The Code on Social

Security, 2020
CONCEPT NOTES
Contents
1 History ....................................................................................................................................................4
2 Objective.................................................................................................................................................6
3 Acts to Be Repealed................................................................................................................................6
4 Section 2 – Definitions............................................................................................................................6
5 Section 4 - Constitution of Board of Trustees of Employees’ Provident Fund .....................................10
6 Section 5 - Constitution of Employees’ State Insurance Corporation ..................................................10
7 Section 6 - National Social Security Board and State Unorganised Workers’ Board ...........................11
8 Section 7 - Constitution of State Building Workers’ Welfare Boards ...................................................14
9 Section 8 - Disqualification and removal of a member of any Social Security Organisation ...............15
10 Section 10 - Executive Heads of Central Board and Corporation ........................................................15
11 Section 11 - Supersession of Corporation, Central Board National Social Security Board or State
Unorganised Workers’ Board or the Building Workers’ Welfare Board .....................................................16
12 Section 12 - State Board, Regional Boards, local committees etc .......................................................16
13 Section 14 - Appointment of officers of Central Board ........................................................................17
14 Section 15 – Schemes ...........................................................................................................................18
15 Section 16 – Funds................................................................................................................................18
16 Section 17 - Contribution in respect of employees and contractors ...................................................19
17 Section 20 - Chapter not to apply to certain establishments ..............................................................20
18 Section 21 - Authorising certain employer to maintain provident fund accounts ..............................20
19 Section 22 - Transfer of accounts .........................................................................................................20
20 Section 24 - Principal Officers and other staff .....................................................................................21
21 Section 25 - Employees’ State Insurance Fund ....................................................................................22
22 Section 26 - Purposes for which Employees’ State Insurance Fund may be expended ......................22
23 Section 29 – Contributions ...................................................................................................................23
24 Section 31 - Provisions as to payment of contributions by employer etc ...........................................23
25 Section 32 – Benefits ............................................................................................................................23
26 Section 33 - Corporation’s power to promote measures for health, etc., of Insured Persons ...........24
27 Section 34 - Presumption as to accident arising in course of employment.........................................24
28 Section 37 - References to medical board ...........................................................................................25
29 Section 39 - Medical benefit ................................................................................................................25
30 Section 46 - Exemption of factories or other establishments belonging to Government or any local
authority 26
31 Section 48 - Constitution of Employees’ Insurance Court ...................................................................26
32 Section 49 - Matters to be decided by Employees’ Insurance Court ...................................................26

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33 Section 50 - Powers of Employees’ Insurance Court............................................................................27
34 Section 51 - Proceedings of Employees’ Insurance Courts ..................................................................27
35 Section 52 - Appeal to High Court ........................................................................................................27
36 Section 53 - Payment of gratuity ..........................................................................................................28
37 Section 54 - Continuous service ...........................................................................................................29
38 Section 55 – Nomination ......................................................................................................................30
39 Section 56 - Determination of amount of gratuity ..............................................................................30
40 Section 57 - Compulsory insurance ......................................................................................................31
41 Section 59 - Employment of, or work by, women prohibited during certain period ..........................32
42 Section 60 - Right to payment of maternity benefit ............................................................................33
43 Section 64 - Payment of medical bonus ...............................................................................................34
44 Section 66 - Nursing breaks ..................................................................................................................34
45 Section 67 - Creche facility ...................................................................................................................34
46 Section 68 - Dismissal for absence during pregnancy ..........................................................................34
47 Section 69 - No deduction of wages in certain cases ...........................................................................35
48 Section 70 - Forfeiture of maternity benefit ........................................................................................35
49 Section 73 - Reports of fatal accidents and serious bodily injuries .....................................................35
50 Section 74 - Employer’s liability for compensation ..............................................................................35
51 Section 75 - Compensation in case of death of or injury in plantation ...............................................36
52 Section 76 - Amount of compensation.................................................................................................36
53 Section 77 - Compensation to be paid when due and damages for default .......................................37
54 Section 81 - Distribution of compensation ..........................................................................................37
55 Section 85 – Contracting ......................................................................................................................38
56 Section 87 - Insolvency of employer ....................................................................................................38
57 Section 90 - Reference to competent authority ..................................................................................38
58 Section 91 - Appointment of competent authority .............................................................................38
59 Section 95 - Powers and procedure of competent authority ..............................................................39
60 Section 99 - Appeal against order of competent authority .................................................................39
61 Section 100 - Levy and collection of cess .............................................................................................39
62 Section 101 - Interest payable on delay in payment of cess ................................................................40
63 Section 103 - Self assessment of cess ..................................................................................................40
64 Section 105 - Appeal to appellate authority ........................................................................................40
65 Section 106 - Registration of building workers as beneficiaries ..........................................................40
66 Section 107 - Cessation as a beneficiary ..............................................................................................40

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67 Section 108 - Building and Other Construction Workers’ Welfare Fund and its application ..............41
68 Section 109 - Framing of schemes for unorganized workers ...............................................................41
69 Section 110 - Funding of State Government schemes .........................................................................42
70 Section 112 - Helpline, facilitation centre, etc., for unorganized workers, gig workers and platform
workers 42
71 Section 113 - Registration of unorganized workers, gig workers and platform workers ....................43
72 Section 114 - Schemes for gig works and platform workers................................................................43
73 Section 115 – Accounts ........................................................................................................................44
74 Section 116 – Audit ..............................................................................................................................45
75 Section 117 - Budget estimates ............................................................................................................45
76 Section 118 - Annual report .................................................................................................................45
77 Section 119 - Valuation of assets and liabilities ...................................................................................45
78 Section 122 - Appointment of Inspector-cum- Facilitators and their powers .....................................46
79 Section 123 - Maintenance of records, registers, returns, etc ............................................................46
80 Section 125 - Assessment and determination of dues from employer ...............................................46
81 Section 126 - Appeal against order of Authorised Officer relating to Chapter IV ...............................48
82 Section 139 - Reporting of vacancies to career centres .......................................................................48
83 Section 140 - Exclusions from application of this Chapter ...................................................................48
84 Section 141 - Social Security Fund........................................................................................................49
85 Section 142 - Application of Aadhaar ...................................................................................................49
86 Section 144 - Power to defer or reduce ...............................................................................................49
87 Section 149 - Power of Central Government to give directions to State Government and Social
Security Organisations .................................................................................................................................49

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1 History
Introduction

The Code on Social Security, 2020, marks a significant

milestone in India's legislative efforts to streamline and
enhance social security provisions for its workforce. This
legislation aims to universalize social security by consolidating
and amending the laws relating to social security, with the
intention of extending social security to all employees and
workers either in the organized or unorganized or any other
sectors.

History of Social Security Laws in India

Early Developments: The history of social security laws in India can be traced back to the early
20th century, with the introduction of the Workmen’s Compensation Act in 1923, aimed at
compensating workers for industrial accidents. This was followed by a series of legislations,
including the Employees’ State Insurance Act of 1948, which introduced sickness and maternity
benefits, and the Employees’ Provident Funds Act of 1952, which established retirement benefits
for industrial workers.

Expansion and Consolidation: Over the decades, the Indian government introduced various other
schemes to expand the coverage of social security, including the Maternity Benefit Act of 1961
and the Payment of Gratuity Act of 1972. However, the social security system remained
fragmented across various laws and sectors, leading to complexities in compliance and gaps in
coverage.

The Code on Social Security, 2020

Consolidation of Previous Laws: The Code on Social Security, 2020, is a part of India's labor law
reform initiative, which seeks to consolidate 29 central labor laws into four codes. This particular
code amalgamates and replaces 9 existing social security legislations, aiming to simplify and
standardize the provisions for easier compliance and broader coverage.

Key Features

Universal Coverage: The Code aims to extend social security benefits to all workers, including
those in the unorganized sector, gig economy, and platform workers.

Digital and Inclusive: It emphasizes the use of digital platforms for registration, filing of returns,
and grievance handling to ensure efficiency and transparency.

Flexible Schemes: Provisions for various schemes related to life insurance, health insurance, and
pension for employees and workers across sectors.

Social Security Fund: Establishment of a social security fund for unorganized workers, gig workers,
and platform workers.

Present Context and Future Prospects

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 Implementation Challenges: The implementation of the Code on Social Security, 2020, faces
challenges, including the need for robust infrastructure for digital platforms, awareness among
workers and employers, and coordination between central and state authorities.

Future Prospects: The future prospects of the Code include the potential for increased social
security coverage across India, improvement in the quality of life for workers, and the creation of
a more inclusive and equitable social security system. The success of the Code will depend on
effective implementation, continuous monitoring, and adaptive reforms to address emerging
challenges and opportunities.

Conclusion

The Code on Social Security, 2020, represents a transformative step in the evolution of social
security laws in India. By consolidating existing laws and extending coverage to previously
uncovered workers, the Code aims to build a more inclusive, equitable, and efficient social security
system. While challenges remain in its implementation, the Code's success could serve as a model
for other countries seeking to modernize their social security frameworks in the face of changing
labor markets. The ongoing commitment of all stakeholders—government, employers, workers,
and civil society—to the Code's effective implementation and evolution will be crucial to realizing
its full potential.

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2 Objective
➢ To amend and consolidate the laws relating to social security with the goal:
• To extend social security to all employees and workers either in the organised or
unorganised or any other sectors and for matters connected with or resulting from it

3 Acts to Be Repealed
➢ Total Acts - 9

Chapter I - PRELIMINARY

4 Section 2 – Definitions
➢ “Agent” in relation to an establishment, means:
• Every person, whether appointed or not, who acting or purporting (Pretending) to act
on behalf of the owner, takes part in the management, control, supervision or direction
of such establishment or part of that

➢ “Aggregator” means:
• A digital intermediary or a market place for a buyer or user of a service to connect with
the seller or the service provider

➢ “Career centre” means:

• Any office (including employment exchange, place or portal) established and maintained
in the manner prescribed by the Central Government for providing such career services
(including registration, collection and furnishing of information, either by the keeping
of registers or otherwise, manually, digitally, virtually or through any other mode) as may
be prescribed by the Central Government, which may relate generally or specifically to
▪ Persons who seek to employ employees
▪ Persons who seek employment
▪ Occurrence of vacancies

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 ▪ Persons who seek vocational guidance and career counselling or guidance to start
self-employment

➢ “Factory” means any premises including the precincts (surrounding

area) of it:
• Where 10 or more employees are working, or were working
on any day of the preceding 12 months, and in any part of
which a manufacturing process is being carried on with the
aid of power, or
• Where 20 or more employees are working, or were working
on any day of the preceding 12 months, and in any part of
which a manufacturing process is being carried on without
the aid of power, or is ordinarily so carried on,
▪ But does not include a mine, or a mobile unit belonging
to the Armed Forces of the Union, railways running shed
or a hotel, restaurant or eating place

➢ “Gig worker” means:

• A person who performs work or participates in a work
arrangement and earns from such activities outside of traditional
employer-employee relationship

➢ “Inter-State migrant worker” means:

• A person who is employed in an establishment and who:
▪ Has been recruited directly by the employer or indirectly through contractor in one
State for employment in such establishment situated in another State; or
▪ Has come on his own from one State and obtained employment in an
establishment of another State (hereinafter called destination State) or has
subsequently changed the establishment within the destination State,
o Under an agreement or other arrangement for such employment and drawing
wages not exceeding 18,000 rupees per month or such higher amount as may
be notified by the Central Government from time to time

➢ “Minor” means:
• A person who has not attained the age of 18 years

➢ “Occupational disease” means:

• A disease specified in the Third Schedule as a disease peculiar to the
employment of the employee

➢ “Plantation” means:
• Any land used or intended to be used for:

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 ▪ Growing tea, coffee, rubber, cinchona or cardamom
which admeasures 5 hectares or more
▪ Growing any other plant, which measures 5
hectares or more and in which 10 or more persons
are employed or were employed on any day of the
preceding 12 months, if, after obtaining the
approval of the Central Government, the State
Government, by notification, so directs.
• Any land which the State Government may declare and
which is used or intended to be used for growing any
plant notwithstanding that it measures less than 5
hectares:
▪ However, no such declaration shall be made in
respect of such land which measures less than 5
hectares immediately before the commencement
of this Code
• Offices, hospitals, dispensaries, schools and any other premises used for any purpose
connected with any plantation but does not include factory on the premises

➢ “Platform work” means:

• A work arrangement outside of a traditional employer - employee relationship in which
organisations or individuals use an online platform to access other organisations or
individuals to solve specific problems or to provide specific services or any such other
activities which may be notified by the Central Government, in exchange for payment

➢ “Seasonal factory” means:

• A factory which is exclusively engaged in one or more of the following manufacturing
processes, namely:
▪ Cotton ginning, cotton or jute pressing, decortication of ground-nuts, the
manufacture of indigo, lac, sugar (including gur) or any manufacturing process
which is incidental (Secondary) to or connected with any of the aforesaid processes
and
▪ Includes a factory which is engaged for a period not exceeding 7 months in a year
in a manufacturing process as the Central Government may, by notification, specify

➢ “Social security” means:

• The measures of protection afforded to employees, unorganised workers, gig workers
and platform workers
▪ To ensure access to health care and to provide income security, particularly in
cases of old age, unemployment, sickness, invalidity, work injury, maternity or loss
of a breadwinner by means of rights conferred on them and schemes framed, under
this Code

➢ “Social Security Organisation” means:

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 • Any of the following organisations established under this Code, namely:
▪ The Central Board of Trustees of Employees' Provident Fund
▪ The Employees' State Insurance Corporation
▪ The National Social Security Board for Unorganised Workers
▪ The State Unorganised Workers' Social Security Board
▪ The State Building and other Construction Workers' Welfare Boards
▪ Any other organisation or special purpose vehicle declared to be the social
security organisation by the Central Government

➢ “Unorganised sector” means:

• An enterprise owned by individuals or self-employed workers engaged in the
production or sale of goods or providing service where the enterprise employs workers,
the number of such workers is less than 10.

Concept Check
1. Which of the following act is to be repealed with notification of code on social security,2020?
A. The Employee's Compensation Act, 1923
B. The Employees' State Insurance Act, 1948
C. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952
D. All of the above

Ans: D

Concept Check
2. Which among the following is not included in the definition of factory as per the code on social
security,
2020?
A. Mine
B. Restaurant
C. Mobile Unit belonging to armed forces
D. All of the above

Ans: D

Concept Check
3. A worker drawing wages more than what amount will not be considered a inter state migrant
worker?
A. 10000
B. 15000
C. 18000
D. 24000

Ans: C

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 Chapter II - SOCIAL SECURITY ORGANISATIONS

5 Section 4 - Constitution of Board of Trustees of Employees’ Provident Fund

➢ The Central Government may constitute a Board of Trustees of the Employees' Provident
Fund to be called the Central Board, for the administration of the funds vested in it, and
consisting of the following members, namely:

➢ The Central Board shall be a body corporate by the name of

Board of Trustees of the Employees' Provident Fund, having
perpetual succession and a common seal and shall by the said
name sue and be sued.
➢ The Central Government may constitute, an Executive
Committee from amongst the members of the Central Board to
assist the Central Board in performance of its functions
➢ The terms and conditions, including tenure of office, to which
a member of the Central Board and Executive Committee shall
discharge their respective duties may be prescribed by the Central Government

6 Section 5 - Constitution of Employees’ State Insurance Corporation

➢ The Central Government may constitute the Employees' State Insurance Corporation to be
called the Corporation, for the administration consisting of the following members, namely:

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 ➢ The Corporation shall be a body corporate by the name of Employees' State Insurance
Corporation, having perpetual succession and a common seal and shall by the said name sue
and be sued
➢ The Central Government may constitute, a Standing Committee from amongst the members
of the Corporation, in such manner as may be prescribed by the Central Government.
➢ The Central Government may constitute a Medical Benefit Committee of such composition
to assist the Corporation and the Standing Committee in performance of its functions relating
to administration of medical benefits.
➢ The terms and conditions, including tenure of office to which a member of the Corporation
and Standing Committee shall discharge their respective duties may be prescribed by the
Central Government

7 Section 6 - National Social Security Board and State Unorganised Workers’

Board
➢ The Central Government shall constitute a National Social Security Board for unorganised
workers to exercise the powers and to perform the functions assigned to it as may be
prescribed by the Central Government.
➢ The National Social Security Board shall consist of the following members, namely:

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 ➢ All members except Chairperson of the National Social Security Board shall be from amongst
persons of eminence in the fields of labour welfare, management, finance, law and
administration
➢ In above nominated members adequate representation shall be given to persons belonging
to the Scheduled Castes, the Scheduled Tribes, the minorities and women
➢ The term of the National Social Security Board shall be 3 years
➢ The National Social Security Board shall meet at least thrice a year

➢ The Central Government may constitute one or more advisory committee to advise the
Central Government on administration of this Code relating to unorganised workers and such
other matters as the Central Government may refer to it for advice
➢ Every State Government shall constitute a State Board to be known as (name of the State)
Unorganised Workers' Social Security Board to exercise the powers and to perform the
functions assigned to, it under this Code, in such manner as may be prescribed by the State
Government
➢ Every State Unorganised Workers' Board shall consist of the following members, namely:

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 ➢ All members except Chairperson of the State Unorganised Workers' Board shall be from
amongst persons of eminence in the fields of labour welfare, management, finance, law and
administration
➢ In above nominated members, adequate representation shall be given to persons belonging
to the Scheduled Castes, the Scheduled Tribes, the minorities and women
➢ The term of the State Unorganised Workers' Board shall be 3 years.
➢ The State Unorganised Workers' Board shall meet at least once in a quarter

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 ➢ The State Government may constitute one or more advisory committee to advise the State
Government on administration of this Code relating to unorganised workers and such other
matters as the State Government may refer to it for advice.

8 Section 7 - Constitution of State Building Workers’ Welfare Boards

➢ Every State Government shall constitute a Board to be known as the................(name of the
State) Building and Other Construction Workers' Welfare Board to exercise the powers , and
perform the functions assigned to, it
➢ The Building Workers' Welfare Board shall be a body corporate by the name aforesaid, having
perpetual succession and a common seal and shall by the said name sue and be sued

•However, the Building Workers' Welfare Board shall include an equal number of
members representing the State Government, the employers and the building workers
and that at least one member of the Board shall be a woman.
➢ The Building Workers' Welfare Board shall appoint a Secretary and such officers and
employees as it considers necessary for the efficient discharge of its functions
➢ The Secretary of the Building Workers' Welfare Board shall be its chief executive officer

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 ➢ The State Government may constitute one or more advisory committee to advise the State
Government on administration of this Code relating to building workers and such other
matters as the State Government may refer to it for advice

9 Section 8 - Disqualification and removal of a member of any Social Security

Organisation
➢ No person shall be chosen as, or continue to be, a member of a
Social Security Organisation, or any Committee who:
• is or at any time has been adjudged an insolvent
• is found to be a lunatic or becomes of unsound mind
• is or has been convicted of any offence involving moral
turpitude
• is an employer in an establishment and has defaulted in the
payment of any dues under this Code
• is a member of a Social Security Organisation being a member of the Parliament or a
member of a State Legislative Assembly, when he ceases to be such member of the
Parliament or State Legislative Assembly, as the case may be
• is a member of Social Security Organisation being a member of the Parliament or a
member of a State Legislative Assembly, and he becomes a
▪ Minister of Central or State Government
▪ Speaker or Deputy Speaker of House of the People or a State Legislative Assembly
▪ Deputy Chairman of the Council of States
o However, it shall not apply in case of persons who are members of the Social
Security Organisation ex officio, by virtue of being a Minister
➢ The Central Government, in case of the Central Board, the Corporation and the National Social
Security Board and the State Government in case of the State Unorganised Workers' Board
and the Building Workers' Welfare Board, may remove any member of such Social Security
Organisation from his office, who:
• is or has become subject to any of the disqualifications mentioned above
• is absent without leave of the Social Security Organisation of which he is a member for
more than 3 consecutive meetings of the Social Security Organisation or a Committee
• in the opinion of such Government, has so abused the position of his office as to render
that member's continuation in the office detrimental to the public interest or is
otherwise unfit or unsuitable to continue as such member in the opinion of such
Government
▪ However, a member of the Executive Committee of the Central Board or the
Standing Committee of the Corporation shall cease to hold office if he ceases to
be a member of the Central Board or the Corporation

10 Section 10 - Executive Heads of Central Board and Corporation

➢ The Central Provident Fund Commissioner and the Director General shall be the whole-time
officer of the Central Board and the Corporation, respectively, and

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 • Such officer shall not undertake any work unconnected with his office without the prior
approval of the Central Government

11 Section 11 - Supersession of Corporation, Central Board National Social

Security Board or State Unorganised Workers’ Board or the Building Workers’
Welfare Board
➢ If the Central Government in case of the Central Board, the Corporation or the National Social
Security Board and the State Government, in case of the State Unorganised Workers' Board
or the Building Workers' Welfare Board,
• Is of the opinion that the Corporation or the Central Board or the National Social Security
Board or the State Unorganised Workers’ Board or the Building Workers' Welfare Board
or any of the Committee thereof is unable to perform its functions, or has persistently
made delay in the discharge of its functions or has exceeded or abused its powers or
jurisdiction,
▪ Then such Government may supersede the Corporation or the Central Board or
the National Social Security Board or the State Unorganised Workers' Board or the
Building Workers’ Welfare Board, or any of the Committees and reconstitute it in
such manner as may be prescribed by the Central Government
o However, before issuing a notification such Government shall give an
opportunity to show cause as to why it should not be superseded and shall
consider the explanations and objections raised by it and take appropriate
action
➢ The Central Government or the State Government shall cause:
• a full report of any action taken by it under this section and the circumstances leading to
such action, to be laid before each House of Parliament or the State Legislature at the
earliest opportunity and in any case not later than 3 months from the date of the
notification of supersession issued

12 Section 12 - State Board, Regional Boards, local committees etc

➢ The Central Government may:
• After consultation with the Government of any State, constitute for that State, a Board
of Trustees (hereinafter in this Code referred to as a State Board)
▪ Which shall exercise such powers and perform such functions as may be assigned
by notification, to it by the Central Government from time to time
• Specify the manner of constitution of a State Board, the terms and conditions of the
appointment of its members and the procedure of its meeting and other proceedings
relating to it.

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 ➢ The Corporation may, by order appoint Regional Boards and local committees in such area
and to perform such functions and to exercise such powers as may be specified in the
regulations

Concept Check
1. Consider the following statements with respect to composition of board of trustees of employees
provident fund.
A. Chairperson is appointed by the central government
B. The board has equal number of representatives of employees and employers
C. Central provident fund commissioner is the member
D. All of the above
Which among the above options is correct?

Ans: D

2. Who among the following is the chairperson of the national social security board?
A. Prime Minister of India
B. Labour Minister
C. Finance Minister
D. None of the above

Ans: B

CHAPTER III - EMPLOYEES’ PROVIDENT FUND

13 Section 14 - Appointment of officers of Central Board

➢ The Central Government may appoint a Central Provident Fund Commissioner
• Who shall be the Chief Executive Officer of the Central Board and shall also function as
head of the Employees’ Provident Fund Organisation
➢ The Central Provident Fund Commissioner shall be subject to the general control and
superintendence of the Central Board in the discharge of his functions
➢ The Central Government shall also appoint a Financial Advisor and Chief Accounts Officer to
assist the Central Provident Fund Commissioner in the discharge of his duties
➢ The Central Board may appoint, as many:
• Additional Central Provident Fund Commissioners,
• Deputy Provident Fund Commissioners,
• Regional Provident Fund Commissioners,
• Assistant Provident Fund Commissioners and
• Such other officers and employees as it may consider necessary for the efficient
administration of the Provident Fund Scheme, the Pension Scheme and the Insurance
Scheme or other responsibilities assigned to the Central Board from time to time by the
Central Government
➢ No appointment to the post of the
• Central Provident Fund Commissioner or an
• Additional Central Provident Fund Commissioner or a

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 •Financial Adviser and Chief Accounts Officer or
•Any other post under the Central Board carrying a scale of pay
equivalent to the scale of pay of any Group 'A' or Group 'B' post under
the Central Government shall be made except after consultation with
the Union Public Service Commission
▪ However, no such consultation shall be necessary in regard to
any such appointment:
o For a period not exceeding 1 year;
o If the person to be appointed is, at the time of his appointment
i. a member of the Indian Administrative Service, or
ii. In the service of the Central Government or the Central Board in a
Group 'A' or Group 'B' post
➢ The method of recruitment, salary and allowances, discipline and other conditions of service
of the Central Provident Fund Commissioner and the Financial Adviser and Chief Accounts
Officer shall be specified by the Central Government and
• Such salary and allowances shall be paid out of the Provident Fund

14 Section 15 – Schemes
➢ The Central Government may:
• Frame a scheme to be called the Employees' Provident Fund Scheme for which the
provident funds shall be established for employees or for any class of employees and
specify the establishments or class of establishments to which the said scheme shall
apply
• Frame a scheme to be called the Employees' Pension Scheme for the purpose of
providing for
▪ Superannuation pension, retiring pension or permanent total disablement
pension
▪ widow or widower's pension, children pension or orphan pension
▪ nominee pension
• Frame a scheme to be called the Employees' Deposit Linked Insurance Scheme for the
purpose of providing life insurance benefits to the employees
• Frame any other scheme or schemes for the purposes of providing social security
benefits to self-employed workers or any other class of persons
• Modify any scheme mentioned above
➢ The schemes may provide that all or any of its provisions shall take effect either prospectively
(In the future) or retrospectively (In the Past) on and from such date as may be specified in
that behalf in the scheme

15 Section 16 – Funds
➢ The Central Government may:
• For the purposes of the Provident Fund Scheme, establish a Provident Fund

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 ▪
Where the contributions paid by the employer to the fund shall be 10% of the
wages for the time being payable to each of the employees (whether employed by
him directly or by or through a contactor), and
▪ The employee's contribution shall be equal to
the contribution payable by the employer in
respect of him and may,
o If any employee so desires, be an amount
exceeding 10% of the wages, subject to the
condition that the employer shall not be
under an obligation to pay any contribution
over and above his contribution payable
under this section
➢ The Central Government may:
• For the purposes of the Pension Scheme, establish a Pension Fund
▪ Into which there shall be paid, from time to time, in respect of every employee who
is a member of the Pension Scheme:
o Such sums from the employer's contribution not exceeding eight and one
third per cent (8.33%) of the wages or such per cent of wages as may be
notified by the Central Government
o Such sums payable as contribution to the Pension Fund, as may be specified in
the Pension Scheme, by the employers of the exempted establishments
o Such sums as the Central Government after due appropriation by Parliament
by law
• For the purposes of the Insurance Scheme, establish a Deposit-Linked Insurance Fund
▪ Into which there shall be paid by the employer in respect of every such employee
in relation to whom he is the employer, such amount, not being more than 1% of
the wages or such per cent. of wages as may be notified by the Central Government
o However, the employer shall pay into the Insurance Fund such further sums
of money, not exceeding one-fourth (1/4th) of the contribution which he is
required to make, as the Central Government may determine to meet all the
expenses in connection with the administration of the Insurance Scheme

16 Section 17 - Contribution in respect of employees and contractors

➢ The amount of contribution (that is to say, the employer's contribution as well as the
employee's contribution in pursuance of any scheme and the employer's contribution in
pursuance of the Insurance Scheme) and any charge for meeting the cost of administering
the fund paid or payable by an employer in respect of an employee employed by or through
a contractor
• May be recovered by such employer from the contractor, either by deduction from any
amount payable to the contractor under any contract or as a debt payable by the
contractor
➢ A contractor may be recover from such employee, the “employee's contribution” under any
scheme by deduction from the wages payable to such employee.
➢ Despite any contract to the contrary,

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 • No contractor shall be entitled to deduct the “employer's contribution” or the
“charges” from the wages payable to an employee employed to recover such
contribution or charges from such employee

17 Section 20 - Chapter not to apply to certain establishments

18 Section 21 - Authorising certain employer to maintain provident fund

accounts
➢ The Central Government may, on an application by the employer and the majority of
employees in relation to an establishment employing 100 or more persons,
• Authorise the employer to maintain a provident fund account subject to such terms and
conditions as may be specified in the Provident Fund Scheme
▪ However, that no authorisation shall be made if the employer of such
establishment had committed any default in the payment of provident fund
contribution or had committed any other offence under this Code during the 3
years immediately preceding the date of such authorisation.
➢ Any authorisation made may be cancelled by the Central Government if the employer fails
to comply with any of the terms and conditions of the authorisation or where he commits
any offence under any provision of this Code:
• Provided that before cancelling the authorisation, the Central Government shall give the
employer a reasonable opportunity of being heard

19 Section 22 - Transfer of accounts

➢ Where an employee:
• Employed in an establishment relinquishes his
employment and obtains employment in any other
establishment to which this Chapter (Employees’
Provident Fund) applies or not or
• Employed in an establishment to which this Chapter
(Employees’ Provident Fund) does not apply, relinquishes
his employment and obtains employment in an
establishment to which this Chapter applies,

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 ▪ Then, in both above cases his accumulated amount in provident fund account or
pension account shall be transferred or dealt in the manner as may be specified in
the Provident Fund Scheme or the Pension Scheme

1. As per the code on social security the central government must consult which among the following
for appointment for Central provident fund commissioner?
A. Union Public Service Commission
B. Staff Selection commission
C. Minister of Labour and Employment
D. Expert Panel headed by the Prime Minister

Ans: A

2. The Central Government may, in relation to an establishment employing _____x____or more

persons, authorise the employer, to maintain a provident fund account in relation to the
establishment.
What will come in place of X?
A. 50
B. 100
C. 150
D. 200

Ans: B

CHAPTER IV - EMPLOYEES STATE INSURANCE CORPORATION

20 Section 24 - Principal Officers and other staff

➢ The Central Government may appoint a Director General of the Corporation and a Financial
Commissioner, who shall be the Principal Officers of the Corporation
➢ The Director General and the Financial Commissioner shall hold office for such period, not
exceeding 5 years, as may be specified in the order of appointment.
• However, outgoing Director General or Financial Commissioner shall be eligible for re-
appointment
➢ The Director General or the Financial Commissioner shall receive such salary and allowances
as may be prescribed by the Central Government
➢ The Director General and the Financial Commissioner shall exercise such powers and
discharge such duties as may be prescribed by the Central Government
➢ A person shall be disqualified from being appointed as or for being the Director General of
the Corporation or the Financial Commissioner if he is subject to any of the disqualifications
specified in section 8.
➢ The Central Government may at any time remove the Director General of the Corporation or
the Financial Commissioner from office
• if such removal is recommended by a resolution of the Corporation passed at a special
meeting and supported by the votes of not less than two-third (2/3rd) of the total
strength of the Corporation

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 ➢ The Corporation may employ such other officers and employees as may be necessary for the
efficient transaction of its business and for discharge of any other responsibilities
➢ Every appointment to posts (other than medical, nursing or para-medical
posts) corresponding to Group 'A' and Group 'B' Gazetted posts under the
Central Government shall be made in consultation with the Union Public
Service Commission
• However, this shall not apply to an officiating or temporary
appointment for a period not exceeding 1 year

21 Section 25 - Employees’ State Insurance Fund

➢ All contributions and user charges paid under this Chapter (Employees State Insurance
Corporation) and all other moneys received on behalf of the Corporation shall be paid into a
fund (hereinafter referred to as the Employees' State Insurance Fund) which shall be held and
administered by the Corporation
➢ The Corporation may accept grants, donations, Corporate Social Responsibility Fund and
gifts from the Central or any State Government, local authority, or any individual or body
whether incorporated or not

22 Section 26 - Purposes for which Employees’ State Insurance Fund may be

expended

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23 Section 29 – Contributions
➢ The contribution payable in respect of an employee shall comprise:
• Contribution payable by the employer and
• Contribution payable by the employee and shall be paid to the Corporation
➢ The contributions shall be paid at such rates as may be prescribed by the Central Government

24 Section 31 - Provisions as to payment of contributions by employer etc

➢ The employer shall pay in respect of every employee, whether directly employed by him or
by or through a contractor, both the employer's contribution and the employee's
contribution
➢ The employer shall,
• in the case of an employee directly employed by him (not being an exempted
employee), be entitled to recover from the employee the employee's contribution by
reduction from his wages and not otherwise:
➢ Neither the employer nor the contractor shall be entitled to deduct the employer's
contribution from any wages payable to an employee or otherwise to recover it from him
➢ The employer shall bear the expenses of remitting the contributions to the Corporation
➢ An employer, who has paid contribution in respect of an employee employed by or through a
contractor, shall be entitled to recover the amount of the contribution so paid from the
contractor,
• Either by deduction from any amount payable to him by the employer under any
contract, or as a debt payable by the contractor.
➢ The contractor shall maintain a register of employees employed by or through him as
provided in the regulations and submit the same to the employer before the settlement of
any amount payable
➢ The Corporation may make regulations for any matter relating or incidental to the payment
and collection of contributions payable

25 Section 32 – Benefits

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 • Where the Insured Person did not have a family or was not living with his family at the
time of his death, to the person who actually incurs the expenditure on the funeral of
the deceased Insured Person
▪ However, the amount of payment under this clause shall not exceed such amount
as may be prescribed by the Central Government and the claim for such payment
shall be made within 3 months of the death of the Insured Person or within such
extended period as the Corporation or any officer or authority authorised

26 Section 33 - Corporation’s power to promote measures for health, etc., of

Insured Persons
➢ The Corporation may, promote measures for the improvement of
the health and welfare of Insured Persons and for the
rehabilitation and re-employment of Insured Persons
• who have been disabled or injured and may incur in respect
of such measures, expenditure from the Employees' State
Insurance Fund

27 Section 34 - Presumption as to accident arising in course of employment

➢ An accident arising in the course of an employee's employment
shall be presumed, in the absence of evidence to the contrary, to
have arisen out of that employment
➢ An accident happening to an employee in or about any premises
shall be deemed to arise out of and in the course of his
employment
➢ An accident occurring to an employee while commuting from his
residence to the place of employment for duty or from the place
of employment to his residence after performing duty, shall be
deemed to have arisen out of and in the course of employment
➢ An accident happening while an employee is travelling as a passenger by any vehicle to or
from his place of work despite he is under no obligation to his employer to travel by that
vehicle, be deemed to arise out of and in the course of his employment, if
• The accident would have been deemed so to have arisen had he been under such
obligation
• At the time of the accident, the vehicle

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 ▪ Is being operated by or on behalf of his employer or some other person by whom
it is provided in pursuance of arrangements made with his employer
▪ is not being operated in the ordinary course of public transport service
o In this section, “vehicle” includes a vessel and an aircraft

28 Section 37 - References to medical board

➢ Any question:
• Whether the relevant accident has resulted in permanent
disablement
• Whether the extent of loss of earning capacity can be
assessed provisionally or finally
• Whether the assessment of the proportion of the loss of
earning capacity is provisional or final
• In the case of provisional assessment, as to the period for
which such assessment shall hold good
▪ Shall be determined by a medical board constituted in accordance with the
provisions of the regulations any such question shall hereafter be referred to as the
“disablement question”

29 Section 39 - Medical benefit

➢ An Insured Person or (where such medical benefit is extended
to his family) a member of his family whose condition requires
medical treatment and attendance shall be entitled to receive
medical benefit
➢ Such medical benefit may be given either in the form of out-
patient treatment and attendance in a hospital or dispensary,
clinic or other institution or by visits to the home of the
Insured Person or treatment as in-patient in a hospital or
other institution
➢ The qualification of an Insured Person and his family, to claim
medical benefit and the conditions subject to which such benefit may be given, the scale and
period shall be prescribed by the Central Government
• However, an Insured Person who has attained the age of superannuation, a person who
retires under a Voluntary Retirement Scheme or takes premature retirement, and his
spouse shall be eligible to receive medical benefits subject to payment of contribution
and such other conditions as may be specified in the regulations
• However, an Insured Person who ceases to be in insurable employment on account of
permanent disablement caused due to employment injury shall continue to receive
medical benefits
➢ The Corporation may establish medical education institutions, including colleges, dental
colleges, nursing colleges and the training institutes for its officers and staff with a view to
improve the quality of their services

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 ➢ The Corporation may, in order to take preventive and curative measures for welfare of the
Insured Persons, carry out such occupational and epidemiological surveys and studies for
assessment of health and working conditions of Insured Persons

30 Section 46 - Exemption of factories or other establishments belonging to

Government or any local authority
➢ The appropriate Government may, after consultation with the Corporation, exempt any
factory or other establishment belonging to the Government or any local authority, from the
operation of this Chapter if the employees in any such factory or other establishment are
otherwise in receipt of benefits substantially similar or superior to the benefits provided
under this Chapter

31 Section 48 - Constitution of Employees’ Insurance Court

➢ The State Government shall constitute an Employees' Insurance Court for such local area as
may be specified in the notification
➢ The Employees’ Insurance Court shall consist of such number of Judges as the State
Government may think fit
➢ Any person who is or has been a judicial officer or is a legal practitioner of 5 years' standing
shall be qualified to be a Judge of the Employees' Insurance Court
➢ The State Government may appoint the same Court for two or more local areas or two or
more Employees’ Insurance Courts for the same local area
➢ Where more than one Employees’ Insurance Court has been appointed for the same local
area, the State Government may by general or special order regulate the distribution of
business between them

32 Section 49 - Matters to be decided by Employees’ Insurance Court

• Any other matter which is in dispute:

▪ Between an employer and the Corporation relating to this Chapter, or
▪ Between an employer and a Contractor relating to this Chapter or
▪ Between a person and the Corporation relating to this Chapter or
▪ Between an employee and an employer or Contractor relating to this Chapter,

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 ▪In respect of any contribution or benefit or other dues payable or recoverable
under this Code relating to this Chapter
• Claim for the recovery of contributions from the employer under this Code relating to
this Chapter
• Claim for the recovery of the value or amount of the benefits received by a person when
he is not lawfully entitled
• Claim by an employer to recover contributions from any contractor under this Code
relating to this Chapter
• Any other claim for the recovery of any benefit admissible under this Chapter, such
matter shall be decided by the Employers' Insurance Court
➢ The dispute between an employer and the Corporation in respect of any contribution or any
other dues under this Chapter shall be raised by the employer in the Employees' Insurance
Court unless he has deposited with that Court 50% of the amount due from him as claimed
by the Corporation
• However, the Employees' Insurance Court may waive or reduce the amount to be
deposited
➢ No Civil Court shall have jurisdiction to decide or deal with any question or dispute as or to
adjudicate on any liability which is to be decided by a medical board, or by a medical appeal
tribunal or by the Employees' Insurance Court

33 Section 50 - Powers of Employees’ Insurance Court

➢ The Employees' Insurance Court shall have all the powers of a Civil Court
➢ The Employees' Insurance Court shall follow such procedure as may be prescribed by the State
Government
➢ An order of the Employees' Insurance Court shall be enforceable by it as if it were a decree
passed in a suit by a Civil Court

34 Section 51 - Proceedings of Employees’ Insurance Courts

➢ The manner of commencement of proceedings before the Employees’ Insurance Court, fees
and procedure thereof shall be such as may be prescribed by the appropriate Government
➢ Limitation for initiating the proceedings by the aggrieved person in the Employees' Insurance
Court shall be 3 years from the date on which the cause of action arises
➢ Any application, appearance or act required to be made or done by any person to, or before,
an Employees' Insurance Court (other than appearance of a person required for the purpose
of his examination as a witness) may be made or done by a legal practitioner or by an officer
of a registered trade union
➢ An Employees' Insurance Court may submit any question of law for the decision of the High
Court and if it does so shall decide the question pending before it in accordance with such
decision

35 Section 52 - Appeal to High Court

➢ No appeal shall lie from an order of an Employees' Insurance Court

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 ➢ An appeal shall lie to the High Court from an order of an Employees' Insurance Court, if it
involves a substantial question of law
➢ The appeal shall be filed under this section within a period of 60 days from the date of the
order made by the Employees' Insurance Court
➢ Where the Corporation has presented an appeal against an order of the Employees'
Insurance Court,
• that Court may, and if so directed by the High Court, shall withhold the payment of any
sum directed to be paid by the order appealed against

Q.1 The director general of the employee state insurance corporation can hold the office for?
A. 2 years
B. 3 years
C. 4 years
D. 5 years

Ans: D

Q.2 No matter which is in dispute between an employer and the Corporation shall be raised by the
employer in the Employees' Insurance Court unless he has deposited with that Court ____x____% Of
the amount due from him as claimed by the Corporation:
A. 20%
B. 50%
C. 75%
D. 90%

Ans: B

CHAPTER V - GRATUITY

36 Section 53 - Payment of gratuity

➢ Gratuity shall be payable to an employee on the termination of his employment after he has
rendered continuous service for not less than 5 years:
• On his superannuation
• On his retirement or resignation
• On his death or disablement due to accident or disease
• On termination of his contract period under fixed term
employment
• On happening of any such event as may be notified by the
Central Government
▪ However, in the case of working journalist the expression “5 years” occurring in
this sub-section shall be deemed to be 3 years
▪ Also, the completion of continuous service of 5 years shall not be necessary where
the termination of the employment of any employee is:
o Due to death or

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 o Disablement or expiration of fixed term employment or
o Happening of any such event as may be notified by the Central Government
➢ For every completed year of service or part of it in excess of 6 months,
• The employer shall pay gratuity to an employee at the rate of 15 days' wages or such
number of days as may be notified by the Central Government, based on the rate of
wages last drawn by the employee concerned
▪ In the case of a monthly rated employee, the 15 days' wages shall be calculated by
dividing the monthly rate of wages last drawn by him by 26 and multiplying the
quotient by 15
▪ In the case of a piece-rated employee, daily wages shall be computed on the
average of the total wages received by him for a period of 3 months
▪ In the case of an employee who is employed in a seasonal establishment and who
is not employed throughout the year, the employer shall pay the gratuity at the rate
of 7 days' wages
▪ In the case of an employee employed on fixed-term employment or a deceased
employee, the employer shall pay gratuity on pro-rata (In proportion) basis
➢ The amount of gratuity payable to an employee shall not exceed such amount as may be
notified by the Central Government
➢ The gratuity of an employee, whose services have been terminated
• For any act,
• Wilful omission or negligence causing any damage or loss to, or
• Destruction of property belonging to the employer,
▪ Shall be forfeited to the extent of the damage or loss so caused
➢ The gratuity payable to an employee may be wholly or partially forfeited:
• If the services of such employee have been terminated for his riotous or disorderly
conduct or any other act of violence
• If the services of such employee have been terminated for any act which constitutes an
offence involving moral turpitude, provided such offence is committed by him in the
course of his employment

37 Section 54 - Continuous service

➢ An employee shall be said to be in continuous service if he has been in:
• Uninterrupted service, including service which may be interrupted on account of
sickness, accident, leave, absence from duty without leave, lay-off, strike or a lock-out
or cessation of work not due to any fault of the employee, whether such uninterrupted
or interrupted service was rendered before or after the commencement of this Code
➢ Where an employee (not employed in a seasonal establishment) is not in continuous service
for any period of 1 year or 6 months, he shall be deemed to be in continuous service under
the employer
• For the said period of 1 year, if the employee during the period of 12 calendar months
preceding the date with reference to which calculation is to be made, has actually
worked under the employer for not less than
▪ 190 days in the case of any employee employed below the ground in a mine or in
an establishment which works for less than 6 days in a week; and
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 ▪ 240 days, in any other case
• For the said period of 6 months, if the employee during the period of 6 calendar months
preceding the date with reference to which the calculation is to be made, has actually
worked under the employer for not less than
▪ 95 days, in the case of an employee employed below the ground in a mine or in an
establishment which works for less than 6 days in a week
▪ 120 days, in any other case
o For the purposes of this, the number of days on which an employee has
actually worked under an employer shall include the days on which:
a. He has been laid-of
b. He has been on leave with full wages, earned in the previous year
c. He has been absent due to temporary disablement caused by accident
arising out of and in the course of his employment
d. In the case of a female, she has been on maternity leave; so, however,
that the total period of such maternity leave does not exceed 26 weeks
➢ Where an employee, employed in a seasonal establishment, is not in continuous service for
any period of 1 year or 6 months,
• He shall be deemed to be in continuous service under the employer for such period if he
has actually worked for not less than 75% of the number of days on which the
establishment was in operation during such period.

38 Section 55 – Nomination
➢ Each employee, who has completed 1 year of service, shall make, a nomination
➢ An employee may in his nomination, distribute the amount of gratuity payable to him
amongst more than one nominee
➢ If an employee has a family at the time of making a nomination, the nomination shall be made
in favour of one or more members of his family, and any nomination made by such employee
in favour of a person who is not a member of his family shall be void
➢ If at the time of making a nomination the employee has no family, the nomination may be
made in favour of any person or persons
• But if the employee subsequently acquires a family, such nomination shall become
invalid and the employee shall make, a fresh nomination in favour of one or more
members of his family
➢ A nomination may be modified by an employee at any time, after giving to his employer a
written intimation
➢ If a nominee predeceases the employee the interest of the nominee shall revert to the
employee who shall make a fresh nomination
➢ Every nomination, fresh nomination or alteration of nomination shall be sent by the employee
to his employer

39 Section 56 - Determination of amount of gratuity

➢ A person who is eligible for payment of gratuity shall send a written application to the
employer, for payment of such gratuity

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 ➢ As soon as gratuity becomes payable the employer shall, whether an application made or
not:
• Determine the amount of gratuity and give notice in writing to the person to whom the
gratuity is payable and also to the competent authority specifying the amount of gratuity
➢ The employer shall arrange to pay the amount of gratuity within 30 days from the date it
becomes payable to the person to whom the gratuity is payable
➢ If the amount of gratuity payable is not paid by the employer within the period specified
mentioned above
• The employer shall pay, from the date on which the gratuity becomes payable to the
date on which it is paid, simple interest at such rate, not exceeding the rate notified by
the Central Government from time to time for repayment of long term deposits
▪ However, no such interest shall be payable if the delay in the payment is due to
the fault of the employee and the employer has obtained permission in writing
from the competent authority
➢ If there is any dispute of:
• Amount of gratuity payable to an employee or
• Admissibility of any claim of an employee for payment of gratuity, or the person entitled
to receive the gratuity,
▪ The employer shall deposit with the competent authority such amount as he
admits to be payable by him as gratuity
➢ To conduct an inquiry, the competent authority shall have the same powers as are vested in
a court, while trying a suit, under the Code of Civil Procedure, 1908
➢ Any person aggrieved by an order may, within 60 days from the date of the receipt of the
order, prefer an appeal to the appropriate Government or such other authority
• However, the appropriate Government or the appellate authority may, if it is satisfied
that the appellant was prevented from preferring the appeal extend the said period by a
further period of 60 days
• Also, no appeal by an employer shall be admitted unless the appellant either produces a
certificate of the competent authority that the appellant has deposited with him an
amount equal to the amount of gratuity or deposits with the appellate authority such
amount
➢ The appropriate Government or the appellate authority may, after giving the parties to the
appeal a reasonable opportunity of being heard, confirm, modify, or reverse the decision of
the competent authority

40 Section 57 - Compulsory insurance

➢ Every employer, other than an employer or an establishment belonging to, or under the
control of, the Central Government or a State Government, shall:
• Obtain an insurance in the manner prescribed by the Central Government, for his liability
for payment towards the gratuity
➢ The appropriate Government may, subject to such conditions as may be prescribed by the
Central Government, exempt:
• Any employer who had already established an approved gratuity fund in respect of his
employees and who desires to continue such arrangement, and
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 • Every employer employing 500 or more persons who establishes an approved gratuity
fund in the manner prescribed by the Central Government

1. As per the code on social security the gratuity has to be paid to employees who are in continuous
service for a period of atleast?
A. 3 years
B. 5 years
C. 7 years
D. 9 years

Ans: B

2. For a worker working under the mine, how many days of work in preceding 12 months will be
considered as continuous
work for 1 year?
A. 150 days
B. 190 days
C. 240 days
D. None of the above

Ans: B

CHAPTER VI MATERNITY BENEFIT

41 Section 59 - Employment of, or work by, women prohibited during certain

period
➢ No employer shall knowingly employ a woman in any establishment during the 6 weeks
immediately following the day of her delivery, miscarriage or medical termination of
pregnancy
➢ No woman shall work in any establishment during the 6 weeks immediately following the
day of her delivery, miscarriage or medical termination of pregnancy
➢ No pregnant woman shall, on a request being made by her in this behalf, be required by her
employer to do, during the *period specified*:
• Any work which is of an arduous nature
(Requires strenuous effort or is difficult and
tiring) or
• Which involves long hours of standing or
• Which any way is likely to interfere with her
pregnancy or the normal development of the
foetus or
• Is likely to cause her miscarriage or otherwise to
adversely affect her health

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42 Section 60 - Right to payment of maternity benefit
➢ Every woman shall be entitled to, and her employer shall be
liable for, the payment of maternity benefit at the rate of
the average daily wage for the period of her actual absence:
• The period immediately preceding the day of her
delivery, and any period immediately following that
day
➢ No woman shall be entitled to maternity benefit unless she
has actually worked in an establishment of the employer
from whom she claims maternity benefit, for a period of not
less than 80 days in the 12 months immediately preceding
the date of her expected delivery
• Days she has been laid off or was on holiday with wages, during the period of 12 months
immediately preceding the expected date of her delivery shall be taken into account for
calculating the above mentioned period
➢ The maximum period for which any woman shall be entitled to maternity benefit shall be 26
weeks of which not more than 8 weeks shall precede the expected date of her delivery
• However, the maximum period entitled to maternity benefit by a woman having two or
more surviving children shall be 12 weeks of which not more than 6 weeks shall precede
the date of her expected delivery
• Also, where a woman dies during this period, the maternity benefit shall be payable only
for the days up to and including the day of her death
• Also, where a woman having been delivered of a child:
▪ Dies during her delivery or during the period
immediately following the date of her delivery,
leaving behind the child, the employer shall be liable
for the maternity benefit for that entire period
▪ But if the child also dies during the said period, then,
for the days up to and including the date of the death
of the child.
➢ A woman who legally adopts a child below the age of 3 months or a commissioning mother:
• Shall be entitled to maternity benefits for a period of 12 weeks from the date the child
is handed over
➢ In case the work assigned to a woman is of such nature that she may work from home, the
employer may allow her to do so:
• After availing of the maternity benefit for such period and on such conditions as the
employer and the woman may mutually agree

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43 Section 64 - Payment of medical bonus
➢ Every woman entitled to maternity benefit shall also be entitled to receive from her employer
a medical bonus of ₹3500 or such amount as may be notified by the Central Government,
• If no pre-natal confinement and post-natal care is provided for by the employer free of
charge

44 Section 66 - Nursing breaks

➢ Every woman delivered of a child who returns to duty after such delivery shall, in addition to
the interval for rest allowed to her, be allowed in the course of her daily work 2 breaks of such
duration as may be prescribed by the Central Government, for nursing the child until the child
attains the age of 15 months

45 Section 67 - Creche facility

➢ Every establishment, in which 50 employees or such number of
employees as may be prescribed by the Central Government, are
employed shall have the facility of crèche within such distance as
may be prescribed by the Central Government
• The employer shall allow 4 visits a day to the crèche by the
woman, which shall also include the intervals of rest allowed to
her

46 Section 68 - Dismissal for absence during pregnancy

➢ When a woman absents herself from work,
• It shall be unlawful for her employer to discharge or dismiss her during or on account of
such absence or
• To give notice of discharge or dismissal
▪ However, the discharge or dismissal of a woman at any time during her pregnancy,
shall not have the effect of depriving her of the maternity benefit or medical bonus

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 ▪But, where the dismissal is for any gross misconduct as may be prescribed by the
Central Government, the employer may deprive her of the maternity benefit or
medical bonus, or both
➢ Any woman deprived of maternity benefit or medical bonus, or both, or discharged or
dismissed may, within 60 days appeal to the competent authority, and the decision of that
authority shall be final

47 Section 69 - No deduction of wages in certain cases

➢ No deduction from the normal and usual daily wages of a woman entitled to maternity
benefit shall be made by reason only of:
• The nature of work assigned to her
• Breaks for nursing the child allowed to her

48 Section 70 - Forfeiture of maternity benefit

➢ A woman who works for remuneration during the period she has been permitted by an
employer to absent herself for availing the maternity benefits shall not be entitled to receive
maternity benefit for such period

CHAPTER VII - EMPLOYEE’S COMPENSATION

49 Section 73 - Reports of fatal accidents and serious bodily injuries

➢ Notice is required to be given to any authority, by or on behalf
of an employer, of any accident occurring in his premises
which results in death or serious bodily injury, within 7 days
of the death or *Serious bodily injury*
➢ Nothing in this section shall apply to establishments to which
Chapter IV, relating to Employees' State Insurance
Corporation, applies

50 Section 74 - Employer’s liability for compensation

➢ If personal injury is caused to an employee by accident or an occupational disease listed in
the Third Schedule arising out of and in the course of his employment, his employer shall be
liable to pay compensation
• However, the employer shall not be so liable:
▪ For such Injury which does not result in the total or partial disablement of the
employee for a period exceeding 3 days
▪ For such injury, not resulting in death or permanent total disablement caused by
an accident which is directly attributable to
o Employee having been under the influence of drink or drugs
o Wilful disobedience of the employee to an order expressly given, or to a rule
expressly framed, for the purpose of securing the safety of employees

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 o Wilful removal or disregard by the employee of any safety guard or other
device which he knew to have been provided for the purpose of securing the
safety of employee
➢ If an employee employed in any employment specified in the Second Schedule contracts any
disease specified in the Third Schedule, being an occupational disease peculiar to that
employment whilst in the service of an employer in whose service he has been employed for
a continuous period of not less than 6 months, then, such disease shall be deemed to be an
injury by accident
➢ An accident while commuting from his residence to the place of employment for duty or from
the place of employment to his residence after performing duty, shall be deemed to have
arisen out of and in the course of employment if nexus between the circumstances, time and
place in which the accident occurred and his employment is established
➢ The Central Government or the State Government, after giving, by notification, not less than
3 months' notice modify or add any description of employment to the employments specified
in the Second Schedule, and occupational diseases specified in the Third Schedule

51 Section 75 - Compensation in case of death of or injury in plantation

➢ If death or injury is caused to any worker or a member of
his family as a result of the collapse of a house provided by
the employer in a plantation, and the collapse is not solely
and directly attributable to a fault on the part of any
occupant of the house or to a natural calamity, the
employer shall be liable to pay compensation under section
76 and the Sixth Schedule

52 Section 76 - Amount of compensation

➢ The amount of compensation shall be:
• Where death results from the injury, an amount equal to 50% of the monthly wages of
the deceased employee multiplied by the relevant factor or an amount as may be
notified by the Central Government from time to time, whichever is more.
• Where permanent total disablement results from the injury, an amount equal to 60%
of the monthly wages of the injured employee multiplied by the relevant factor or an
amount as may be notified by the Central Government from time to time, whichever is
more
• Where permanent partial disablement results from the injury:
▪ In the case of an injury specified in Part II of the Fourth Schedule, percentage of
compensation is specified in that schedule itself; and
▪ In the case of an injury not specified in the Fourth Schedule, such percentage of the
compensation as assessed by the medical practitioner
• Where temporary disablement, whether total or partial, results from the injury, a half-
monthly payment of the sum equivalent to 25% of monthly wages of the employee, to
be paid
▪ The half-monthly payment mentioned above shall be payable on the 16th day

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 o From the date of disablement where such disablement lasts for a period of 28
days or more; or
o After the expiry of a waiting period of 3 days from the date of disablement,
where such disablement lasts for a period of less than 28 days;
✓ and after that half-monthly (Twice a month) during the disablement or
during a period of 5 years, whichever is shorter
➢ If the injury of the employee results in his death, the employer shall, in addition to the
compensation:
• Deposit with the competent authority a sum of not less than ₹15,000 or such amount
as may be prescribed by the State Government, for payment of the same to the eldest
surviving dependant of the employee towards the expenditure of the funeral of such
employee

53 Section 77 - Compensation to be paid when due and damages for default

➢ Compensation shall be paid as soon as it falls due:
• In cases where the employer does not accept the liability for compensation to the extent
claimed, he shall be bound to make provisional payment based on the extent of liability
which he accepts, and, such payment shall be deposited with the competent authority
or made to the employee
➢ Where any employer is in default in paying the compensation due under this Chapter within
1 month from the date it fell due, the competent authority shall:
• Direct that the employer shall, in addition to the amount of the arrears, pay interest at
such rate as may be prescribed by the Central Government, on the amount due; and
• If in his opinion, there is no justification for the delay, direct that the employer shall, in
addition to the amount of the arrears and interest, pay a further sum not exceeding 50%
of such amount of arrears by way of damages

54 Section 81 - Distribution of compensation

➢ No payment of compensation in respect of an employee whose injury has resulted in death,
and no payment of a lump sum as compensation to a woman or a person under a legal
disability, shall be made:
• Instead, it must be deposited with the competent authority, and no such payment made
directly by an employer shall be deemed to be a payment of compensation
▪ However, in the case of a deceased employee, an employer may make to any
dependant, advances on account of compensation of an amount equal to 3
months' wages of such employee and shall be deducted by the competent
authority from such compensation and repaid to the employer
➢ Any other sum amounting to not less than ₹5,000 which is payable as compensation may be
deposited with the competent authority on behalf of the person entitled
➢ If the competent authority is satisfied after any inquiry that no dependant exists, he shall
repay the balance of the money to the employer by whom it was paid

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 ➢ Where any compensation deposited with the competent authority is payable to any person,
other than a woman or a person under legal disability, the competent authority may pay the
compensation to the person entitled
➢ Where any lump sum deposited with the competent authority is payable to a woman or a
person under a legal disability
• Such sum may be invested, applied or otherwise dealt with for the benefit of the woman,
or of such person during his disability, in such manner as the competent authority may
direct

55 Section 85 – Contracting
➢ Where any employer contracts with a contractor for the execution by or under the contractor
of the whole or any part of any work which is ordinarily part of the trade or business of the
employer,
• The employer shall be liable to pay to any employee employed in the execution of the
work any compensation, which he would have been liable to pay if that employee had
been immediately employed by him; and that the amount of compensation shall be
calculated with reference to the wages of the employee under the employer by whom
he is immediately employed
➢ Where the employer is liable to pay compensation, he shall be entitled to be indemnified
(Compensated) by the contractor
➢ The Provisions of this section do not apply if the accident took place outside the premises
where the employer conducts work or has control or management

56 Section 87 - Insolvency of employer

➢ Where any employer has entered into a contract with any insurers in respect of any liability
under this Chapter to any employee, then, in the event of the employer becoming insolvent
or wounding up of the company, the rights of the employer will be transferred to the
employee

57 Section 90 - Reference to competent authority

➢ If any question arises in any proceedings under this Chapter:
• As to the liability of any person to pay compensation (including any question as to
whether a person injured is or is not an employee) or
• As to the amount or duration of compensation (including any question as to the nature
or extent of disablement), the question shall be settled by a competent authority
➢ No Civil Court shall have jurisdiction to settle, decide or deal with any question which is by or
under this Chapter required to be settled, decided or dealt with by a competent authority

58 Section 91 - Appointment of competent authority

➢ The State Government may appoint:
• Any person who is or has been a member of a State Judicial Service for a period of not
less than 5 years or

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 • Is or has been for not less than 5 years an advocate or is or
• Has been a Gazetted Officer for not less than 5 years having educational qualifications
and experience in personnel management, human resource development, industrial
relations and legal affairs or such other experience and qualifications as may be
prescribed by the appropriate Government to be a competent authority

59 Section 95 - Powers and procedure of competent authority

➢ The competent authority shall have all the powers of a Civil Court under the Code of Civil
Procedure, 1908

60 Section 99 - Appeal against order of competent authority

➢ An appeal shall lie to the High Court from the orders of a competent authority under this
Chapter if a substantial question of law is involved in the appeal, and the amount in dispute
in the appeal is not less than ₹10,000

1. As per the code on social security, under what condition the employer will not be able to pay
compensation to the employee for injury?
A. Working under influence of Alcohol
B. Disobedience of employers order
C. Disregard of safety guard
D. All of the above

Ans: D

CHAPTER VIII - SOCIAL SECURITY AND CESS IN RESPECT OF BUILDING AND OTHER CONSTRUCTION
WORKERS

61 Section 100 - Levy and collection of cess

➢ There shall be levied and collected a cess for the purposes of social security and welfare of
building workers at such rate not exceeding 2% but not less than 1% of the cost of
construction incurred by an employer, as the Central Government may specify
• The cost of construction shall not include:
▪ The cost of land
▪ Any compensation paid or payable to an employee or his kin under Chapter VII
➢ The cess levied shall be collected from every employer undertaking building or other
construction work in such manner including:
• Deduction at source in relation to a building or other construction work of a Government
or of a public sector undertaking or
• Advance collection through a local authority where an approval of such building or other
construction work by such local authority or such other authority notified by the State
Government is required, as may be prescribed by the Central Government

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62 Section 101 - Interest payable on delay in payment of cess
➢ If any employer fails to pay any amount of cess payable:
• Such employer shall be liable to pay interest at such rate as may be prescribed by the
Central Government

63 Section 103 - Self assessment of cess

➢ The employer shall, within 60 days or such period as may be notified by the Central
Government of the completion of his each building and other construction work, pay such
cess on the basis of his self-assessment
➢ If the officer or the authority to whom or to which the return has been filed finds any
discrepancy in the payment then, he or it shall, after making inquiry make the appropriate
assessment order

64 Section 105 - Appeal to appellate authority

➢ Any employer aggrieved by an order of assessment or by an order imposing penalty made,
within such time as may be prescribed by the Central Government, appeal to such appellate
authority in such manner as may be prescribed by the Central Government
➢ Every order passed in appeal under this section shall be final and shall not be called in
question in any court of law

65 Section 106 - Registration of building workers as beneficiaries

➢ Every building worker who has completed 18 years of age, but has not completed 60 years of
age, and who has been engaged in any building or other construction work for not less than
90 days during the preceding 12 months
• Shall be registered by the officer authorised by the Building Workers' Welfare Board as
a beneficiary in such manner as may be prescribed by the Central Government

66 Section 107 - Cessation as a beneficiary

➢ A building worker who has been registered as a beneficiary shall cease to be as such
• When he attains the age of 60 years or
• When he is not engaged in building or other construction work for not less than 90 days
in a year
▪ However, in computing the period of 90 days, there shall be excluded
o Any period of absence from work due to any personal injury caused to the
building worker by accident arising out of and in the course of his employment
▪ Also, if a person had been a beneficiary for at least 3 years continuously
immediately before attaining the age of 60 years, then, he shall be eligible to get
such benefits as may be prescribed by the Central Government

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67 Section 108 - Building and Other Construction Workers’ Welfare Fund and
its application
➢ There shall be constituted by a Building Workers' Welfare Board a fund to be called the
Building and Other Construction Workers' Welfare Fund and to which shall be credited:
• The amount of any cess levied
• Any grants and loans made to the Building Workers' Welfare Board by the Central
Government and
• All sums received by the Building Workers' Welfare Board from such other sources as
may be decided by the Central Government
➢ The Building and Other Construction Workers' Welfare Fund shall be applied for meeting:
• Expenses of the Building Workers' Welfare Board in the discharge of its functions
• Salaries, allowances and other remuneration of the members, officers and other
employees of the Building Workers' Welfare Board
• Expenses on objects and for purposes authorised by this Code
➢ No Building Workers' Welfare Board shall, in any financial year, incur expenses towards
salaries, allowances and other remuneration to its members, officers and other employees
and for meeting the other administrative expenses exceeding 5% of its total expenses during
that financial year

CHAPTER IX - SOCIAL SECURITY FOR UNORGANISED WORKERS, GIG WORKERS AND PLATFORM
WORKERS

68 Section 109 - Framing of schemes for unorganized workers

➢ The Central Government shall frame and notify suitable
welfare schemes for unorganised workers on matters
relating to:
• Life and disability cover
• Health and maternity benefits
• Old age protection
• Education
• Any other benefit as may be determined by the Central
Government
➢ The State Government shall frame and notify, from time to
time, suitable welfare schemes for unorganised workers, including schemes relating to:
• Provident fund
• Employment injury benefit
• Housing
• Educational schemes for children
• Skill upgradation of workers
• Funeral assistance
• Old age homes
➢ Any scheme notified by the Central Government may be:
• Wholly funded by the Central Government

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 •Partly funded by the Central Government and partly funded by the State Government
•Partly funded by the Central Government, partly funded by the State Government and
partly funded through contributions collected from the beneficiaries of the scheme or
the employers as may be specified in the scheme by the Central Government
• Funded from any source including corporate social responsibility fund
➢ Every scheme notified by the Central Government shall provide for such matters that are
necessary for the efficient implementation of the scheme including the matters relating to all
or any of the following, namely:
• Scope of the scheme
• Authority to implement the scheme
• Beneficiaries of the scheme
• Resources of the scheme
• Agency or agencies that will implement the scheme
• Redressal of grievances
• Any other relevant matter
▪ And a special purpose vehicle may also be constituted by the Central Government
for the purpose of implementation of any such scheme

69 Section 110 - Funding of State Government schemes

➢ Any scheme notified by the State Government may be:
• Wholly funded by the State Government
• Partly funded by the State Government, partly funded through contributions collected
from the beneficiaries of the scheme or the employers as may be specified in the scheme
by the State Government; or
• Funded from any source
➢ The State Government may seek financial assistance from the Central Government for the
schemes framed by it
➢ The Central Government may provide such financial assistance to the State Governments for
the purpose of schemes for such period and on such terms and conditions as it may deem fit

70 Section 112 - Helpline, facilitation centre, etc., for unorganized workers,

gig workers and platform workers
➢ The appropriate Government may set up a toll free call centre
or helpline or such facilitation centres to perform any or more
of the following functions, namely:
• To disseminate information on available social security
schemes for the unorganised workers, gig workers and
platform workers
• To facilitate filing, processing and forwarding of
application forms for registration of unorganised
workers, gig workers and platform workers
• To assist unorganised workers, gig workers and platform workers to obtain registration

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 • To facilitate the enrolment of the registered unorganised workers, gig workers and
platform workers in the social security schemes

71 Section 113 - Registration of unorganized workers, gig workers and

platform workers
➢ Every unorganised worker, gig worker or platform worker shall be
required to be registered subject to the fulfilment of the following
conditions, namely:
• he has completed 16 years of age or such age as may be
prescribed by the Central Government
• he has submitted a self-declaration electronically or otherwise
➢ A registered unorganised worker, gig worker or platform worker shall
be eligible to avail the benefit of the concerned scheme framed under this Chapter

72 Section 114 - Schemes for gig works and platform workers

➢ The Central Government may frame and notify suitable social security schemes for gig
workers and platform workers on matters relating to:
• Life and disability cover
• Accident insurance
• Health and maternity benefits
• Old age protection
• Crèche
• Any other benefit as may be determined by the Central Government
➢ Every scheme framed and notified may provide for:
• The manner of administration of the scheme
• the agency or agencies for implementing the scheme
• The role of aggregators in the scheme
• The sources of funding of the scheme
• Any other matter as the Central Government may consider necessary for the efficient
administration of the scheme
➢ Any scheme notified by the Central Government may be:
• Wholly funded by the Central Government; or
• Partly funded by the Central Government and partly funded by the State Government
• Wholly funded by the contributions of the aggregators; or
• Partly funded by the Central Government, partly funded by the State Government and
partly funded through contributions collected from the beneficiaries of the scheme or
the aggregators, as may be specified in the scheme framed by the Central Government;
or

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 • Funded from Corporate social responsibility (CSR) fund
• any other source
➢ The contribution to be paid by the aggregators for the funding
shall be at such rate not exceeding 2% but not less than 1% as
may be notified by the Central Government, of the annual
turnover of every such aggregator who falls within a category
of aggregators, as are specified in the Seventh Schedule

•However, the contribution by an aggregator shall not exceed 5% of the amount paid or
payable by an aggregator to gig workers and platform workers
➢ The National Social Security Board constituted shall be the Board for the purposes of the
welfare of gig workers and platform workers

CHAPTER X - FINANCE AND ACCOUNTS

73 Section 115 – Accounts

➢ Each of the Social Security Organisations shall maintain proper accounts of its income and
expenditure in such manner as the appropriate Government may, after consultation with the
Comptroller and Auditor-General of India, specify

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74 Section 116 – Audit
➢ The accounts of each of the Social Security Organisations shall be
audited annually by the Comptroller and Auditor-General of India
and
• Any expenditure incurred by him in connection with such
audit shall be payable by the respective Social Security
Organisation to the Comptroller and auditor general of India.
➢ The Comptroller and Auditor-General of India and any person
appointed by him in connection with the audit of the accounts of
a Social Security Organisation
• Shall have the same rights and privileges and authority in connection with such audit as
the Comptroller and Auditor-General of India has, in connection with the audit of
Government accounts and, in particular, shall have the right to demand the production
of books, accounts, connected vouchers, documents and papers and to inspect any of
the offices of the Social Security Organisation

75 Section 117 - Budget estimates

➢ Each of the Social Security Organisations shall in each year frame a budget showing the
probable receipts and the expenditure
• Which it proposes to incur during the following year and shall submit a copy of the
budget for the approval of the appropriate Government before such date as may be fixed
by it in that behalf

76 Section 118 - Annual report

➢ Each of the Social Security Organisations shall submit to the
appropriate Government an annual report of its work and
activities and the budget finally adopted by the Social Security
Organisation
➢ The appropriate Government shall cause:
• A copy of the annual report, budget and the audited
accounts together with the report of the Comptroller and
Auditor-General of India and
• The comments of the respective Social Security Organisation
▪ To be laid before each House of Parliament or the State legislature, as the case
may be.

77 Section 119 - Valuation of assets and liabilities

➢ Each of the fund maintained by a Social Security Organisation or by an establishment under
shall have a valuation of its assets and liabilities made by a valuer or actuary,
• Appointed, by such Social Security Organisation or the establishment, as the case may
be, in the following manner, namely:
▪ in case of Central Board, annually
▪ in case of Corporation, once in every 3 years
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 ▪ in case of any other Social Security Organisation or establishment, as specified by
the appropriate Government, by order

CHAPTER XI AUTHORITIES, ASSESSMENT, COMPLIANCE AND RECOVERY

78 Section 122 - Appointment of Inspector-cum- Facilitators and their powers

➢ The Central Government for the purposes of Chapter III (EMPLOYEES’ PROVIDENT FUND) and
Chapter IV (EMPLOYEES STATE INSURANCE CORPORATION) and for the provisions in this Code
and
• The appropriate Government for the purposes of other provisions of this Code,
▪ May appoint Inspector cum-Facilitators
➢ The Inspector-cum-Facilitator may:

79 Section 123 - Maintenance of records, registers, returns, etc

➢ An employer of an establishment shall:

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80 Section 125 - Assessment and determination of dues from employer
➢ The Central Government may authorise, such officers of the Central Board or the Corporation,
not below the rank of Group 'A' officer of that Government, to function as the Authorised
Officers
• However, no proceeding shall be initiated after the expiry of the period of 5 years from
the date on which the dispute is alleged to have been arisen or, as the case may be, the
amount is alleged to have been due from an employer
➢ Despite anything contained in the Code of Civil Procedure, 1908 the inquiry shall be held on
day-to-day basis and endeavour shall be made to ensure that the inquiry is concluded within
a period of 2 years:

•However, where the inquiry is not concluded within the said period of 2 years, the
Authorised Officer conducting such inquiry shall record the circumstances and reasons
for not having concluded so and submit it to the Central Provident Fund Commissioner
or the Director General of the Corporation
▪ The Central Provident Fund Commissioner or the Director General of the
Corporation, may grant an extension for a period up to 1 year
• Also, the inquiries which are pending immediately before the date of commencement of
this Code shall be concluded by the Authorised Officer within a period not exceeding 2
years from the date of such commencement
➢ The Authorised Officer conducting the inquiry shall, have the same powers as are vested in a
court under the Code of Civil Procedure, 1908

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81 Section 126 - Appeal against order of Authorised Officer relating to Chapter
IV
➢ If an employer is not satisfied with the order
• He may prefer an appeal to the appellate authority not below the rank of the Joint
Director of the Corporation as may be provided by regulations, within 60 days from the
date of such order after depositing 25% of the contribution so ordered or the
contribution as per his own calculation, whichever is higher, with the Corporation
▪ However, the appellate authority shall decide the appeal within a period of 6
months from the date of preferring the appeal
▪ Also, if the employer finally succeeds in the appeal, the Corporation shall refund
such deposit to the employer together with such interest as may be specified in the
regulations

CHAPTER XIII - EMPLOYMENT INFORMATION AND MONITORING

82 Section 139 - Reporting of vacancies to career centres

➢ The appropriate Government may require that the employer in every establishment or any
class or category of establishments, before filling up any vacancy in any employment in that
establishment or such class or category of establishments:
• Shall report that vacancy to such career centre as may be specified in the notification,
and the employer shall comply with such requisition
➢ The above-mentioned provision shall not be deemed to impose any obligation upon any
employer to recruit any person through the career centre to fill any vacancy merely because
such vacancy has been reported

83 Section 140 - Exclusions from application of this Chapter

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 ➢ Unless the Central Government direct, the provisions of this Chapter shall not apply in
relation to:
• Vacancies which are proposed to be filled through promotion or by absorption of
surplus staff of any branch or department of the same establishment
▪ or through independent recruitment agencies such as Union Public Service
Commission, Staff Selection Commission or State Public Service Commission or
any other agencies as may be notified by the Central Government
• Vacancies in an employment which carries a monthly remuneration of less than an
amount notified by the appropriate Government

CHAPTER XIV MISCELLANEOUS

84 Section 141 - Social Security Fund

➢ The Central Government shall establish a Social Security Fund for social security and welfare
of the unorganised workers, gig workers and platform workers
➢ The State Government shall establish a Social Security Fund for the welfare of the
unorganised workers

85 Section 142 - Application of Aadhaar

➢ An employee or unorganised worker or any other person for:
• Registration as member or beneficiary
• Seeking benefit whether in kind, cash or medical sickness
benefit or pension, gratuity or maternity benefit or any other
benefit or for withdrawal of fund
• Availing services of career centre
• Receiving any payment or medical attendance as Insured Person himself or for his
dependants
▪ Under this Code shall establish his identity and the identity of his family members
or dependants through Aadhaar number

86 Section 144 - Power to defer or reduce

➢ Central Government may by order, defer or reduce employer's contribution, or employee's
contribution, or both, payable for a period up to 3 months at a time, for whole of India in the
event of pandemic, endemic or national disaster

87 Section 149 - Power of Central Government to give directions to State

Government and Social Security Organisations
➢ The Central Government may give directions to:
• Any State Government or a State Board to execute in that State, of any of the provisions
of this Code

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 • Any of the Social Security Organisations in respect of the matters relating to the
implementation of the provisions of this Code

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The Code on Wages, 2019
CONCEPT NOTES
Contents
1 History ....................................................................................................................................................2
2 Objective.................................................................................................................................................4
3 Acts Subsumed under Code on Wages, 2019 ........................................................................................4
4 Section 2 – Definitions............................................................................................................................4
5 Section 5 - Payment of minimum rate of wages ....................................................................................5
6 Section 6 - Fixation of minimum wages .................................................................................................5
7 Section 7 - Components of minimum wages .........................................................................................6
8 Section 8 - Procedure for fixing and revising minimum wages ..............................................................6
9 Section 9 - Power of Central Government to fix floor wage ..................................................................7
10 Section 10 - Wages of employee who works for less than normal working day ...................................7
11 Section 12 - Minimum time rate wages for piece work .........................................................................8
12 Section 13 - Fixing hours of work for normal working day ....................................................................8
13 Section 14 - Wages for overtime work ...................................................................................................8
14 Section 15 - Mode of payment of wages ...............................................................................................8
15 Section 16 - Fixation of wage period ......................................................................................................9
16 Section 17 - Time limit for payment of wages .......................................................................................9
17 Section 18 - Deductions which may be made from wages ....................................................................9
18 Section 19 – Fines .................................................................................................................................10
19 Section 20 - Deductions for absence from duty...................................................................................11
20 Section 21 - Deductions for damage or loss .........................................................................................11
21 Section 26 - Eligibility for bonus, etc ....................................................................................................11
22 Section 27 - Proportionate reduction in bonus in certain cases ..........................................................12
23 Section 28 - Computation of number of working days ........................................................................12
24 Section 29 - Disqualification for bonus ................................................................................................12
25 Section 31 - Payment of bonus out of allocable surplus ......................................................................12
26 Section 36 - Set on and set off of allocable surplus .............................................................................12
27 Section 39 - Time limit for payment of bonus ......................................................................................13
28 Section 41 - Non-applicability of payment of Bonus ............................................................................13
29 Section 42 - Central Advisory Board and State Advisory Boards .........................................................14
30 Section 43 - Responsibility for payment of various dues .....................................................................15
31 Section 45 - Claims under Code and procedure thereof ......................................................................15
32 Section 51 - Appointment of Inspector-cum-Facilitators and their powers ........................................15

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1 History
Background and Rationale

The Code of Wages 2019 represents a significant milestone in

Indian labor law, aiming to simplify and modernize the legal
framework regarding wages and compensation for workers across
all sectors. It consolidates four pre-existing labor laws into a single,
comprehensive code.

Objectives and Scope

The primary objective of the Code of Wages 2019 is to ensure

equitable remuneration for workers while simplifying compliance
for employers. It extends to all employees in both organized and unorganized sectors,
demonstrating a broad scope intended to foster inclusivity and fairness in the labor market.

Global Scenario

Comparative Analysis with International Standards: Globally, the approach to wage regulation
varies significantly, with some countries emphasizing minimum wage laws and others focusing on
collective bargaining agreements. The Code of Wages 2019 aligns India more closely with
international labor standards, promoting transparency and accountability in wage management.

Impact on Global Competitiveness: By standardizing wage-related laws, India aims to enhance its
attractiveness as a destination for investment, projecting stability and reliability in labor relations
and cost structures to the international business community.

Indian Scenario

Historical Context: Prior to the enactment of the Code of Wages, Indian labor legislation was
fragmented across numerous laws and regulations, creating complexity and compliance
challenges. The historical evolution towards the Code reflects a growing recognition of the need
for consolidation and modernization.

Key Provisions and Innovations:

Minimum Wages: The Code introduces a universal minimum wage applicable across India,
replacing the previous region-specific minimum wages.
Payment of Wages: It mandates the payment of wages in a timely and transparent manner, with
provisions for digital payment.
Equal Remuneration: The Code emphasizes equal pay for equal work, irrespective of gender.
Inspection and Enforcement: A streamlined and technology-driven enforcement mechanism is
envisaged to ensure compliance and protect workers' rights.

Conclusion and Way Forward

Achievements and Challenges: The Code of Wages 2019 is a landmark reform that promises to
bring about greater equity and simplicity in the labor market. However, its implementation poses

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 challenges, particularly in ensuring awareness and compliance across India's vast and diverse
economic landscape.

Future Prospects: Looking ahead, the successful implementation of the Code requires concerted
efforts from all stakeholders, including the government, employers, and workers. Continuous
monitoring, feedback mechanisms, and periodic reviews will be crucial in addressing any emerging
issues and ensuring that the Code remains relevant and effective in achieving its objectives.

Policy Recommendations

Awareness Campaigns: To educate employers and workers about their rights and responsibilities
under the new Code.
Capacity Building: For the enforcement machinery to effectively implement the provisions of the
Code.
Technology Integration: Leveraging technology to streamline compliance processes and ensure
transparency in wage payments.

The Code of Wages 2019 represents a significant step forward in the evolution of labor laws in
India, aiming to create a more equitable, transparent, and efficient wage system. Its success will
depend on the collective efforts of the government, the private sector, and civil society to embrace
the reforms and work towards their effective implementation.

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2 Objective
➢ An Act to amend and consolidate the laws relating to wages and bonus and matters
connected with it or incidental to it

3 Acts Subsumed under Code on Wages, 2019

➢ The Payment of Wages Act, 1936
➢ The Minimum wages Act, 1948
➢ The Payment of Bonus Act, 1965
➢ The Equal Remuneration Act, 1976
Total – 4

4 Section 2 – Definitions
➢ “Appropriate Government” means:
• Central Government in relation to,
▪ An establishment carried on by or
under the authority of the Central
Government
▪ Establishment of railways, mines, oil
field, major ports, air transport
service, telecommunication, banking
and insurance company or a
corporation or other authority
established by a Central Act or
▪ A central public sector undertaking or subsidiary companies set up by central
public sector undertakings
▪ Autonomous bodies owned or controlled by the Central Government, including
establishment of contractors for the purposes of such establishment, corporation
or other authority, central public sector undertakings, subsidiary companies or
autonomous bodies,
• State Government in relation to any other establishment

➢ “Industrial dispute” means:

• Any dispute or difference
▪ Between employers and employers
▪ Between employers and workers
▪ Between workers and workers which is connected
with the employment or non-employment or the
terms of employment or with the conditions of
labour, of any person
• Any dispute or difference
▪ Between an individual worker and an employer connected with, or arising out of,
discharge, dismissal, retrenchment or termination

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 ➢ “Wages” means:
• All remuneration whether by way of salaries,
allowances or otherwise, expressed in terms of
money or capable of being so expressed and
includes:
▪ Basic pay
▪ Dearness allowance
▪ Retaining allowance
• But does not include:
a. Any bonus payable which does not form part of the remuneration payable under
the terms of employment
b. the value of any house-accommodation, or of the supply of light, water, medical
attendance or other amenity or of any service
c. any contribution paid by the
employer to any pension or
provident fund, and the interest
which may have accrued thereon
d. any conveyance allowance or the
value of any travelling concession
e. any sum paid to the employed person
to defray special expenses entailed on him by the nature of his employment
f. house rent allowance
g. remuneration payable under any award or settlement between the parties or
order of a court or Tribunal
h. any overtime allowance
i. any commission payable to the employee
j. any gratuity payable on the termination of employment
k. any retrenchment compensation or other retirement benefit payable to the
employee or any ex gratia payment made to him on the termination of employment

• However, for calculating the wages,

▪ If payments made by the employer to the employee under clauses (a) to (i) exceeds
one-half (1/2), or such other per cent as may be notified by the Central
Government, the amount which exceeds shall be deemed as remuneration and
shall be accordingly added in wages

5 Section 5 - Payment of minimum rate of wages

➢ No employer shall pay to any employee wages less than the minimum rate of wages notified
by the appropriate Government

6 Section 6 - Fixation of minimum wages

➢ The appropriate Government shall fix a minimum rate of wages:
• For time work

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 • For piece work
➢ Where employees are employed on piece work, the appropriate Government shall fix a
minimum rate of wages for securing such employees a minimum rate of wages on a time
work basis
➢ The minimum rate of wages on time work basis may be fixed in accordance with any one or
more of the following wage periods, namely:
• by the hour
• by the day
• by the month
➢ Where the rates of wages are fixed by the hour or by the day or by the month, the manner of
calculating the wages shall be such, as may be prescribed
➢ For the purpose of fixation of minimum rate of wages, the appropriate Government:
• Shall primarily take into account the skill of workers required for working under the
categories of unskilled, skilled, semi-skilled and highly-skilled or geographical area or
both
• May, take into account their arduousness of work like temperature or humidity normally
difficult to bear, hazardous occupations or processes or underground work as may be
prescribed by that Government; and
• The norms of such fixation of minimum rate of wages shall be such as may be prescribed
➢ The number of minimum rates of wages may, as far as possible, be kept at minimum by the
appropriate Government

7 Section 7 - Components of minimum wages

➢ Any minimum rate of wages fixed or revised by the appropriate Government may consist of:
• a basic rate of wages and an allowance at a rate to be adjusted, to accord as nearly as
practicable with the variation in the cost-of-living index number applicable to such
workers (here after referred to as “cost of living allowance”)
• a basic rate of wages with or without the cost of living allowance, and the cash value of
the concessions in respect of supplies of essential commodities at concession rates,
where so authorized
• an all-inclusive rate allowing for the basic rate, the cost of living allowance and the cash
value of the concessions

8 Section 8 - Procedure for fixing and revising minimum wages

➢ In fixing minimum rates of wages for the first time or in revising minimum rates of the wages,
appropriate Government shall either:
• Appoint as many committees as it considers necessary to hold enquiries and recommend
in respect of such fixation or revision
• By notification, publish its proposals for the information of persons likely to be affected
and specify a date not less than 2 months from the date of the notification on which the
proposals shall be taken into consideration
➢ Every committee appointed by the appropriate Government shall consist of persons:

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 •Representing employers
•Representing employees (Equal to
number of employers representing)
• Independent persons, not exceeding
1/3rd of the total members of the
committee
➢ After considering the recommendation of the
committee,
• The appropriate Government shall, by notification fix or revise the minimum rates of
wages and unless such notification otherwise provides, it shall come into force on the
expiry of 3 months from the date of its issue
• However, where the appropriate Government proposes to revise the minimum rates
of wages it shall also consult concerned Advisory Board constituted
➢ The appropriate Government shall review or revise minimum rates of wages ordinarily at an
interval not exceeding 5 years

9 Section 9 - Power of Central Government to fix floor wage

➢ The Central Government shall fix floor wage taking into account minimum living standards
of a worker
• However, different floor wage may be fixed for different geographical areas
➢ The minimum rates of wages fixed by the appropriate Government
• Shall not be less than the floor wage and
▪ If the minimum rates of wages fixed by the appropriate Government earlier is more
than the floor wage, then, the appropriate Government shall not reduce such
minimum rates of wages fixed by it earlier
➢ The Central Government may, before fixing the floor wage obtain the advice of the:
• Central Advisory Board
• And consult State Governments in such manner as may be prescribed

10 Section 10 - Wages of employee who works for less than normal working day
➢ If an employee whose minimum rate of wages has been fixed
• And he works on any day for a period of less than the requisite number of hours
constituting a normal working day,
▪ He shall be entitled to receive wages in respect of work done on that day, as if he
had worked for a full normal working day:
▪ However, he shall not be entitled to receive wages for a full normal working day:
o Where his failure to work is caused by his unwillingness to work and not by
the omission of the employer to provide him with work
o in such other cases and circumstances, as may be prescribed

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11 Section 12 - Minimum time rate wages for piece work
➢ Where a person is employed on piece work for which minimum time rate and not a minimum
piece rate has been fixed:
• The employer shall pay to such person wages at not less than the minimum time rate

12 Section 13 - Fixing hours of work for normal working day

➢ Where the minimum rates of wages have been fixed, the appropriate Government may:
• Fix the number of hours of work which shall constitute a normal working day inclusive
of one or more specified intervals
• Provide for a day of rest in every period of 7 days which shall be allowed to all
employees or to any specified class of employees and for the payment of remuneration
in respect of such days of rest
• Provide for payment for work on a day of rest at a rate not less than the overtime rate

13 Section 14 - Wages for overtime work

➢ Where an employee whose minimum rate of wages has been fixed by the hour, by the day or
by such a longer wage-period as may be prescribed, works on any day in excess of the number
of hours constituting a normal working day,
• The employer shall pay him for every hour or for part of an hour so worked in excess,
at the overtime rate which shall not be less than twice the normal rate of wages

14 Section 15 - Mode of payment of wages

➢ All wages shall be paid in:
• Current coin or
• Currency notes or
• By cheque or
• By crediting the wages in the bank account of the employee or
• By the electronic mode
➢ However, the appropriate Government may, specify the industrial or other establishment,
the employer of which shall pay to every person employed, the wages only by:

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 • Cheque or
• by crediting the wages in his bank account

15 Section 16 - Fixation of wage period

➢ The employer shall fix the wage period for employees either as daily or weekly or fortnightly
or monthly subject to the condition that no wage period in respect of any employee shall be
more than a month
• However, different wage periods may be fixed for different establishments

16 Section 17 - Time limit for payment of wages

➢ The employer shall pay wages to the employees, engaged on:
• Daily basis, at the end of the shift
• Weekly basis, on the last working day of the
week, that is to say, before the weekly holiday
• Fortnightly basis, before the end of the 2nd day
after the end of the fortnight
• Monthly basis, before the expiry of the 7th day of
the succeeding month
➢ Where an employee has been:
• Removed or dismissed from service
• Retrenched or has resigned from service, or became unemployed due to closure of the
establishment
▪ the wages payable to him shall be paid within 2 working days of his removal,
dismissal, retrenchment, resignation

17 Section 18 - Deductions which may be made from wages

➢ Despite anything contained in any other law for the time being in force, there shall be no
deductions from the wages of the employee, except those as are authorised under this Code
➢ For the purposes of this:
• Any payment made by an employee to the employer or his agent shall be deemed to
be a deduction from his wages
• any loss of wages to an employee, resulting from:
▪ withholding of increment or promotion, including the stoppage of an increment
▪ reduction to a lower post or time-scale
▪ suspension
o Shall not be deemed to be a deduction from wages
➢ Deductions from the wages of an employee shall be made in accordance with the provisions
of this Code, and may be made only for the following purposes, namely:

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 ➢ The total amount of deductions which may be made in any wage period from the wages of
an employee shall not exceed 50% of such wages

18 Section 19 – Fines
➢ No fine shall be imposed on any employee for acts and omissions unless the employer, has
previous approval of the appropriate Government or of such authority
➢ A notice specifying such acts and omissions shall be exhibited in such manner as may be
prescribed, on the premises in which the employment is carried on
➢ The total amount of fine which may be imposed in any one wage-period on any employee
shall not exceed an amount equal to 3% of the wages payable to him in respect of that wage-
period
➢ No fine shall be imposed on any employee who is under the age of 15 years
➢ No fine imposed on any employee shall be recovered from him by installments or after the
expiry of 90 days from the day on which it was imposed
➢ Every fine shall be deemed to have been imposed on the day of the act or omission in respect
of which it was imposed

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19 Section 20 - Deductions for absence from duty
➢ Deductions may be made only on account of the absence of
an employee from the place or places where by the terms of
his employment, he is required to work, such absence being
for the whole or any part of the period during which he is so
required to work
• If 10 or more employed persons acting in concert
absent themselves without due notice and without
reasonable cause,
▪ Such deduction from any such person may include
such amount not exceeding his wages for 8 days

20 Section 21 - Deductions for damage or loss

➢ A deduction for damage or loss shall not exceed the amount of the damage or loss caused to
the employer by negligence or default of the employee

21 Section 26 - Eligibility for bonus, etc

➢ Every employee shall be paid, drawing wages not exceeding such amount per mensem
(Month), as determined, by the appropriate Government, by his employer, who has put in at
least 30 days work in an accounting year,
• An annual minimum bonus calculated at the rate of eight and one-third per cent
(equivalent to 8.33%) of the wages earned by the employee or ₹100, whichever is
higher whether or not the employer has any allocable
surplus during the previous accounting year
➢ If in any accounting year, the allocable surplus exceeds the
amount of minimum bonus payable to the employees,
• The employer shall be bound to pay to every
employee in respect of that accounting year, bonus
which shall be an amount in proportion to the wages
earned by the employee during the accounting year,
subject to a maximum of 20% of such wages
• Any demand for bonus in excess of the bonus
mentioned above, either on the basis of production or productivity in an accounting
year for which the bonus is payable
▪ shall be determined by an agreement or settlement between the employer and
the employees,
o Subject to the condition that the total bonus including the annual minimum
bonus mentioned above shall not exceed 20% of the wages earned by the
employee in the accounting year
➢ In the 1 five accounting years following the accounting year in which the employer sells the
st

goods produced or manufactured by him or renders services from such establishment,

• Bonus shall be payable only in respect of the accounting year in which the employer
derives profit from such establishment

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22 Section 27 - Proportionate reduction in bonus in certain cases
➢ Where an employee has not worked for all the working days in an accounting year, the
minimum bonus,
• if such bonus is higher than eight and one third per cent (is equivalent to 8.33%) of the
salary or wage of the days such employee has worked in that accounting year, shall be
proportionately reduced

23 Section 28 - Computation of number of working days

➢ An employee shall be deemed to have worked in an establishment in any accounting year also
on the days on which
• He has been laid off under an agreement or as permitted by standing orders under the
Industrial Employment (Standing Orders) Act, 1946 or under the Industrial Disputes Act,
1947 or under any other law applicable to the establishment
• He has been on leave with salary or wages
• He has been absent due to temporary disablement caused by accident in the course of
his employment
• The employee has been on maternity leave with salary or wages, during the accounting
year

24 Section 29 - Disqualification for bonus

➢ An employee shall be disqualified from receiving bonus, if he is dismissed from service for:
• Fraud
• Riotous or violent behaviour while on the
premises of the establishment
• Theft, misappropriation or sabotage of any
property of the establishment
• Conviction for sexual harassment

25 Section 31 - Payment of bonus out of allocable surplus

➢ The bonus shall be paid out of the allocable surplus
• which shall be an amount equal to 60% in case of a banking company and
• 67% in case of other establishment, of the available surplus

26 Section 36 - Set on and set off of allocable surplus

➢ Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus
payable to the employees in the establishment
• Then, the excess shall, subject to a limit of 20% of the total salary or wage of the
employees employed in the establishment in that accounting year, be carried forward
for being set on in the succeeding accounting year and so on up to and inclusive of the
fourth accounting year to be utilised for the purpose of payment of bonus
➢ Where for any accounting year, there is no available surplus or the allocable surplus in
respect of that year falls short of the amount of minimum bonus payable to the employees in

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 the establishment and there is no amount or sufficient amount carried forward and set on
under which could be utilised for the purpose of payment of the minimum bonus,
• Then, such minimum amount or the deficiency, shall be carried forward for being set
off in the succeeding accounting year and so on up to and inclusive of the fourth
accounting year

27 Section 39 - Time limit for payment of bonus

➢ All amounts payable to an employee by way of bonus shall be paid by:
• Crediting it in the bank account of the employee by his employer within a period of 8
months from the close of the accounting year
▪ However, the appropriate Government or such authority upon an application
made to it by the employer and for sufficient reasons, by order, extend the said
period of 8 months to such further period or periods,
o However, that the total period so extended shall not in any case exceed 2
years
➢ Where there is a dispute regarding payment of bonus pending before any authority, such
bonus shall be paid, within a period of 1 month from the date on which the award becomes
enforceable or the settlement comes into operation
• However, if there is a dispute for payment at the higher rate, the employer shall pay
eight and one-third per cent (equivalent to 8.33%) of the wages earned by the
employee within a period of 8 months from the close of the accounting year

28 Section 41 - Non-applicability of payment of Bonus

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29 Section 42 - Central Advisory Board and State Advisory Boards
➢ The Central Government shall constitute the Central Advisory Board which shall consist of
persons to be nominated by the Central Government

•
1/3rd of the members shall be women and a member specified as the independent
members shall be appointed by the Central Government as the Chairperson of the
Board
➢ Functions of Central Advisory Board:
• The Central Advisory Board constituted shall advise the Central Government on
reference of issues relating to:
▪ Fixation or revision of minimum wages and other connected matters
▪ Providing increasing employment opportunities for women
▪ The extent to which women may be employed in such establishments or
employments as the Central Government may specify
▪ any other matter relating to this Code

➢ Functions of State Advisory Board:

• Every State Government shall constitute a State Advisory Board for advising the State
Government
▪ in fixation or revision of minimum wages and other connected matters
▪ for the purpose of providing increasing employment opportunities for women
▪ with regard to the extent to which women may be employed in such
establishments or employments as the State Government may, by notification,
specify
▪ in any other matter relating to this Code
➢ The State Advisory Board may constitute one or more committees or sub-committees to look
into issues pertaining to matters specified above
➢ The State Advisory Board and each of the committees and sub-committees shall consist of
persons:

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 • 1/3rd of the members shall be women and one among the members specified as the
independent members shall be
▪ Appointed by the State Government as the Chairperson of the Board
▪ Appointed by the State Advisory Board as the Chairperson of the committee or
subcommittee

30 Section 43 - Responsibility for payment of various dues

➢ Every employer shall pay all amounts required to be paid to every employee employed by him
• However, where such employer fails to make such payment then, the company or firm
or association or any other person who is the proprietor (Owner) of the establishment,
in which the employee is employed, shall be responsible for such payment

31 Section 45 - Claims under Code and procedure thereof

➢ The appropriate Government may, by notification, appoint one or more authorities, not
below the rank of a Gazetted Officer, to hear and determine the claims
➢ The authority appointed, while deciding the claim, may order:
• the payment of compensation in addition to the claim determined, which may extend
to 10 times of the claim determined and endeavour shall be made by the authority to
decide the claim within a period of 3 months
➢ If an employer fails to pay the claim determined and compensation ordered to be paid,
• the authority shall issue a certificate of recovery to the Collector or District Magistrate
of the district where the establishment is located
▪ who shall recover the same as arrears of land revenue and remit the same to the
authority for payment to the concerned employee
➢ Any application before the authority for claim may be filed by:
• the employee concerned
• any Trade Union registered under the Trade Unions Act, 1926 of which the employee
is a member
• the Inspector-cum-Facilitator
➢ The application may be filed within a period of 3 years from the date on which claims arises

32 Section 51 - Appointment of Inspector-cum-Facilitators and their powers

➢ The appropriate Government may, appoint Inspector-cum-Facilitators who shall exercise the
following powers:

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 Q. Which of the following Act is not subsumed under The Code on Wages, 2019?
A. The Equal Remuneration Act, 1976
B. The Minimum Wages Act, 1948
C. The Payment of Bonus Act, 1965
D. The Factories Act, 1948

Ans: D

Q. As per The Code on Wages, 2019, the appropriate Government shall review or revise minimum
rates of wages ordinarily at an interval not exceeding how many years?
A. 2 years
B. 3 years
C. 5 years
D. 7 years

Ans: C

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 The Industrial
Relations Code, 2020
CONCEPT NOTES
Contents
1 History ....................................................................................................................................................3
2 Objective.................................................................................................................................................5
3 Acts Subsumed under The Industrial Relations Code, 2020 ..................................................................5
4 Section 2 – Definitions............................................................................................................................5
5 Section 3 - Works Committee ................................................................................................................8
6 Section 4 - Grievance Redressal Committee ..........................................................................................8
7 Section 5 - Registrar of Trade Unions .....................................................................................................9
8 Section 6 - Criteria for registration .........................................................................................................9
9 Section 8 - Application for registration, alteration of name and procedure thereof ..........................10
10 Section 9 - Registration of Trade Union and cancellation thereof .......................................................10
11 Section 13 - Certain Acts not to apply to registered Trade Unions .....................................................11
12 Section 14 - Recognition of negotiating union or negotiating council.................................................11
13 Section 20 - Rights of minor to membership of Trade Union ..............................................................12
14 Section 24 - Change of name, amalgamation, notice of change and its effect ...................................12
15 Section 25 - Dissolution ........................................................................................................................12
16 Section 28 - Application of Standing Orders ........................................................................................13
17 Section 30 - Preparation of draft standing orders by employer and procedure for certification .......13
18 Section 32 - Appeals .............................................................................................................................14
19 Section 35 – Duration and modification of standing orders ................................................................14
20 Section 38 - Time-limit for completing disciplinary proceedings and liability to pay subsistence
allowance 14
21 Section 40 - Notice of change...............................................................................................................15
22 Section 43 - Conciliation officers ..........................................................................................................16
23 Section 44 - Industrial Tribunal ............................................................................................................16
24 Section 46 - National Industrial Tribunal ..............................................................................................17
25 Section 48 - Disqualifications for members of Tribunal and National Industrial Tribunal ...................17
26 Section 55 - Form of award, its communication and commencement. ...............................................17
27 Section 58 - Period of operation of settlements and awards ..............................................................17
28 Section 59 - Recovery of money due from employer ..........................................................................18
29 Section 62 - Prohibition of strikes and lock-outs .................................................................................18
30 Section 63 - Illegal strikes and lock-outs ..............................................................................................19
31 Section 66 - Definition of continuous service ......................................................................................19
32 Section 67 - Rights of workers laidoff for compensation, etc ..............................................................20
33 Section 69 - Workers not entitled for compensation in certain case ..................................................20

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34 Section 70 - Conditions precedent to retrenchment of workers .........................................................21
35 Section 74 - Sixty days' notice to be given of intention to close down any undertaking ....................21
36 Section 75 - Compensation to workers in case of closing down of undertakings ...............................22
37 Section 83 - Worker reskilling fund ......................................................................................................22

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1 History
Introduction

The Industrial Relations Code represents a significant shift in the

regulatory framework governing labor and employment
relations worldwide. It seeks to consolidate and amend the laws
relating to trade unions, conditions of employment in industrial
establishments or undertaking, investigation and settlement of
industrial disputes. The evolution of such codes marks a critical
juncture in the history of labor legislation, reflecting the
changing dynamics between employers, employees, and
governments across different periods and regions. This
historical overview aims to shed light on the global scenario
before narrowing down to the specific context of India, highlighting the unique path it has taken
in the development and implementation of its Industrial Relations Code.

Global Scenario

Early Developments: The history of industrial relations is deeply intertwined with the Industrial
Revolution, which began in the late 18th century. This period saw a massive transformation in the
economic landscape, with a shift from agrarian economies to industrial powerhouses. As factories
proliferated, the need for labor regulation became apparent, leading to the genesis of industrial
relations as a field

Evolution in the 20th Century: The 20th century witnessed significant developments in industrial
relations, with the emergence of trade unions and collective bargaining as pivotal elements.
Countries across Europe and North America established legal frameworks to govern labor
relations, aiming to balance the interests of employers and employees, and to prevent industrial
disputes from escalating into social unrest

The Role of International Organizations: International organizations, notably the International

Labour Organization (ILO), played a crucial role in shaping the global landscape of industrial
relations. Established in 1919, the ILO has been instrumental in setting international labor
standards, promoting rights at work, and encouraging decent employment opportunities. Its
conventions and recommendations have guided member states in formulating their labor laws
and policies.

Indian Scenario

Indian Scenario: The history of industrial relations in India predates its independence in
1947. The colonial government introduced several acts to regulate labor conditions, such
as the Factories Act of 1881 and the Trade Disputes Act of 1929. These early laws laid the
groundwork for the post-independence labor legislation framework.

Post-Independence Developments: After gaining independence, India embarked on a

journey to overhaul its industrial and labor landscape. The Indian Constitution, adopted in
1950, enshrined the principles of social justice and equality, which extended to labor rights.
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 Subsequent decades saw the enactment of various laws aimed at protecting workers'
rights, regulating employment terms, and establishing mechanisms for dispute resolution.

The Industrial Relations Code, 2020: The culmination of India's efforts to modernize its industrial
relations framework was the introduction of the Industrial Relations Code, 2020. This code
consolidates three pre-existing laws: the Trade Unions Act, 1926, the Industrial Employment
(Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947. It aims to simplify and
rationalize the regulatory framework, promote ease of doing business, and enhance worker
welfare and security. The code introduces several key changes, including provisions for fixed-term
employment, a streamlined process for union recognition, and a revised mechanism for dispute
resolution.

Impact and Implementation: The Industrial Relations Code, 2020, has sparked a mixed response
from various stakeholders. While it is viewed as a progressive step towards simplifying labor laws
and boosting economic growth, there are concerns about its impact on workers' rights and job
security. The implementation of the code is expected to be a complex process, requiring careful
balancing of diverse interests and continuous dialogue among the government, employers, and
the workforce.

Conclusion

The evolution of the Industrial Relations Code, both globally and within India, reflects the ongoing
negotiation between economic development and labor rights. As countries strive to adapt to the
changing economic environment, the history of industrial relations underscores the importance
of dialogue, compromise, and cooperation in achieving a fair and equitable balance between the
interests of employers and employees. India's journey, from its pre-independence labor legislation
to the comprehensive Industrial Relations Code, 2020, exemplifies this delicate balance, marking
a significant chapter in the global narrative of industrial relations.

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2 Objective
➢ An Act to consolidate and amend the laws relating to:
• Trade Unions,
• Conditions of employment in industrial establishment or
• Undertaking, investigation and settlement of industrial disputes and for matters
connected with or incidental to it

3 Acts Subsumed under The Industrial Relations

Code, 2020
➢ Trade Unions Act, 1926
➢ Industrial Employment (Standing Orders) Act, 1946
➢ Industrial Disputes Act, 1947
Total – 3

4 Section 2 – Definitions
➢ "Average pay" means:
• The average of the wages payable to a worker:
▪ in the case of monthly paid worker, in 3 complete calendar months
▪ in the case of weekly paid worker, in 4 complete weeks
▪ in the case of daily paid worker, in 12 full working days
• Preceding the date on which the average pay becomes payable, if the worker had worked
for 3 complete calendar months or 4 complete weeks or 12 full working days, and
▪ Where such calculation cannot be made, the average pay shall be calculated as the
average of the wages payable to a worker during the period he actually worked

➢ "Fixed term employment" means:

• The engagement of a worker on the basis of a written contract of employment for a fixed
period
• However:
▪ His hours of work, wages, allowances and other benefits shall not be less than that
of a permanent worker doing the same work or work of similar nature
▪ He shall be eligible for all statutory benefits available to a permanent worker
proportionately according to the period of service rendered by him even if his
period of employment does not extend to the qualifying period of employment
required in the statute
▪ He shall be eligible for gratuity if he renders service under the contract for a period
of 1 year

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 ➢ "Industrial dispute" means:
• Any dispute or difference
▪ Between employers and employers or
▪ Between employers and workers or
▪ Between workers and workers
o Which is connected with the employment or
non-employment or the terms of employment
or with the conditions of labour, of any person
and
o Includes any dispute or difference between an individual worker and an
employer connected with, or arising out of discharge, dismissal,
retrenchment or termination of such worker

➢ "Lay-off" means:
• The failure, refusal or inability of an employer on account of
shortage of coal, power or raw materials or the
accumulation of stocks or the break-down of machinery or
natural calamity or for any other connected reason,
▪ To give employment to a worker whose name is borne
on the muster rolls of his industrial establishment and
who has not been retrenched
• However, if every worker whose name is borne on the
muster rolls of the industrial establishment and who presents
himself for work at the establishment at the time appointed for the purpose during
normal working hours on any day and is not given employment by the employer within
2 hours of his so presenting himself shall be deemed to have been laid-off for that day
• Also, if he is not given any such employment even after so presenting himself, he shall
not be deemed to have been laid-off for the second half of the shift for the day and shall
be entitled to full basic wages and dearness allowance for that part of the day

➢ "Lock-out" means:
• The temporary closing of a place of employment, or the
suspension of work, or the refusal by an employer to
continue to employ any number of persons employed by him

➢ "Retrenchment" means:

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 • The termination by the employer of the service of a worker for any reason whatsoever,
otherwise than as a punishment inflicted by way of disciplinary action,
▪ But does not include:
o Voluntary retirement of the worker
o Retirement of the worker on reaching the age of
superannuation
o Termination of the service of the worker as a
result of the non-renewal of the contract of
employment between the employer and the
worker concerned on its expiry or of such contract
being terminated under a stipulation in that behalf contained therein
o Termination of service of the worker as a result of completion of tenure of
fixed term employment
o Termination of the service of a worker on the ground of continued ill-health

➢ "Strike" means:
• A cessation of work by a body of persons employed in any
industry acting in combination, or a concerted refusal, or a
refusal, under a common understanding, of any number of
persons who are or have been so employed to continue to
work or to accept employment and includes the concerted
casual leave on a given day by 50% or more workers employed
in an industry

➢ “Wages” means:
• All remuneration whether by way of salaries,
allowances or otherwise, expressed in terms of
money and includes:
▪ Basic pay
▪ Dearness allowance
▪ Retaining allowance
• But does not include:
a. Any bonus payable which does not form part
of the remuneration payable under the terms of employment
b. the value of any house-accommodation, or of the supply of light, water, medical
attendance or other amenity or of any service
c. any contribution paid by the
employer to any pension or
provident fund, and the interest
which may have accrued thereon
d. any conveyance allowance or the
value of any travelling concession
e. any sum paid to the employed person
to defray special expenses entailed on him by the nature of his employment

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 f. house rent allowance
g. remuneration payable under any award or settlement between the parties or
order of a court or Tribunal
h. any overtime allowance
i. any commission payable to the employee
j. any gratuity payable on the termination of employment
k. any retrenchment compensation or other retirement benefit payable to the
employee or any ex gratia payment made to him on the termination of employment
• However, for calculating the wages,
▪ If payments made by the employer to the employee under clauses (a) to (i) exceeds
one-half (1/2), or such other per cent as may be notified by the Central
Government, the amount which exceeds shall be deemed as remuneration and
shall be accordingly added in wages

5 Section 3 - Works Committee

➢ In the case of any industrial establishment in which 100 or more
workers are employed or have been employed on any day in
the preceding 12 months,
• Appropriate Government may require the employer to
constitute a Works Committee, consisting of
representatives of employer and workers engaged in the
establishment (However, the number of representatives
of workers in such Committee shall not be less than the
number of representatives of the employer)
➢ It shall be the duty of the Works Committee:
• To promote measures for securing and preserving amity and good relations between
the employer and workers and to comment upon matters of their common interest or
concern and endeavour to compose any material difference of opinion in respect of such
matters

6 Section 4 - Grievance Redressal Committee

➢ Every industrial establishment employing 20 or more workers shall have one or more
Grievance Redressal Committees for resolution of disputes
arising out of individual grievances
➢ The chairperson of the Grievance Redressal Committee shall
be selected from among persons representing the employer
and the workers alternatively on rotational basis every year
➢ The total number of members of the Grievance Redressal
Committee shall not exceed 10:
• However, there shall be adequate representation of
women workers in the Grievance Redressal Committee
and such representation shall not be less than the

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 proportion of women workers to the total workers employed in the industrial
establishment
➢ An application in respect of any dispute may be filed before the Grievance Redressal
Committee by any aggrieved worker within 1 year from the date on which the cause of action
of such dispute arises
➢ The Grievance Redressal Committee may complete its proceedings within 30 days of receipt
of the application
➢ The decision of the Grievance Redressal Committee on any application filed shall be made on
the basis of majority view of the Committee,
• Provided more than half of the members representing the workers have agreed to such
decision, otherwise it shall be deemed that no decision could be arrived at by the
Committee
➢ The worker who is aggrieved by the decision of the GRC or whose grievance is not resolved in
the said Committee within 30 days
• May file an application for the conciliation of such grievance to the conciliation officer
through the Trade Union of which he is a member within a period of 60 days from the
date of the decision of the Grievance Redressal Committee or from the date on which
the period of 30 days expires
➢ Any worker may, make an application directly to the Tribunal for adjudication of the dispute
referred to therein after the expiry of 45 days from the date he has made the application to
the conciliation officer of the appropriate Government for conciliation of the dispute, and
• On receipt of such application the Tribunal shall have powers and jurisdiction to
adjudicate upon the dispute
➢ The application shall be made to the Tribunal before the expiry of 2 years from the date of
discharge, dismissal, retrenchment or otherwise termination of service

7 Section 5 - Registrar of Trade Unions

➢ The State Government may, appoint a person to be the Registrar of Trade Unions, and other
persons as Additional Registrar of Trade Unions, Joint Registrar of Trade Unions and Deputy
Registrar of Trade Unions

8 Section 6 - Criteria for registration

➢ Any 7 or more members of a Trade Union may, by subscribing their names to the rules of the
Trade Union and by otherwise complying with the provisions of this Code with respect to
registration, apply for registration of the Trade Union
under this Code
➢ No Trade Union of workers shall be registered unless at
least 10% of the workers or 100 workers, whichever is less,
engaged or employed in the industrial establishment or
industry with which it is connected are the members of
such Trade Union on the date of making of application for
registration

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 ➢ Where an application has been made under for registration of a Trade Union, such application
shall not be deemed to have become invalid merely by reason of the fact that:
• after the date of the application some of the applicants, but not exceeding half of the
total number of persons who made the application, have ceased to be members of the
Trade Union or have given notice in writing to the Registrar dissociating themselves from
the application
➢ A registered Trade Union of workers shall at all times continue to have not less than 10% of
the workers or 100 workers, whichever is less, subject to a minimum of 7, engaged or
employed in an industrial establishment or industry with which it is connected, as its members

9 Section 8 - Application for registration, alteration of name and procedure thereof

➢ Every application for registration of a Trade Union shall be made to the Registrar
electronically or otherwise and be accompanied by
• A declaration to be made by an affidavit
• Copy of the rules of the Trade Union together with a copy of the resolution by the
members of the Trade Union adopting such rules
• A copy of the resolution adopted by the members of the Trade Union authorising the
applicants to make an application for registration
• In the case of a Trade Union, being a federation or a central organisation of Trade
Unions, a copy of the resolution adopted by the members of each of the member Trade
Unions, meeting separately, agreeing to constitute a federation or a central organisation
of Trade Unions
➢ Where a Trade Union has been in existence for more than 1 year before the making of an
application for its registration, it shall deliver both of the following to the Registrar:
• Application,
• A general statement of the assets and liabilities of the Trade Union

10 Section 9 - Registration of Trade Union and cancellation thereof

➢ The Registrar shall, on being satisfied that the Trade Union has complied with all the
requirements, register the Trade Union by entering in a register
➢ Where the Registrar makes an order for registration of a Trade Union, he shall issue a
certificate of registration to the applicant Trade Union, which shall be the conclusive evidence
that the Trade Union has been registered
➢ The certificate of registration of a Trade Union may be withdrawn or cancelled by the
Registrar:
• On the application of the Trade Union
• On the information received by him regarding the contravention by the Trade Union of
the provisions of this Code or the rules made under or its constitution or rules

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 • If he is satisfied that the members in a Trade Union
falls below 10% of total workers or 100 workers,
whichever is less
▪ However, not less than 60 days previous notice
in writing specifying the grounds on which it is
proposed to cancel the certificate of registration
of a Trade Union shall be given by the Registrar
to the Trade Union before the certificate of
registration is cancelled otherwise than on the
application of the Trade Union

11 Section 13 - Certain Acts not to apply to registered Trade Unions

➢ The provisions of the following Acts, namely:
• The Societies Registration Act, 1860
• The Co-operative Societies Act, 1912
• The Multi-State Co-operative Societies Act, 2002
• The Companies Act, 2013
• any other corresponding law relating to co-operative societies for the time being in force
in any State
▪ Shall not apply to any registered Trade Union and the registration of any such
Trade Union under any of the mentioned Acts shall be void/Invalid

12 Section 14 - Recognition of negotiating union or negotiating council

➢ There shall be a negotiating union or a negotiating council, in an industrial establishment
having registered Trade Union for negotiating with the employer of the industrial
establishment
➢ Where only one Trade Union of workers registered is functioning in an industrial
establishment, then, the employer of such industrial establishment shall, subject to such
criteria recognise such Trade Union as sole negotiating union of the workers
➢ If more than one Trade Union of workers registered are functioning in an industrial
establishment, then, the Trade Union having 51% or more workers on the muster roll of that
industrial establishment, supporting that Trade Union shall be recognised by the employer of
the industrial establishment, as the sole negotiating union of the workers

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 ➢ If more than one Trade Union of workers registered under this Code are functioning in an
industrial establishment, and no such Trade Union has 51% or more of workers on the muster
roll of that industrial establishment, supporting that Trade
union, then,
• there shall be constituted by the employer, a
negotiating council for negotiation on the matters
consisting of the representatives of such registered
Trade Unions which have the support of not less than
20% of the total workers on the muster roll of that
industrial establishment and such representation shall
be of one representative for each 20% and for the
remainder after calculating the membership on each
20%

13 Section 20 - Rights of minor to membership of Trade Union

➢ Any person who has attained the age of 14 years and is employed in a non-hazardous industry
may be a member of a registered Trade Union, and may, subject to as aforesaid enjoy all the
rights of a member and execute all instruments and given all acquaintances necessary to be
executed or given under the rules

14 Section 24 - Change of name, amalgamation, notice of change and its effect

➢ Any registered Trade Union may, with the consent of not less than 2/3rd of the total number
of its members change its name
➢ Any two or more registered Trade Unions may be amalgamated in such manner as may be
prescribed
➢ Notice in writing of every change of name and of every amalgamation signed by:
• The secretary and
• By 7 members of the Trade Union changing its name,
▪ And in the case of an amalgamation, by the secretary and by 7 members of each
and every Trade Union which is a party thereto, shall be sent to the Registrar and
where the head office of the amalgamated Trade Union is situated in a different
State, to the Registrar of such State

15 Section 25 - Dissolution
➢ When a registered Trade Union is dissolved, notice of the dissolution signed by 7 members
and by the secretary of the Trade Union shall, within 14 days of the dissolution, be sent to
the Registrar, and shall be registered by him if he is satisfied that the dissolution has been
effected in accordance with the rules of the Trade Union, and the dissolution shall have effect
from the date of such registration

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16 Section 28 - Application of Standing Orders
➢ The provisions of Standing Orders shall apply to every industrial establishment wherein 300
or more than 300 workers, are employed, or were employed on any day of the preceding 12
months

17 Section 30 - Preparation of draft standing orders by employer and

procedure for certification
➢ The employer shall prepare draft standing orders, within a period of 6 months from the date
of commencement of this Code, based on the model standing orders in respect of the matters
specified in the First Schedule and on any other matter considered necessary by him for
incorporation of necessary provisions in such standing orders for his industrial establishment
or undertaking

➢ The employer shall consult the Trade Unions or recognised negotiating union or members of
the negotiating council relating to the industrial establishment or undertaking, in respect of

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 the draft of the standing order and thereafter forward the draft of the standing order
electronically or otherwise to the certifying officer for certification
➢ On receipt of the drafts, the certifying officer shall issue notice to:
• the Trade Union or negotiating union of the industrial establishment or undertaking, or
members of the negotiating council or
• where there is no Trade Union operating, to such representatives of the workers of the
industrial establishment or undertaking chosen in such manner as may be prescribed
▪ for seeking their comments in the matter
➢ The certifying officer shall complete such procedure for certification in respect of it, and:
• the draft standing order so received within a period of 60 days from the date of the
receipt of it
• the draft modifications in the standing order so received within a period of 60 days from
the date of the receipt of such modifications
▪ failing which such draft standing orders, the modifications in the standing order
shall be deemed to have been certified on the expiry of the said period
➢ The certifying officer shall certify the draft standing orders or the modifications in the standing
orders and shall within 7 days thereafter send copies of the certified standing orders or the
modifications in the standing orders, to the employer and to the negotiating union or
negotiating council or the Trade Union or other representatives of the workers

18 Section 32 - Appeals
➢ An employer or Trade Union or the negotiating union or negotiating council, or where there
is no negotiating union or negotiating council in an industrial establishment or undertaking,
any union or such representative body of the workers of the industrial establishment or
undertaking, if not satisfied with the order of the certifying officer:
• May file an appeal within 60 days of receipt of the order of the certifying officer to the
appellate authority appointed by the appropriate Government

19 Section 35 – Duration and modification of standing orders

➢ The standing orders certified shall not:
• Except on an agreement between the employer and the workers, or a negotiating union
or a Trade Union or other representative body of the workers, be liable to modification
until the expiry of 6 months from the date on which the standing orders or the last
modifications came into operation

20 Section 38 - Time-limit for completing disciplinary proceedings and

liability to pay subsistence allowance
➢ Where any worker is suspended by the employer pending investigation or inquiry into
complaints or charges of misconduct against him, such investigation or inquiry, or where there
is an investigation followed by an inquiry:
• Both the investigation and inquiry shall be completed ordinarily within a period of 90
days from the date of suspension
➢ The standing orders certified or modified shall provide that where a worker is suspended:
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 •The employer in relation to an industrial establishment or undertaking shall pay to such
worker employed in such industrial establishment or undertaking subsistence allowance
at the rates specified for the period during which such worker is placed under suspension
pending investigation or inquiry into complaints or charges of misconduct against such
worker
➢ The amount of subsistence allowance payable shall be:
• at the rate of 50% of the wages which the worker was entitled to immediately preceding
the date of such suspension, for the first 90 days of suspension; and
• at the rate of 75% of such wages for the remaining period of suspension, if the delay in
the completion of disciplinary proceedings against such worker is not directly
attributable to the conduct of such worker

21 Section 40 - Notice of change

➢ No employer, who proposes to effect any change in the conditions of service applicable to any
worker in respect of any matter specified in the Third Schedule, shall effect such change
• Without giving to the workers likely to be affected by such change a notice in such
manner as may be prescribed of the nature of the change proposed to be effected
• Within 21 days of giving such notice
▪ However, no notice shall be required for effecting any such change
o Where the change is effected in pursuance of any settlement or award
o Where the workers likely to be affected by the change are persons to whom
the Fundamental and Supplementary Rules, Civil Services (Classification,
Control and Appeal) Rules, Civil Services (Temporary Service) Rules, Revised
Leave Rules, Civil Services Regulations, Civilians in Defence Services
(Classification, Control and Appeal) Rules or the Indian Railway Establishment
Code or any other rules or regulations apply;

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22 Section 43 - Conciliation officers
➢ The appropriate Government may, appoint such number of persons, as it thinks fit to be
conciliation officers, charged with the duty of mediating in and promoting the settlement of
industrial disputes
➢ A conciliation officer may be appointed for a specified area or for specified industries in a
specified area or for one or more specified industries and either permanently or for a limited
period

23 Section 44 - Industrial Tribunal

➢ The appropriate Government may, constitute one or more Industrial Tribunals for the
adjudication of industrial disputes and for performing such other functions as may be
assigned to them

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 ➢ Every Industrial Tribunal shall consist of 2 members to be appointed by the appropriate
Government out of whom:
• 1 shall be a Judicial Member and the other,
• an Administrative Member
➢ A bench of the Tribunal shall consist of a Judicial Member and an Administrative Member or
single Judicial Member or single Administrative Member

24 Section 46 - National Industrial Tribunal

➢ The Central Government may, constitute one or more National Industrial Tribunals for the
adjudication of industrial disputes which, involve questions of national importance or are of
such a nature that industrial establishments situated in more
than one State are likely to be interested in, or affected by,
such disputes
➢ A National Industrial Tribunal shall consist of 2 members to
be appointed by the Central Government out of whom one
shall be a Judicial Member and the other, an Administrative
Member
➢ A person shall not be qualified for appointment as the
Judicial Member of a National Industrial Tribunal unless he is,
or has been, a Judge of a High Court
➢ A person shall not be qualified for appointment as Administrative Member of a National
Industrial Tribunal unless, he is or has been Secretary to the Government of India or holding
an equivalent rank in the Central Government or State Government, having adequate
experience of handling the labour related matters

25 Section 48 - Disqualifications for members of Tribunal and National

Industrial Tribunal
➢ No person shall be appointed to, or continue in, the office
of the member of a Tribunal or National Industrial Tribunal,
respectively, if:
• He is not an independent person
• He has attained the age of 65 years

26 Section 55 - Form of award, its communication and commencement.

➢ Every arbitration award and every award of Tribunal or National Industrial Tribunal shall be
communicated to the parties concerned and the appropriate Government
➢ An award made shall become enforceable on the expiry of 30 days from the date of its
communication

27 Section 58 - Period of operation of settlements and awards

➢ A settlement shall come into operation on such date as is agreed upon by the parties to the
dispute,

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 •and if no date is agreed upon, then on the date on which the memorandum of the
settlement is signed by the parties to the dispute
➢ Such settlement shall be binding for such period as is agreed upon by the parties, and if no
such period is agreed upon then for a period of 6 months from the date on which the
memorandum of settlement is signed by the parties to the dispute, and
• It shall continue to be binding on the parties after the expiry of the period mentioned
above, until the expiry of 60 days from the date on which a notice of an intention to
terminate the settlement is given by one of the parties to the other party or parties to
the settlement
➢ An award shall remain in operation for a period of 1 year from the date on which the award
becomes enforceable
• However, the appropriate Government may, before expiry of the said period, extend the
period of operation by any period not exceeding 1 year at a time, however, the total
period of operation of any award does not exceed 3 years from the date on which it
came into operation
➢ Despite the expiry of the period of operation, the award shall continue to be binding on the
parties until a period of 60 days has elapsed from the date on which notice is given by any
party bound by the award to the other party or parties intimating its intention to terminate
the award

28 Section 59 - Recovery of money due from employer

➢ Where any money is due to a worker from an employer under a settlement or an award, the
worker himself or any other person authorised by him in writing in this behalf, or, in the case
of the death of the worker, his assignee or heirs may,
• Make an application to the appropriate Government for the recovery of the money due
to him, and if the appropriate Government is satisfied that any money is so due, it shall
issue a certificate for that amount to the Collector who shall proceed to recover the same
in the same manner as an arrear of land revenue
➢ However, every such application shall be made within 1 year from the date on which the
money became due to the worker from the employer

29 Section 62 - Prohibition of strikes and lock-outs

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 ➢ If on any day an employer receives from any person employed by him any such notices or
gives to any person employed by him any such notices
• He shall within 5 days report to the appropriate Government or to such authority as that
Government may prescribe and to the conciliation officer, the number of such notices
received or given on that day

30 Section 63 - Illegal strikes and lock-outs

➢ A lock-out declared in consequence of an illegal strike or a strike declared in consequence of
an illegal lock-out shall not be deemed to be illegal

31 Section 66 - Definition of continuous service

➢ Continuous service in relation to a worker, means:
• the uninterrupted service of such worker, including his service which may be interrupted
on account of sickness or authorised leave or an accident or a strike which is not illegal
or a lock-out or a cessation of work which is not due to any fault on the part of the worker
➢ However, where a worker is not in continuous service for a period of 1 year or 6 months, he
shall be deemed to be in continuous service under an employer:
• For a period of 1 year, if the worker during a period of 12 months preceding the date
with reference to which calculation is to be made has actually worked under the
employer for not less than
▪ 190 days in the case of a worker employed below ground in a mine
▪ 240 days, in any other case

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 • For a period of 6 months, if the worker during a period of 6 months preceding the date
with reference to which calculation is to be made has actually worked under the
employer for not less than
▪ 95 days in the case of worker employed below ground in a mine
▪ 120 days, in any other case

➢ The number of days on which a worker has actually worked

under an employer shall include the days on which:
• He has been laid-off
• He has been on leave on full wages earned in the
previous years
• In the case of a female, she has been on maternity leave
• He has been absent due to temporary disablement
caused by accident arising out of and in the course of his
employment

32 Section 67 - Rights of workers laidoff for compensation, etc

➢ Whenever a worker (other than a badli worker or a casual worker) whose name is borne on
the muster rolls of an industrial establishment and who has
completed not less than 1 year of continuous service under
an employer is laid-off, whether continuously or
intermittently,
• He shall be paid by the employer for all days during
which he is so laid-off,
▪ except for such weekly holidays as may intervene,
compensation which shall be equal to 50% of the
total of the basic wages and dearness allowance
that would have been payable to him, had he not
been so laid-of

33 Section 69 - Workers not entitled for compensation in certain case

➢ No compensation shall be paid to a worker who has been laid-off:
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 • if he refuses to accept any alternative employment in the same establishment from
which he has been laid-off, or in any other establishment belonging to the same
employer situate in the same town or village or situate within a radius of 8 kilometres
from the establishment to which he belongs
• if he does not present himself for work at the establishment at the appointed time
during normal working hours at least once a day
• if such laying-off is due to a strike or slowing-down of production on the part of workers
in another part of the establishment

34 Section 70 - Conditions precedent to retrenchment of workers

➢ No worker employed in any industry who has been in continuous service for not less than 1
year under an employer shall be retrenched by that employer until:
• The worker has been given 1 months’ notice in writing indicating the reasons for
retrenchment
• The worker has been paid, at the time of retrenchment, compensation which shall be
equivalent to 15 days' average pay, for every completed year of continuous service or
any part thereof in excess of 6 months
• Notice in such manner as may be prescribed is served on the appropriate Government

35 Section 74 - Sixty days' notice to be given of intention to close down any

undertaking
➢ An employer who intends to close down an undertaking shall serve, at least 60 days before
the date on which the intended closure is to become effective, a notice, on the appropriate
Government stating clearly the reasons for the intended closure of the undertaking
➢ However, nothing in this section shall apply to:
• an industrial establishment in which less than 50 workers are employed or were
employed on any day in the preceding 12 months
• an industrial establishment set up for the construction of buildings, bridges, roads,
canals, dams or for other construction work or project

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36 Section 75 - Compensation to workers in case of closing down of
undertakings
➢ Where an establishment is closed down for any
reason,
• Every worker who has been in continuous service
for not less than 1 year in that undertaking
immediately before such closure shall, be
entitled to notice and compensation as if the
worker had been retrenched

37 Section 83 - Worker reskilling fund

➢ The appropriate Government shall, set up a fund to be called the worker re-skilling fund
➢ The fund shall consist of:
• The contribution of the employer of an industrial establishment an amount equal to 15
days wages last drawn by the worker immediately before the retrenchment, for every
retrenched worker in case of retrenchment only
• The contribution from such other sources as may be prescribed by the appropriate
Government
➢ The fund shall be utilised by crediting 15 days wages last drawn by the worker to his account
who is retrenched, within 45 days of such retrenchment

Q. Which of the following Act is not subsumed under the Industrial Relations Code, 2020?
A. Trade Unions Act, 1926
B. Industrial Employment (Standing Orders) Act, 1946
C. Industrial Disputes Act, 1947
D. The Factories Act, 1948

Ans: D

Q. As per the Industrial Relations Code, 2020, an arbitration award and award of Tribunal and NIT
shall become enforceable on the expiry of ____ days from the date of its communication?
A. 20
B. 15
C. 30
D. 45

Ans: C

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The Occupational Safety,
Health and Working
Conditions Code, 2020
CONCEPT NOTES
Contents
1 History ....................................................................................................................................................3
2 Objective.................................................................................................................................................4
3 Acts Subsumed under Occupational safety, health and working conditions Code ...............................4
4 Section 3 - Registration of certain establishments ................................................................................4
5 Section 6 - Duties of employer ...............................................................................................................4
6 Section 8 - Duties of designers, manufacturers, importers or suppliers. ..............................................6
7 Section 10 - Notice of certain accident ..................................................................................................7
8 Section 13 - Duties of employee ............................................................................................................7
9 Section 14 - Rights of employee .............................................................................................................7
10 Section 16 - National Occupational Safety and Health Advisory Board .................................................8
11 Section 17 - State Occupational Safety and Health Advisory Board. .....................................................9
12 Section 18 - Occupational safety and health standards. ........................................................................9
13 Section 20 - Safety and occupational health surveys ...........................................................................10
14 Section 21 - Collection of statistics and portal for inter-State migrant workers .................................11
15 Section 22 - Safety Committee and safety officers ..............................................................................11
16 Section 23 - Responsibility of employer for maintaining health, safety and working conditions .......11
17 Section 24 - Welfare facilities in the establishment, etc......................................................................12
18 Section 25 – Daily and weekly working hours, leave, etc. ...................................................................13
19 Section 26 - Weekly and compensatory holidays ................................................................................14
20 Section 27 - Extra wages for overtime .................................................................................................14
21 Section 30 - Restriction on double employment in factory and mine .................................................14
22 Section 32 - Annual leave with wages, etc ...........................................................................................14
23 Section 34 - Appointment of Inspector cum Facilitators .....................................................................15
24 Section 35 - Powers of Inspector-cum-Facilitators ..............................................................................16
25 Section 36 - Powers and duties of District Magistrate .........................................................................17
26 Section 38 - Special powers of Inspector-cum-Facilitator in respect of factory ..................................17
27 Section 42 - Medical officer ..................................................................................................................17
28 Section 43 - Employment of women ....................................................................................................18
29 Section 44 - Adequate safety of employment of women in dangerous operation .............................18
30 Section 45 - Applicability of this Part (Contract Labour) ......................................................................18
31 Section 47 - Licensing of contractors ...................................................................................................19
32 Section 49 - No fees or commission or any cost to worker .................................................................19
33 Section 53 - Liability of principal employer for welfare facilities .........................................................19
34 Section 56 - Experience certificate .......................................................................................................19

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35 Section 57 - Prohibition of employment of contract labour ................................................................19
36 Section 59 - Applicability of Part II (Inter-State Migrant Workers) ......................................................20
37 Section 61 - Journey allowance ............................................................................................................20
38 Section 62 - Benefits of public distribution system, etc .......................................................................20
39 Section 63 - Toll free helpline ...............................................................................................................20
40 Section 64 - Study of inter-State migrant workers...............................................................................20
41 Section 65 - Past liabilities ....................................................................................................................20
42 Section 66 - Prohibition of employment of audio-visual worker without agreement ........................20
43 Section 67 – Managers .........................................................................................................................21
44 Section 70 - Employment of persons below eighteen years of age .....................................................21
45 Section 78 - Prohibition of employment of certain persons in certain building or other construction
work…………………… .......................................................................................................................................22
46 Section 83 - Constitution of site appraisal committee .........................................................................22
47 Section 85 - Specific responsibility of the occupier in relation to hazardous processes .....................22
48 Section 87 - Emergency standards .......................................................................................................22
49 Section 88 - Permissible limits of exposure of chemicals and toxic substances ..................................23
50 Section 92 - Facilities for workers in plantation ...................................................................................23
51 Section 93 – Safety ...............................................................................................................................23
52 Section 115 - Social security fund ........................................................................................................24

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1 History
Introduction

The Occupational Safety, Health, and Working Conditions Code

(OSH Code) represents a significant legislative measure aimed at
enhancing the safety, health, and working conditions of workers
across various sectors. This code consolidates and amends the
laws regulating the occupational safety, health, and working
conditions of persons employed in an industry.

Importance: The importance of such a code cannot be

overstated, as it seeks to provide a unified and comprehensive
framework for ensuring the well-being of workers, crucial for
fostering a safe, healthy, and productive workforce.

Global Scenario

Evolution of Worker Safety Norms: Globally, the movement towards establishing comprehensive
frameworks for occupational safety and health (OSH) can be traced back to the industrial
revolution, which highlighted the dire working conditions faced by workers. Over the decades,
various countries and international bodies like the International Labour Organization (ILO) have
developed standards and regulations to protect workers' safety and health.

Comparative Analysis: Different countries have adopted varied approaches to OSH, with some
emphasizing stringent regulations and others focusing on self-regulation by industries. Countries
like Germany, Sweden, and the United States have been at the forefront, implementing robust
OSH policies and practices.

Indian Scenario

Historical Background: In India, the journey towards establishing a consolidated OSH framework
has been gradual. Preceding the OSH Code, multiple laws addressed aspects of occupational safety
and health, including the Factories Act, 1948, the Mines Act, 1952, and several others, each
focusing on specific sectors or aspects of worker safety and health.

Development and Implementation of the OSH Code: The Occupational Safety, Health, and
Working Conditions Code, introduced as part of India's labor law reforms, seeks to simplify and
modernize the legal framework regarding occupational safety and health. It aims to cover over 50
million workers across sectors by consolidating 13 existing laws into a single code

Key Features: The OSH Code introduces several key features, including a broader applicability to
all establishments employing ten or more workers, special provisions for women workers,
including permitting them to work at night with their consent, and enhancing safety and health
standards across industries

Conclusion:

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 Impact and Challenges: The OSH Code marks a significant step forward in India's efforts to ensure
a safe and healthy working environment for its workforce. However, its success will largely depend
on effective implementation, compliance by employers, and awareness among workers.

2 Objective
➢ An Act to consolidate and amend the laws regulating the:
• Occupational safety, health and working conditions of the persons employed in an
establishment and for matters connected with or incidental to it

3 Acts Subsumed under Occupational safety, health and working conditions

Code

Total – 13

CHAPTER II - REGISTRATION

4 Section 3 - Registration of certain establishments

➢ Every employer of any establishment:
• shall, within 60 days from the date of such applicability of this
Code, make an application electronically to the registering
officer appointed by the appropriate Government for the
registration of such establishment

CHAPTER III - DUTIES OF EMPLOYER AND EMPLOYEES, ETC.

5 Section 6 - Duties of employer

➢ Every employer shall:

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 •Ensure that workplace is free from
hazards which cause or are likely to
cause injury or occupational disease to
the employees
• Comply with the occupational safety
and health standards declared or the
rules, regulations, bye-laws or orders
made under this Code
• Provide such annual health
examination or test free of costs to
such employees of such age or such
class of employees of establishments or
such class of establishments, as may be
prescribed by the appropriate
Government
• Provide and maintain, as far as is
reasonably practicable, a working
environment that is safe and without
risk to the health of the employees
• Ensure the disposal of hazardous and
toxic waste including disposal of e-
waste
• Issue a letter of appointment to every
employee on his appointment in the
establishment, and where an employee
has not been issued such appointment
letter on or before the commencement
of this Code, he shall, within 3 months
of such commencement, be issued
such appointment letter
• Ensure that no charge is levied on any
employee, in respect of anything done
or provided for maintenance of safety
and health at workplace including
conduct of medical examination and investigation for the purpose of detecting
occupational diseases
• Relating to factory, mine, dock work, building or other construction work or plantation,
ensure and be responsible for the safety and health of employees, workers and other
persons who are on the work premises of the employer, with or without his knowledge
➢ The duties of an employer shall particularly in respect of factory, mines, dock, building or
other construction work or plantation include:
• The provision and maintenance of plant and systems of work in the workplace that are
safe and without risk to health

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 • The arrangements in
the workplace for
ensuring safety and
absence of risk to
health in connection
with the use, handling,
storage and transport of
articles and substances
• The provision of such information, instruction, training and supervision as are necessary
to ensure the health and safety of all employees at work
• The maintenance of all places of work in the workplace in a condition that is safe and
without risk to health and the provision and maintenance of such means of access to,
and egress from, such places as are safe and without such risk
• The provision, maintenance or monitoring of such working environment in the
workplace for the employees that is safe, without risk to health as regards facilities and
arrangements for their welfare at work

6 Section 8 - Duties of designers, manufacturers, importers or suppliers.

➢ Every person who designs, manufactures, imports or supplies any article for use in any
establishment shall:
• Ensure that the article is so designed and
constructed in the establishment as to be safe and
without risk to the health of the workers when
properly used
• Carry out or arrange for the carrying out of such
tests and examination in the establishment as may
be considered necessary
• Take steps as may be necessary to ensure that
adequate information will be available:
▪ In connection with the use of the article in any
establishment
▪ About the use for which such article is
designed and tested
▪ About any conditions necessary to ensure
that the article, when put to such use, shall be
safe, and without risk to the health of the
workers
➢ The designer, manufacturer, importer or supplier shall
also comply with such duties as the Central Government
may, in consultation with the National Occupational Safety and Health Advisory Board

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7 Section 10 - Notice of certain accident
➢ Where at any place in an establishment, an accident occurs which causes death, or which
causes any bodily injury by reason of which the person injured
is prevented from working for a period of 48 hours or more
immediately following the accident or which is of such nature as
may be prescribed by the appropriate Government, then:
• Employer or owner or agent or manager of such
establishment if it is mine
• Employer or manager in relation to such establishment if it
is factory or relates to dock work
• The Employer of a plantation or an establishment relating
to building or other construction or any other
establishment
▪ Shall send notice to such authorities, as may be
prescribed by the appropriate Government

8 Section 13 - Duties of employee

➢ Every employee at workplace shall:
• Take reasonable care for the health and safety of himself and of other persons who may
be affected by his acts or omissions at the workplace
• Comply with the safety and health requirements specified in the standards
• Co-operate with the employer in meeting the statutory obligations of the employer
under this Code
• If any situation which is unsafe or unhealthy comes to his attention report such situation
to his employer
▪ or to the health and safety representative and in case of mine,
▪ agent or manager, safety officers or an official for his workplace or section thereof,
who shall report it to the employer
• Not wilfully interfere with or misuse or neglect any appliance, convenience or other
thing provided at workplace for the purpose of securing the health, safety and welfare
of workers
• Not do, wilfully and without reasonable cause, anything, likely to endanger himself or
others
• Perform such other duties as may be prescribed by the appropriate Government

9 Section 14 - Rights of employee

➢ Every employee in an establishment shall have the right to obtain from the employer
information relating to employee's health and safety at work and represent to the employer
directly or through a member of the Safety Committee,
• If constituted by the employer for such purpose, regarding inadequate provision for
protection of his safety or health in connection with the work activity in the workplace,
and if not satisfied, to the Inspector-cum-Facilitator

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 ➢ Where the employee in any workplace has reasonable
apprehension that there is a likelihood of imminent serious
personal injury or death or imminent danger to health,
• He may bring the same to the notice of his employer directly
or through a member of the Safety Committee and
simultaneously bring the same to the notice of the Inspector-
cum-Facilitator
➢ The employer or any employee shall take immediate remedial
action if he is satisfied about the existence of such imminent
danger and send a report forthwith of the action taken to the
Inspector-cum-Facilitator

CHAPTER IV - OCCUPATIONAL SAFETY AND HEALTH

10 Section 16 - National Occupational Safety and Health Advisory Board

➢ The Central Government shall, constitute the National Occupational Safety and Health
Advisory Board to discharge the functions conferred on it and to advise the Central
Government on the matters relating to:
• Standards, rules and regulations to be declared or framed under this Code
• Implementation of the provisions of this Code and the standards, rules and regulations
relating to it
• The issues of policy and programme relating to occupational safety and health referred
to it, from time to time, by the Central Government
• Any other matter in respect of this Code referred to it by the Central Government

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 ➢ The terms of office of:
• Principal Secretaries dealing with labour matters of 4 States
• 5 representatives of employers
• 5 representatives of employees
• a representative of professional body associated with the matter for which standards,
rules, policies being framed
• 5 eminent persons connected with the field of Occupational Safety and Health, or
representatives from reputed research institutions or similar other discipline
▪ Shall be of 3 years and the procedure for their nomination, and discharge of their
functions shall be such as may be prescribed by the Central Government
➢ The Central Government may, in consultation with the National Board, determine the
number, nature and categories of other officers and employees required to assist the National
Board
➢ The Central Government may constitute as many technical committees or advisory
committees consisting of such number of members having such qualifications as may be
prescribed by the Central Government, to assist the National Board in discharge of its function

11 Section 17 - State Occupational Safety and Health Advisory Board.

➢ The State Government shall constitute State Occupational Safety and Health Advisory Board
(hereinafter referred to as "State Advisory Board") to advise the State Government on such
matters arising out of the administration of this Code as may be referred to it by the State
Government
➢ The constitution, procedure and other matters relating to State Advisory Board shall be such
as may be prescribed by the State Government

12 Section 18 - Occupational safety and health standards.

➢ The Central Government shall declare, standards on occupational safety and health for
workplaces relating to factory, mine, dock work, beedi and cigar, building and other
construction work and other establishments
• Such standards shall relate to:
▪ Physical, chemical, biological and any other hazards to be dealt with for the working
life of employee to ensure that no employee will suffer material impairment of
health or functional capacity even if such employee has regular exposure to such
hazards
▪ the norms:

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 o Appraising the hazards to employees and users to whom such hazards are
exposed
o Relating to relevant symptoms and appropriate energy treatment and proper
conditions and precautions of safe use or exposure
o For monitoring and measuring exposure of employees to hazards
o For medical examination and other tests which shall be made available, by the
employer or at his cost, to the employees exposed to hazards
o For hazard evaluation procedures like safety audit, hazard and operability
study, fault free analysis, event free analysis and such other requirements
▪ Medical examination including criteria for detection and reporting of occupational
diseases to be extended to the employees even after he ceases to be in
employment, if he is suffering from an occupational disease which arises out of or
in the course of employment
▪ such aspects of occupational safety and health relating to workplaces which the
Central Government considers necessary on the report of the authority designated
by such Government for such purpose
▪ such safety and health measures as may be required having regard to the specific
conditions prevailing at the workplaces relating to mine, factory, building and other
construction work, beedi and cigar, dock work or any other establishments
notified
▪ matters specified in the Second Schedule to this Code
➢ Central Government may, on the basis of the recommendation of the National Board but not
less than 45 days', by notification, amend the Second Schedule

13 Section 20 - Safety and occupational health surveys

➢ At any time during the normal working hours of an establishment or at any other time as he
may deem necessary
• the Chief Inspector-cum-Facilitator in the case of factory or mine
• the Director General of Factory Advice Service and Labour Institute in the case of factory
• the Director General of Mines Safety in the case of mine
• the Director General of Health Services in the case of factory or mine
• such other officer as may be authorised by the appropriate Government in the case of
any other establishment or class of establishments
▪ after giving notice in writing to the
employer, conduct survey of the factory or
mine and such employer shall afford all
facilities for such survey, including facilities
for the examination and testing of plant and
machinery and collection of samples and
other data relevant to the survey

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14 Section 21 - Collection of statistics and portal for inter-State migrant
workers
➢ The Central Government and the State Government shall collect, compile and analyse
occupational safety and health statistics in such form and manner as may be prescribed
• The Central Government and the State Governments shall maintain the database or
record, for inter-State migrant workers, electronically or otherwise
• Also, the workers who have migrated from one State to any other State and are self-
employed in that other State may also register themselves on that portal

15 Section 22 - Safety Committee and safety officers

➢ The appropriate Government may, require:
• Any establishment or class of establishments to constitute a Safety Committee
consisting of representatives of employers and workers
▪ Engaged in such establishment in such manner that the number of representatives
of workers on the Committee shall not be less than the number of representatives
of the employer and
o the representatives of the workers shall be chosen in such manner and for such
purpose as may be prescribed by the appropriate Government
➢ In every establishment which is a:
• factory wherein 500 workers or more
• factory carrying on hazardous process wherein 250 workers or more
• building or other construction work wherein 250 workers or more
• mine wherein 100 workers or more, are ordinarily employed
▪ the employer shall also appoint such number of safety officers, who shall possess
such qualifications and perform such duties, as may be prescribed by appropriate
Government

CHAPTER V - HEALTH, SAFETY AND WORKING CONDITIONS

16 Section 23 - Responsibility of employer for maintaining health, safety and

working conditions
➢ The employer shall be responsible to maintain in his establishment such health, safety and
working conditions for the
employees as may be prescribed
by the Central Government
➢ Central Government may
prescribe for providing all or any
of the following matters in the
establishment or class of
establishments, namely:
• Cleanliness and hygiene
• Ventilation, temperature
and humidity

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 • Environment free from dust, noxious gas, fumes and other impurities
• Adequate standard of humidification, artificially increasing the humidity of the air,
ventilation and cooling of the air in work rooms
• potable drinking water
• adequate standards to prevent overcrowding and to provide sufficient space to
employees or other persons, as the case may be, employed therein
• adequate lighting
• sufficient arrangement for latrine and urinal accommodation to male, female and
transgender employee separately and maintaining hygiene therein
• effective arrangements for treatment of wastes and effluents
• any other arrangement which the Central Government considers appropriate

CHAPTER VI - WELFARE PROVISIONS

17 Section 24 - Welfare facilities in the establishment, etc

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 ➢ The Central Government may make rules to provide for the facility of creche having suitable
room or rooms for the use of children under the age of 6 years of the employees at suitable
location and distance either separately or along with common facilities in establishments
wherein more than 50 workers are ordinarily employed
• However, an establishment can avail common crèche facility of the Central Government,
State Government, municipality or private entity or provided by non-Governmental
organisation or by any other organisation or group of establishments may pool their
resources for setting up of common crèche in the manner as they may agree for such
purpose

CHAPTER VII - HOURS OF WORK AND ANNUAL LEAVE WITH WAGES

18 Section 25 – Daily and weekly working hours, leave, etc.

➢ No worker shall be required or allowed to work, in any establishment or class of establishment
for more than:
• 8 hours in a day
• the period of work in each day shall be so fixed, as not
to exceed such hours, with such intervals and spread
overs, as may be notified by the appropriate
Government
➢ However, in the case of mines:
• The persons employed below ground in a mine shall
not be allowed to work for more than such hours as
may be notified by the Central Government in any day
• No work shall be carried on below ground in any mine
except by a system of shifts so arranged that the period
of work for each shift is not spread over more than the
daily maximum hours as notified under clause
• No person employed in a mine shall be allowed to be
present in any part of a mine below ground except
during the periods of work shown in respect of him in the register maintained
➢ The hours of work in case of motor transport worker shall include:
• The time spent in work done during the running time of the transport vehicle
• The time spent in subsidiary work
• Period of mere attendance at terminals of less than 15 minutes

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19 Section 26 - Weekly and compensatory holidays
➢ No worker shall be allowed to work in an establishment for more than 6 days in any one week
• However, in any motor transport undertaking, an employer may, in order to prevent any
dislocation of a motor transport service, require a worker to work on any day of weekly
holiday which is not a holiday so arranged that the worker does not work for more than
10 days consecutively without a holiday for a whole day intervening
➢ The appropriate Government may, exempt such workers as it thinks fit from provisions
mentioned above

20 Section 27 - Extra wages for overtime

➢ There shall be paid wages at the rate of twice the rate of wages in respect of overtime work:
• Where a worker works in an establishment or class of establishment for more than such
hours of work in any day or in any week as may be prescribed by the appropriate
Government and
▪ the period of overtime work shall be calculated on a daily basis or weekly basis,
whichever is more favourable to such worker
➢ However, a worker shall be required to work overtime by the employer subject to the consent
of such worker for such work
➢ Also, the appropriate Government may prescribe the total number of hours of overtime

21 Section 30 - Restriction on double employment in factory and mine

➢ No worker shall be required or allowed to work in a mine or factory if he has already been
working in any other such similar establishment within the preceding 12 hours, save in such
circumstances as may be prescribed by the appropriate Government

22 Section 32 - Annual leave with wages, etc

➢ Every worker employed in an establishment shall be entitled for leave in a calendar year with
wages subject to the following conditions, namely:
• He has worked 180 days or more in such calendar year
• He shall be entitled for 1-day leave for every 20 days of his work, in the case of
adolescent worker for 15 days of his work, and
▪ in case of worker employed below ground mine, at the rate of 1-day for every 15
days of his work, in such calendar year
• Any period of layoff, maternity leave or annual leave availed by such worker in such
calendar year shall be counted for calculating the period of 180 days or more under but
he shall not earn leave for the period so counted
• Any holidays falling between the leave availed by such worker (in a calendar year or
prefixed or suffixed holiday) shall be excluded from the period of leave so availed
• In case of such worker whose service commences otherwise than on the first day of
January shall be entitled to leave with wages at the rate specified if he has worked for
1/4th of the total number of days in the remainder of the calendar year

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 • In case such worker is discharged or dismissed from service or quits employment or is
superannuated or dies while in service, during the course of the calendar year, such
worker or his heir or nominee:
▪ Shall be entitled to wages in lieu of the quantum of leave to which such worker was
entitled immediately before his discharge, dismissal, quitting of employment,
superannuation or death
• if such worker does not take in any one calendar year the whole of the leave allowed
to him, then any leave not taken by him shall be added to the leave to be allowed to
him in the succeeding calendar year so that
▪ The total number of days of leave that may be carried forward to a succeeding year
shall not exceed 30 days
▪ Such worker, who has applied for leave with wages but has not been given such
leave in accordance with this the rules made shall be entitled to carry forward the
leave refused without any limit
• Such worker shall be entitled on his demand for encashment of leave at the end of
calendar year
• Such worker shall be entitled, where his total number of leave exceeds 30 days to encash
such exceeded leave

CHAPTER IX - INSPECTOR-CUM-FACILITATORS AND OTHER AUTHORITY

23 Section 34 - Appointment of Inspector cum Facilitators

➢ The appropriate Government may, appoint Inspector-cum Facilitators who shall exercise the
powers conferred on them under this Code throughout their respective jurisdiction specified
in the notification
➢ The Inspector-cum-Facilitators appointed shall, apart from other duties to be discharged by
them under this Code, conduct such inspections
➢ The inspection scheme may be designed taking into account, the following factors, namely:
• Assignment of unique number:
▪ to each establishment,
▪ to each Inspector-cum-Facilitator and
▪ to each inspection
o in such manner as may be notified by the appropriate Government
• Timely uploading of inspection reports
• Provisions for special inspections
• The characteristics of employment, the nature of work, and characteristics of the
workplaces
➢ The appropriate Government may, appoint for the purposes of establishments as many
• Additional Chief Inspector-cum-Facilitators,
• Joint Chief Inspector-cum-Facilitators and
• Deputy Chief Inspector-cum-Facilitators or
• any other officer of any designation as it thinks appropriate,

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 ▪
to exercise such powers of the Chief Inspector-cum-Facilitator within his
jurisdiction
➢ No person shall be appointed, shall continue to hold office:
• Who is, or who becomes, directly or indirectly interested in a workplace or work activity
or in any process or business carried on in any workplace or in any plant or machinery
connected with it

24 Section 35 - Powers of Inspector-cum-Facilitators

➢ Inspector-cum-Facilitator may:
• Enter, with such assistance of
persons, being persons in the
service of the Government, or
any local or other public
authority, or with an expert,
as he thinks fit, any place
which is used, or which he has
reason to believe, is used as a
work place
• Inspect and examine the
establishment, any premises,
plant, machinery, article, or
any other relevant material
• Inquire into any accident or dangerous occurrence, whether resulting in bodily injury,
disability or death or not and take on the spot or otherwise statement of any person
which he may consider necessary for such inquiry
• Examine the crops grown in any plantation or any worker employed therein or require
the production of any register or other document maintained and take statement of any
person which he may consider necessary for carrying out the purposes of this Code
relating to plantation
• Supply information and sensitise the employers and workers regarding the provisions
of this Code and compliance thereof
• Require the production of any register or any other document relating to the workplace
or work activity
• Search or seize, or take copies of, any register, record or other document or any portion
thereof, as he may consider necessary in respect of any offence under this Code, which
he has reason to believe, has been committed
• Direct the concerned occupier or employer that any premises or any part, or anything
lying therein, shall be left undisturbed
• Take measurements, photographs and videographs and make such recordings as he
considers necessary for the purpose of any examination or inquiry
• Take samples of any articles or substances found in any establishment or premises and
of the air of the atmosphere in or in the vicinity of any such establishment or premises
in such manner as may be prescribed by the appropriate Government

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 • In case of any article or substance found in any establishment or premises, being an
article or substance which appears to him as having caused or is likely to cause danger
to the health and safety of the employees,
▪ direct it to be dismantled or subject it to any process or test and take possession
of any such article or substance and detain it for so long as is necessary for such
examination
• Issue show cause notice relating to safety, health and welfare provisions arising under
this Code, rules, regulations and bye-laws made thereunder
• Prosecute, conduct or defend before any court any complaint or other proceeding
arising under this Code, the rules and regulations made thereunder
• Exercise such other powers and perform such other duties as may be prescribed by the
appropriate Government

25 Section 36 - Powers and duties of District Magistrate

➢ The District Magistrate shall, within the local limits of his jurisdiction, exercise such powers
and duties of the Inspector-cum-Facilitator in respect of mines as may be prescribed by the
Central Government

26 Section 38 - Special powers of Inspector-cum-Facilitator in respect of

factory
➢ An Inspector-cum-Facilitator:
• Shall have the following special powers in respect of a factory, namely:
▪ where it appears to the Inspector-cum-Facilitator that conditions in a factory or
part of are such that they may cause serious hazard or imminent danger by way of
injury or death to the persons employed or to the general public in the vicinity,
o He may, by order in writing to the occupier of the factory prohibit such
occupier from employing any person in the factory or any part thereof other
than the minimum number of persons necessary to attend to the minimum
tasks till the hazard or danger is removed
▪ any order issued by the Inspector-cum-Facilitator shall have effect for a period of
3 days until extended by the Chief Inspector-cum-Facilitator by a subsequent order
▪ any person aggrieved by an order of the Inspector-cum-Facilitator and the Chief
Inspector-cum-Facilitator shall have the right to appeal to the High Court
▪ Any person whose employment has been affected by an order issued shall, be
entitled to wages and other benefits and it shall be the duty of the occupier to
provide alternative employment to him wherever possible

27 Section 42 - Medical officer

➢ The appropriate Government may appoint medical practitioners having prescribed
qualification to be medical officers in relation to factory, mines, plantation, motor transport
undertakings and in any other establishment as may be prescribed
• However, the medical officers so appointed shall before entering into their office shall
disclose to the appropriate Government their interest in the concerned establishment
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 CHAPTER IX - INSPECTOR-CUM-FACILITATORS AND OTHER AUTHORITY

28 Section 43 - Employment of women

➢ Women shall be entitled to be employed in all establishments for all types of work under this
Code and
• They may also be employed, with their consent before 6 a.m. and beyond 7 p.m. subject
to such conditions relating to safety, holidays and working hours or any other condition
to be observed by the employer

29 Section 44 - Adequate safety of employment of women in dangerous

operation
➢ Where the appropriate Government considers that the employment of women is dangerous
for their health and safety, in an establishment or in any particular hazardous or dangerous
processes, due to the operation carried out there,
• Such Government may, require the employer to provide adequate safeguards prior to
the employment of women for such operation

CHAPTER XI

SPECIAL PROVISIONS FOR CONTRACT LABOUR AND INTER-STATE MIGRANT WORKER, ETC.

PART I - CONTRACT LABOUR

30 Section 45 - Applicability of this Part (Contract Labour)

➢ This Part shall apply to:
• Every establishment in which 50 or more contract labour are
employed or were employed on any day of the preceding 12
months through contract
• Every manpower supply contractor who has employed, on
any day of the preceding 12 months, 50 or more contract
labour
➢ This Part shall not apply to the establishment in which work only of
an intermittent or casual nature is performed
• However, if a question arises as to whether work performed
in an establishment is of an intermittent or casual nature, the
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 appropriate Government shall decide that question after consultation with the National
Board or a State Advisory Board and its decision thereon shall be final

31 Section 47 - Licensing of contractors

➢ No contractor to whom this Part applies shall:
• Supply or engage contract labour in any establishment
• Undertake or execute the work through contract labour
▪ Except under and in accordance with a licence issued to him by the authority after
satisfying that the contractor fulfills such requisite qualifications or criteria as may
be prescribed by the Central Government and such licence shall, in addition to the
requisite particulars and conditions specify the number of such contract labour who
can be supplied or engaged and the amount of security to be deposited by the
contractor

32 Section 49 - No fees or commission or any cost to worker

➢ The contractor shall not charge directly or indirectly, in whole or in part, any fee or
commission from the contract labour

33 Section 53 - Liability of principal employer for welfare facilities

➢ Welfare facilities shall be provided by the principal employer of the establishment to the
contract labour who are employed in such establishment

34 Section 56 - Experience certificate

➢ Every concerned contractor shall issue, on demand, experience certificate, in such form as
may be prescribed by the appropriate Government, to the contract labour giving details of
the work performed by such contract labour

35 Section 57 - Prohibition of employment of contract labour

➢ Employment of contract labour in core activities of any establishment is prohibited:
• However, the principal employer may engage contract labour through a contractor to
any core activity, if:
▪ Normal functioning of the establishment is such that the activity is ordinarily done
through contractor
▪ Activities are such that they do not require full time workers for the major portion
of the working hours in a day or for longer periods, as the case may be
▪ Any sudden increase of volume of work in the core activity which needs to be
accomplished in a specified time

PART II - INTER-STATE MIGRANT WORKERS

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36 Section 59 - Applicability of Part II (Inter-State Migrant Workers)
➢ This Part shall apply to every establishment in which 10 or more inter-State migrant workers
are employed or were employed on any day of the preceding 12 months

37 Section 61 - Journey allowance

➢ The employer shall pay to every inter-State migrant worker employed in his establishment, in
a year a lump sum amount of fare for to and fro journey to his native place from the place of
his employment, in the manner:
• Taking into account the minimum service for entitlement, periodicity and class of travel
and such other matters as may be prescribed by the appropriate Government

38 Section 62 - Benefits of public distribution system, etc

➢ The appropriate Government shall make schemes to provide:
• Option to an inter-State migrant worker for availing benefits of public distribution
system either in his native State or the destination State where he is employed
• For portability of the benefits of the inter-State migrant worker working for building or
other construction work out of the building and other construction cess fund in the
destination State where such inter-State migrant worker is employed

39 Section 63 - Toll free helpline

➢ The appropriate Government may provide facility of toll-free helpline to the inter-
State migrant workers in such manner as may be prescribed by that Government

40 Section 64 - Study of inter-State migrant workers

➢ The appropriate Government may provide for study of inter-State migrant workers in such
manner as may be prescribed by that Government

41 Section 65 - Past liabilities

➢ No suit or other proceeding shall lie in any court or before any authority for the recovery of
debt relating to an inter-State migrant worker after the completion of his employment:
• However, if debt remains unsettled obligation to the contractor or the principal employer
by worker, such debt on the completion of the period of employment of such worker, be
deemed to have been extinguished

PART III – AUDIO VISUAL WORKERS

42 Section 66 - Prohibition of employment of audio-visual worker without

agreement
➢ No person shall be employed as an audio-visual worker in or in connection with production
of any audio-visual programme unless:

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 • An agreement in writing is entered into:
▪ With such person by the producer of such audio-visual programme
▪ With such person by the producer of such audio-visual programme with the
contractor, where such person is employed through such contractor
▪ With such person by the contractor or other person through whom such person is
employed
• Such agreement is registered with the competent authority, to be notified by the
appropriate Government, by the producer of such audio-visual programme

PART IV - MINES

43 Section 67 – Managers
➢ Every mine shall be under a sole manager who shall have such qualifications as may be
prescribed by the Central Government and the owner or agent of every mine shall appoint a
person having such qualifications to be the manager
• However, the owner or agent may appoint himself as manager if he possesses the
prescribed qualifications
➢ Except in case of an emergency, the owner or agent of a mine or anyone on his behalf shall
not give, instructions affecting the fulfilment of his statutory duties to a person employed in
a mine, who is responsible to the manager

PART VI - BUILDING OR OTHER CONSTRUCTION WORKER

44 Section 70 - Employment of persons below eighteen years of age

➢ No person below 18 years of age shall be allowed to work in any mine or part of it
➢ Apprentices and other trainees, not below 16 years of age,
• May be allowed to work, under proper supervision, in a mine or part of it by the manager

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45 Section 78 - Prohibition of employment of certain persons in certain
building or other construction work
➢ No person, about whom the employer knows or has reasons to believe that he is a deaf or he
has a defective vision or he has a tendency to giddiness (Dizziness),
• Shall be required or allowed to work in any such operation of building or other
construction work which is likely to involve a risk of any accident either to the building
worker himself or to any other person

PART VII – FACTORIES

46 Section 83 - Constitution of site appraisal committee

➢ The appropriate Government may:
• Constitute 1 or more site appraisal committees consisting of a chairman and other
members,
▪ to consider and to give recommendations on an application for grant of permission
for the initial location of a factory involving a hazardous process or for the
expansion of such factory

47 Section 85 - Specific responsibility of the occupier in relation to hazardous

processes
➢ Every occupier of a factory involving any hazardous process shall:
• Maintain accurate and up-to-date health records or, medical records, of the workers in
the factory who are exposed to any chemical, toxic or any other harmful substances
which are manufactured, stored, handled or transported
• Appoint persons who possess prescribed qualifications and experience in handling
hazardous substances and are competent to supervise such handling within the factory
• Provide for medical examination of every worker
▪ Before such worker is assigned to a job involving the handling of or working with a
hazardous substance
▪ While continuing in such job, and after he has ceased to work in such job, at
intervals not exceeding 12 months

48 Section 87 - Emergency standards

➢ Where the Central Government is satisfied that no standards of safety have been prescribed
in respect of a hazardous process or class of hazardous processes, or where the standards so
prescribed are inadequate,
• it may direct the Directorate General Occupational Safety and Health formerly known
as the Directorate General of Factory Advice Service and Labour Institutes or any
Institution authorised in matters relating to standards of safety in hazardous processes,
to lay down emergency standards for enforcement of suitable standards in respect of
such hazardous processes

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49 Section 88 - Permissible limits of exposure of chemicals and toxic
substances
➢ The maximum permissible limits of exposure of chemical and toxic substances in
manufacturing process in any factory shall be of the value as may be prescribed by the State
Government

PART VIII – PLANTATION

50 Section 92 - Facilities for workers in plantation

➢ The State Government may prescribe requiring every employer to make provisions in his
plantation for:
• Necessary housing accommodation including drinking water, kitchen and toilet to every
worker employed in the plantation (including his family)
• Crèches facilities where in the plantation 50 or more workers (including workers
employed by any contractor) are employed or were employed on any day of the
preceding 12 months
• Educational facilities for the children of the workers employed in the plantation where
the children between the ages of 6 to 12 of the workers exceed 25 in number
• Health facilities to every worker employed in the plantation (including his family) or
provide coverage under the Employees State Insurance Act, 1948
• Recreational facilities for the workers employed in the plantation

51 Section 93 – Safety
➢ In every plantation, arrangement shall be made by the
employer to provide for the safety of a worker in connection
with the use, handling, storage and transport of insecticides,
pesticides and chemicals and toxic substances
➢ The State Government may prescribe for special safeguards for
employment of women or adolescents in using or handling
hazardous chemicals
➢ The employer of a plantation shall appoint persons possessing
the prescribed qualifications to supervise the use, handling,
storage and transportation of insecticides, chemicals and toxic substances in his plantation
➢ Every employer of a plantation shall ensure that every worker in plantation employed for
handling, mixing, blending and applying insecticides, chemicals and toxic substances, is
trained about the
• Hazards involved in different operations in which he is engaged,
• The various safety measures and safe work practices to be adopted in emergencies
arising from spillage of such insecticides, chemicals and toxic substances and
• Such other matters as may be prescribed by the State Government
➢ Every worker in a plantation who is exposed to insecticides, pesticides, chemicals and toxic
substances shall be medically examined periodically

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 ➢ Every employer of a plantation shall maintain health record of every worker in plantation
who is exposed to insecticides, pesticides, chemicals and toxic substances which are used,
handled, stored or transported in a plantation, and every such worker shall have access to
such record
➢ Every employer of a plantation shall provide:
• Washing, bathing and clock room facilities
• Protective clothing and equipment
▪ to every worker engaged in the handling insecticides, pesticides, chemicals and
toxic substances
➢ Every employer of a plantation shall display:
• a list of permissible concentrations of insecticides, pesticides, chemicals and toxic
substances in the breathing zone of the workers
➢ Every employer of a plantation shall exhibit such precautionary notices in the plantation as
may be prescribed by the State Government indicating the hazards of insecticides, pesticides,
chemicals and toxic substances

CHAPTER XIII - SOCIAL SECURITY FUND

52 Section 115 - Social security fund

➢ There shall be established by the appropriate Government a social security fund for the
welfare of the unorganised workers to which there shall be credited
the:
• amount received from composition of the offence and
• the amount of the penalty
➢ The fund may also be funded by such other sources as may be
prescribed by the appropriate Government

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