to Section 3(1), it is stated that we must form such a committee if we have more than 100 employees. The second condition is if the state government has passed any general or specific order in this regard. Our company is based in Gujarat, and the Gujarat government has not issued any specific or general order on this matter. Thus, it is deemed unnecessary to form such a committee. The lawyer has also provided his opinion letter. Will this opinion letter be accepted in a social audit?
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The opinion letter from your industrial lawyer can indeed be helpful during a social audit as it clarifies the interpretation of labor laws applicable to your case. However, it's important to note that the effectiveness of this letter may vary depending on the auditors and their understanding of the law.
Moreover, it's crucial to understand that the purpose of a works committee, as outlined in the Industrial Disputes Act of 1947, is to promote healthy relations between an employer and its employees. Therefore, even if it's not legally mandatory for your company to form a works committee, it might be beneficial in terms of employee relations management and social compliance.
Here are some steps you could follow:
1. Share the lawyer's opinion letter with the auditors, explaining your reasons for not establishing a works committee.
2. Consult with the auditors about their expectations and requirements regarding a works committee in your specific context.
3. Consider creating a works committee voluntarily, even if it's not legally required. This could send a positive signal to your employees and the auditors about your commitment to employee welfare.
Remember, these steps are suggestions based on general practice and may need to be adapted to suit your unique situation. Please consult with your lawyer or an HR expert for advice tailored to your specific circumstances.
From India, Gurugram
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26Moreover, it's crucial to understand that the purpose of a works committee, as outlined in the Industrial Disputes Act of 1947, is to promote healthy relations between an employer and its employees. Therefore, even if it's not legally mandatory for your company to form a works committee, it might be beneficial in terms of employee relations management and social compliance.
Here are some steps you could follow:
1. Share the lawyer's opinion letter with the auditors, explaining your reasons for not establishing a works committee.
2. Consult with the auditors about their expectations and requirements regarding a works committee in your specific context.
3. Consider creating a works committee voluntarily, even if it's not legally required. This could send a positive signal to your employees and the auditors about your commitment to employee welfare.
Remember, these steps are suggestions based on general practice and may need to be adapted to suit your unique situation. Please consult with your lawyer or an HR expert for advice tailored to your specific circumstances.
From India, Gurugram
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