NEW LABOUR CODES: A brief

NEW LABOUR CODES ACTS SUBSUMED

1. The Payment of Wages Act, 1936
Code on Wages, 2. The Minimum Wages Act, 1948
2019 3. The Payment of Bonus Act, 1965
4. The Equal Remuneration Act, 1976.

1. The Employee's Compensation Act, 1923

2. The Employees' State Insurance Act, 1948
3. The Employees' Provident Funds and Miscellaneous Provisions Act,
Code on Social Security, 1952
2020 4. The Employment Exchanges Act,1959
5. The Maternity Benefit Act, 1961
6. The Payment of Gratuity Act, 1972,
7. The Cine-Workers Welfare Fund Act, 1981
8. The Building and Other Construction Workers' Welfare Cess Act, 1996
9. The Unorganized Workers' Social Security Act, 2008.

1. The Industrial Disputes Act, 1947

Code on Industrial 2. The Trade Unions Act, 1926
Relations, 2020 3. The Industrial Employment (Standing Orders) Act, 1946.

1. The Factories Act, 1948

2. The Plantations Labour Act, 1951
3. The Mines Act, 1952
4. The Working Journalists and other Newspaper Employees (Conditions
of Service) and Miscellaneous Provisions Act, 1955
Code on Occupational 5. The Working Journalists (Fixation of Rates of Wages) Act, 1958
Safety, Health and Working 6. The Motor Transport Workers Act, 1961
Conditions, 2020 7. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966,
8. The Contract Labour (Regulation and Abolition) Act, 1970,
9. The Sales Promotion Employees (Conditions of Service) Act, 1976,
10. The Inter-State Migrant Workmen (Regulation of Employment and
Conditions of Service) Act, 1979,
11. The Cine-Workers and Cinema Theatre Workers (Regulation of
Employment) Act, 1981,
12. The Dock Workers (Safety, Health and Welfare) Act, 1986
13. The Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996.
 CODES OF WAGES, 2020

SUBJECT MATTER CODES ON WAGES EARLIER PROVISIONS

APPLICABILITY OF Applicable to all employees including in Applicable only on scheduled employments
organized an unorganized sector under Minimum Wages Act, 1948

The Central Govt. will set a floor minimum No provision to fix floor
FIXATION OF FLOOR wage and may set different minimum wages Wages under Minimum wages Act, 1948
WAGES for different States and regions
TIME LIMIT FOR CLAIM Any claim for wages could be made within 6
FOR WAGES Claim could be made within 3 years months under Minimum Wages
Act,1948
Under the Payment of Bonus Act, every eligible employee is entitled to receive a statutory bonus ranging from
8.33% to 20% of the wages, and similar rates have been reflected in the Code, too. The applicability of the PBA
was however, limited to employees drawing wages not exceeding INR 21,000 per month, under the code, the
wages threshold is to be fixed by the appropriate Government in relation to establishments over which they
have jurisdiction
All employees are protected without any Applied to those employees drawing less than
APPLICABILITY TO wage limit including supervisor and Rs.24,000/- for filing claim under Payment of
EMPLOYEES managers Wages Act, 1936

Only year commencing with 1st April Not necessarily one starting on 1st April and
land ending on 31"March ending on 31st March under Payment of Bonus
No change of above accounting year Act, 1965. It could be changed also once by the
permitted employer and could change without permission.
ACCOUNTING YEAR It could be more than 12 months also.

DISQUALIFICATION FOR BONUS For similar misconduct as enumerated On dismissal misconducts i.e. fraud,
earlier. Additionally disqualification on riotous & disorderly behavior, theft and
conviction for sexual harassment. misappropriation under Payment of
Bonus Act, 1965

MODE OF PAYMENT To be credited in the bank account of the By cash only under Payment of Bonus Act
employee 1965
BONUS WHEN DISPUTE FOR Employer liable bonus @8.33% when a No such provision under Payment of
HIGHER BONUS IS REFERRED dispute is referred to industrial tribunal in a Bonus Act, 1965
FOR ADJUDICATION dispute for payment of higher bonus
Prohibits gender discrimination in matters Prohibited gender discrimination in wage
GENDER DISCRIMINATION related to wages and recruitment of payment under Equal Remuneration Act,
IN FIXATION OF WAGES employees for the same work or Work of 1976
similar nature is defined as work for which
the skill, effort, experience, and
responsibility required are the same.
Only two registers are required to be Over 10 Registers
REGISTERS & RETURNS maintained Four returns
Only one return to be filed
 CODES OF SOCIAL SECURITY, 2020

SUBJECT MATTER CODE ON SOCIAL SECURITY EARLIER LAW

REGISTRATION AND Required only when there is no Registration of Registration was required
CANCELLATION OF AN establishment under any Labour laws. under every Act.
ESTABLISHMENT. Sec.3

NATIONAL SOCIAL SECURITY BOARD

AND STATE UNORGANISED
WORKERS' BOARD. Sec.6 To be constituted comprising of 42 members. Did not exist.
Appeal against provident fund authority
APPEAL TO TRIBUNAL. entertain on 25%ofexcessamount by EPF It was upto 75%
Sec.23 Authority
PRESUMPTION AS TO Protecting other person who could possibly be Partly existed in Different
ACCIDENT ARISING IN injured in an accident. Travelling any vehicle with section
COURSE OF permission of employer from the place of work
EMPLOYMENT. Sec.34
CORPORATION'S (ESI) RIGHTS
WHEN AN EMPLOYER FAILS TO Expenditure incurred extended upon employee who
REGISTER, ETC. Sec.42 was no timely insured by the employer Did not exist.

Insured person due to insanitary working Condition.

LIABILITY OF OWNER OR
OCCUPIER OF FACTORIES, ETC., Insanitary condition of any tenements are occupied Did not exist.
FOR EXCESSIVE SICKNESS by insured person due to neglect of the
BENEFIT. Sec.43 owner .liable for extra expenditure by the
corporation
SCHEMES FOR UNORGANISED
WORKERS, GIG WORKERS AND Unorganized gig workers and platform workers and
PLATFORM WORKERS. their family members providing ESI benefits against Did not exist.
Sec.45 contributions.
welfare scheme by Central government for
unorganised workers -(i) life and disability cover; (ii)
health and maternity benefits; (iii) old age protection;
(iv) education; and (v) any other benefit as may be
FRAMING OF SCHEMES FOR determined by the Central Government.
UNORGANISED WORKERS.
Sec.109 Welfare scheme for unorganised worker by State Did not exist
government for -(i) provident fund; (ii) employment
injury benefit; (iii) housing; (iv) educational schemes
for children; (v) skill upgradation of workers;
(vi)funeral assistance; and (vii) old age homes.
FUNDING OF STATE
GOVERNMENT SCHEMES. Sec. 110 Partly by State government and partly by Did not exist
contributions (Central government could also
provided financial assistance)
HELPLINE, FACILITATION CENTRE,
ETC.,FOR UNORGANISED Appropriate government provide toll free call centre
WORKERS, GIG WORKERS AND for helpline or facilitation centres for unorganised, gig
PLATFORM WORKERS. Sec.112 and platform workers. Did not exist
 SUBJECT MATTER CODE ON SOCIAL SECURITY EARLIER LAW
REGISTRATION OF UNORGANISED
WORKERS, GIG WORKERS & Gig workers to be registered on production of
PLATFORM WORKERS. Sec.113 document including Aadhar number
Did not exist
SCHEMES FOR GIG WORKERS AND Central government to frame rules for gig and platform
PLATFORM WORKERS. Sec.114 workers relating to -(a) life and disability cover;
(b) Accident insurance; (c) health and maternity
benefits;
Did not exist
(d) old age protection; (e) crèche; and (f) any other
benefit as may be determined the Central
Government. For their welfare to be funded by
contributions towards social security fund and also a
board will be constituted
APPOINTMENT OF INSPECTOR Besides inspections they will advice the employer and Only Inspectors for inspect the
CUM- FACILITATORS AND THEIR employees for compliance of the Code Establishment
POWERS. Sec.122
MAINTENANCE OF RECORDS, Records pertaining to employment of employees Did not exist in the manner as
REGISTERS, RETURNS, ETC. number of dangerous apprentice their wages and other prescribed
Sec.123 facilities, number of dangerous occurrences, accident
injuries, statutory vacancies for suitable candidates and
display of notice.
ASSESSMENT AND No limitation
DETERMINATION OF DUES FROM Enquiry by provident fund authority shall not be prescribed for
EMPLOYER. Sec.125 Initiated after expiry of period of 5 years. enquiry under section
7A of EPF & MP Act.

PENALTY FOR FAILURE TO PAY Penalties for non-compliance of any requirement of

CONTRIBUTIONS, ETC. Sec.133 Code including non payment of prescribed Existed
Contributions Impermissible deduction, non submission
of any returns, report etc.

ENHANCED PUNISH IN CERTAIN

CASES AFTER PREVIOUS Including enhanced punishment for subsequent offence Did not exist
CONVICTION. Sec.134
REPORTING OF VACANCI ES TO Before filling up establishment vacancies to the Existed in different in the
CAREER CENTRES AND appropriate government by the establishments. Employment Exchanges (CNV)
EXCLUSIONS FROM Act, 1959
APPLICATION OF THIS CHAPTER. Other than employment agriculture, domestic service,
Secs.139&140 for duration of 90 days

POWER TO DEFER OR REDUCE Central govt. May defer for reduced employer/
THE STATUTORY CONTRIBUTIONS. employees contributions for ESI, provident fund for a Did not exist
Sec.144 period of 3 month in the event of pandemic for natural
disaster.

Any establishment or other person misusing benefits Existed in different manner

MISUSE OF BENEFITS. under the Code could be deprived from any benefit by
Sec.148 the government
 INDUSTRIAL RELATIONS CODE, 2020

SUBJECT MATTER INDUSTRIAL RELATIONS CODE EARLIER LAW

Exclusions from the definition of 'industry' – Excluded Any
capital has been invested for the purpose of carrying on
such activity; or such activity is carried on with a motive
to make any gain or profit, but does not include-(i)
institutions owned or managed by organisations wholly or
substantially engaged in any charitable, social or Did not exclude except domestic
philanthropic service; or (ii) any activity of the service that too by judicial
INDUSTRY appropriate, Government relatable to the sovereign interpretations
functions of the appropriate Government including aII the
activities carried on by the departments of the Central
Government dealing with defence research, atomic
energy and space or (iii ) any domestic service; or(lv) any
other activity as may be notified by the Central
Government.
Fixed term employment will be eligible to all statutory
FIXED TERM EMPLOYMENT benefits including gratuity which will be available to him Did not exist
even for serving for one year.
Excludes termination of service of a worker as a
RETRENCHMENT result of completion of tenure of fixed term employment Did not exist
Introduced in the Industrial Relations Code, 2020. Covers Never existed except 'workman'
any skilled, semi-skilled or unskilled, manual, operational, which has not been incorporated
EMPLOYEE supervisory, managerial, administrative, technical or in the Code
clerical work for hire or reward.

Only 'workman' was defined

WORKERS Includes working journalists and sales promotion under Industrial Disputes Act
employees whereas in other under
Industrial
Disputes Act whereas in
NEGOTIATING UNION OR It has plugged loophole : exploiting the multiplicity of
NEGOTIATING COUNCIL unions in an establishment/organization by introducing Did not exist
concept negotiating union or negotiating council.

TRADE UNION FORUM FOR Appeal against non-registration or cancellation of It lies before High Court also
APPEAL registration lies only before Tribunal

INDUSTRIAL TRIBUNAL Would consist of two members to be appointed by the Only single member was consisted
appropriate Government out of whom one shall be a in the Industrial Tribunal
Judicial Member and the other, an Administrative Member.

RE-EMPLOYMENT OF Re-employment of - within a period of one year ' only No such period was prescribed
RETRENCHED
WORKER
 IMPORTANT FEATURES CODE EARLIER LAW
FLASH STRIKE Completely prohibited No such prohibition
Strikers required to give a notice at least 14 days in Only in public utility services 14
advance to the employers if they wanted to go on strike. days’ notice was to be given
PROHIBITION OF STRIKE Such notice valid upto 60 days. Strike prohibited during
IN LOCKOUT pendency of proceedings before tribunals or arbitrator.
.'"
Consisted of the contributions of the employer of an Did not exist
industrial establishment an amount equal to fifteen days
wages last drawn by the worker immediately before the
WORKERS RESKILLING FUND retrenchment, or such other number of days as may be
notified by the Central Government, for every retrenched
worker in case of retrenchment
Workers could not resort to strike without 14 days’ notice Only in public utility services.
PROHIBITION OF STRIKE during conciliation proceedings and seven days after their
conclusion during adjudication proceedings and three
months after their conclusion.
Applies to an establishment (not being an establishment Applied for industrial
PRIOR PERMISSION FOR LAY of a seasonal character or in which work is performed establishment where 100 or more
OFF, RETRENCHMENT AND only intermittently in which not less than three hundred workers are employed
CLOSURE of INDUSTRIAL workers.
ESTABLISHMENT
Could be resolved for a sum for a sum of fifty per cent. of
the maximum fine provided for such offence punishable
with fine only and for a sum of Did not exist
COMPOSITION OF OFFENCES seventy-f ive per cent provided for such
offence punishable with imprisonment for a term which is
not more than one year or with fine.
 OCCUPATIONAL, SAFETY, HEALTH AND WORKING CONDITIONS CODE, 2020

IMPORTANT FEATURES CODE EARLIER LAW

REGISTRATION Every employer of any establishment to apply Separate registration was
for registration electronically required under each
different Act
APPOINTMENT LETTER appointment letter to be issued to every Did not exist
employee
NOTICES OF CERTAIN ACCIDENT, Existed in different forms
DANGEROUS OCCURRENCE AND Notices to the authorities and for diseases as
DISEASES specified under Third Schedule of the Code

RIGHTS OF EMPLOYEE (Sec-14) Every employee shall have right to obtain from No such provision exists
employer information related to employee’s
health and safety and report to Safety
Committee also
NATIONAL OCCUPATIONAL
SAFETY AND HEALTH ADVISORY Central government to constitute the national
BOARD occupational safety and health advisory board Not exists

WELFARE OFFICER On 250 workers in factory, mine, It is 500 workers in a factory

plantation
SAFETY COMMITIEE AND SAFETY On 500 workers in a factory, On 250 workers in When there are 1000 workers
OFFICER hazardous process. On 250 workers in building
or other construction. On 100 workers in a mine
RESPONSIBILITY OF EMPLOYER For maintenance of health, safety and working Existed in different forms
conditions of the employees
WELFARE FACILITY IN THE Employer responsible to provide and Exists
ESTABLISHMENT maintain in his establishment such welfare
facilities for the employees as may be
prescribed by the central government.
8 hours in a day and 48 hours in a week Exists

For journalist maximum 144 hours during period

DAILY AND WEEKLY HOURS OF of 4 consecutive weeks and not less than 24 Does not exist
WORK consecutive hours during 7 consecutive days.

Specific provision for working journalist and

sales promotion employer pertaining to Not existed
holidays casual leave and other kinds of leave.
OVERTIME WORKING Employer can take overtime work with consent of No such provision exists.
the worker.
NOTICE OF PERIODS OF WORK Display of notice about period of work every day. Exists in different form

ANNUAL LEAVE WITH WAGES One day for every 20 days of his work Exists

REGISTERS AND RECORDS Registers and records to be maintained by Existed but not in one but more
employer registers
SPECIAL POWERS OF INSPECTOR- Steps to be taken apprehending serious hazard or Exists in different form
CUM- FACILITATORS imminent danger in a factory or mine
IMPORTANT FEATURES CODE EARLIER LAW
 ENCASHMENT OF LEAVE Worker entitled to encash leave above ceiling as No such provision exists
prescribed

EMPLOYMENT OF WOMEN Employer can employ women employee between 7

DURING NIGHT SHIFT p.m. and 6 a.m. with her consent, subject to Did exist
conditions on safety, holidays and working hours.

Licence for engaging contract labour can be No such provision exists. Validity
CONTRACT LABOUR obtained for working in more than one State, or for of licence is twelve months.
whole of India, valid for a period of five years

NO RECOVERY FROM CONTRACT Contractor shall not charge, directly or indirectly, No such provision exists
LABOUR whole or in part, any fee or commission from
contract labour
WELFARE FACILITIES TO Welfare facilities to contract labour to be, Contractor is
CONTRACT LABOUR provided by the Principal Employer responsible to Provide
welfare facilities to his
contract labour
CONTRACT LABOUR IN CORE Permitted under certain condition Existed unless
ACTIVITY prohibited by
government
Excavation in mine being made for- prospecting Did not exist in this form
CODE NOT TO APPLY IN CERTAIN purposes only and not for the purpose of
CASES obtaining minerals for use or sale subject to the
conditions specified etc.
EXEMPTION FROM PROVISION
REGARDING EMPLOYMENT On breakdown of machinery on plant and Did not exist in this format
equipment Workers to be exempted from work.
EMPLOYMENT OF PERSONS Relates to the employment of persons below Existed in different format
BELOW EIGHTEEN YEARS OF AGE eighteen years of age. It provides that no person
(Sec.70) below eighteen years of age shall be allowed to
work in any mine or part thereof but in case of
apprentices and other trainees, such age limit
Is not below sixteen years.
FACTORY LICENCE TO Without licence no employer shall use or allow to
INDUSTRIAL PREMISE AND use any place or premises
PERSON Differently Existed
RIGHT OF WORKERS TO WARN If Workers in hazardous process apprehend No such provision exists
ABOUT IMMINENT DANGER likelihood of imminent danger to lives or health,
they may bring it to the notice of person in-
charge for immediate correction
EMPLOYMENT OF AUDIO· VISUAL
WORKER Employment with written agreement in No such provision exists
prescribed form and registered with competent
authority
OFFENCES AND PENALTIES Enhanced fines from and imprisonment terms for Lesser Fines and imprisonment
different contraventions, period

GRAVITY OF PUNISHMENT Almost double fine and imprisonment for Existed reasonably
subsequent offences

COMMON FEATURES IN ALL THE 4 CODES

 WAGES
In order to bring in consistency, the Codes have provided for a definition of the term 'wages' and includes all
remuneration including house rent allowance, conveyance and other allowances capable of being expressed in
monetary terms. In order to bring in consistency, the Codes have provided for a uniform definition of the term
'wages' and include all remuneration cable of being expressed in monetary terms.

 INSPECTOR-CUM-FACILITATOR
The Codes provide for the appointment of an Inspector-cum- Facilitator, whose role is enlarged to encompass
not just inspection but also to advise the employers and workers with regard to the various compliances
prescribed under the Codes. Inspection will be done on the basis of an inspection scheme which will include a
web based inspection schedule. The inspection schemes will be decided by the Central government.

 COMPOUNDING OF FIRST OFFENCE

Unlike the current legislations, the Codes permit compounding of the first offence committed under the Code
by
paying 50% of the maximum fine provided for such offence. However, if the violation of a similar nature is
repeated within a period of 5 years from the date on which the first violation was committed, the subsequent
offence cannot be compounded.