EASE OF DOING BUSINESS

TO BE MADE MORE EASIER

Businesses, on their part, need to be more
responsible and forthcoming to ensure greater
compliance. The new Codes when implemented
would need industries to file just one compliance
return for all four Codes.

The Code on Social Security merged nine Acts will allow firms to
maintain in 1-2 registers as compared to 20 earlier.

When there is one enactment it is called as ‘Act’ whereas

a combination of number of Acts and laws is called ‘Code’.

4 CODES SIMPLIFY, SUBSUME AND RATIONALISE

THE PROVISIONS OF OVER 29 ACTS
 THE CODE ON WAGES, 2019
EXISTING ACTS BEING REPEALED
NEW CODE REPLACING THE REPEALED ACTS EXISTING ACTS BEING
REPEALED

• THE PAYMENT OF WAGES ACT,

• THE CODE ON WAGES, 1936
• THE MINIMUM WAGES ACT, 1948
2019 • THE PAYMENT OF BONUS ACT,
1965
• THE EQUAL REMUNERATION ACT,
1976

PRESIDENT’S ASSENT RECEIVED ON 8TH AUGUST, 2019

Code on Wages, 2019 alongwith three other Codes passed by the Parliament are second
generation amendments in the process of reforms in labour laws, and will help in boosting ease
of doing business
 THE CODE ON WAGES, 2019
APPLICABILITY
AS PER CODE ON WAGES, 2019 AS PER EXISTING LAWS

A A

• APPLICABLE TO WHOLE OF INDIA • SAME

• IT IS APPLICABLE TO ALL EMPLOYEES INCLUDING IN ORGANISED AND UNORGANISED • APPLICABLE TO

SECTORS EMPLOYEES EMPLOYED
IN SCHEDULED
EMPLOYMENTS

Extending applicability of labour laws to earlier deprived categories is a very progressive

step forward.
 THE CODE ON WAGES, 2019
CONTRACT LABOUR
AS PER CODE ON WAGERS, 2019 AS PER EXISTING
LAWS

• IT INCLUDES – INTER-STATE MIGRANT WORKER

• IT DOES NOT INCLUDE (OTHER THAN PART-TIME EMPLOYEE) – PERSONS REGULARLY

EMPLOYED BY THE CONTRACTOR

• NO SUCH PROVISION
• ON MUTUALLY ACCEPTED TERMS AND CONDITIONS

• AND GET PERIODICAL INCREMENTS, SOCIAL SECURITY AND WELFARE BENEFITS FROM
THE CONTRACTOR

The four Codes are result of recommendations of 2nd National Commission on Labour.
 THE CODE ON WAGES, 2019
EMPLOYEE
AS PER CODE ON WAGES, 2019 AS PER EXISTING LAWS

• INCLUDES (OTHER THAN APPRENTICE) :-

• SAME
• SKILLED, SEMI-SKILLED, UNSKILLED, MANUAL, OPERATIONAL, SUPERVISORY,
TECHNICAL, CLERICAL
• MANAGERIAL , ADMINISTRATIVE • NEW INCLUSIONS

Unity of interest between workers and work-takers together as a team is beneficial in

achieving common objectives of the organisation.
 THE CODE ON WAGES, 2019
EMPLOYER
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• NOW IT INCLUDES :–
• OCCUPIER
• NO SUCH PROVISION
• CONTRACTOR
• LEGAL REPRESENTATIVE OF DESEASED EMPLOYER

New Code will improve the competitiveness of Indian industry, make it manufacturing
hub and pursue the ‘Make in India’ agenda successfully.
 THE CODE ON WAGES, 2019
WORKER
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• INCLUDES (OTHER THAN APPRENTICE) :-

• MANUAL, UNSKILLED, SKILLED, TECHNICAL, OPERATIONAL, CLERICAL, SUPERVISORY
• ALSO INCLUDES :-
• WORKING JOURNALIST • NO SUCH PROVISION
• SALES PROMOTION EMPLOYEE
• BUT IT DOES NOT INCLUDE :-
• EMPLOYED IN MANAGERIAL AND ADMINISTRATIVE CAPACITY

• PERSON EMPLOYED IN SUPERVISORY CAPACITY, DRAWING WAGES EXCEEDING • IT IS RS. 10,000 PER
RS. 15,000 PER MONTH, OR AS NOTIFIED MONTH
• CONCEPT OF ‘WORKMAN’ OMITTED - ‘SEMI-SKILLED MISSING

• Definition of Wage will have impact on the financial anvil of employer as some part
of various Allowances will be treated as Wage
 THE CODE ON WAGES, 2019
OCCUPATIONS DEFINED
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• HIGHLY SKILLED OCCUPATION • NO SUCH

CATEGORY EXISTS

• SKILLED OCCUPATION • THIS CATEGORY

• SEMI-SKILLED OCCUPATION EXISTS

• UNSKILLED OCCUPATION

The enactment of four Code is a big leap forward in labour reforms, but protection of
interest of workers in changing conditions is a continuous process.
 THE CODE ON WAGES, 2019
INSPECTOR-CUM-FACILITATOR
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• NEW ROLE ASSIGNED TO ERSTWHILE ‘INSPECTOR’

• HIS ROLE IS ENLARGED TO ENCOMPASS NOT JUST INSPECTION • IT IS ‘INSPECTOR’,
AND CONDUCTS
• BUT ALSO TO ADVISE THE EMPLOYERS AND WORKER INSPECTIONS
• WITH REGARD TO THE VARIOUS COMPLIANCES PRESCRIBED UNDER THE CODES.

The reforms in labour laws to ease the compliance burden is a positive move. Hopefuly, these
reforms would start a progressive chain-reaction in the economy.
 THE CODE ON WAGES, 2019
WAGES…
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• INCLUDES :-
• BASIC PAY
• DEARNESS ALLOWANCE
• RETAINING ALLOWANCE
• DOES NOT INCLUDE :-
• SUCH PROVISION EXISTS
• ANY BONUS
• VALUE OF ANY HOUSE-ACCOMMODATION
• ANY CONTRIBUTION TO PENSION OR PROVIDENT FUND
• CONVEYANCE ALLOWANCE
• ANY SOME PAID TO DEFRAY SPECIAL EXPENSES

Exclusion of ‘House Rent Allowance’ from the definition of Wage is a little surprise.
 THE CODE ON WAGES, 2019
…WAGES
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• HOUSE RENT ALLOWANCE • IT IS WAGE

• AREMUNERATION UNDER AWARD OR SETTLEENT • PROVISION EXISTS
• ANY OVERTIME ALLOWANCE
• ANY COMMISSION
• ANY GRATUITY
• ANY RETRENCHMENT COMPENSATION, EX-GRATIA PAYMENY
• PROVIDED :-
• OTHER ALLOWANCES EXCEEDING 50%, OR AS NOTIFIED, OF ALL REMUNERATION WILL • NO SUCH PROVISION
BE TREATED AS WAGE
• ANY PAYMENT IN KIND EXCEEDING 15% OF ALL REMUNERATION WILL BE TREATED AS
WAGE

if the workers desire more wages and more benefits, fIrst they should deserve for the
more.
 THE CODE ON WAGES, 2019
MINIMUM WAGES
AS PER CODE ON WAGES, 2019 AS PER EXISTING LAWS

• IT APPLIES TO ALL EMPLOYEES IN ALL EMPLOYMENTS • APPLICABLE IN

SCHEDULED
EMPLOYMENTS ONLY
• MINIMUM WAGES TO BE ORDINARILY REVIEWD IN A PERIOD NOT EXCEEDING FIVE • THIS PROVISION EXISTS
YEARS

Wage is the driving force behind happiness and motivation of any worker. Introduction of
Minimum Floor Wage is a good vaccine for the ailing workforce.
 THE CODE ON WAGES, 2019
DEARNESS ALLOWANCE
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• TO BE COMPUTED BEFORE :-

• 1ST APRIL
• NO SUCH MANDATE

• 1ST OCTOBER

The Codes also protect the interest of the working class and provide a fillip to
Government’s employment formalisation drive. Contractors employing less than 50
persons, not required to obtain the licence.
 THE CODE ON WAGES, 2019
FLOOR WAGE
AS PER CODE ON WAGES, 2019 AS PER EXISTING LAWS

• CENTRAL GOVERNMENT WILL FIX FLOOR WAGE

• CENTRAL GOVERNMENT MAY TAKE PRE-ADVISE OF ADVISORY BOARD AND STATE
GOVERNMENT
• NO SUCH PROVISION
• DIFFERENT FLOOR WAGES MAY BE FIXED FOR DIFFERENT GEOGRAPHICAL AREAS
• MINIMUM WAGE RATES FIXED BY APPROPRIATE GOVERNMENTS SHALL NOT BE LESS
THAN THE FLOOR WAGE

Migrant workers will be able to port ration facilities and avail of benefits from the Building
and Other Construction Workers’ Cess.
 THE CODE ON WAGES, 2019
NO DISCRIMINATION
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• NO DISCRIMINATION ON GENDER BASIS IN WAGES FOR SAME WORK, OR FOR

WORK OF SIMILAR NATURE
• EMPLOYER NOT TO REDUCE WAGES OF ANY EMPLOYEE • SUCH PROVISIONS
EXIST
• NO DISCRIMINATION ON GROUND OF SEX WHILE RECRUITING EMPLOYEES FOR
SAME WORK, OR FOR WORK OF SIMILAR NATURE, UNLESS EMPLOYMENT OF
WOMEN IS PROHIBITED OR RESTRICTED UNDER ANY LAW

The monopoly of ‘manpower’ will be matched by ‘womanpower’, with equi-gender

opportunity in employment and service conditions, for upliftment of standard of family
at micro level and that of the nation at macro level.
 THE CODE ON WAGES, 2019
PAYMENT OF WAGES
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• NOW ALL EMPLOYEES ARE PROTECTED WITHOUT ANY WAGE LIMIT, INCLUDING • THE WAGE CEILING IS
SUPERVISORS AND MANAGERS RS. 24,000 PER MONTH
• PAYMENT OF WAGES IN CURRENT COIN OR CURRENCY NOTES OR THROUGH BANK • NO EMPHASIS ON
TRANSFER BY ELECTRONIC MODE ELECTRONIC MODE
• WAGES TO BE PAID WITHIN 2 DAYS OF HIS REMOVAL, DISMISSAL, RETRENCHMENT • RESIGNATION IS NOT
AND RESIGNATION INCLUDED

Payment of wages electronically or through transfer to bank account will largely help in
containing malpractices of less payment.
 THE CODE ON WAGES, 2019
TIMELY PAYMENT TO CONTRACTOR
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• WHERE EMPLOYEES ARE EMPLOYED THROUGH A CONTRACTOR

• HE WILL BE PAID THE WAGE AMOUNT BY THE PRINCIPAL EMPLOYER

• NO SUCH PROVISION
• BEFORE THE DATE OF PAYMENT OF WAGES

• SO THAT EMPLOYEES ARE PAID WAGES IN TIME

By increasing threshold from 20 to 50 workers, small entrepreneurs will benefit by

employing more workers through contractor, rather than employing them directly.
 THE CODE ON WAGES, 2019
FINE
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• EMPLOYER CAN IMPOSE FINE ON AN EMPLOYEE, ONLY WITH THE APPROVAL OF THE DLC
©, WHO WILL GIVE OPPORTUNITY OF HEARING THE EMPLOYER AND THE EMPLOYEE,
BEFORE REJECTING OR GIVING APPROVAL
• NO SUCH PROVISION

• DISPLAY NOTICE SPECIFYING OMMISSIONS ON WHICH FINE CAN BE IMPOSED

The Code will bring in transparency and rationality in dealing with acts of misdemeanor of
workers.
 THE CODE ON WAGES, 2019
DEDUCTION FROM WAGES
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• FOR DEDUCTION FROM WAGES FOR ABSENCE FROM DUTY, UNDER SUB-SECTION 2
OF SECTION 20, EMPLOYER SHALL INTIMATE TO THE INSPECTOR-CUM-FACILITATOR
• INSPECTOR-CUM-FACILITATOR SHALL EXAMINE IF THE EXPLANATION IS IN • NO SUCH PROVISION
CONTRAVENTION OF ANY PROVISION OF THE CODE, AND SHALL INITIATE
APPROPRIATE ACTION AGAINST THE EMPLOYER

Business need to be more responsible and forthcoming to ensure greater compliance.

The new Codes, when implemented, would need industries to file just one compliance
return for all Codes.
 THE CODE ON WAGES, 2019
BONUS …
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• AN EMPLOYEE NOT WORKING ALL DAYS IN AN ACCOUNTING YEAR, HIS BONUS WILL • MIN. 30 DAYS’
BE PROPORTIONATELY REDUCED WORK. MIN BONUS
RS. 100
• DISQUALIFICATION FROM RECEIVING BONUS - ON CONVICTION FOR SEXUAL • NO SUCH PROVISION
HARASSMENT

• BONUS AMOUNT TO BE CREDITED IN BANK ACCOUNT OF THE EMPLOYEE WITHIN 8 • NO SUCH PROVISION
MONTHS FROM THE CLOSE OF ACCOUNTING YEAR

Parity in wages and recruitment between men and women employees is a welcome
initiative.
 THE CODE ON WAGES, 2019
… BONUS …
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• PROVIDED - IF THERE IS DISPUTE FOR PAYMENT OF BONUS AT HIGHER RATE, THE

EMPLOYER WILL PAY 8.1/3 % OF BONUS WITHIN 8 MONTHS OF CLOSE OF ACCOUNTING
YEAER
• NO SUCH PROVISION
• A DISPUTE FOR FIXATION, ELIGIBILITY AND PAYMENT OF BONUS UNDER THE CODE AND
TO PUBLIC SECTOR WILL BE DEEMED AS THE INDUSTRIAL DISPUTE WITHIN THE MEANING
OF INDUSTRIAL DISPUTES ACT, 1947

Expansion of definition of inter-state migrant workers to include such individual workers is a

good initiative so that no one is left out from receiving benefits under the Code
 THE CODE ON WAGES, 2019
… BONUS …
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• WHERE EMPLOYEES ARE EMPLOYED THROUGH A CONTRACTOR, AND THE • NO SUCH PROVISION
CONTRACTOR FAILS TO PAY MINIMUM BONUS, THE COMPANY SHALL BE
RESPONSIBLE TO PAY THE MINIMUM BONUS TO SUCH EMPLOYEES
• BONUS TO BE CALCULATED ON WAGE AMOUNT AS DETERMINED BY APPROPRIATE • EXISTS THROUGH A
GOVERNMENT OR MINIMUM WAGE, WHICHEVER IS HIGHER NOTIFICATION

The Code re-enforces the provision that daily working hours will remain 8 hours and
weekly hours as 48 hours, with spread over of maximum 12 hours on any day.
 THE CODE ON WAGES, 2019
…BONUS
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• IN A PUBLIC SECTOR ESTABLISHMENT

• SELLING GOODS PRODUCED BY IT
• IN COMPETITION WITH PRIVATE SECTOR ESTABLISHMENT
• NO SUCH PROVISION
• AND EARNING INCOME NOT LESS THAN 20% OF GROSS INCOME FOR THAT YEAR

• PROVISIONS OF THIS CODE WILL APPLY

• ON THE PUBLIC SECTOR ESTABLISHMENT LIKE A PRIVATE SECTOR

As earlier, Wage has been defined in the Code, Minimum Wage has not been defined.
 THE CODE ON WAGES, 2019
PAYMENT OF DUES
AS PER CODE ON WAGES, 2019 AS PER EXISTING LAWS

• EVERY EMPLOYER SHALL PAY ALL AMOUNTS REQUIRED TO BE PAID UNDER THIS • NO SUCH PROVISION
CODE TO EVERY EMPLOYEE EMPLOYED BY HIM
• IF THE EMPLOYEE DIES BEFORE RECEIPT OF ALL PAYMENT DUE TO HIM, THE • SUCH PROVISION EXISTS
EMPLOYER WILL PAY HIS DUES TO THE NOMINEE
• IF NO NOMINATION IS MADE BY THE DECEASED EMPLOYEE, THE EMPLOYER WILL • SUCH PROVISION EXISTS
DEPOSIT HIS DUES WITH THE CONCERNED AUTHORITY, WHO WILL DEAL WITH IT, AS
PRESCRIBED

Consolidation of several Acts into just four Codes will help in easier understanding and
easier implementation.
 THE CODE ON WAGES, 2019
CLAIM …
AS PER CODE ON WAGES, 2019 AS PER EXISTING LAWS

• APPROPRIATE GOVERNMENT MAY APPOINT AUTHORITIES (GAZETTED OFFICERS) TO • NO SUCH PROVISION

HEAR AND DETERMINE THE CLAIMS
• THE AUTHORITY MAY IN ADDITION TO DETERMINATION OF CLAIM, ALLOW PAYMENT • SUCH PROVISION IS
OF COMPENSATION ALSO UPTO 10 TIMES OF CLAIM DETERMINED, AND TO DECIDE THERE, EXCEPT THE TIME
THE CLAIM WITHIN 3 MONTHS LIMIT
• IF EMPLOYER FAILS TO PAY THE CLAIM, RECOVERY CERTIFICATE WILL BE ISSUED AND • SUCH PROVISION EXISTS
THE COLLECTOR WILL RECOVER THE CLAIM AS ARREARS OF LAND REVENUE

Consolidation of labour laws in four Codes has standardised multiple definitions.

 THE CODE ON WAGES, 2019
… CLAIM

AS PER CODE ON WAGES, 2019 AS PER EXISTING

LAWS

• THE APPLICATION OF CLAIM CAN BE FILED BY :- • NO SUCH PROVISION

• (A) THE EMPLOYEE CONCERNED,
• (B) REGISTERED TRADE UNION,
• (C ) THE INSPECTOR-CUM-FACILITATOR
• APPLICATION FOR CLAIM CAN BE FILED WITHIN 3 YEARS • IT IS 6 MONTHS
UNDER THE
MINIMUM WAGES
ACT, 1948

Encouragement to electronic medium will help in faster and accurate compliances.

 THE CODE ON WAGES, 2019
INSPECTION
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• INSPECTION OF ESTABLISHMENTS WOULD BE DECIDED ON WEB-BASED SCHEME. NO

PRE-DEFINED TERRITORIAL JURISDICTION OF INSPECTORS NOW. • NO SUCH PROVISION

New role of Inspector-cum-Facilitator will establish relationship of mutual trust and

confidence with Employers and Workers.
 THE CODE ON WAGES, 2019
PENALTIES …
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• FOR LESS PAYMENT TO EMPLOYEE - FINE OF RS. 50,000

• FOR REPEAT OFFENCE WITHIN 5 YEARS - IMPRISONMENT UPTO 3 MONRHS, OR FINE OF
UPTO RS. ONE LAKH RUPEES, OR BOTH
• PENALTIES ARE MUCH
• FOR CONTRAVENTION OF OTHER PROVISION OF CODE OR RULE - FINE UPTO RS. 20,000. LOWER

• FOR REPEAT OFFENCE WITHIN 5 YEARS - IMPRISONMENT UPTO 1 MONRH, OR FINE OF

UPTO RS. 40,000, OR BOTH
• FOR NON-MAINTENANCE OR IMPROPER RECORDS - FINE UPTO RS. 10,000.

One of the objectives of the Codes is to provide flexibility and simplicity in doing business.
 THE CODE ON WAGES, 2019
…PENALTIES
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• BEFORE INITIATING PROSECUTION, INSPECTOR-CUM-FACILITATOR WILL GIVE

• OPPORTUNITY TO EMPLOYER TO COMPLY WITH PROVISIONS OF THE CODE WITHIN

GIVEN TIME
• NO SUCH PROVISION
• AND IF COMPLIED BY EMPLOYER, NO PROSECUTION OF EMPLOYER WILL BE
INITIATED
• IF CONTRAVENTION REPEATED WITHIN 3 YEARS, PROSECUTION WILL BE INITIATED.

Enhanced penalties will encourage better compliance and fatter Social Security Fund.
 THE CODE ON WAGES, 2019
COMPOSITION OF OFFENCE …
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• A GAZETTED OFFICER BY APPROPRIATE GOVERNMENT

• ON APPLICATION BY THE ACCUSED, BEFORE OR AFTER INSTITUTION OF
PROSECUTION
• MAY COMPOUND THE OFFENCE ON PAYMENT OF 50% OF THE MAXIMUM FINE
PAYABLE • NO SUCH PROVISION
• IN CASES WHERE THE PUNISHMENT FOR OFFENCE DOES NOT INVOLVE
IMPRISONMENT ONLY, OR IMPRISONMENT WITH FINE
• THE BENEFIT OF COMPOSITION WILL NOT BE AVAILABLE IN CASE OF SECOND
OFFENCE WITHIN 5 YEARS

Fixation of minimum floor wage for different geographical areas by the Central
Government by use of common yardsticks will result in balanced floor wages devoid of
regional biases.
 THE CODE ON WAGES, 2019
…COMPOSITION OF OFFENCE
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• IF THE APPLICATION FOR COMPOSITION IS MADE AFTER INITIATION OF

PROSECUTION, THE OFFICER WILL BRING IT TO THE NOTICE OF THE COURT IN
WRITING, WHERE PROSECUTION IS PENDING; AND THE PERSON WILL BE
DISCHARGED
• NO SUCH PROVISION
• IF THE PERSON FAILS TO COMPLY WITH THE ORDER OF THE OFFICER, THE PERSON
SHALL BE PUNISHED WITH 25% OF MAXIMUM FINE AMOUNT FOR THE OFFENCE, IN
ADDITION TO THE FINE

Appropriate Government will be empowered to fix wage ceiling for eligibility and
payment of bonus.
 THE CODE ON WAGES, 2019
MISCELLANEOUS
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• IN CASE OF A CLAIM FOR LESS PAYMENT OF MINIMUM WAGES, OR NON PAYMENT OF

WAGES OR BONUS; ONUS TO PROVE THAT PAYMENT HAS BEEN MADE WILL BE ON • NORMALLY ONUS OF
EMPLOYER PROOF OF PAYMENT
IS ON EMPLOYER

Compounding of first offence shows that the intention of the authorities is to allow
correction and compliance by the employer and not his punishment.
 THE CODE ON WAGES, 2019
HOURS OF WORK & SPREADOVER
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• 9 HOURS WILL CONSTITUTE A NORMAL WORKING DAY, INCLUSIVE OF REST • SUCH PROVISION
INTERVAL(S) EXISTS

• SPREADOVER NOT MORE THAN 12 HOURS ON ANY DAY • DIFFERENT

SPREADOVERS

Preponing the last date of payment of wages to employees from 10th to 7th of the month
is a good gesture in favour of working class.
 THE CODE ON WAGES, 2019
WEEKLY REST DAY
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• EMPLOYER MAY FIX REST DAY, OTHER THAN SUNDAY • SOME LIMITATIONS
EXIST IN CHANGING
• FOR ANY EMPLOYEE OR CLASS OF EMPLOYEES THE WEEKLY REST
DAY
• SUBSEQUENT CHANGES BY DISPLAY ON THE NOTICE BOARD

• NO EMPLOYEE SHALL WORK CONTINUOUSLY FOR MORE THAN 10 WITHOUT A REST

DAY

Different penalties for different offences commensurate with gravity is a balanced

approach.
 THE CODE ON WAGES, 2019
DEPOSIT OF UNPAID DUES
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• ALL UNPAID DUES TO THE EMPLOYEE OR TO HIS NOMINEE • AT PRESENT SUCH

UNPAID AMOUNTS
• FOR MORE THAN 6 MONTHS ARE TO BE
DEPOSITED WITH
• SHALL BE DEPOSITED WITH DY. CLC (C) WELFARE FUND
COMMISSIONER OF
• BEFORE EXPIRY OF 15TH DAY AFTER THE LAST DAY OF 6 MONTHS THE CONCERNED
STATE AFTER A
PERIOD OF 3 YEARS

For various practical reasons the time limit for deposit of unpaid money with concerned
authority after six months is a very short period. Three years period could have been
retained.
 THE CODE ON WAGES, 2019
RECORDS
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• EMPLOYER SHALL MAINTAIN REGISTER CONTAINING DETAILS REGARDING PERSONS • MORE RECORDS TO
EMPLOYED, MUSTER ROLL, WAGES AND SUCH OTHER DETAILS BE MAINTAINED

• EMPLOYER SHALL DISPLAY IN THE ESTABLISHMENT ABSTRACT OF THE CODE, • SIMILAR PROVISION
CATEGORY WISE WAGE RATES, WAGE PERIOD, DAY OR DATE OF TIME OF PAYMENT EXISTS
OF WAGES AND THE NAME AND ADDRESS OF INSPECTOR-CUM-FACILITATOR OF THE
AREA

Enhancing period of making claim upto three years is a pro-worker initiative.

 THE CODE ON WAGES, 2019
FORMS
AS PER CODE ON WAGES, 2019 AS PER EXISTING
LAWS

• FORM-I REGISTER FOR ATTENDANCE, WAGES, OVERTIME, FINE, DEDUCTION • THERE ARE SEVERAL
FOR DAMAGES AND LOSS UNDER THE REGISTERS, FORMS,
CODE RETURNS ETC.
• FORM-IV FORMAT OF EMPLOYEE REGISTER

• FORM-V WAGE SLIP

• FORM-VI APPLICATION FOR COMPOUNDING OF OFFENCE • NO SUCH FORM
EXISTS

Timely payment of wages is applicable to all employees irrespective of any category or

wages amount.
 THE INDUSTRIAL RELATIONS CODE, 2020
EXISTING ACTS TO BE REPEALED
NEW CODE REPLACING THE EXISTING ACTS BEING REPEALED
REPEALED ACTS

• THE TRADE UNIONS ACT, 1926

• THE INDUSTRAL
• THE INDUSTRIAL EMPLOYMENT (STANDING ORDERS)
RELATIONS CODE, ACT, 1946

2020 • THE INDUSTRIAL DISPUTES ACT, 1947

PRESIDENT’S ASSENT RECEIVED ON 28TH September,
2020

Sustained good industrial relations are as important as is continuous breathing for life.
 THE INDUSTRIAL RELATIONS CODE, 2020
APPLICABILITY AND PURPOSE
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• IT EXTENDS TO WHOLE OF INDIA

• TO REGULATE :-
• TRADE UNIONS • SUCH PROVISION
• CONDITIONS OF EMPLOYMENT IN INDUSTRIAL ESTABLISHMENT OR EXISTS
UNDERTAKING

• INVESTIGATION AND SETTLEMENT OF INDUSTRIAL DISPUTES

Industrial relations is not a subject matter between employer and employee only.
Families of workers, employers’ ambitions, society’s satisfaction and national growth
and development are simultaneously linked.
 THE INDUSTRIAL RELATIONS CODE, 2020
APPROPRIATE GOVERNMENT
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• CENTRAL GOVERNMENT : -
• BESIDES OTHER BUSINESSES AS MENTIONED IN THE CLAUSE, TELECOMMUNICATION,
INSURANCE, BANKING COMPANIES AND METRO RAILWAYS
• PSUs WHERE PAID-UP CAPITAL WITH CENTRAL GOVERNMENT IS NOT LESS THAN 50% • NO SUCH PROVISION
AND WILL CONTINUE TO BE SO EVEN IF THE PAID-UP CAPITAL REDUCES LESS THAN 50%

• FOR CONTRCTORS WORKING IN ESTABLISHMENTS UNDER THE CENTRAL GOVERNMENTS

Right of workers to go on strike has been protected in the Code, alongwith interest of the
enterprise, by putting some conditions.
 THE INDUSTRIAL RELATIONS CODE, 2020
EMPLOYER
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• NEW INCLUSIONS : -
• OCCUPIER IN A FACTORY
• AUTHORITY WITH ULTIMATE CONTROL IN AN ESTABLISHMENT • NO SUCH PROVISION

• CONTRACTOR
• LEGAL REPRESENTATIVE OF A DECEASED EMPLOYER

Fixed term employment is a good move.

 THE INDUSTRIAL RELATIONS CODE, 2020
EMPLOYEE
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING ACTS

• ANY PERSON (OTHER THAN APPRENTICE) EMPLOYED BY AN INDUSTRIAL

ESTABLISHMENT TO DO ANY

• SKILLED,
• SEMI-SKILLED,
• UNSKILLED,
• PARTIAL PROVISION
• MANUAL,
EXISTS
• OPERATIONAL,
• SUPERVISORY,
• MANAGERIAL,
• ADMINISTRATIVE,
• TECHNICAL OR CLERICAL WORK…………

The Code has made it easier for establishments employing upto 300 workers to lay-off
workers without prior permission of the appropriate authority.
 THE INDUSTRIAL RELATIONS CODE, 2020
WORKER
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• INCLUDES (OTHER THAN APPRENTICE) :-

• UNSKILLED, SKILLED, TECHNICAL, OPERATIONAL, CLERICAL, SUPERVISORY • PROVISION EXISTS
• WORKING JOURNALIST • NO SUCH
PROVISION
• SALES PROMOTION EMPLOYEE
• WHO HAS RAISED DISPUTE BEING DISMISSED, DISCHARGED, RETRENCHED, • SUCH PROVISION
TERMINATED EXISTS
• DOES NOT INCLUDE :- • NO SUCH
PROVISION
• EMPLOYED IN MANAGERIAL AND ADMINISTRATIVE CAPACITY
• EMPLOYED IN SUPERVISORY CAPACITY DRAWING MONTHLY WAGES OF RS. 18,000, • IT IS RS. 10.000
OR AS NOTIFIED
• ‘WORKMAN’ OMITTED (SEMI-SKILLED IS MISING)

Establishment of Fund to re-skill workers with updated skill to be able to work better is a much
needed initiative for improving quality and production.
 THE INDUSTRIAL RELATIONS CODE, 2020
FIXED TERM EMPLOYMENT
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING ACTS

• ENGAGEMENT OF A WORKER BY A WRITTEN CONTRACT FOR A FIXED PERIOD,

PROVIDED :–
• HIS HOURS OF WORK, WAGES, ALLOWANCES & OTHER BENEFITS WILL NOT BE LESS
THAN THAT OF A PERMANENT WORKER DOING THE SAME OR SIMILAR NATURE OF
WORK • NO SUCH PROVISION

• ELIGIBLE FOR ALL STATUTORY BENEFITS AVAILABLE TO A PERMANENT WORKER,

PROPORTIONATELY AS PER PERIOD OF SERVICE RENDERED
• ELIGIBLE FOR GRATUITY EVEN IF RENDERS SERVICE FOR A YEAR

Statutory provisions for enhanced maternity benefits to women employees is a much

needed and welcome step.
 THE INDUSTRIAL RELATIONS CODE, 2020
INDUSTRY …
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• ANY SYSTEMTIC ACTIVITY

• CARRIED ON BY COOPERATION BETWEEN
• EMPLOYER AND WORKER
• EMPLOYED DIRECTLY OR INDIRECTLY
• FOR PRODUCTION, SUPPLY OR DISTRIBUTION OF GOODS OR SERVICES • SUCH PROVISION
EXISTS
• WITH A VIEW TO SATISFY HUMAN WANTS OR WISHES (NOT WISHES OF SPIRITUAL OR
RELIGIOUS NATURE)
• WHETHER OR NOT :-
• ANY CAPITAL HAS BEEN INVESTED
• SUCH ACTIVITY IS CARRIED ON WITH MOTIVE TO MAKE GAIN OR PROFIT

Contractors employing more than 50 contract workers will have to issue appointment
letters to each worker.
 THE INDUSTRIAL RELATIONS CODE, 2020
… INDUSTRY
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• EARLIER EXCLUSIONS OMITTED :-

• AGRICULTTURAL OPERATIONS • SUCH PROVISION
• HOSPITALS OR DISPENSARIES EXIST

• EDUCATIONAL, SCIENTIFIC, RESEARCH OR TRAINING INSTITUTIONS

• NEW EXCLUSIONS :-
• INSTITUTIONS OWNED OR MANAGED BY ORGANISATIONS WHOLLY OR SUBSTANTIALLY
• NO SUCH PROVISION
ENGAGED IN ANY CHARITABLE, SOCIAL OR PHILANTHROPIC SERVICE
• ANY DOMESTIC SERVICE

Codes provide for one common licence for factories, contract labour and beedi and cigar
establishments.
 THE INDUSTRIAL RELATIONS CODE, 2020
INDUSTRIAL DISPUTE
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• DISPUTE OR DIFFERENCE BETWEEN

• EMPLOYERS AND EMPLOYERS
• EMPLOYERS AND WORKERS
• WORKERS AND WORKERS • SUCH PRIVISION
EXISTS UNDER TWO
• REG EMPLOYMENT, NON-EMPLOYMENT, TERMS OF EMPLOYMENT, CONDITIONS OF SEPARATE CLAUSES
LABOUR U/S 2(k) AND 2A
• INCLUDES DISPUTE OR DIFFERENCE BETWEEN
• INDIVIDUAL WORKER AND EMPLOYER
• DISCHARGED, DISMISSED, RETRENCHED, TERMINATED

Inter-State migrant workers have been provided a better deal under the new Codes.
 THE INDUSTRIAL RELATIONS CODE, 2020
WAGES…
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING ACTS

• INCLUDES :-
• BASIC PAY
• DEARNESS ALLOWANCE
• RETAINING ALLOWANCE
• DOES NOT INCLUDE :-
• SUCH PROVISION EXISTS
• ANY BONUS
• VALUE OF ANY HOUSE-ACCOMMODATION
• ANY CONTRIBUTION TO PENSION OR PROVIDENT FUND

• CONVEYANCE ALLOWANCE
• ANY SOME PAID TO DEFRAY SPECIAL EXPENSES

Wages is one of the most contentious issues which directly affects the harmony and
productivity of any organisation.
 THE INDUSTRIAL RELATIONS CODE, 2020
…WAGES
AS PER EXISTING ACTS
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020

• HOUSE RENT ALLOWANCE • NO SUCH PROVISION

• AREMUNERATION UNDER AWARD OR SETTLEENT
• ANY OVERTIME ALLOWANCE
• ANY COMMISSION
• SUCH PROVISION EXIST
• ANY GRATUITY
• ANY RETRENCHMENT COMPENSATION, EX-GRATIA PAYMENY
• PROVIDED :-
• OTHER ALLOWANCES EXCEEDING 50%, OR AS NOTIFIED, OF ALL REMUNERATION WILL BE
TREATED AS WAGE
• NO SUCH PROVISION
• ANY PAYMENT IN KIND EXCEEDING 15% OF ALL REMUNERATION WILL BE TREATED AS
WAGE

Wage is a yardstick which defines the prosperity level of the employees and their
organisation.
 THE INDUSTRIAL RELATIONS CODE, 2020
VOLUNTARY REFERENCE OF
INDUSTRIAL DISPUTE TO ARBITRATION…
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING ACTS

• BY A WRITTEN AGREEMENT BETWEEN EMPLOYER AND WORKERS, THE EXISTING OR

APPREHENDED INDUSTRIAL DISPUTE CAN BE REFERRED TO ARBITRATOR OR
ARBITRATORS
• THE WRITTEN AGREEMENT FOR ARBITRATION WILL HAVE PROVISION FOR
• NO SUCH PROVISION
APPOINTMENT OF AN UMPIRE, WHOSE AWARD WILL PREVAIL IF OTHER TWO
ARBITRATORS HAVE DIVIDED AWARD
• A COPY OF THE WRITTEN AGREEMENT SHALL BE FORWARDED TO THE APPROPRIATE
GOVERNMENT AND THE CONCILIATION OFFICER

Payment of wages through electronic mode or bank transfer etc. will bring in transparency
and right and timely payment of wages to workers.
 THE INDUSTRIAL RELATIONS CODE, 2020
…VOLUNTARY REFERENCE OF
INDUSTRIAL DISPUTE TO ARBITRATION
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING ACTS

• THE APPROPRIATE GOVERNMENT ON SATISFACTION THAT THE INDUSTRIAL DISPUTE

HAS BEEN REFERRED FOR ARBITRATION BY THE MAJORITY REPRESENTATIVE PARTY, IT
WILL ISSUE A NOTIFICATION TO THIS EFFECT • NO SUCH PROVISION
• EMPLOYERS AND WORKERS WHO ARE NOT PARTIES TO THE ARBITRATION AGREEMENT
SHALL BE GIVEN OPPORTUNITY OF PRESENTING THEIR CASE BEFORE THE ARBITOR(S)

Unorganized sector and new forms of employment such as gig and platform workers etc. has
been given special emphasis in the Codes.
 THE INDUSTRIAL RELATIONS CODE, 2020
INDUSTRIAL TRIBUNAL
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• TO CONSIST OF TWO MEMBERS :–

• ONE JUDICIAL MEMBER • NO SUCH
• ONE ADMINISTRATIVE MEMBER PROVISION

• JUDICIAL MEMBER WILL PRESIDE OVER THE TRIBUNAL

The Codes enable the provision for maintaining a database of migrant workers to help in
targeting, skill mapping and utilising government schemes effectively.
 THE INDUSTRIAL RELATIONS CODE, 2020
NATIONAL INDUSTRIAL TRIBUNAL
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• TO CONSIST OF TWO MEMBERS :–

• ONE JUDICIAL MEMBER • NO SUCH
PROVISION
• ONE ADMINISTRATIVE MEMBER
• JUDICIAL MEMBER WILL PRESIDE OF THE NATIONAL INDUSTRIAL TRIBUNAL

PAN India licence for contractors for a period of five years is a noteworthy introduction.
 THE INDUSTRIAL RELATIONS CODE, 2020
MECHANISM FOR RESOLUTION OF INDUSTRIAL
DISPUTE …
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• ALL MATTERS IN THE LABOUR COURT AND TRIBUNAL UNDER THE ID ACT, 1947
• SHALL BE TRANSFERRED TO
• TRIBUNAL UNDER THE CODE
• ALL MATTERS IN THE NATIONAL TRIBUNAL UNDER THE ID ACT, 1947
• NO SUCH PROVISION
• SHALL BE TRANSFERRED TO
• NATIONAL INDUSTRIAL TRIBUNAL UNDER THE CODE.
• CONCILIATION OFFICER WILL NOT HOLD ANY PROCEEDING ON MATTERS OLDER THAN 2
YEARS

By increasing threshold from 20 workers to 50 workers for seeking a contractor’s licence,

small businesses shall be largely benefitted by engaging more of contract workers.
 THE INDUSTRIAL RELATIONS CODE, 2020
…MECHANISM FOR RESOLUTION OF INDUSTRIAL
DISPUTE
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• DECISIONS OF TRIBUNAL OR NATIONAL INDUSTRIAL TRIBUNAL SHALL BE BY CONSENSUS

• NO SUCH
• APPROPRIATE GOVERNMENT MAY APPOINT ONE OR MORE ASSESSORS OR EXPERTS TO
PROVISION
ADVISE THE TRIBUNAL OR NATIONAL INDUSTRIAL TRIBUNAL

Compulsory recognition of trade union (s) as Negotiating Union or Negotiating Council is a

long awaited reform in the field of participative and cooperative industrial relations.
 THE INDUSTRIAL RELATIONS CODE, 2020
GRIEVANCE REDRESSAL COMMITTEE
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• ROLE OF GRC IS WIDENED

• DECISION BY GRC BY MORE THAN HALF MEMBERS, ELSE WILL BE CONSIDERED AS NO
DECISION IS TAKEN
• SIMILAR PROVISION
• APPLICATION OF GRIEVANCE TO GRC WITHIN 1 YEAR EXIST
• GRC TO COMPLETE PROCEEDINGS WITHIN 30 DAYS
• TOTAL MEMBERS OF GRC INCREASED FROM 6 TO 10

The provision of insurance coverage has been extended to plantation workers, and free
annual health check-ups and a bipartite safety committee has been introduced for
establishments such as factories, mines and plantation sectors in places of hazardous
working conditions.
 THE INDUSTRIAL RELATIONS CODE, 2020
RETRENCHMENT
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• OBLIGATION TO OFFER RE-EMPLOYMENT TO RETRENCHED WORKER RESTRICTED TO 1 • NO SUCH TIME LIMIT

YEAR ONLY
• IN CASE OF INDUSTRIAL ESTABLISHMENT EMPLOYING 300 OR MORE EMPLOYEES, IT IS • IT IS OBLIGATORY IF
OBLIGATORY TO OBTAIN PRIOR PERMISSION FROM APPROPRIATE GOVERNMENT BEFORE EMPLOYING FOR 100
EFFECTING RETRENCHMENT OR MORE
EMPLOYEES
• EXCLUSION :- • NO SUCH PROVISION
• COMPLETION OF FIXED TERM EMPLOYMENT IS NOT RETRENCHMENT

Mandatory 14 days notice period before going on strike is an effort to resolve the grievance
of workers or the matter of dispute on the negotiating table through mutual talk and
deliberation.
 THE INDUSTRIAL RELATIONS CODE, 2020
STRIKE

AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING

ACTS

• FLASH STRIKE COMPLETELY PROHIBITED • REGULATES STRIKE

IN PUBLIC UTILITY
SERVICES
• CONCERTED CASUAL LEAVE ON ANY DAY BY 50% OR MORE WORKERS IN AN • NO SUCH
INDUSTRY WILL BE STRIKE PROVISION

Fixed term employees shall be extended all statutory benefits even for a short period of
employment, like a regular employee, viz., wages, EPF, ESI, bonus etc., including gratuity
for working even for a year only.
 THE INDUSTRIAL RELATIONS CODE, 2020
STRIKE AND LOCK- OUT
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• NO STRIKE OR LOCK-OUT :- • IT IS IN PUBLIC

UTILITY SERVICES
• WITHOUT NOTICE, WITHIN 60 DAYS • IT IS WITHIN 6
WEEKS
• WITHIN 14 DAYS OF GIVING NOTICE • IT IS SAME
• BEFORE THE EXPIRY OF DATE AS SPECIFIED • IT IS SAME
• DURING PENDENCY BEFORE TRIBUNAL OR NATIONAL INDUSTRIAL TRIBUNAL • IT IS AS PER
EXISTING
• DURING PENDENCY BEFORE ARBITRATION
PROVISIONS
• DURING VALIDITY OF SETTLEMENT OR AWARD

Allowing women employees to work in all shifts, including in night shift, with all safety
stipulations, is a very progressive step forward.
 THE INDUSTRIAL RELATIONS CODE, 2020
STANDING ORDER…
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• APPLICABLE TO INDUSTRIAL ESTABLISHMENTS WITH 300 OR MORE EMPLOYEES • IT IS 100 OR MORE

EMPLOYEES
• EMPLOYER SHALL CONSULT THE TRADE UNION OR RECOGNISED NEGOTIATING • NO SUCH
UNION OR MEMBERS OF NEGOTIATING COUNCIL, ON THE DRAFT STANDING ORDERS, PROVISION

• FORWARD THE SAME TO THE CERTIFYING OFFICER, ELECTRONICALLY OR OTHERWISE,

FOR CERTIFICATION

Concept of Negotiating Union is a positive step towards doing away of multiplicity of

unions in the organisation.
 THE INDUSTRIAL RELATIONS CODE, 2020
…STANDING ORDER
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• DRAFT STANDING ORDERS, OR MODIFICATION, IF NOT CERTIFIED WITHIN 60 DAYS, IT • NO SUCH

SHALL BE DEEMED TO HAVE BEEN CERTIFIED PROVISION
• TEXT OF FINALLY CERTIFIED STANDING ORDERS SHALL BE MAINTAINED IN SUCH • WORD ‘ENGLISH’
LANGUAGE ………. AND LANGUAGE
UNDERSTOOD BY
MAJORITY
WORKMEN
MENTIONED
• MODEL STANDING ORDERS WILL BE MADE BY THE CENTRAL GOVERNMENT • NO SUCH
PROVISION

Like EPF, now benefit of coverage under ESI scheme also will be available to small
establishments employing less than 10 employees, on voluntary basis.
 THE INDUSTRIAL RELATIONS CODE, 2020
CHANGE IN SERVICE CONDITIONS

AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING

ACTS

• IN EMERGENT SITUATION
• TO CHANGE SHIFT
• NO SUCH
• OTHER THAN AS PROVIDED IN STANDING ORDERS
PROVISION
• IT CAN BE DONE
• IN CONSULTATION WITH GRIEVANCE REDRESSAL COMMITTEE

The Codes reaffirm that no worker will be allowed to work in an establishment for more
than 8 hours in a day, and for not more than 48 hours in a week.
 THE INDUSTRIAL RELATIONS CODE, 2020
OFFICE BEARER OF TRADE UNION

AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING

ACTS

• RETIRED OR RETRENCHED EMPLOYEE

• SHALL NOT BE CONSIDERED
• OUTSIDER
• NO SUCH
• TO BE THE PROVISION

• OFFICE BEARER
• OF THE TRADE UNION

Spreadover of work in an establishment has been uniformly fixed at 12 hours.

 THE INDUSTRIAL RELATIONS CODE, 2020
RECOGNITION OF TRADE UNION…
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING ACTS

• IF ONLY ONE TRADE UNION IN ESTABLISHMENT

• RECOGNISE THE TRADE UNION
• AS SOLE NEGOTIATING UNION OF WORKERS IN THE ESTABLISHMENT • NO SUCH CENTRAL
PROVISION, EXCEPT IN
• IF MORE THAN ONE TRADE UNION IN THE ESTABLISHMENT FEW STATES
• TRADE UNION WITH 50% OR MORE VERIFIED MEMBERSHIP
• SHALL BE RECOGNISED

Fixed term employment will give more flexibility to employers to meet short period
requirement of additional workforce.
 THE INDUSTRIAL RELATIONS CODE, 2020
…RECOGNITION OF TRADE UNION
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING ACTS

• IF MORE THAN ONE TRADE UNION

• AND NONE HAVE 50% OR MORE VERIFIED MEMBERSHIP
• ONE REPRESENTATIVE EACH FROM TRADE UNION WITH 25% VERIFIED MEMBERSHIP
SHALL BE RECOGNISED TO REPRESENT IN NEGOTIATING COUNCIL (MAX 5 REPS.) • NO SUCH CENTRAL
PROVISION
• RECOGNITION OF TRADE UNION, OR NEGOTIATING COUNCIL SHAAL BE -
• FOR A PERIOD OF 3 YEARS, OR
• MAXIMUM FOR 5 YEARS

Voluntary reference to Arbitration of any dispute is the new way forward for resolution of
an industrial dispute.
 THE INDUSTRIAL RELATIONS CODE, 2020
NEGOGIATING UNION AND
NEGOTIATING COUNCIL
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• NEGOTIATING UNION :-
• WHETRE THERE IS ONLY ONE UNION REPRESENTING THER WORKERS IN AN
ESTABLISHMENT
• NEGOTIATING COUNCIL :- • NO SUCH PROVISION
• WHERE THERE ARE MORE THAN ONE TRADE UNION IN THE ESTABLISHMENT, AND EACH
REPRESENTATIVE OF DIFFERENT UNION REPRESENTS ITS RESPECTIVE WORKER-MEMBERS
(MINIMUM 25%)

Compounding of first offence committed by the establishment is a welcome provision.

 THE INDUSTRIAL RELATIONS CODE, 2020
WORKER RE-SKILLING FUND
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• TO CONSIST OF CONTRIBUTION FROM EMPLOYER EQUAL TO 15 DAYS' WAGES LAST

DRAWN BY EACH WORKER IMMEDIATELY BEFORE RETRENCMENT

• 15 DAYS LAST DRAWN WAGES WILL BE CREDITED IN WORKER'S ACCOUNT WITHIN 45 • NO SUCH
DAYS OF HIS RETRENCHMENT PROVISION

• APPROPRIATE GOVERNMENT MAY PRESCRIBE CONTRIBUTION FROM OTHER

SOURCES

Introduction of Administrative Member alongwith the Judicial Member in the Tribunal

and National Industrial Tribunal may hopefully help in deciding the industrial disputes,
not only from judicial angle, but from real life practical angle also.
 THE INDUSTRIAL RELATIONS CODE, 2020
OFFENCES AND PUNISHMENT
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• GOVERNMENT MAY APPOINT AN OFFICER FOR HOLDING ENQUIRY, AND WILL IMPOSE
PENALTY ON THE OFFENDER
• PUNISHMENT FOR DIFFERENT CONTRAVENTIONS UNDER DIFFERENT PROVISIONS RANGE
FROM -
• FINE FROM RS. 1,000 TO RS. 20,00,000 • NO SUCH PROVISION

• AND OR IMPRISONMENT FOR PERIODS

• FROM 1 MONTH TO 6 MONTHS
• OR BOTH

Fixed term employment will be very much suitable for industries of seasonal character.
 THE INDUSTRIAL RELATIONS CODE, 2020
COMPOUNDING OF OFFENCES…
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING ACTS

• THE GAZETTED OFFICER NOTIFIED FOR THE PURPOSE MAY

• BEFORE OR AFTER INITIATION OF PROSECUTION
• ON AN APPLICATION FROM THE ACCUSED UNDER THIS CODE,
• COMPOUND THE OFFENCE ON PAYMENT OF 50% OF THE MAXIMUM FINE AMOUNT
• NO SUCH PROVISION
FOR THE OFFENCE
• WHICH DOES NOT PROVIDE FOR IMPRISONMENT ONLY OR FINE WITH
IMPRISONMENT
• IN CASE OF PUNISHMENT WITH IMPRISONMENT UPTO 1 YEAR OR WITH FINE

• THE OFFENCE MAY BE COMPOUNDED ON PAYMENT OF 75% OF THE MAXIMUM FINE

FOR THE OFFENCE

Inspector-cum-Facilitator has wider responsibility to advise employers and employees on

various matter of industrial life.
 THE INDUSTRIAL RELATIONS CODE, 2020
…COMPOUNDING OF OFFENCES…
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• PROVIDED :-
• THE AMOUNT SO COMPOUNDED SHALL BE CREDITED TO THE SOCIAL SECURITY FUND

• NO SUCH PROVISION
• ESTABLISHED U/S 141 OF THE SOCIAL SECURITY CODE, 2020
• THE FACILITY OF ABOVE COMPOSITION SHALL NOT BE AVAILABLE
• FOR SUBSEQUENT OFFENCE COMMITTED DURING NEXT 3 YEARS

Enhanced fines and penalty of imprisonment should act as a deterrent from flouting laws and
committing contraventions.
 THE INDUSTRIAL RELATIONS CODE, 2020
…COMPOUNDING OF OFFENCES
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• IF THE APPLICATION FOR COMPOUNDING IS MADE BEFORE INTIATION OF

PROSECUTION
• THEN THE PROSECUTION WILL NOT BE INITIATED
• IF THE APPLICATION FOR COMPOUNDING IS MADE AFTER INITIATION OF
PROSECUTION
• NO SUCH
• THE OFFICER WILL INFORM THE ADJUDICATING AUTHORITY AND THE PERSON WILL PROVISION
BE DISCHARGED
• ANY PERSON WHO FAILS TO COMPLY WITH THE ORDER MADE U/SS (1)

• SHALL BE LIABLE TO PAY 20% OF MAXIMUM FINE PROVIDED, IN ADDITION TO THE

FINE

Money realised from fine etc. will be utilised back for the benefit of industry and
working class through Social Security Fund.
 THE INDUSTRIAL RELATIONS CODE, 2020
SCHEDULES
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• FIRST SCHEDULE – MATTERS TO BE PROVIDED IN THE STANDING ORDERS UNDER THE

CODE
• SECOND SCHEDULE – UNFAIR LABOUR PRACTICES • SUCH PROVISIONS
EXIST
• THIRD SCHEDULE – SERVICE CONDITIONS FOR CHANGE OF WHICH NOTICE IS
REQUIRED TO BE GIVEN

All the four Codes are a positive initiative to do away with archaic labour laws and for
helping in doing ease of business in the lager interest of all the stake holders, viz., the
employer, the worker, the society and the nation as a whole.
 THE CODE ON SOCIAL SECURITY, 2020
EXISTING ACTS TO BE REPEALED REPLACED
NEW ACT REPLACING THE REPEALED EXISTING ACTS BEING REPEALED
ACTS

• THE EMPLOYEES COMPENSATION ACT, 1923

• THE CODE ON • THE EMPLOYEES STATE INSURANCE ACT, 1948

SOCIAL SECURITY, • THE EMPLOYEES PROVIDENT FUND AND MISCELLANEOUS

PROVISIONS ACT, 1952

2020 • THE EMPLOYMENT EXCHANGE

NOTIFICATION OF VACANCIES) ACT, 1959
(COMPULSORY

• THE MATERNITY BENEFIT ACT, 1961

• THE PAYMENT OF GRATUITY ACT, 1972

• THE CINE-WORKERS WELFARE FUND ACT, 1981

• THE BUILDING AND OTHER WORKERS’ WELFARE CESS

ACT, 1996
• THE UNORGANISED WORKERS’ SOCIAL SECURITY ACT,
2008

PRESINDENT’S ASSENT RECEIVED ON 28TH SEPTEMBER, 2020

 THE CODE ON SOCIAL SECURITY, 2020
FIRST SCHEDULE…
CHAPTER CHAPTER
HEADING
APPLICABILITY

EMPLOYEES'
III EVERY ESTABLISHMENT IN WHICH TWENTY OR MORE EMPLOYEES ARE EMPLOYED.
PROVIDENT FUND
EVERY ESTABLISHMENT IN WHICH TEN OR MORE PERSONS ARE EMPLOYED OTHER THAN A
SEASONABLE FACTORY. PROVIDED THAT CHAPTER IV SHALL ALSO BE APPLICABLE TO AN
ESTABLISHMENT, WHICH CARRIES ON SUCH HAZARDOUS OR LIFE THREATENING
OCCUPATION AS NOTIFIED BY THE CENTRAL GOVERNMENT, IN WHICH EVEN A SENGLE
EMPLOYEE IS EMPLOYED.; PROVIDED FURTHER THAT AN EMPLOYER OF A PLANTATION,
EMPLOYEES' STATE MAY OPT THE APPLICATION OF CHAPTER IV IN RESPECT OF THE PLANTATION BY GIVING
iv INSURANCE WILLINGNESS TO THE CORPORATION, WHERE BENEFITS AVAILABLE TO THE EMPLOYEES
CORPORATION UNDER THAT CHAPTER ARE BETTER THAN WHAT THE EMPLOYER IS PROVIDING TO THEM;
PROVIDED ALSO THAT THE CONTRIBUTION FROM THE EMPLOYERS AND EMPLOYEES OF AN
ESTABLISHMENT SHALL BE PAYABLE UNDER SECTION 29 ON AND FROM THE DATE ON
WHICH ANY BENEFITS UNDER CHAPTER IV RELATING TO EMPLOYEES STATE INSURANCE
CORPORATION ARE PROVIDED BY THE CORPORATION TO THE EMPLOYEES OF THE
ESTABLISHMENT AND SUCH DATE SHALL BE NOTIFIED BY THE CENTRAL GOVERNMENT.
(A) EVERY FACTORY, MINE, OILFIELD, PLANTATION, PORT AND RAILWAY COMPANY; AND
(B) EVERY SHOP OR ESTABLISHMENT IN WHICH TEN OR MORE EMPLOYEES ARE EMPLOYED,
V GRATUITY OR WERE EMPLOYED, ON ANY DAY OF THE PRECEDING TWELVE MONTHS; AND SUCH SHOPS
OR ESTABLISHMENTS AS MAY BE NOTIFIED BY THE APPROPRIATE GOVERNMENT FROM TIME
TO TIME.

EMPHASIS ON SAFETY AND WELFARE OF WORKERS IS ONE OF THE MAIN OBJECTIVES OF THESE
CODES.
 THE CODE ON SOCIAL SECURITY, 2020
…FIRST SCHEDULE
CHAPTE CHAPTER
R HEADING
APPLICABILITY

(a) TO EVERY ESTABLISHMENT BEING A FACTORY, MINE OR PLANTATION INCLUDING ANY SUCH
MATERNITY ESTABLISHMENT BELONGING TO GOVERNMENT, AND (b) TO EVERY SHOP OR ESTABLISHMENT IN WHICH
VI BENEFIT TEN OR MORE EMPLOYEES ARE EMPLOYED, OR WERE EMPLOYED, ON ANY DAY OF THE PRECEDING
TWELVE MONTHS; AND SUCH OTHER SHOPS AND ESTABLISHMENTS NOTIFIED BY THE APPROPRIATE
GOVERNMENT.
EMPLOYEES’ SUBJECT TO PROVISIONS OF THE SECOND SCHEDULE, IT APPLIES TO THE EMPLOYERS AND EMPLOYEES TO
VII
COMPENSATION WHOM CHAPTER IV DOES NOT APPLY.
SOCIAL SECURITY
AND CESS IN
RESPECT OF
VIII BUILDING AND EVERY ESTABLISHMENT WHICH FALLS UNDER THE BUILDING AND OTHER CONSTRUCTION WORK.
OTHER
CONSTRUCTION
WORKERS
SOCIAL SECURITY
FOR
IX UNORGANISE SECTOR, UNORGANISED WORKERS', GIG WORKER, PLATFORM WORKER.
UNORGANISED
WORKERS'
EMPLOYMENT
X INFORMATION CAREER CENTRES, VACANCIES, PERSONS SEEKING SERVICES OF CAREER CENTRES AND EMPLOYERS.
AND MONITORING

RESOLUTION OF INDUSTRIAL DISPUTES HAS BEEN GIVEN A NEW MECHANISM UNDER THE
CODE.
 THE CODE ON SOCIAL SECURITY, 2020
REGISTRATION OF ESTABLISHMENT
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• ONE REGISTRATION REQUIRED, AND WHEN THERE IS NO REGISTRATION OF • SEPARATE

ESTABLISHMENT UNDER ANY LABOUR LAW REGISTRATION IS
REQUIRED UNDER
EVERY OTHER ACT

Due to changing nature of work, there is a strong need to strengthen employment and
social protection system. The Code is an initiative towards this objective.
 THE CODE ON SOCIAL SECURITY, 2020
APPROPRIATE GOVERNMENT

AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING

LAWS

• CENTRAL GOVERNMENT FOR :-

• BESIDES OTHER KIND OF INDUSTRIES AS MENTIONED IN THE CLAUSE,
TELECOMMUNICATION, INSURANCE, BANKING COMPANIES AND METRO RAILWAYS
• NO SUCH
• PSUs WHERE PAID-UP CAPITAL WITH CENTRAL GOVERNMENT IS NOT LESS THAN 50% PROVISION
AND WILL CONTINUE TO BE SO EVEN IF THE PAID-UP CAPITAL REDUCES LESS THAN 50%
• FOR CONTRCTORS WORKING IN ESTABLISHMENTS UNDER THE CENTRAL GOVERNMENTS

Coverage of plantation workers, unorganised sector, gig and platform workers in the
ambit of social security is a major milestone in labour reforms.
 THE CODE ON SOCIAL SECURITY, 2020
EMPLOYER
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• NEW INCLUSIONS :-
• OCCUPIER OF FACTORY
• NO SUCH PROVISION
• CONTRACTOR

• LEGAL REPRESENTATIVE OF DECEASED EMPLOYER

The Code will provide pro rate social security benefits particularly to employees employed
for short durations, by introducing the concept of fixed-term employees .
 THE CODE ON SOCIAL SECURITY, 2020
EMPLOYEE
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• NEW CATEGORIES INCLUDED :- • NO SUCH

PROVISION
• MANAGERIAL
• ADMINISTRATIVE

Code provides that Government will notify from time to time social security schemes as
per needs changed with time.
 THE CODE ON SOCIAL SECURITY, 2020
CONTRACT LABOUR
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• INCLUDES :-
• INTER-STATE MIGRANT WORKER
• DOES NOT INCLUDE -
• REGULARLY EMPLOYED PERSONS BY THE CONTRACTOR FOR ANY ACTIVITY OF HIS • NO SUCH
ESTABLISHMENT AND PROVISION
• GOVERNED BY MUTUALLY ACCEPTED CONDITIONS OF EMPLOYMENT (INCLUDING
ENGAGEMENT ON PERMANENT BASIS),

• GETS PERIODICAL INCREMENTS, SOCIAL SECURITY AND WELFARE BENEFITS

Contribution from Central, State Governments alongwith employers and beneficiaries

will help to create a robust fund to meet the needs of welfare amenities.
 THE CODE ON SOCIAL SECURITY, 2020
FIXED-TERM EMPLOYMENT
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• IT HAS TO BE BASED ON WRITTEN CONTRACT OF EMPLOYMENT :–

• HIS HOURS OF WORK
• WAGES
• ALLOWANCES AND • NO SUCH
PROVISION
• OTHER BENEFITS
• NOT LESS THAN PERMANENT EMPLOYEE

• ELIGIBLE FOR PROPORTIONATE BENEFITS, viz., GRATUITY

Inclusion of CSR funds of corporates will help to provide additional welfare benefits to
employees.
 THE CODE ON SOCIAL SECURITY, 2020
WAGES…
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020 AS PER EXISTING
ACTS

• INCLUDES :-
• BASIC PAY
• DEARNESS ALLOWANCE
• RETAINING ALLOWANCE
• DOES NOT INCLUDE :-
• SUCH PROVISION
• ANY BONUS EXISTS
• VALUE OF ANY HOUSE-ACCOMMODATION
• ANY CONTRIBUTION TO PENSION OR PROVIDENT FUND

• CONVEYANCE ALLOWANCE
• ANY SOME PAID TO DEFRAY SPECIAL EXPENSES

Wages is one of the most contentious issues which directly affects the harmony and
productivity of any organisation.
 THE CODE ON SOCIAL SECURITY, 2020
…WAGES
AS PER EXISTING ACTS
AS PER NEW INDUSTRIAL RELATIONS CODE, 2020

• HOUSE RENT ALLOWANCE • NO SUCH PROVISION

• AREMUNERATION UNDER AWARD OR SETTLEENT
• ANY OVERTIME ALLOWANCE
• ANY COMMISSION
• SUCH PROVISION EXIST
• ANY GRATUITY
• ANY RETRENCHMENT COMPENSATION, EX-GRATIA PAYMENY
• PROVIDED :-
• OTHER ALLOWANCES EXCEEDING 50%, OR AS NOTIFIED, OF ALL REMUNERATION WILL BE
TREATED AS WAGE
• NO SUCH PROVISION
• ANY PAYMENT IN KIND EXCEEDING 15% OF ALL REMUNERATION WILL BE TREATED AS
WAGE

Wage is a yardstick which defines the prosperity level of the employees and their
organisation.
 THE CODE ON SOCIAL SECURITY, 2020
EPFO SCHEME
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• APPLICABLE TO
• APPLICABLE TO ALL INDUSTRIES AND ESTABLISHMENTS, EMPLOYING 20 OR MORE
INDUSTRIES AS PER
EMPLOYEES
SCHEDULE

• FOR COVERAGE, EMPLOYEES WITH HIGHER SALARY TO BE COUNTED • PROVISION EXISTS

• PROVISION FOR DIFFERENTIAL RATE OF CLASS OF EMPLOYEES’ CONTRIBUTION AS

NOTIFIED

• PROVISION FOR NO CEILING FOR EPF CONTRIBUTION • NO SUCH PROVISION

• CEILING FOR EPS AND EDLI

• EXEMPTION ON 500
• EXEMPTION FOR EPF TRUST FOR ESTABLISHMENTS WITH 100 EMPLOYEES
EMPLOYEES

• 5 YEARS LIMITATION FOR INSTITUTION OF PROCEEDINGS • NO SUCH PROVISION

The Code brings in gender neutrality and empowers woman workforce.

 THE CODE ON SOCIAL SECURITY, 2020
ESI–WHEN EMPLOYER FAILS TO INSURE
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING LAWS

• WHEN THE EMPLOYER FAILS TO INSURE AN EMPLOYEE WITHIN PRESCRIBED TIME

LIMIT

• OR INSURES AFTER THE ACCIDENT HAS HAPPENED , OR

• FAILS TO DEPOSIT CONTRIBUTION; THEREBY RESULTING IN DISENTITLEMENT OF ESI

BENEFITS TO THE PERSON
• NO SUCH PROVISION
• ESI MAY ON BEING SATISFIED EXTEND THE ESI BENEFITS TO THE PERSON CONCERNED

• AND RECOVER THE CAPITALISED VALUE OF BENEFITS EXTENDED FROM THE

EMPLOYER

• AS ARREARS OF LAND REVENUE

Women employees can work, with consent, in any shift, including night shift, with ensured
conditions of safety, security, holidays, working hours etc.
 THE CODE ON SOCIAL SECURITY, 2020
ESI-LIABILITY FOR EXCESSIVE BENEFIT …

AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING

LAWS

• WHEN ESI CONSIDERS THAT EXCESSIVE SICKNESS BENEFITS EXTENDED ARE DUE TO

• (i) INSANITARY WORKING CONDITIONS AT THE WORKPLACE

• NO SUCH PROVISION
• (ii) INSANITARY CONDITIONS AT TENEMENTS OR LODGING PROVIDED BY EMPLOYER, EARLIER
OCCUPIED BY THE INSURED PERSN
• ESI WILL CLAIM THE EXTRA EXPENDITURE PAID AS SICKNESS BENEFIT FROM THE
OCCUPIER OF WORKPLACE OR OWNER OF THE TENEMENTS.

Establishments with less employees can obtain voluntary introduction of ESI scheme with
joint undertaking.
 THE CODE ON SOCIAL SECURITY, 2020
…ESI-LIABILITY FOR EXCESSIVE BENEFIT…
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING LAWS

• IF THE CLAIM IS NOT SETTLED

• ESI MAY REFER THE MATTER TO THE APPROPRIATE GOVERNMENT
• WHICH WILL APPOINT A PERSON TO DECIDE
• NO SUCH PROVISION
• AND ON HIS REPORT EARLIER
• THE EXTRA EXPENDITURE CAN BE ENFORCED

• AS A DECREE OF PAYMENT OF MONEY PASSED IN A SUIT BY A CIVIL COURT.

Establishments who introduce ESI scheme under voluntary category, can also surrender the
scheme with joint application.
 THE CODE ON SOCIAL SECURITY, 2020
ESI RESOURCES AND OTHER
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• ESI MAY ACCEPT :-

• GRANTS
• NO SUCH
• DONATIONS
PROVISION EARLIER
• CSR FUNDS, AND
• GIFTS FROM CENTRAL OR STATE GOVERNMENTS
• PROVISION FOR VOLUNTARY COVERAGE AND DE-COVERAGE • NO SUCH
PROVISION

Following the migrant workers’ plight during Covid lockdown period, the Government
expanded the definition of inter-state migrant workers, to include individual worker also
as migrant worker, so that no one is left out of the welfare and security benefits.
 THE CODE ON SOCIAL SECURITY, 2020
GRATUITY
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING LAWS

• NEW INCLUSIONS :-
• FIXED-TERM EMPLOYEE
• ENTITLED TO PRO RATA GRATUITY ON COMPLETION OF MINIMUM 1 YEAR • NO SUCH PROVISION
EARLIER
• FOR WORKING JOURNALISTS

• THE PERIOD OF ELIGIBILITY OF GRATUITY WILL BE 3 YEARS INSTEAD OF 5 YEARS.

Fixed-term employee will be entitled to receive pro rata social security benefits, including
gratuity for a year also.
 THE CODE ON SOCIAL SECURITY, 2020
MATERNITY LEAVE
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING LAWS

• 12 WEEKS MATERNITY LEAVE, NOT MORE THAN 6 WEEKS BEFORE DELIVERY, TO A EXISTS SINCE AMENDMENT
WOMAN WITH 2 OR MORE SURVIVING CHILDREN IN 2017
• 12 WEEKS MATERNITY BENEFIT, FOR ADOPTION OF CHILD BELOW 3 MONTHS, OR TO
COMMISSIONING MOTHER, FROM DATE OF HANDOVER OF CHILD
• 2 NURSING BREAKS BESIDES REST INTERVAL EXISTING PROVISION

• 4 VISITS TO CHRECHE EXISTS SINCE AMENDMENT

IN 2017
• WORK FROM HOME – WITH MUTUAL AGREEMENT WITH EMPLOYER, AFTER THE INTRODUCED BY
DELIVERY AMENDMENT IN 2017
• COMPLAIN TO INSPECTOR-CUM-FACILITATOR, IF DEPRIVED OF MATERNITY BENEFIT NO SUCH PROVISION
AND WRONGFUL WITHOLDING OF PAYMENT

Limitation of 5 years to conduct enquiry under EPF is a long awaited need of employer
community.
 THE CODE ON SOCIAL SECURITY, 2020
EMPLOYEES COMPENSATION
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• SERIOUS BODILY INJURY, IF :-

• INJURY INVOLVING PERMANENT LOSS OR ENFORCED ABSENCE FROM WORK FOR A

PERIOD EXCEEDING 20 DAYS
• NO SUCH PROVISION
• COMPENSATION FOR DEATH IN PLANTATION :-

• IF A WORKER OR HIS FAMILY MEMBER DIES AS A RESULT OF COLLAPSE OF HOUSE

PROVIDED BY EMPLOYER IN PLANTATION, NOT DIRECTLY ATTRIBUTABLE TO WORKER,
EMPLOYER LIABLE TO PAY COMPENSATION

Compounding of first offence by the employer is a novel initiative to encourage compliance.

 THE CODE ON SOCIAL SECURITY, 2020
INTER-STATE MIGRANT WORKER
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• WHO COMES ON HIS OWN FROM OTHER STATE

• WHO SUBSEQUENTLY CHANGES THE ESTABLISHMENT WITHIN THE DESTINATION STATE • NO SUCH PROVISION
EARLIER
• DRAWS WAGES NOT EXCEEDING RS. 18000 PER MONTH

Reduction in maintenance of less registers and single return etc. are welcome initiative for
ease of doing business, particularly for small establishments, like MSME establishments.
 THE CODE ON SOCIAL SECURITY, 2020
GIG WORKER
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING LAWS

• A PERSON ENGAGED IN ACTIVITIES OUTSIDE OF TRADITIONAL EMPLOYER-EMPLOYEE • NO SUCH PROVISION

RELATIONSHIP

Bringing earlier left out categories of self-employed category of persons have been brought
in under the social security and welfare schemes under the Code.
 THE CODE ON SOCIAL SECURITY, 2020
PLATFORM WORKER
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING LAWS

• A WORK ARRANGEMENT OUTSIDE THE TRADITIONAL EMPLOYER-EMPLOYEE • NO SUCH PROVISION

RELATIONSHIP USING ONLINE PLATFORM

Unorganised and informal employment sector has a big number of persons without any
existing social security and welfare benefits. This Codes is to fill that gap.
 THE CODE ON SOCIAL SECURITY, 2020
HOME-BASED WORKER
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• A PERSON WORKING FROM HIS HOME, OR OTHER PLACE OF HIS CHOICE, NOT • NO SUCH PROVISION
PROVIDED BY THE EMPLOYER, WHETHER OR NOT EMPLOYER PROVIDES EQUIMENTS,
MATERIALS OR OTHER INPUTS

Enhanced penalties and imprisonment will work towards more and better compliance of
statutory provisions.
 THE CODE ON SOCIAL SECURITY, 2020
SELF-EMPLOYED WORKER

AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING

LAWS

• A PERSON NOT EMPLOYED BY AN EMPLOYER, BUT ENGAGES HIMSELF IN THE • NO SUCH PROVISION
UNORGANISED SECTOR, OR HOLDS CULTIVABLE LAND SUBJECT TO NOTIFIED CEILING

Money received through enhanced penalties on violations by employers will go back to

employees by funding social security and welfare activities.
 THE CODE ON SOCIAL SECURITY, 2020
WAGE WORKER
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING LAWS

• A PERSON EMPLOYED IN UNORGANISED SECTOR, DIRECTLY OR INDIRECTLY, WHETHER

AS HOME-BASED WORKER, TEMPORARY OR CASUAL WORKER

• AS MIGRANT WORKER, EMPLOYED BY HOUSEHOLD • NO SUCH PROVISION

• DOMESTIC WORKER, ON MONTHLY WAGE AS NOTIFIED

The Codes are a positive initiative to establish a win-win situation for all stake holders.
 THE CODE ON SOCIAL SECURITY, 2020
UNORGANISED WORKER

AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING

LAWS

• A HOME-BASED WORKER

• SELF-EMPLOYED WORKER

• WAGE WORKER
• NO SUCH PROVISION
• WORKER IN UNORGANISED SECTOR

• INCLUDING :-

• WORKER IN ORGANISED SECTOR NOT COVERED BY INDUSTRIAL DISPUTES ACT, 1947

By removing anomaly under different statutes, spreadover of working hours has been
universally fixed at 12 hours.
 THE CODE ON SOCIAL SECURITY, 2020
INSPECTOR-CUM-FACILITATOR
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• A NEW AVATAR OF ‘INSPECTOR’ WITH NEW ENLARGED ROLE TO ADVISE EMPLOYERS • POSITION OF
AND WORKERS WITH REGARD TO VARIOUS COMPLIANCES PRESCRIBED UNDER THE ‘INSPECTOR’ EXISTS
CODE; NOT DOING JUST INSPECTION ALONE WITH ROLE LIMITED
TO INSPECTION

Workers will be able to receive ESI benefits where employer has failed to register him in
time under the scheme.
 THE CODE ON SOCIAL SECURITY, 2020
EMPLOYMENT INFORMATION AND
MONITORING
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• APPLICABLE TO ESTABLISHMENTS EMPLOYING 20 OR MORE EMPLOYEES • APPLICABLE ON

ESTABLISHMENTS
EMPLOYING 25
PERSONS OR MORE
• AFTER THE DATE AS NOTIFIED, EMPLOYER IN EVERY ESTABLISHMENT OR IN ANY • THE DESIGNATED
CLASS OR CATEGORY OF ESTABLISHMENT, BEFORE FILLING UP THE POST, SHALL OFFICE IS CALLED
REPORT THE VACANCIES TO THE CAREER CENTRE THE ‘EMPLOYMENT
EXCHANGE’

Establishment of Social Security Fund is a very positive step .

 THE CODE ON SOCIAL SECURITY, 2020
AGGREGATOR
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• A DIGITAL INTERMEDIARY BETWEEN BUYER AND SELLER

• RIDE SHARING SERVICES

• FOOD AND GROCERY DELIVERY SERVICES

• LOGISTIC SERVICES

• e-MARKET PLACE (BOTH MARKET PLACE AND INVENTORY MODEL) BY

WHOLESALE/RETAIL SAIL OF GOODS AND SERVICES
• NO SUCH PROVISION
• PROFESSIONAL SERVICES PROVIDER

• HEALTHCARE

• TRAVEL AND HOSPITALITY

• CONTENT AND MEDIA SERVICES

• ANY OTHER GOODS AND SERVICES PROVIDER PLATFORM

Appeal against order of Provident Fund authority is possible now with pre-deposit of just
25% of excess amount.
 THE CODE ON SOCIAL SECURITY, 2020
AUDIO-VISUAL PRODUCTION
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• INCLUDES :-

• ANIMATION, CARTOON DEPICTION, AUDIO-VISUAL ADVERTISEMENT

• NO SUCH PROVISION
• DIGITAL PRODUCTION EARLIER

• FEATURE FILMS, NON-FEATURE FILMS, TELEVISION, WEB-BASED SERIALS, TALK

SHOWS, REALTY SHOWS AND SPORTS SHOWS

Employer to pay back to ESI for the cost of excess ESI benefits provided by ESI due to
illness of insured person due to insanitary working conditions and living conditions
provided by the employer.
 THE CODE ON SOCIAL SECURITY, 2020
BOCW
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• NOT APPLICABLE TO FACTORIES OR MINES OR TO ANY OTHER CONSTRUCTION WORK • SUCH PRIVISION
EMPLOYING LESS THAN 10 WORKERS EXISTS

• NOT APPLICABLE IN RESIDENTIAL CONSTRUCTION IF COST OF CONSTRUCTION IS LESS • IN CASE OF

THAN 50 LAKH RESIDENTIAL
CONSTRUCTION,
THE CEILING IS RS.
10 LAKH

Gig workers and Platform workers and their family members can receive ESI benefits on
payment of contributions.
 THE CODE ON SOCIAL SECURITY, 2020
SOCIAL SECURITY
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING
LAWS

• BUILDING WORKERS WELFARE BOARD • NO SUCH SPECIFIC

PROVISION
• SOCIAL SECURITY ORGANISATION • WELFARE FUND
SCHEME EXISTS IN
• NATIONAL SOCIAL SECURITY BOARD MOST STATES

Inspector-cum-Facilitator to help and advise employers and employees to sort out their
differences and disputes.
 THE CODE ON SOCIAL SECURITY, 2020
SOCIAL SECURITY FUND
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING LAWS

• CENTRAL GOVERNMENT SHALL ESTABLISH A SOCIAL SECURITY FUND FOR SOCIAL

SECURITY AND WELFARE OF THE UNORGANISED WORKERS, GIG WORKERS AND
PLATFORM WORKERS
• SOURCES OF THE FUND WOULD BE FROM -

• i. WHOLLY FUNDED BY CENTRAL GOVERNMENT • NO SUCH PROVISION

EARLIER
• ii. PARTY FUNDED BY CENTRAL GOVERNMENT AND PARTLY BY STATE GOVERNMENT

• iii. PARTLY FUNDED BY CENTRAL GOVERNMENT, PARTLY BY STATE GOVT. AND PARTLY
BY BENEFICIERIES OR BY THEIR EMPLOYERS
• iv. FUNDED FROM OTHER SOURCES INCLUDING CSR

Central Government may defer or reduce employer/employee contributions for ESI and EPF
for period of 3 months in the event of pandemic or natural disaster.
 THE CODE ON SOCIAL SECURITY, 2020
SOCIAL SECURITY FOR UNORGANISED WORKERS,
GIG WORKERS AND PLATFORM WORKERS …
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING LAWS

• CENTRAL GOVERNMENT SHALL FRAME AND NOTIFY WELFARE SCHEMES FOR

UNORGANISED WORKERS FOR MATTERS RELATING TO -
• LIFE AND DISABILITY COVER

• HEALTH AND MATERNITY BENEFIT

• NO SUCH PROVISION
• OLD AGE PROTECTION

• EDUCATION AND

• ANY OTHER BENEFIT

Central Government will provide for welfare scheme for unorganised workers.
 THE CODE ON SOCIAL SECURITY, 2020
…SOCIAL SECURITY FOR UNORGANISED WORKERS,
GIG WORKERS AND PLATFORM WORKERS …
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING LAWS

• THE STATE GOVERNMENT SHALL FRAME AND NOTIFY WELFARE SCHEMES FOR
UNORGANISED WORKERS FOR MATTERS RELATED TO :-
• PROVIDENT FUND

• EMPLOYMENT INJURY BENEFIT

• HOUSING • NO SUCH PROVISION

EARLIER
• EDUCATIONAL SCHEMES FOR CHILDREN

• SKILL UPGRDATION FOR WORKERS

• FUNERAL ASSISTANCE

• OLD AGE HOMES

Employment Exchanges have been renamed as Career Centres.

 THE CODE ON SOCIAL SECURITY, 2020
…SOCIAL SECURITY FOR UNORGANISED WORKERS,
GIG WORKERS AND PLATFORM WORKERS
AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING LAWS

• THESE SCHEMES MAY BE :-

• WHOLLY FUNDED BY CENTRAL GOVERNMENT

• PARTY FUNDED BY CENTRAL GOVERNMENT AND PARTLY BY STATE GOVERNMENT

• NO SUCH PROVISION
• PARTLY FUNDED BY CENTRAL GOVERNMENT, PARTLY BY STATE GOVERNMENT AND
PARTLY BY BENEFICIERIES OR BY THEIR EMPLOYERS
• FUNDED FROM OTHER SOURCES INCLUDING CSR

Employers are not mandated to necessarily employ candidates sponsored by Career Centres
if not found suitable.
 THE CODE ON SOCIAL SECURITY, 2020
OFFENCES AND PENALTIES

AS PER CODE ON SOCIAL SECURITY, 2020 AS PER EXISTING

LAWS

• RANGING FROM FINE FROM RS. 50,000 TO 1,00,000 AND IMPRISONMENT FROM 2
MONTHS TO 3 YEARS
• FINES AND
• FOR SECOND AND SUBSEQUENT OFFENCE, FINE OF 2,00,000 AND IMPRISONMENT
IMPRISONMENT
UPTO 2 YEARS
PROVISIONS ARE
• PROVIDED - FOR SECOND AND SUBSEQUENT OFFENCE RELATED TO FAILURE OF AT LOWER SIDE
EMPLOYER TO PAY CONTRIBUTION, CHARGES, CESS, MATERNITY BENEFIT, GRATUITY
OR COMPENSATION, FINE OF 3,00,000 AND IMPRISONMENT FROM 2 TO 3 YEARS

Aggregators are responsible for welfare benefits of gig workers and platform workers.
THE OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS CODE, 2020
EXISTING ACTS BEING REPEALED
NEW CODE REPLACING THE EXISTING ACTS BEING REPEALED
REPEALED ACTS

• THE FACTORIES ACT, 1948

• THE OCCUPATIONAL •

•
THE PLANTATION LABOUR ACT, 1951

THE MINES ACT, 1952

SAFETY, HEALTH AND • THE WORKING JOURNALISTS AND OTHER NEWSPAPER EMPLOYEES (CONDITIONS
OF SERVICE) AND MISCELLANEOUS PROVISIONS ACT, 1955

• THE WORKING JOURNALISTS (FIXATION OF RATES OF WAGES) ACT, 1958

WORKING • THE MOTOR TRANSPORT WORKERS ACT, 1961

• THE BEEDI AND CIGAR WORKERS (CONDITIONS OF EMPLOYMENT) ACT, 1966

CONDITIONS CODE, •

•
THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, 1970

THE SALES PROMOTION EMPLOYEES (CONDITIONS OF SERVICE) ACT, 1979

2020 • THE INTER-STATE MIGRANT WORKMEN (REGULATION OF EMPLOYMENT AND

CONDITIONS OF SERVICES) ACT, 1979

• THE CINE-WORKERS AND CINEMA THEATRE WORKERS (REGULATION OF

EMPLOYMENT) ACT, 1981

• THE DOCK WORKERS (SAFETY, HEALTH AND WELFARE) ACT, 1986

PRESIDENT’S ASSENT RECEIVED ON 28TH SEPTEMBER,
• THE BUILDING AND OTHER CONSTRUCTION WORKERS (REGULATION OF
2020 EMPLOYMENT AND CONDITIONS OF SERVICES) ACT, 1966

SAFE WORKING ENVIRONMENT AND A HEALTHY WORKER AND HIS FAMILY ARE BOON TO ANY
ORGANISATION’S GROWTH AND PROSPERITY.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
APPLICABILITY…
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• NOT APPLICABLE TO :-
• OFFICES OF :-
• CENTRAL GOVERNMENT AND
• STATE GOVERNMENT AND
• ANY SHIP OF WAR OF ANY NATIONALITY
• APPLICABLE TO :- • NO SUCH PROVISION
• CONTRACT LABOUR ENGAGED THROUGH A CONTRACTOR
• IN OFFICES OF :-
• CENTRAL GOVERNMENT OR
• STATE GOVERNMENT,
• WITH RESPECTIVE JURISDICTIONS

To bring the gap, the Code on Occupational Health, Safety and Working Conditions, 2020 meets
the need of migrant workers by bringing jobs to the workers’ doorstep.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
…APPLICABILITY
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• CODE NOT TO APPLY :-

• FOR EXCAVATION IN MINE BEING MADE FOR PROSPECTING PURPOSE

ONLY • DOES NOT EXIST IN THIS FORM

• NOT FOR OBTAINING MINERALS FOR SALE

Manufacturers and other companies may get a higher level of impunity as they employ
workers through contractors with Government proposing to regulate the functioning of
manpower supplying agencies under the Occupational Safety, Health and Working Conditions
Code, 2020.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
REGISTRATION
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• COMMON REGISTRATION FOR CONTRACTORS, FACTORIES AND INDUSTRIAL

PLACES
• SEPARATE REGISTRATION REQUIRED
UNDER DIFFERENT ACTS
• REGISTER ELECTRONICALLY

The Code also protects the interest of the workers and provides fillip to the Government’s
employment formalisation drive.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
DUTIES OF EMPLOYER…
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• TO ENSURE AND PROVIDE :-

• HAZARD FREE WORKPLACE

• OCCUPATIONAL SAFETY AND HEALTH

• FREE ANNUAL HEALTH EXAMINATION OF EMPLOYEES

• SOME PROVISIONS EXIST
• DISPOSAL OF HAZARDOUS AND TOXIC WASTE

• ISSUE OF APPOINTMENT LETTER TO EMPLOYEES

• NO CHARGE LEVIED ON EMPLOYEES FOR COMPLIANCES

• TO SEND NOTICE OF ACCIDENT

Contractors employing less than 50 contract workers, do not require to obtain their licence.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
…DUTIES OF EMPLOYER
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• EMPLOYER TO PROVIDE FOR HEALTH, SAFETY AND WORKING CONDITIONS,

VIZ. :-
• CLEANLINESS AND HYGIENE

• VENTELATION, HUMIDIFICATION

• FREE FORM DUST, NOXIOUS GAS, FUMES ETC.

• SUCH PROVISIONS EXIST
• POTABLE DRINKING WATER

• ADEQUATE LIGHTING

• SUFFICIENT LATRINES AND URINALS

• EFFECTIVE TREATMENT OF WASTE AND EFFLUENT

National and State licence for contract staffing under OSH Code will be a progressive step.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
DUTIES OF DESIGNER ETC.
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• DESIGNERS, MANUFACTURERS, IMPORTERS AND SUPPLIERS TO :-

• ENSURE ARTICLES PROVIDED BY THEM FOR USE BY EMPLOYEES

• NO SUCH PROVISION
• ARE SAFE AND WITHOUT RISK TO HEALTH

• TO WORKERS WHEN PROPERLY USED

Opportunity for over 390 million informal workers to be employed through formal staffing
organisations.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
DUTIES OF EMPLOYEES
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• EVERY EMPLOYEE SHALL :-

• RESPONSIBLE FOR HEALTH OF SELF AND OTHER EMPLOYEES

• COMPLY WITH SAFETY AND HEALTH STANDARDS

• COOPERATE EMPLOYER TO MEET STATUTORY OBLIGATIONS • SIMILAR PROVISIONS EXIST

• NOT TO INTERFERE WITH APLLIANCES

• NOT TO ENDANGER SELF AND OTHERS

• PERFORM DUTIES AS PRESCRIBED

The OSH Code expands the definition of migrant workers to include those workers who would
be directly employed by the employer besides by the contractor.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
RIGHTS OF EMPLOYEES…
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• EVERY EMPLOYEE SHALL HAVE RIGHT TO

• OBTAIN FROM EMPLOYER INFORMATION ABOUT

• NO SUCH PROVISION

• EMPLOYEE’S HEALTH AND SAFETY

• AND REPORT TO SAFETY COMMITTEE ALSO

It has been made possible that a migrant worker, who comes for work on his own, in the
destination State, can declare himself a migrant worker by registering on an electronic portal
on the basis of self-declaration seeded with Aadhar.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
…RIGHTS OF EMPLOYEES
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• IN HAZARDOUS PROCESS IN A FACTORY :-

• IF WORKERS APPREHEND DANGER TO THEIR LIVES

• NO SUCH PROVISION
• TO BRING TO NOTICE OF OCCUPIER

• FOR IMMEDIATE CORRECTIVE ACTION

Migrant workers will be able to enjoy the benefits of portability in respect of ration and avail
benefits.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
SAFETY OF WORKER IN FACTORY
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• APPROPRIATE GOVERNMENT MAY MAKE PROVISIONS FOR :-

• FACTORIES EXPOSING WORKERS OF BODILY INJURY

• POISENING OR DISEASE
• NO SUCH PROVISION
• PROHIBIT :-

• PREGNANT WOMEN IN MANUFACTURING PROCESS

• PERIODICAL MEDICAL EXAMINATION OF WORKERS

• OCCUPIER TO APPOINT A QUALIFIED PERSON TO HANDLE HAZARDOUS

SUBSTANCES

Migrant workers will also be able to receive benefits from Building and Other Construction
Cess.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
SAFETY COMMITTEE AND SAFETY OFFICER
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• THERE SHALL BE A SAFETY COMMITTEE IN :-

• FACTORY WITH 500 WORKERS • WITH 1000 WORKERS

• FACTORY WITH HAZARDOUS PROCESS WITH 250 WORKERS • SIMILAR PROVISIONS EXIST

• BUILDING AND OTHER CONSTRUCTION WORK WITH 250 WORKERS

• MINE WITH 100 WORKERS

• EMPLOYER ALSO TO EMPLOY :-

• QUALIFIED SAFETY OFFICER

Migrant workers can also avail benefits under ESI and EPF Schemes and annual free medical
check-up.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
WELFARE OFFICER
AS PER EXISTING LAWS
AS PER OCCUPATIONAL SAFETY, HEALTH AND
WORKING CONDITIONS CODE, 2020

• EMPLOYER EMPLOYING 250 WORKERS • ON 500 WORKERS IN FACTORY

• TO APPOINT

• WELFARE OFFICER • SIMILAR PROVISION EXIST

• IN FACTORY, MINE, PLANTATION

Under the Occupational Safety, Health and Working Conditions Code that entails a single
licence for staffing firms to hire workers on contract across different locations instead of
multiple licences earlier, has come as a big relief.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
INSPECTOR-CUM-FACILITATOR
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• WEB-BASED INSPECTIONS

• INSPECTOR-CUM-FACILITATOR TO ALSO ADVISE EMPLOYER AND

EMPLOYEES FOR COMPLIANCE ETC.

• ALSO PROVISION FOR APPOINTMENT OF :- • NO SUCH PROVISION

• ADDL. CHIEF INSPECTOR-CUM-FACILITATOR

• JOINT CHIEF INSPECTOR-CUM-FACILITATOR

• DEPUTY CHIEF INSPECTOR-CUM-FACILITATOR

The Occupational Safety, Health and Working Conditions Code seeks to ensure a safe working
environment.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
SPECIAL POWERS OF INSPECTOR-CUM-FACILITATOR
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• IF A CONDITION MAY CAUSE SERIOUS HAZARD OR IMMINENT DANGER

• TO THE LIVES OF PERSONS EMPLOYED OR GENERAL PUBLIC

• EXISTS IN DIFFERENT FORM
• INSPECTOR-CUM-FACILITATOR MAY PROHIBIT

• SUCH OCCUPIER FROM EMPLOYING ANY PERSON

Under the Code, workers employed for 180 days are eligible for leave; when earlier threshold is
240 days.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
EMPLOYMENT OF WOMEN
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• EMPLOYMENT OF WOMEN DURING NIGHT SHIFT

• BETWEEN 07.00 P.M. AND 06.00 A.M.

• PERMITTED WITH CONSENT OF WOMAN

• SUBJECT TO CONDITION OF THEIR • PERMITTED IN SOME STATES WITH

SPECIFIC PERMISSION
• SAFETY

• HOLIDAY

• WORKING HOURS

The Code fixes the maximum daily work limit at 8 hours a day.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
CONTRACT LABOUR…
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• APPLICABLE ON EMPLOYING 50 CONTRACT LABOUR • IT IS 20. SOME STATES HAVE CHANGED

• PROVISION FOR MULTI-STATES OR PAN INDIA LICENCE VALID FOR 5 YEARS • NO SUCH PROVISION

• CONTRACTOR CAN NOT CHARGE ANY FEE OR COMMISSION FROM NO SUCH PROVISION
CONTRACT LABOUR
• PRINCIPAL EMPLOYER TO PROVIDE WELFARE FACILITIES TO CONTRACT • IT IS CONTRACTOR’S RESPONSIBILITY
LABOUR
• CONTRACTOR WITH NO LICENCE – IT IS CONTRAVENTION (NO MENTION • IT IS CONTRAVENTION
OF STATUS OF CONTRACT LABOUR)

Women employees will be entitled to be employed in all establishments for all types of work.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
…CONTRACT LABOUR
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• CONTRACTOR TO PAY WAGES THROUGH BANK TRANSFER OR ELECTRONIC • SIMILAR PROVISION EXISTS
MODE AND INFORM P.E. ELECTRONICALLY
• PROHIBITION TO EMPLOY CONTRACT LABOUR IN CORE ACTIVITIES • NO SUCH PROVISION UNLESS
PROHIBITED BY SPECIFIC ORDER
• APPROPRIATE GOVERNMENT TO APPOINT A PERSON TO DECIDE WHAT IS • NO SUCH PROVISION
CORE ACTIVITY

Distinction between contract labour and inter-state migrant workers has been made clear.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
CORE ACTIVITY…
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• ANY ACTIVITY FOR WHICH ESTABLISHMENT IS SET UP, INCLUDES ACTIVITY

ESSENTIAL OR NECESSARY
• PROVIDED – FOOLOWINGS ARE NOT ESSENTIAL OR NECESSARY IF
ESTABLISHMENT IS NOT SET UP FOR THAT
• SANITATION WORK, SWEEPING, CLEANING, DUSTING, COLLECTING AND
DISPOSAL OF ALL KINDS OF WASTE
• WATCH AND WARD, SECURITY SERVICES • NO SUCH PROVISION EXCEPT IN THE
STATE OF ANDHRA PRADESH
• LOADING AND UNLOADING OPERATIONS

• RUNNING HOSPITALS, EDUCATIONAL AND TRAINING INSTITUTIONS,

GUEST HOUSES, CLUBS, SPORTS SERVICES
• COURIER SERVICES AS SUPPORT SERVICES

• CIVIL AND OTHER CONSTRUCTION WORK INCLUDING MAINTENANCE

In hazardous and dangerous operations, the Government may require employer to have
adequate safety safeguards in place prior to employment.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
…CORE ACTIVITY
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• GARDENING, MAINTENANCE OF LAWNS ETC.

• HOUSEKEEPING, LAUNDARY AND OTHER SUPPORT SERVICES

• NO SUCH PROVISION EXCEPT IN THE
• TRANSPORT SERVICES, AMBULANCE SERVICES STATE OF ANDHRA PRADESH

• ACTIVITY OF INTERMITTENT NATURE EVEN IF CORE

Provision for insurance coverage has been extended to plantation workers.

 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
INTER-STATE MIGRANT WORKER
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• APPLICABLE TO ESTABLISHMENT EMPLOYING 10 OR MORE INTER-STATE • IT IS 5 ISMW

MIGRANT WORKERS
• EMPLOYER TO PAY FARE TO AND FRO NATIVE HOME ONCE A YEAR • SUCH PROVISION EXISTS

• APPROPRIATE GOVERNMENT TO PROVIDE TOLL FREE HELPLINE • NO SUCH PROVISION

Free annual health check-up and bipartite Safety Committee has been introduced for
establishments such as factories, mines and plantation sectors in places of hazardous working
conditions.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
AUDIO-VISUAL WORKERS
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• PROHIBITION TO EMPLOY WITHOUT WRITTEN AGREEMENT REGISTERED • NO SUCH PROVISION

WITH COMPETENT AUTHORITY

The Code empowers a State Government to exempt any new factory from the provisions of the
Code to create more economic activity and jobs.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
BIDI AND CIGAR WORKERS
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• NO EMPLOYER CAN USE ANY PREMISES WITHOUT A LICENCE • NO SUCH PROVISION

Inter-State migrant workers drawing wages under Rs. 18,000 per month are eligible for
availing benefits under Code.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
NATIONAL OCCUPATIONAL SAFETY AND HEALTH
ADVISORY BOARD
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• CENTRAL GOVERNMENT TO CONSTITUTE :-

• NO SUCH PROVISION
• NATIONAL OCCUPATIONAL SAFETY AND HEALTH ADVISORY BOARD

A toll-free helpline will be provided to migrant workers.

 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
SOCIAL SECURITY FUND
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• APPROPRIATE GOVERNMENT SHALL ESTABLISH SOCIAL SECURITY FUND

• FOR WELFARE ACTIVITIES

• FOR WORKERS IN UNORGANISED SECTOR • NO SUCH PROVISION

• WITH FUNDS FROM

• COMPOSITION FUND, PENALTIES AND OTHER SOURCES

Contract will pay wages to workers electronically or through bank transfer.

 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
HOURS OF WORK AND OVERTIME
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• 8 HOURS PER DAY • PROVISION EXISTS

• 48 HOURS IN A WEEK

• SPREADOVER UPTO 12 HOURS • IT HAS BEEN UNIFORMED

• OVERTIME WITH CONSENT OF WORKER • NO SUCH PROVISION

• OVERTIME BETWEEN 15-30 MINUTES = 30 MINUTES • NO SUCH PROVISION

• OVERTIME OVER 30 MINUTES = 1 HOUR • PROVISION EXISTS

• OVERTIME WAGE RATE = TWICE OF NORMAL WAGE • PROVISION EXISTS

• DISPLAY NOTICE FOR PERIOD OF WORK EVERYDAY • PROVISION EXISTS

Contractors can pay their contributions to social security schemes electronically and in timely
manner.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
ANNUAL LEAVE, ACCUMULATION & ENCASHMENT
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• AFTER WORKING FOR 180 DAYS • IT IS AFTER 240 DAYS

• ONE DAYS LEAVE FOR EVERY 20 DAYS OF WORK • IT HAS BEEN UNIFORMED

• CARRY FORWARD OF UNAVAILED LEAVE = 30 DAYS

• ENCASHMENT OF LEAVE OVER 30 DAYS LEAVES • NO SUCH PROVISION

Encashment of leave over and above maximum limit will be encashable, while such leaves were
lapsed earlier.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
REGISTERS, RECORDS, RETURNS
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• MAINTAIN RECORDS ELECTRONICALLY OR OTHERWISE

• DISPLAY NOTICES
• EXIST IN MORE NUMBERS
• ISSUE WAGE SLIPS

• FILE RETURN

Less number of registers, forms and returns will be a big respite from multiplicity of records
maintenance.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
OFFENCES AND PUNISHMENT
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• HIGHER AMOUNTS OF FINE

• RANGING FROM RS. 50,000 TO RS. 3,00,000

LOWER AMOUNT OF FINE
• RS. 2,000 PER DAY IN SOME CASES AND
LOWER PERIOD OF IMPRISONMENT
• HIGHER PERIOD OF IMPRISONMENT

• RANGING FROM UPTO 3 MONTH UPTO 6 MONTHS

Business on their part, need to be more responsible and forthcoming to ensure greater
compliance.
 THE OCCUPATIONAL SAFETY, HEALTH
AND WORKING CONDITIONS CODE, 2020
SCHEDULES
AS PER OCCUPATIONAL SAFETY, HEALTH AND AS PER EXISTING LAWS
WORKING CONDITIONS CODE, 2020

• FIRST SCHEDULE: LIST OF INDUSTRIES INVOLVING HAZARDOUS PROCESS

• SECOND SCHEDULE: LIST OF MATTERS (REG: OCCUPATIONAL

• SIMILAR PROVISIONS EXIST
SAFETY AND HEALTH STANDARDS)
• THIRD SCHEDULE: LIST OF NOTIFIABLE DISEASES

Code is a big relief to establishments operating in more than one State.

 THANK YOU !

Prepared by

Team of Labour Law Reporter

Headed by

G.M. Saini
Advocate