Highlights Labour Codes

Appropriate Government
Code Central Government State Government

In relation to, an establishment carried on by or

under the authority of the Central Government or the
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
Code on In relation to any other establishment, the State
companies set up by central public sector
Wages, 2019 Government
undertakings or 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, as the case may
be, the Central Government

2
 Appropriate Government
Code Central Government State Government

In relation to any industrial establishment or

undertaking carried on by or under the authority of
the Central Government or concerning any such
controlled industry as may be specified in this behalf
by the Central Government or the establishment of
railways including metro railways, mines, oil fields,
major ports, air transport service,
telecommunication, banking and insurance company
In relation to any other industrial establishment,
or a corporation or other authority established by a
including State public sector undertakings, subsidiary
Central Act or a central public sector undertaking,
IR Code, 2020 subsidiary companies set up by the principal
companies set up by the principal undertaking and
autonomous bodies owned or controlled by the State
undertakings or autonomous bodies owned or
Government, the State Government:
controlled by the Central Government including
establishments of the contractors for the purposes of
such establishment, corporation, other authority,
public sector undertakings or any company in which
not less than fifty-one per cent. of the paid-up share
capital is held by the Central Government, as the
case may be, the Central Government, and even if it
reduces by 51%, Central Government 3
Dispute between Contractor & CL, AG shall be same as that of the establishment
 Appropriate Government
Code Central Government State Government

In relation to a factory, motor transport undertaking,

plantation, newspaper establishment and
establishment relating to beedi and cigar including
OSHWC Code,
Same as IR Code, 2020 the establishments not specified in clause (i), the
2020 concerned State Government where it is situated.
Explanation: in respect of occupational safety,
health and working conditions in a factory.

Same as IR Code, 2020 + in relation to an

Code on Social In relation to any other establishment, the State
establishment having departments or branches
Security, 2020 Government.
in more than one State

4
Code on Wages, 2019
Code on Wages

The Payment of Wages Act,

1936

The Minimum Wages Act, 1948

The Payment of Bonus Act,

1965

The Equal Remuneration Act,

1976

6
 Employee & Worker
EMPLOYEE WORKER
Means, any person (other than an apprentice Means any person (except an apprentice as defined under clause (aa) of
engaged under the Apprentices Act, 1961), section 2 of the Apprentices Act, 1961) employed in any industry to do any
employed on wages by an establishment to manual, unskilled, skilled, technical, operational, clerical or supervisory
do any skilled, semi-skilled or unskilled, work for hire or reward, whether the terms of employment be express or
manual, operational, supervisory, managerial, implied, includes working journalists and sales promotion employees
administrative, technical or clerical work for but does not include any such person––
hire or reward, whether the terms of (a) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the
employment be express or implied, and also Navy Act, 1957; or
includes a person declared to be an (b) who is employed in the police service or as an officer or other employee
employee by the appropriate Government, of a prison; or
but does not include any member of the (c) who is employed mainly in a managerial or administrative capacity; or
Armed Forces of the Union. (d) who is employed in a supervisory capacity drawing wage of
exceeding fifteen thousand rupees per month or an amount as may be
notified by the Central Government from time to time.

Employee
• Definition of worker similar to that of workman in ID Act
Worker
• Wages limit for supervisory capacity is ₹10,000 currently
7
 Wages
"Wages" means all remuneration whether by way of (c) any contribution paid by the employer to any
salary, allowances or otherwise, expressed in terms pension or provident fund, and the interest which
of money or capable of being so expressed which may have accrued thereon;
would, if the terms of employment, express or (d) any conveyance allowance or the value of any
implied, were fulfilled, be payable to a person travelling concession;
employed in respect of his employment or of work (e) any sum paid to the employed person to defray
done in such employment, and includes, - special expenses entailed on him by the nature of his
(i) basic pay; (ii) dearness allowance; and (iii) employment;
retaining allowance, if any; (f) house rent allowance;
(g) remuneration payable under any award or
but does not include- settlement between the parties or order of a court
(a) any bonus payable under any law for the time or Tribunal;
being in force, which does not form part of the (h) any overtime allowance
remuneration payable under the terms of (i) Any commission payable to the employee;
employment; (j) any gratuity payable on the termination of
(b) the value of any house-accommodation, or of employment;
the supply of light, water, medical attendance or (k) any retrenchment compensation or other
other amenity or of any service excluded from retirement benefit payable to the employee or any ex
the computation of wages by a general or special gratia payment made to him on the termination of
order of the appropriate Government; employment 8
Wages
Provided that, for calculating the wages under this
clause, if payments made by the employer to the
employee under clauses (a) to (i) exceeds one half, or
such other per cent. as may be notified in the Official
Gazette by the Central Government, of the all
remuneration calculated under this clause, the amount
which exceeds such one-half, or the per cent. so
notified, shall be deemed as remuneration and shall
be accordingly added in wages under this clause.

Provided further that for the purpose of equal wages to

all genders and for the purpose of payment of wages,
the emoluments specified in clauses (d), (f), (g) and (h)
shall be taken for computation of wage.

Explanation.- Where an employee is given in lieu of the

whole or part of the wages payable to him, any
remuneration in kind by his employer, the value of such
remuneration in kind which does not exceed fifteen per
cent. of the total wages payable to him, shall be
deemed to form part of the wages of such employee. 9
 Wages
Value of Sum to Remuner
Employer Conveya Overtim
Bonus house defray ation
PF nce e Commiss Total
Basic Pay + under accommod special HRA under
contributi allowanc allowan ion amount
DA law ation, light, expens (f) settleme
on e ce (i) payable
(a) water, etc. es nt
(c) (d) (h)
(b) (e) (g)

10,000 + - - 1200 - - 4000 - 3100 - = 18,300

50% of Total Amount which exceeds

Total of (a) to (i) Amount payable 50% of total amount Total Wages
under clause payable

5000 3300 13,300

8300
(50% of 10,000) (8300 – 5000) (10,000 + 3300)

10
Payment of Wages
Key Amendments

Applies to all
Wages to be paid by Total deduction
establishments No Wage ceiling F&F to be done in 2
7th day of Month should not exceed
irrespective of (currently ₹24,000/-) days in all cases
(currently 10 days) 50%
numbers

Time period Full and Final

Applicability Coverage Deduction
of Payment Settlement

Stop backdated Modify system,

All employees in
No impact, as the Already complying, separation, better quick response
RIL will be covered,
act already applies Ensure the same link up with HRBP mechanism in case
increased legal
to RIL with Contractors & FCA, inform of deduction,
liability
Contractor inform Contractor

11
Payment of Wages
Fines & Recovery

No fine shall be imposed until

such employee has been given
01 an opportunity of showing
cause against the fine

Total amount of fine shouldn’t

02 exceed 3% of wages for that
wage period

No fines in installment or after

03 90 days of offense

Register for fines and such

04 amount should be used for
benefit of employees

Recovery of advance shall as

05 may be prescribed
12
 Minimum Wages
Key Amendments
National Floor Minimum Wages
Category/ Non • High impact on Contract Labour
Metropolitan Rural/Others Cost
Area Metropolitan
• Direct impact on bonus, will result
Highly-Skilled Yet to be notified Yet to be notified Yet to be notified in higher bonus
• Map trade with skills (Schedule E)
Skilled Yet to be notified Yet to be notified Yet to be notified

Semi-Skilled Yet to be notified Yet to be notified Yet to be notified

Unskilled Yet to be notified Yet to be notified Yet to be notified

• Removed concept of Schedule Employment

• National Floor Minimum Wages likely to be higher
than current State MW
• State Governments are authorized to add special
allowance considering CPI in states 13
Payment of Bonus
Key Amendments
Wage ceiling for coverage not mentioned, might remain unchanged at ₹21,000

Disqualification

Addition: Conviction on account of

Payment Sexual harassment.
Method

To be paid directly by crediting it in

Wages bank account

Minimum wages might increase after Increase in Bonus amount, direct

National Floor minimum wages is financial impact in Contract Labour
implemented Cost, more employees can go out of
ceiling 14
Equal Remuneration
Key Amendments

No discrimination on grounds of No discrimination on grounds of

sex while recruitment for work of genders relating to wages, shouldn’t
same & similar nature reduce wages for that purpose
Word opposite
sex replaced by
all sex

15
Key Amendments
Applies to all Chapters

Registers Inspector cum Facilitators Burden of Proof

Modifications, maintain Power of inquiry, advise and guide In matter of Wages,
electronically employers On employer

Annual Return Authority Violation of Code

Yet to be notified Single Authority for issues Individual and Unions
in the code arising out of Code can file complaints
(opposed to different for violation of code
under different Acts)
16
Key Amendments
Major impact of Draft Rules
46. Payment under clause (a) of sub-section (1) of section 44.- Where any amount payable to an
employee under the Code is due after his death or on account of his whereabouts not being known,
and the amount could not be paid to the nominee of the employee until the expiry of three months from
the date the amount had become payable, then, such amount shall be deposited by the employer with
the Deputy Chief Labour Commissioner (Central) having jurisdiction, who shall disburse the amount to
the person nominated by the employee after ascertaining his identity within two months of the date on
which the amount was so deposited with him.

55. Timely Payment of Wages.-Where the employees are employed in an establishment through
contractor, then, the company or firm or association or any other person who is the proprietor of the
establishment shall pay to the contractor the amount payable to him or it, as the case may be, before
the date of payment of wages so that payment of wages to the employees shall be made positively in
accordance with the provisions of Section 17.

57. Responsibility for payment of minimum bonus.- Where in an establishment, the employees are
employed through contractor and the contractor fails to pay minimum bonus to them under section 26,
then, the company or firm or association or other person as referred to in the proviso to section 43
shall, on the written information of such failure, given by the employees or any registered trade union
or unions of which the employees are members and on confirming such failure, pay such minimum
bonus to the employees. 17
Registers under the Code
Particular Matter
Register of Wages, Overtime, Fine,
Form I
Deduction for damage and Loss
Single application under sub-
Form II section (5) of section 45
(Application for Claim)
Appeal under Section 49(1) of the
Form III
Code on Wages, 2019
Form IV Employee Register
Form V Wage Slip
Application under sub-section (4) of
Form VI section 56 for composition of
offence
18
IR Code, 2020
The IR Code

The Industrial
01 Disputes Act,
01 1947

Industrial
02 Employment
Standing Orders
Act, 1946
03 02 Trade Union
03 Act, 1926

20
 Employee & Worker
EMPLOYEE WORKER
"employee" means any person (other than an Means any person (except an apprentice as defined under clause (aa) of
apprentice engaged under the Apprentices section 2 of the Apprentices Act, 1961) employed in any industry to do any
Act, 1961) employed by an industrial manual, unskilled, skilled, technical, operational, clerical or supervisory
establishment to do any skilled, semi-skilled work for hire or reward, whether the terms of employment be express or
or unskilled, manual, operational, supervisory, implied, includes working journalists and sales promotion employees as
managerial, administrative, technical or defined in clause (d) of section 2 of the Sales Promotion Employees
clerical work for hire or reward, whether the (Conditions of Service) Act, 1976, and for the purposes of any proceeding
terms of employment be express or implied, under this Code in relation to an industrial dispute, includes any such
and also includes a person declared to be an person who has been dismissed, discharged or retrenched or otherwise
employee by the appropriate Government, terminated in connection with, or as a consequence of, that dispute, or
but does not include any member of the whose dismissal, discharge or retrenchment has led to that dispute,
Armed Forces of the Union but does not include any such person––
(i) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the
Navy Act, 1957; or
Employee
(ii) who is employed in the police service or as an officer or other employee
of a prison; or
(iii) who is employed mainly in a managerial or administrative capacity; or
Worker
(iv) who is employed in a supervisory capacity drawing wage of
exceeding eighteen thousand rupees per month or an amount as may
be notified by the Central Government from time to time.
For Ch. III: All persons employed in trade of industry, worker as defined in
21
clause (m) of S. 2 of the Unorganized Workers' Social Security Act, 2008
Fixed Term Employment
"fixed term employment" means the engagement of a worker on the basis of a written
contract of employment for a fixed period:
Provided that—
a. his hours of work, wages, allowances and other benefits shall not be less than that of a
permanent workman doing the same work or work of similar nature; and

b. he shall be eligible for all statutory benefits available to a permanent workman

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;

c. FTE he shall be eligible for gratuity if he renders service under the contract for a
period of one year; (added)

22
Employer
"employer" means a person who employs, whether directly or through any person, or
on his behalf or on behalf of any person, one or more employee or worker in his
establishment and where the establishment is carried on by any department of the
Central Government or the State Government, the authority specified by the head of
the department in this behalf or where no authority is so specified, the head of the
department, and in relation to an establishment carried on by a local authority, the
chief executive of that authority, and includes,—
i. in relation to an establishment which is a factory, the occupier of the factory as
defined in clause (n) of section 2 of the Factories Act, 1948 and, where a person
has been named as a manager of the factory under clause (f) of sub-section (1)
of section 7 of the said Act, the person so named;
ii. in relation to any other establishment, the person who, or the authority which has
ultimate control over the affairs of the establishment and where the said affairs
are entrusted to a manager or managing director, such manager or managing
director;
iii. contractor; and
iv. legal representative of a deceased employer;

23
Industry
"industry" means any systematic activity carried on by co-operation between an employer and
worker (whether such worker is employed by such employer directly or by or through any
agency, including a contractor) for the production, supply or distribution of goods or services
with a view to satisfy human wants or wishes (not being wants or wishes which are merely
spiritual or religious in nature), whether or not,—
i. any capital has been invested for the purpose of carrying on such activity; or
ii. such activity is carried on with a motive to make any gain or profit,
but does not include—
i. institutions owned or managed by organizations wholly or substantially engaged in any
charitable, social or philanthropic 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 defense research, atomic energy and space; or
iii. any domestic service; or
iv. any other activity as may be notified by the Central Government;
24
Industrial Dispute
"industrial dispute" means any dispute or difference between employers and
employers or between employers and workers or 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 and
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;

25
Industrial Dispute
Added in CH II:
(9) Where any employer discharges, dismisses, retrenches, or otherwise terminates
the services of an individual worker, any dispute or difference between that worker
and his employer connected with, or arising out of, such discharge, dismissal,
retrenchment or termination shall be deemed to be an industrial dispute
notwithstanding that no other worker nor any Trade Union is a party to the dispute.
(10) Notwithstanding anything contained in this section or section 53, any worker as
is specified in sub-section (5) may, make an application directly to the Tribunal for
adjudication of the dispute referred to therein after the expiry of forty-five 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, as the
Tribunal has in respect of the application filed under sub-section (6) of section 53.
(11) The application referred to in sub-section (10) shall be made to the Tribunal
before the expiry of two years from the date of discharge, dismissal, retrenchment
or otherwise termination of service as specified in sub-section (9). (Currently 3 years)
26
Retrenchment
"retrenchment" means 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—
i. voluntary retirement of the worker; or
ii. retirement of the worker on reaching the age of superannuation; or
iii. 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; or
iv. termination of service of the worker as a result of completion of
tenure of fixed term employment; or
v. termination of the service of a worker on the ground of continued ill-
health
27
Strikes
"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 fifty per cent. or more workers
employed in an industry;

Removed concept of Public Utility Services (PUS), need to give 14 days

notice before striking in all industrial establishments
Time period to strike increased from 42 days to 60 days

28
Negotiating Union / Council
Formation of Negotiating Union or
01 Negotiations
Negotiating council

Sample text Employer shall recognize such

Only 1 Trade Union
02 Trade Union as sole negotiating
union

Sample text
>1 TU with majority 1 TU has > 51% workers on rolls of
02 (51% or more workers) IE, that TU will be recognized by
employer
Sample text
>1 TU no majority (no 1 representative for each 20% of
02 51% or more workers) total workers of TU
Sample text

Any recognition/negotiating council

Validity of Negotiating
03 Union / Council
constituted will be valid for 3 years
to 5 years

29
Mechanism for Resolution of Dispute
• Abolition of Labour Courts
• The procedure of the Tribunal (including distribution of cases in the benches of the
Tribunal) shall be such as may be prescribed, provided a bench consisting of a Judicial
Member and an Administrative Member shall entertain and decide the cases only relating
to—
a. the application and interpretation of standing order;
b. discharge or dismissal of workmen including reinstatement of, or grant of
relief to, workmen dismissed;
c. illegality or otherwise of a strike or lock-out; and
d. retrenchment of workmen and closure of establishment,
e. Trade Union disputes
• Every award or order shall be signed by both the Members; and the remaining cases shall
be entertained and decided by the bench of the Tribunal consisting either a Judicial
Member or an Administrative Member of the Tribunal and the award delivered by such
single Member of the Tribunal shall be signed by him alone.
• The Judicial Member shall preside over the Tribunal where the bench of the Tribunal
consists of one Judicial Member and one Administrative Member.
30
 Worker Re-Skilling Fund

Appropriate Govt. Employer to

by notification will contribute amount
set-up reskilling =15 days wages
fund last drawn

Utilized by crediting fifteen days wages last

drawn by the worker, who is retrenched,
within forty-five days of such retrenchment

31
Drafting of Standing Orders for certification
The provisions of this Chapter shall apply to every industrial establishment wherein
three hundred or more than three hundred workers, are employed, or were
employed on any day of the preceding twelve months. Previously 100

(1) The employer shall prepare draft standing orders within a period of six months
from the date of commencement of this Code, based on the model standing orders
referred to in section 29 and on any other matter considered necessary by him for
incorporation in such standing orders for his industrial establishment or undertaking
considering the nature of activity in his industrial establishment or undertaking
provided such provision is not inconsistent with any of the provision of this Code and
covers every matters set out in the First Schedule.

The employer shall consult the draft of the standing order, with the Trade Unions or
recognized negotiating union or negotiating council and thereafter forward a copy of
the same for being certified by the certifying officer.

32
Model Standing Orders
• Where an employer adopts a model standing order of the Central
Government referred to in section 29 with respect to matters relevant to his
industrial establishment or undertaking, then, such model standing order
shall be deemed to have been certified under the provisions of this
section and employer shall forward the information in this regard to the
concerned certifying officer in such manner as may be prescribed: Provided
that if the certifying officer has any observation, he may direct such
employer to amend the standing order so adopted within such period as
may be prescribed.
• The employer shall prepare the draft of the modifications required in
the standing order, if any, in accordance with the provisions of this Code
and forward electronically or otherwise to the certifying officer for
certification of those modifications only within a period of six months
from the date, the provisions of this Chapter becomes applicable to his
industrial establishment
33
Other Key Amendments
• Permission of government required for Closure, Lay-off & Retrenchment:
No. of workers 300 or more

• Process of Registration of Trade Unions remains same- Will be done under

this Code.

• Matters of Disputes related to Trade Unions will be handled by Tribunals

• Interpretation of Standing Orders will be dealt with by Tribunals

34
 The Occupational Safety, Health
and Working Conditions Code, 2020
The OSHWC Code

05 The Mines Act, 1952

The Sales Promotion
01 The Factories Act, 1948
The Dock Workers
10 Employees Act, 1966

06 (Safety, Health &

Welfare) Act, 1986
The Contract Labour The Motor Transport
02 (R&A) Act, 1970 11 Workers Act, 1981
The Plantations Labour
07 Act, 1951
The Working
The Interstate Migrant Journalists and other
03 Workmen Act, 1979
The Cine Workers &
12 Newspapers Employees
Act, 1955
08 Cinema Theater
The Building & Other Workers Act, 1981 The Working Journalist
04 Construction workers 13 (Fixation of Wages) Act
Act, 1996 The Beedi & Cigar 1958
09 Workers Act, 1866

36
 Worker
EMPLOYEE WORKER
(i) in respect of an establishment, a person Means any person employed in any industry to do any manual, unskilled,
(other than an apprentice engaged under the skilled, technical, operational, clerical or supervisory work for hire or
Apprentices Act, 1961) employed on wages reward, whether the terms of employment be express or implied, includes
by an establishment to do any skilled, semi- working journalists and sales promotion employees
skilled, unskilled, manual, operational, but does not include any such person––
supervisory, managerial, administrative, (a) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the
technical, clerical or any other work, whether Navy Act, 1957; or
the terms of employment be express or (b) who is employed in the police service or as an officer or other employee
implied; and of a prison; or
(ii) a person declared to be an employee by (c) who is employed mainly in a managerial or administrative capacity; or
the appropriate Government, (d) who is employed in a supervisory capacity drawing wage of
but does not include any member of the exceeding eighteen thousand rupees per month or an amount as may
Armed Forces of the Union be notified by the Central Government from time to time.

Employee • Definition of worker similar to that of workman in ID Act

Worker • Wages limit for supervisory capacity currently ₹10,000

• No major impact on RIL 37

Factory
“factory” means any premises including the precincts thereof—
(i) whereon ten twenty or more workers are working, or were working on any day of
the preceding twelve months, and in any part of which a manufacturing process is
being carried on with the aid of power, or is ordinarily so carried on; or
(ii) whereon twenty forty or more workers are working, or were working on any day of
the preceding twelve 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.

Provided that where under any law for the time being in force in a State
immediately before the commencement of this Code, the number of workers
specified is more or less than the number specified in clause (i) or clause (ii),
then, the number specified under the law of the State shall prevail in that State
till it is amended by the competent Legislature.
38
Contract Labour
Applies to

every establishment in which twenty fifty or more contract

labour are employed or were engaged on any day of the
preceding twelve months through contract;

Every manpower supply contractor who has employed on any

day of the preceding twelve months twenty fifty or more
contract labour

39
 Contract Labour
"contract labour" means a worker who shall be deemed to be employed in or in connection with the work of
an establishment when he is hired in or in connection with such work by or through a contractor, with or
without the knowledge of the principal employer and includes inter-State migrant worker but does not
include a worker (other than part-time employee) who
(i) is regularly employed by the contractor for any activity of his establishment and his employment is
governed by mutually accepted standards of the conditions of employment (including engagement on
CL permanent basis), and
(ii) gets periodical increment in the pay, social security coverage and other welfare benefits in accordance
with the law for the time being in force in such employment;

Means a person, who—

(i) undertakes to produce a given result for the establishment,

other than a mere supply of goods or articles of manufacture
to such establishment, through contract labour; or

(ii) supplies contract labour for any work of the establishment

Contractor as mere human resource and includes a sub-contractor 40
Contract Labour

Registration
of PE • No separate registration of Principal Employer
• Common registration under the Code

Licensing of
Contractor • Contractor can apply for common license if supplying CL in more than one state

• Where the contractor does not fulfil the requisite qualifications, the licensing officer may
Work specific issue him a “work specific license” supply or engage the contract labour, or execute the
work through contract labour, only for the concerned work order as may be specified in
License such license and subject to such conditions as may be specified in such license

• The license issued shall be valid for a period of 5 years in respect

of the number of CL
Validity of • To increase no. of CL, shall apply for renewal
License

41
Contract Labour
Prohibition of employment of contract labour
1. Notwithstanding anything contained in this Part, employment of contract labour in core activities of any
establishment is prohibited: Provided that the principal employer may engage contract labour through a
contractor to any core activity, if—
a. the normal functioning of the establishment is such that the activity is ordinarily done through
contractor; or
b. the 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;
c. any sudden increase of volume of work in the core activity which needs to be accomplished in a
specified time.
2. .
a. The appropriate Government may, by notification, appoint a designated authority to advise that
Government on the question whether any activity of an establishment is a core activity or
otherwise.
b. if a question arises as to whether any activity of an establishment is a core activity or otherwise, the
aggrieved party may make an application in such form and manner as may be prescribed, to the
appropriate Government for decision
c. the appropriate Government may refer any such question suo motu or refer the application to the
designated authority, which on the basis of relevant material in its possession, or after making such an
enquiry as it deems fit, shall report to the appropriate Government, within such period and thereafter the
appropriate Government shall decide the question within such period as may be prescribed.
42
State & Central advisory board removed & changed to designated authority
Contract Labour
CORE ACTIVITY
"core activity of an establishment" means any activity for which the establishment is set up and
includes any activity which is essential or necessary to such activity: Provided that the following
shall not be considered as essential or necessary activity, if the establishment is not set up for such
activity, namely:—
(i) sanitation works, including sweeping, cleaning, dusting and collection and disposal of all kinds of
waste;
(ii) watch and ward services including security services;
(iii) canteen and catering services;
(iv) loading and unloading operations;
(v) running of hospitals, educational and training Institutions, guest houses, clubs and the like
where they are in the nature of support services of an establishment;
(vi) courier services which are in nature of support services of an establishment;
(vii) civil and other constructional works, including maintenance;
(viii) gardening and maintenance of lawns and other like activities;
(ix) housekeeping and laundry services, and other like activities, where these are in nature of support
services of an establishment;
(x) transport services including, ambulance services;
43
(xi) any activity of intermittent nature even if that constitutes a core activity of an establishment;
Contract Labour

No labour license by Contractor Welfare Facilities

Deemed to be employed by PE Canteens, rest rooms, drinking water and first aid
In contravention of Code shall be provided by the principal employer

Payment of Wages Information regarding Work Order

Through bank transfer or electronic mode and When contractor receives WO, shall intimate
inform the principal employer electronically authority (time period to be mentioned) . If not,
license can be cancelled

Failure of Payment of Wages Experience Certificate

Appropriate Government shall pass the orders of Every concerned contractor shall issue, on
making payment of such wages from the amount demand, experience certificate, in such form as
deposited by such contractor as security deposit may be prescribed by the appropriate
under the license issued by the licensing officer Government, to the contract labour giving details
to the contractor of the work performed by such contract labour
44
Inter-state Migrant Worker
"inter-State migrant worker" means a person who is employed in an
establishment and who—
i. has been recruited directly by the employer or indirectly through
contractor in one State for employment in such establishment
situated in another State; or
ii. 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,
under an agreement or other arrangement for such employment and
draws wages not exceeding the amount of rupees eighteen thousand
per month or such higher amount as may be notified by the Central
Government from time to time;
45
Inter-state Migrant Worker
• Part for ISMW newly added
• This Part shall apply to every establishment in which ten or more inter-State
migrant workers are employed or were employed on any day of the preceding
twelve months.
• Provision for residential accommodation & displacement allowance
removed
• (iii) to extend all benefits to such worker which are available to a worker of that
establishment including benefits under the Employees' State Insurance Act,
1948 or the Employees' Provident Funds and Miscellaneous Provisions Act,
1952 or any other law for the time being in force and the facility of medical check-
up as available to a worker under clause (c) of sub-section (1) of section 6.
• 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.

46
Inter-state Migrant Worker
• The appropriate Government shall make schemes to provide— (a) 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; and(b) 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.
• 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.
• The appropriate Government may provide for study of inter-State migrant
workers in such manner as may be prescribed by that Government.
• No suit or other proceeding shall lie in any court or before any authority for the
recovery of debt or any part thereof relating to an inter-State migrant worker after
the completion of his employment where it remains unsettled obligation to the
contractor or the principal employer and such debt or part thereof shall, on the
completion of the period of employment of such worker, be deemed to have been
extinguished.
47
Other Key Amendments

Welfare Creche
Provisions Establishments wherein 50 or
more workers are ordinarily
Bathing places and locker room
employed
for male, female and
transgender

Shelter or Rest Annual leave with

Rooms Wages
Separate shelters or rest-rooms for Entitles for annual leave with
male, female and transgender, wages, if worked 180 days or more
lunch-room where more than 50 in calendar year
workers are ordinarily employed

Latrines & Employment of Women

Entitled to be employed for all types of
Urinals work, with their consent before 6 a.m. and
Sufficient arrangement for beyond 7 p.m., in hazardous processes-
male, female and transgender employer to provide proper safeguards
maintaining hygiene
48
Other Key Amendments

Applicable for number of Proposed number of

Requirement of
workers at Present workers
Canteens 250 100
Shelters/Rest Rooms 150 50
50 workers (aligned with
Creche 30 (women workers)
Maternity Benefit Act)
Factory- 500
Factory carrying on
Safety Officer 1000 hazardous process- 250
BOCW- 250
Mines- 100

Welfare Officer 500 250

49
Other Key Amendments
• Constitution of Occupational Safety and Health Board (OSHB): Central
and State Boards
• Board will discharge functions as required under this code and will advise
Government on the matters relating to:
a. standards, rules an regulations to be framed under this code
b. implementation of the provisions of this code and regulations relating
there to
c. the issues of policy and program relating to occupational safety and
health referred from time to time
d. any other matter relating to this code as may be referred by the
Government.
• Governments empowered to constitute Technical Committees as may be
required.
50
Code on Social Security, 2020
Code on Social Security

The Employees’ The Employee The Cine

PF & Compensation Workers Welfare
Miscellaneous Act, 1923 Fund Act, 1981
Provisions Act,
1952
The Payment of The Employees’ The Employment
Gratuity Act, State Insurance Exchange CNV
1972 Act, 1948 Act, 1959

The Maternity The Building & The Unorganized

Benefit Act, 1961 other Workers Social
Construction Security Act,
Worker Act, 1996 2008

52
Applicability
Chapter No. Chapter Heading Applicability
III Employees Provident Fund Every establishment in which twenty or more employees are employed.

Every establishment in which ten or more employees are employed or were

employed on any day during the preceding twelve months, other than a seasonal
Employees State Insurance
IV factory
Corporation
To establishments in which hazardous or life threatening occupation, even with
one employee

(a) every factory, mine, oilfield, plantation, port and railway company; and
V Gratuity (b) every shop and establishment in which ten or more persons are employed,
or were employed
(a) every establishment being a factory, mine or plantation including any such
establishment belonging to Government; and
VI Maternity Benefit
(b) every shop and establishment in which ten or more persons are employed,
or were employed
Subject to the provisions of the Second Schedule, it applies to the employers and
VII Employees Compensation
employees to whom chapter IV does not apply
Social Security and Cess in respect of
VIII Building and Other Construction Every establishment which falls under the building and other construction work.
Workers
Social Security for Unorganized
IX Unorganized sector, unorganized workers, gig worker, platform worker.
Workers 53
 Employee

EMPLOYEE
Means, any person (other than an apprentice
engaged under the Apprentices Act, 1961)
employed on wages by an establishment,
either directly or through a contractor, to do
For EPF & ESIC: Employees drawing
any skilled, semi-skilled or unskilled, manual, wages less than or equal to wage
operational, supervisory, managerial,
administrative, technical, clerical or any other
ceiling
work, whether the terms of employment be
express or implied, and also includes a
person declared to be an employee by the
For EC: Employees mentioned in
appropriate Government, but does not Second Schedule
include any member of the Armed Forces of
the Union

54
Fixed Term Employment
"fixed term employment" means the engagement of an employee on the basis of a written
contract of employment for a fixed period:
Provided that—
a. his hours of work, wages, allowances and other benefits shall not be less than that of a
permanent workman doing the same work or work of similar nature; and

b. he shall be eligible for all statutory benefits available to a permanent workman

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;

55
Key Definitions

Means a person who performs work or participates in a work

arrangement and earns from such activities outside of traditional
employer-employee relationship
Gig Worker

Gig worker means independent contractors, online platform workers,

contract firm workers, on-call workers and temporary workers.[Gig
workers enter into formal agreements with on-demand companies, for
example Uber, TaskRabbit, Zomato, to provide services to the
company's clients.

56
Key Definitions
Means a person employed for remuneration in the unorganized sector,
directly by an employer or through any contractor, irrespective of place
of work, whether exclusively for one employer or for one or more
employers, whether in cash or in kind, whether as a home-based
Wage Worker worker, or as a temporary or casual worker, or as a migrant worker, or
workers employed by households including domestic workers, with a
monthly wage of an amount as may be notified by the Central
Government and State Government, as the case may be

Means a person engaged in the production of goods or services for an

employer in his home or other premises of his choice other than the
workplace of the employer, for remuneration, irrespective of whether or
Home-based Worker not the employer provides the equipment , materials or other inputs

Means any person who is not employed by an employer, but engages

himself in any occupation in the unorganized sector subject to a monthly
earning of an amount as may be notified by the Central Government or
Self-employed worker the State Government from time to time or holds cultivable land subject
to such ceiling as may be notified by the State Government 57
Key Definitions
"platform work" means a work arrangement outside of a traditional
employer-employee relationship in which organizations or individuals
use an online platform to access other organizations or individuals to
solve specific problems or to provide specific services or any such other
Platform Work activities which may be notified by the Central Government, in exchange
for payment;

Means an enterprise owned by individuals or self-employed workers and

engaged in the production or sale of goods or providing service of any
kind whatsoever, and where the enterprise employs workers, the
Unorganized Sector number of such workers is less than ten

Means a home-based worker, self-employed worker or a wage worker in

the unorganized sector and includes a worker in the organized sector
who is not covered by the Industrial Disputes Act, 1947 or Chapter III to
Unorganized worker VII

58
Key Definitions
• "retirement" means termination of the service of an employee otherwise than
on superannuation;

• "superannuation", in relation to an employee, means the attainment by the

employee of such age as is fixed in the contract or conditions of service, as
the age on the attainment of which the employee shall vacate the
employment

59
Key Definitions
• "building or other construction work" means the construction, alteration, repairs, maintenance or
demolition in relation to buildings, streets, roads, railways, tramways, airfields, irrigation, drainage,
embankment and navigation works, flood control works (including storm water drainage works),
generation, transmission and distribution of power, water works (including channels for distribution of
water), oil and gas installations, electric lines, internet towers, wireless, radio, television, telephone,
telegraph and overseas communications, dams, canals, reservoirs, watercourses, tunnels, bridges,
viaducts, aquaducts, pipelines, towers, cooling towers, transmission towers and such other work as
maybe specified in this behalf by the Central Government, by notification, but does not include any
building or other construction work which is related to any factory or mine or any building or
other construction work employing less than ten workers or where such work is related to
own residential purposes of an individual or group of individuals for their own residence and
the total cost of such work does not exceed fifty lakhs rupees or such higher amount and
employing more than such number of workers as may be notified by the appropriate Government
60
Gratuity
• Retained to on completion of 5 years

• Provided that in case of working journalist as defined in clause (f) of section 2 of

the Working Journalists and Other Newspaper Employees (Condition of Service)
and Miscellaneous Provisions Act, 1955, the expression "five years" occurring in
this sub-section shall be deemed to be three years

• Provided also that in the case of an employee employed on fixed term

employment or a deceased employee, the employer shall pay gratuity on pro
rata basis
61
Employee Compensation

Employee Commuting
from residence
Accident occurred while commuting
from residence to place of employment
or vice versa for duty, shall be deemed
to have arisen out of and in course of
employment if nexus between
circumstances, time and place in which
accident occurred and his employment
is established.

62
Key Amendments

• ESI- voluntary registration allowed, is now extendable to Unorganized

Workers

• EPF: System for covering self-employed or others

63
Application of Aadhaar
An employee or unorganized worker or any other person, as the case may be, for—
a. registration as member or beneficiary; or
b. 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; or
c. availing services of career centre; or
d. receiving any payment or medical attendance as Insured Person himself or for his dependants,
under this Code or rules, regulations or schemes made or framed thereunder, shall establish his identity or, as
the case may be, the identity of his family members or dependants through Aadhaar number and for such
purpose the expression "Aadhaar" shall have the meaning as defined in clause (a) of section 2 of the Aadhaar
(The Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016:
Provided that any foreigner employee shall obtain and submit Aadhaar number for establishing his
identity, as soon as possible, on becoming resident within the meaning of clause (v) of section 2 of the
Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016
64
Social Security Schemes
Unorganized Sector
Notify time to time Notify time to time

Central State
Government Government
Life and disability cover; health and Provident fund; employment injury
maternity benefits; benefit;

Old age protection; Housing; educational schemes for

children;
Education
Skill upgradation of workers;
Any other benefit as may be
determined by the Central Funeral assistance, Old age homes
Government.

65
Social Security Schemes
Gig & Platform Workers
Notify time to time Notify time to time

Central State
Government Government
Life & disability cover; Accident The manner of administration of scheme;
insurance
The agency/ies for implementing the
Health and maternity benefits; scheme;

Old age protection; Creche The role of aggregators in the scheme;

Any other benefit determined by CG The sources of funding of the scheme

Aggregator contribution at rate of 1-2% in Any other matter as the Central

Social Security fund, not exceeding 5% of Government may consider necessary for
amount paid to worker the efficient administration of the scheme
66
Career Centers
Definition
“Career center" means any office (including employment exchange, The Appropriate Government may notify, the
place or portal) established and maintained in the manner prescribed employer in every establishment, before filling the
by the Central Government for providing such career services vacancy, report that vacancy to Career Center
(including 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 may, inter alia, relate generally or specifically to

(i) persons who seek to employ employees;

(ii) persons who seek employment;
(iii) occurrence of vacancies; and https://www.ncs.gov.in/
(iv) persons who seek vocational guidance and career
Screen Shot of National Career Services Page by
counseling or guidance to start self-employment; Central Government
67
Thank You

68