1

BETWEEN
NEW CODES AND EARLIER LABOUR LAWS
by H.L. Kumar, Advocate
Labour reforms when implemented would make Indian economy more productive and competitive.
Now the 14 Central Acts which had 1458 sections, requiring 937 compliances have been consolidated
into four Codes with just 480 sections. Also when implemented, the industries would need to file
just one return for all four Codes. The ultimate goal of the government is to see India gure in top 10
nations in ease of doing business index of World Bank with completion of long-pending labour
reforms. These reforms could start a chain-reaction in the economy. With ease of compliance
would come increased formality, which will lead to proliferation of larger enterprises and more
organised jobs, which, in turn, will ensure that more firms and workers pay taxes, increasing
government revenues.
COMMON FEATURES IN ALL THE 4 CODES
WAGES
In order to bring in consistency, the Codes have provided for a definition of the term ‘wages’ and
includes all remuneration including house rent allowance, conveyance and other allowances capable
of being expressed in monetary terms. In order to bring in consistency, the Codes have provided
for a uniform definition of the term ‘wages’ and includes all remuneration cable of being expressed
in monetary terms.
INSPECTOR-CUM-FACILITATOR
The Codes provide for the appointment of an Inspector-cum-Facilitator, whose role is enlarged to
encompass not just inspection but also to advise the employers and workers with regard to the
various compliances prescribed under the Codes. Inspection will be done on the basis of an
inspection scheme which will include a web based inspection schedule. The inspection schemes
will be decided by the Central government.
COMPOUNDING OF FIRST OFFENCE
Unlike the current legislations, the Codes permit compounding of the first offence committed
under the Code by paying 50% of the maximum fine provided for such offence. However, if the
violation of a similar nature is repeated within a period of 5 years from the date on which the first
violation was committed, the subsequent offence cannot be compounded.
For further detail kindly check the Codes.
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CODE ON WAGES, 2019

SUBJECT MATTER CODE ON WAGES EARLIER PROVISIONS

APPLICABILITY OF Applicable to all employees including in Applicable only on

organized an unorganized sector scheduled employments
under Minimum Wages
Act, 1948
FIXATION OF The Central Govt. will seta floor No provision to fix floor
FLOOR WAGES minimum wageand may set different wages under Minimum
minimum wages for different States and Wages Act, 1948
regions
TIME LIMIT FOR Claim could be made within 3 years. Any claim for wages could
CLAIM FOR be made within 6 months
WAGES under Minimum Wages
Act, 1948
Under the Payment of Bonus Act, every eligible employee is entitled to receive a statutory
bonus ranging from 8.33% to 20% of the wages, and similar rates have been reflected in
the Code, too. The applicability of the PBA was however, limited to employees drawing
wages not exceeding INR 21,000 per month. Under the Code, the wage threshold is to be
fixed by the appropriate Government in relation to establishments over which they have
jurisdiction.
APPLICABILITY TO All employees are protected without any Applied to those
EMPLOYEES wage limit including supervisor and employees drawing less
managers than Rs.24,000/- for filing
claim under Payment of
Wages Act, 1936
ACCOUNTING Only year commencing with 1st April and Not necessarily one
YEAR ending on 31st March. starting on 1 st April and
ending on 31st March under
Payment ofBonus Act,
1965. It could be changed
also once by the employer
and could change without
permission.
No change of above accounting year It could be more than 12
permitted months also
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SUBJECT MATTER CODE ON WAGES EARLIER PROVISIONS

DISQUALIFICATION For similar misconduct as enumerated On dismissal misconducts

FOR BONUS earlier. Additionally disqualification on i.e. fraud, riotous &
conviction for sexual harassment. disorderly behaviour, theft
and misappropriation
under Payment of Bonus
Act, 1965
MODE OF To be credited in the bank account of the By cash only under
PAYMENT employee Payment of Bonus Act,
1965
BONUS WHEN Employer liable bonus @8.33% when a No such provision under
DISPUTE FOR dispute is referred to Industrial Tribunal Payment of Bonus Act, 1965
HIGHER BONUS IS in a dispute for payment of higher bonus
REFERRED FOR
ADJUDICATION
GENDER Prohibits gender discrimination in Prohibited gender
DISCRIMINATION matters related to wages and recruitment discrimination in wage
IN FIXATION OF of employees for the same work or work payment under Equal
WAGES of similar nature. Work of similar nature Remuneration Act, 1976
is defined as work for which the skill,
effort, experience, and responsibility
required are the same.
GENDER Prohibits gender discrimination in No reference prohibiting
DISCRIMINATION recruitment, transfers and promotions gender discrimination in
IN RECRUITMENT recruitment under Equal
Remuneration Act, 1976
TERRITORIAL Not provided Appointed area wise
JURISDICTION FOR
INSPECTOR CUM
FACILITATOR
REGISTERS & Only two registers are required to be Over 10 Registers
RETURNS maintained
Only one return to be filed Four returns
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CODE ON SOCIAL SECURITY, 2020

SUBJECT MATTER CODE ON SOCIAL SECURITY EARLIER LAW
REGISTRATION AND Required only when there is no registration of Registration was
CANCELLATION OF AN establishment under any labour laws. required under
ESTABLISHMENT. Sec.3 every Act.
NATIONAL SOCIAL SECURITY To be constituted comprising of 42 member. Did not exist.
BOARD AND STATE
UNORGANISED WORKERS’
BOARD. Sec.6
APPEAL TO TRIBUNAL. Sec.23 Appeal against provident fund authority entertain on It was upto 75%
25% of excess amount by EPF Authority
PRESUMPTION AS TO Protecting other person who could possibly be injured Partly existed in
ACCIDENT ARISING IN COURSE in an accident. Travelling any vehicle with permission different section
OF EMPLOYMENT. Sec.34
of employer from the place of work
CORPORATION’S (ESI) RIGHTS Expenditure incurred extended upon employee who was Did not exist
WHEN AN EMPLOYER FAILS TO no timely insured by the employer
REGISTER, ETC. Sec.42
LIABILITY OF OWNER OR Insured person due to insanitary working condition. Did not exist
OCCUPIER OF FACTORIES, ETC.,
FOR EXCESSIVE SICKNESS
Insanitary condition of any tenements are occupied by
BENEFIT. Sec.43 insured person due to neglect of the owner.
Liable for extra expenditure by the corporation
SCHEMES FOR UNORGANISED Unorgnised gig workers and platform workers and their Did not exist
WORKERS, GIG WORKERS family members providing ESI benefits against
AND PLATFORM WORKERS. contributions.
Sec.45
FRAMING OF SCHEMES FOR Welfare scheme by Central government for unorganised Did not exist
UNORGANISED WORKERS. workers -(i) life and disability cover; (ii) health and
Sec.109 maternity benefits; (iii) old age protection; (iv)
education; and (v) any other benefit as may be
determined by the Central Government.
Welfare scheme for unorganised worker by State
government for -(i) provident fund; (ii) employment
injury benefit; (iii) housing; (iv) educational schemes
for children; (v) skill upgradation of workers; (vi)
funeral assistance; and (vii) old age homes.
FUNDING OF STATE Partly by State government and partly by contributions Did not exist
GOVERNMENT SCHEMES. (Central government could also provided financial
Sec. 110 assistance)
HELPLINE, FACILITATION Appropriate government provide toll free call centre Did not exist
CENTRE, ETC., FOR for helpline or facilitation centres for unorganised,
UNORGANISED WORKERS, gig and platform workers.
GIG WORKERS AND
PLATFORM WORKERS.
Sec.112
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SUBJECT MATTER CODE ON SOCIAL SECURITY EARLIER LAW

REGISTRATION OF Gig workers to be registered on production of Did not exist
UNORGANISED WORKERS, document including Aadhar number
GIG WORKERS & PLATFORM
WORKERS. Sec.113
SCHEMES FOR GIG WORKERS Central government to frame rules for gig and Did not exist
AND PLATFORM WORKERS. platform workers relating to -(a) life and disability
Sec.114 cover;(b) accident insurance;(c) health and
maternity benefits;(d) old age protection;(e) crèche;
and(f) any other benefit as may be determined by
the Central Government. For their welfare to be
funded by contributions towards social security
fund and also a board will be constituted.
APPOINTMENT OF INSPECTOR Besides inspections they will advice the employer Only Inspectors for
CUM-FACILITATORS AND THEIR and employees for compliance of the Code inspect the
POWERS. Sec.122 establishment
MAINTENANCE OF RECORDS, Records pertaining to employment of employees Did not exist in the
REGISTERS, RETURNS, ETC. number of dangerous apprentice their wages and manner as prescribed
Sec.123 other facilities, number of dangerous occurrences,
accient injuries, statutory vacancies for suitable
candidates and display of notice.
ASSESSMENT AND Enquiry by provident fund authority shall not be No limitation
DETERMINATION OF DUES prescribed for enquiry
initiated after expiry of period of 5 years. under section 7A of
FROM EMPLOYER. Sec.125
EPF & MP Act.
PENALTY FOR FAILURE TO PAY Penalties for non compliance of any requirement of Existed
CONTRIBUTIONS, ETC. Code including non payment of prescribed
Sec.133 contributions
Impermissible deduction, non submission of any
returns , report etc. etc.
ENHANCED PUNISH IN Including enhanced punishment for subsequent Did not exist
CERTAIN CASES AFTER offence
PREVIOUS CONVICTION.
Sec.134
REPORTING OF VACANCIES TO Before filling up establishment vacancies to the Existed in different in
CAREER CENTRES AND appropriate government by the establishments. the Employment
EXCLUSIONS FROM Other than employment agriculture, domestic Exchanges (CNV) Act,
APPLICATION OF THIS 1959
service, for duration of 90 days
CHAPTER. Secs.139&140
POWER TO DEFER OR REDUCE Central govt. May defer for reduced employer/ Did not exist
THE STATUTORY employees contributions for ESI, provident fund for
CONTRIBUTIONS. Sec.144 a period of 3 month in the event of pandemic for
natural disaster.

MISUSE OF BENEFITS.Sec.148 Any establishment or other person misusing Existed in different

benefits under the Code could be deprived from any manner
benefit by the government
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INDUSTRIAL RELATIONS CODE, 2020

RELATIONS
SUBJECT MATTER INDUSTRIAL RELATIONS CODE EARLIER LAW
Exclusions from the definition of ‘ industry’ – Did not exclude except
ExcludedAny capital has been invested for the domestic service that too by
purpose of carrying on such activity; or such judicial interpretations
activity is carried on with a motive to make any
gain or profit, but does not include—(i)
institutions owned or managed by
organisations wholly or substantially engaged
in any charitable, social or philanthropic
INDUSTRY service; or(ii) any activity of the appropriate
Government relatable to the sovereign functions
of the appropriate Government including all the
activities carried on by the departments of the
Central Government dealing with defence
research, atomic energy and space; or(iii) any
domestic service; or(iv) any other activity as
may be notified by the Central Government.
Fixed term employment will be eligible to all Did not exist
FIXED TERM statutory benefits including gratuity which will
EMPLOYMENT be available to him even for serving for one
year.
Excludes termination of service of a worker as Did not exist
a result of completion of tenure of fixed term
RETRENCHMENT
employment

Introduced in the Industrial Relations Code, Never existed except

2020. Covers any skilled, semi-skilled or ‘workman’ which has not
EMPLOYEE unskilled, manual, operational, supervisory, been incorporated in the
managerial, administrative, technical or Code
clerical work for hire or reward.

Includes working journalists and sales Only ‘workman’ was defined

WORKER
promotion employees under Industrial Disputes Act
whereas in other relevant
Acts reference was made to
an ‘employee’
It has plugged loophole : exploiting the Did not exist
NEGOTIATING multiplicity of unions in an establishment/
UNION OR organization by introducing concept
NEGOTIATING negotiating union or negotiating council.
COUNCIL
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SUBJECT MATTER INDUSTRIAL RELATIONS CODE EARLIER LAW

TRADE UNION Appeal against non-registration or
cancellation of registration lies only before It lies before High Court also
FORUM FOR
Tribunal
APPEAL
INDUSTRIAL Would consist of two members to be appointed
Only single member was
TRIBUNAL by the appropriate Government out of whom
consisted in the Industrial
one shall be a Judicial Member and the other,
Tribunal
an Administrative Member.

No such period was

RE-EMPLOYMENT Re-employment of – within a period of one year
prescribed
OF RETRENCHED only
WORKER
FLASH STRIKE Completely prohibited No such prohibition

PROHIBITION OF Strikers required to give a notice at least 14 Only in public utility

days in advance to the employers if they wanted services 14 days notice was
STRIKE IN to go on strike. Such notice valid upto 60 days. to be given
LOCKOUT Strike prohibited during pendency of
proceedings before tribunals or arbitrator.

WORKERS Consisted of the contributions of the employer Did not exist

RESKILLING FUND of an industrial establishment an amount
equal to fifteen days wages last drawn by the
worker immediately before the retrenchment,
or such other number of days as may be
notified by the Central Government, for every
retrenched worker in case of retrenchment only.
Workers could not resort to strike without 14
PROHIBITION OF days notice during conciliation proceedings Only in public utility
and seven days after their conclusion during services.
STRIKE adjudication proceedings and three months
after their conclusion.
PRIOR PERMISSION Applies to an establishment (not being an
FOR LAY OFF, establishment of a seasonal character or in Applied for industrial
RETRENCHMENT AND which work is performed only intermittently) establishment where 100 or
CLOSURE of in which not less than three hundred workers. more workers are employed
INDUSTRIAL
ESTABLISHMENT
Could be resolved for a sum for a sum of fifty
COMPOSITION OF per cent. of the maximum fine provided for such
OFFENCES offence punishable with fine only and for a Did not exist
sum of seventy-five per cent provided for such
offence punishable with imprisonment for a
term which is not more than one year or with
fine.
8

OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS CODE 2020

IMPORTANT FEATURES CODE EARLIER LAW
REGISTRATION Every employer of any establishment to apply Separate registration was
for registration electronically required under each different Act
APPOINTMENT LETTER appointment letter to be issued to every Did not exist
employee
NOTICES OF CERTAIN Notices to the authorities and for diseases as Existed in different forms
ACCIDENT, DANGEROUS specified under Third Schedule of the Code
OCCURRENCE AND
DISEASES
RIGHTS OF EMPLOYEE Every employee shall have right to obtain from No such provision exists
(Sec-14) employer information related to employee’s
health and safety and report to Safety Committee
also.
NATIONAL Central government to constitute the national Not exists
OCCUPATIONAL SAFETY occupational safety and health advisory board
AND HEALTH ADVISORY
BOARD
WELFARE OFFICER On 250 workers in factory, mine, plantation It is 500 workers in a factory
SAFETY COMMITTEE AND On 500 workers in a factory. On 250 workers in When there are 1000 workers
SAFETY OFFICER hazardous process. On 250 workers in building
or other construction. On 100 workers in a mine
RESPONSIBILITY OF For maintenance of health, safety and working Existed in different forms
EMPLOYER conditions of the employees

WELFARE FACILITY IN THE Employer responsible to provide and maintain Exists

ESTABLISHMENT in his establishment such welfare facilities for
the employees as may be prescribed by the
Central government.
DAILY AND WEEKLY 8 hours in a day and 48 hours in a week Exists
HOURS OF WORK For journalist maximum 144 hours during period
of 4 consecutive weeks and not less than 24 Does not exist
consecutive hours during 7 consecutive days.
Specific provision for working journalist and Not existed
sales promotion employer pertaining to holidays
casual leave and other kinds of leave.
OVERTIME WORKING Employer can take overtime work with consent No such provision exists
of the worker
NOTICE OF PERIODS OF Display of notice about period of work every day. Exists in different form
WORK
ANNUAL LEAVE WITH One day for every 20 days of his work Exists
WAGES
REGISTERS AND Registers and records to be maintained by Existed but not in one but more
RECORDS employer registers
SPECIAL POWERS OF Steps to be taken apprehending serious hazard Exists in different form
INSPECTOR-CUM- or imminent danger in a factory or mine
FACILITATORS
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IMPORTANT FEATURES CODE EARLIER LAW

ENCASHMENT OF LEAVE Worker entitled to encash leave above ceiling No such provision exists
as prescribed
EMPLOYMENT OF Employer can employ women employee between Did exist
WOMEN DURING NIGHT 7 p.m. and 6 a.m. with her consent, subject to
SHIF conditions on safety, holidays and working hours.
CONTRACT LABOUR Licence for engaging contract labour can be No such provision exists. Validity
obtained for working in more than one State, or of licence is twelve months.
for whole of India, valid for a period of five years
NO RECOVERY FROM Contractor shall not charge, directly or indirectly, No such provision exists
CONTRACT LABOUR whole or in part, any fee or commission from
contract labour
WELFARE FACILITIES TO Welfare facilities to contract labour to be Contractor is responsible to
CONTRACT LABOUR provided by the Principal Employer provide welfae facilities to his
contract labour
CONTRACT LABOUR IN Permitted under certain condition Existed unless prohibited by
CORE ACTIVITY government
CODE NOT TO APPLY IN Excavation in mine being made for prospecting Did not exist in this form
CERTAIN CASES purposes only and not for the purpose of
obtaining minerals for use or sale subject to the
conditions specified etc.
EXEMPTION FROM On breakdown of machinery on plant and Did not exist in this format
PROVISION REGARDING equipment Workers to be exempted from work.
EMPLOYMENT
EMPLOYMENT OF Relates to the employment of persons below Existed in different format
PERSONS BELOW eighteen years of age. It provides that no person
EIGHTEEN YEARS OF below eighteen years of age shall be allowed to
AGE(Sec.70) work in any mine or part thereof but in case of
apprentices and other trainees, such age limit
is not below sixteen years.
FACTORY LICENCE TO Without licence no employer shall use or allow Differently Existed
INDUSTRIAL PREMISES to use any place or premises
AND PERSON
RIGHT OF WORKERS TO If Workers in hazardous process apprehend No such provision exists
WARN ABOUT IMMINENT likelihood of imminent danger to lives or health,
DANGER they may bring it to the notice of person in-charge
for immediate correction
EMPLOYMENT OF AUDIO- Employment with written agreement in No such provision exists
VISUAL WORKER prescribed form and registered with competent
authority
OFFENCES AND PENALTIES Enhanced fines from and imprisonment terms Lesser Fines and imprisonment
for different contraventions, period
GRAVITY OF Almost double fine and imprisonment for Existed reasonably
PUNISHMENT subsequent offences

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