THE CODE ON WAGES, 2019

HIGHLIGHTS OF THE CHANGES MADE

MINIMUM WAGES PAYMENT OF WAGES

1. HRA – No more part of minimum wages 1. Contractor’s payment shall be ensured by

2. Geographical Areas classified as Company before the contractor makes the
metropolitan, non-metropolitan and rural payment of wages to his employees
areas (Rule 4) 2. Payment of Wages Act – Ceiling of Rs
3. The employees employed in supervisory or 24000/- removed now – the Act applies to all
Managerial position are also eligible for 3. In case of separation, including resignation,
Minimum Wages. the settlement is to be made within the next
4. Statutory force given for national floor level two working days
wages 4. Daily wage shall be paid by the end of the
day
5. Weekly wage shall be paid on the last
PAYMENT OF BONUS working day of the week

1. The Code is silent about the applicability of 6. Fortnightly wage shall be paid within 2 days

bonus chapter if the threshold limit falls after the end of the period

below subsequently 7. Monthly wages shall be paid within 7 days

2. Wages ceiling for eligibility for Bonus : To be after the month

fixed by the Appropriate Governments 8. Total amount of deduction in any wage

3. Wages ceiling for calculation of Bonus : To period from the wages of employed person

be fixed by the Appropriate Governments shall not exceed 50% (Currently in case of

4. Mode of payment of bonus - Only by giving co-operative Society – 75%)

bank credit 9. Recovery of advance can be done without

5. Disqualification for bonus : ‘conviction for any stipulated time but with one condition

sexual harassment’ added ie. Recovery can't go more than 50% on

6. In case of non-payment of minimum bonus any wage period.

to the contract worker, company should pay

the same. But no specification about
recovery from contractor
EQUAL REMUNERATION

1. Now all gender can claim equal

remuneration
COMMON POINTS

1. Period of limitation is 3 years for claim.

2. In case non-payment of MW, Bonus & Equal remuneration – in addition to the amount payable, 10
times of such amount can be recovered from employer
3. Introduction of Web based inspection Scheme;
4. The role of inspector is modified as Inspector-cum-facilitator
5. In case of complaint, Court can take cognizance directly from employee and the Registered Trade
Union
6. Burden of Proof - lies with the employer
7. Common definition for ‘wages’ for all the four existing laws
8. Certain allowances, excluded for Minimum Wages and Bonus but included for Payment of Wages and
Equal Remuneration (Convey, HRA, Remuneration under Settlement & Award and OT)
9. A cap – 50 % - fixed for ‘excluded Components’
10. The employee does not include the contract labours.
 CODE ON SOCIAL SECURITY, 2020
HIGHLIGHTS OF THE CHANGES MADE

PROVIDENT FUND (PF) EMPLOYEES STATE INSURANCE (ESI)

1. The Chapter III concerning the PF shall apply 1. The Chapter IV concerning Employees State
to establishment employing 20 or more Insurance (ESI) shall apply to establishments
employees (industry specific applicability employing 10 or more employees.
withdrawn) 2. The Banks and mines also be covered under
2. There is no wage ceiling for PF employee the ESI provided if the required number of
coverage employees are employed therein
3. Limitation period is introduced as 5 years for 3. The Chapter IV (i.e., ESI) shall apply to all the
institution of PF proceedings establishments engaged in hazardous or life
4. The central govt. may specify differential rates threatening occupation even if single
and period for any class of employees employee is employed
4. Plantations may also be covered under the ESI
GRATUITY
on voluntary basis
1. Working journalist shall be entitled to gratuity
5. If the employer fails to register / pay
even if they have completed 3 years service
contributions, ESI will extend the benefits but
2. Completion of 5 years service not necessary in
recover the cost of such benefit from the
case of fixed term employees
employer
3. Not required to pay interest for the delay in
MATERNITY BENEFIT
payment of gratuity if the delay is due to the
fault of the employee and there is a written 1. The crèche shall be provided if 50 or more
permission from the controlling authority employees are employed (irrespective of
4. The CA firms could go out of the purview of the whether such establishment is covered under
chapters concerning the gratuity as the term ESI or not)
“any law for the time is being in force apply” is 2. Maternity benefits or medical bonus or both
removed for shops and establishments can be deprived, if a woman is dismissed or
coverage. discharged for any gross misconduct as

EMPLOYMENT EXCHANGES prescribed by the Central Govt.

3. The CA firm could go out of the purview of the
1. Employment exchanges transforming into
chapters concerning the Maternity benefit as
career centres
the term “any law for the time is being in force
2. The threshold limit changed to 20 or more
apply” is removed for shops and
(from 25 or more) for the applicability
establishments coverage.
EMPLOYEE’S COMPENSATION OTHER CHANGES

1. The appropriate govt. definition is 1. For the purposes of counting of employees for the coverage of an

now available for the purpose of establishment under PF & ESI, the employees, whose wages are

employees’ compensation too more than the wage ceiling so notified by the Central Government,

2. the employer shall be liable to pay shall also be taken into account

compensation, If death or injury is 2. Fixed term employee shall be eligible for all benefits, under any

caused to any worker or a member law for the time being in force, available to a permanent employee

of his family as a result of the proportionately according to the period of service rendered by him

collapse of a house provided by 3. For fixed term employees hours of work, wages, allowances and

the employer in a plantation, and other benefits shall not be less than that of a permanent employee

the collapse is not solely and doing the same work or work of a similar nature

directly attributable to a fault on 4. The central govt. would become appropriate govt. for

the part of any occupant of the telecommunication, insurance and banking companies (Liability to

house or to a natural calamity, send notification of vacancies and submission of returns)

3. Funeral Expenditure – Rs 15000/- 5. In relation to an establishment having departments or branches in

or such sum as fixed by the State more than one State, Central Government would be the

Government appropriate Government. (There will be an impact under Gratuity,

Maternity Benefit and Employment Exchange chapters)
6. Plantation definition – if 10 or more persons are employed and 5
hectares or more (Current Act: 15 or more persons)
BUILDING AND OTHER
CONSTRUCTION WORKERS 7. The apprentices engaged under the Apprentices Act are alone
excluded from the definition of the term employee.
1. The building and construction
8. Central Govt to frame schemes for providing social security to gig
work shall not include the
workers and platform workers
construction work carried out in
9. Central Govt to constitute a social security fund/s for unorganized
the factory or mine
/ gig / platform workers or such class of persons
2. The building and construction
10. The role of Inspector is changed to inspector cum facilitator
work shall not include
11. To provide penalty for different types of violations commensurate
construction work carried out for
with gravity
residential purpose and if cost of
12. Aadhaar mandatory for seeding at the time of registration of
such construction is less than 50
member or beneficiary
Lakhs (Currently it is 10 Lakhs)
13. Major change in the definition of ‘wages’ (Employers liability may
go up for the purpose of PF and gratuity and it may get reduced for
the purpose of ESI and Maternity benefit)
14. There is an increase in Penalty in case of violation of the provisions
of this code
15. Provision for compounding of offence is introduced
16. Prior to prosecution, Opportunity to be provided to employer for
 OCCUPATIONAL SAFETY, HEALTH AND
WORKING CONDITIONS CODE, 2020
HIGHLIGHTS OF THE CHANGES MADE

FACTORIESS CONTRACT LABOUR

1. The threshold number to constitute a “factory” is 1. Chapter concerning the Contract labour
replaced by 20 in the place of 10 and 40 in the shall apply only if 50 or more contract
place of 20 labour are employed
2. Three Dimensional or four Dimensional printing, 2. The term core activity is defined. Code
prototyping and flexography processes are also prohibits the employment of contract
included as manufacturing process. labour in core activities
3. Code empowers the Central Govt. to add to the list 3. The term “controlled industry” is
in the manufacturing process defined and which refer to the industry
4. Appointment of safety officer is mandatory if 500 which are declared so by central govt.
or more workers are employed (currently, it is under any Central Act. (Scope is
1000 or more) widened).
5. Appointment of safety officer is made mandatory 4. Contractor having operations in
for factory carrying on hazardous process multiple States may obtain common
wherein 250 workers or more are employed licence from the authority specified by
6. Independent director can’t be an occupier of the the Central Government
factory 5. The permanent workers of contractor
shall not be considered as ‘contract

BUILDING AND OTHER CONSTRUCTION labour’ if they are extended social

WORKERS security and welfare benefits as

10. The building and construction work shall not prescribed under law

include the construction work carried out in the 6. Principal employer is primarily liable for

factory or mine providing canteen, rest room, first aid,

11. Building and other construction work defined [ drinking water and other welfare

Sec 2(1)(g) ] – threshold limit (10 or more facilities to contract workers

workers) removed
12. The building and construction work shall not
include construction work carried out for
residential purpose and if cost of such
construction is less than 50 Lakhs (Currently it is
10 Lakhs)

13. Appointment of safety officer is made mandatory

for building or other construction work wherein
250 or more workers are employed
INTER-STATE MIGRNT WORKER OTHER CHANGES

1. Workers who are being employed 1. Establishment (including a factory) which employs 10
directly by the employer from or more workers shall be registered under this code
other States would also be 2. In case of ‘dock’ or ‘mine’, even if one or more number
treated as inter-state Migrant of persons are employed, it shall be registered under
worker this Code
2. Wages ceiling (i.e Rs. 18000) is 3. One single registration is sufficient instead of multiple
introduced in the definition of registrations
inter-state Migrant workers 4. Central Govt. would be the appropriate govt. for the
3. Worker who has come on his own metro railways
from one State and obtained 5. The Central Government will be the appropriate govt.
employment in an establishment for the establishment of contractors serving to the
of another State would also be establishment, undertakings etc. of Central Govt.
treated as inter-state migrant 6. State govt. would be the appropriate govt. for factory,
worker motor transport undertaking, plantation, newspaper
4. ISMW may register himself as establishment and establishment relating to beedi and
ISMW on the portal specified in cigar
this behalf 7. The apprentices engaged under the Apprentices Act are
5. Employer shall be liable to pay alone excluded from the definition of the term
journey allowance to the inter- employee.
state migrant workers 8. Major change in the definition of ‘wages’
6. Provision with reference to the 9. Inclusion of Contractor in the definition of ‘employer’
payment of displacement 10. Supervisors drawing wages more than 18000 are
allowance is removed now excluded from the term worker
11. Appointment order is made mandatory
12. Daily hours of work cannot go beyond 8 hours
13. Women can be employed in night with their consent
14. Worker’s consent is required for requiring him to work
overtime
15. Working hours and limit on overtime hours shall be
prescribed by the appropriate govt.
16. Separate latrines, shelter, rest room, bathroom facilities
shall be provided to transgender
17. The role of inspector is modified as Inspector cum
facilitator
18. Common license for factory, CLRA and Beedi & Cigar
establishment and valid for 5 years
19. There is an increase in Penalty in case of violation
 THE INDUSTRIAL RELATIONS CODE, 2020
HIGHLIGHTS OF THE CHANGES MADE

INDUSTRIAL DISPUTES
TRADE UNION
1. The definition of the term “industry” is modified in line with the
1. Special provision introduced
Apex court verdict in Bangalore Water Supply and Sewage Board
for recognition of trade union
Case
2. If more than one trade unions
2. Domestic services and the Institutions engaged in charitable, social
are functioning, the trade
or philanthropic service are excluded from the term “industry”
union having 51% or more
3. Termination of the service of a worker on the ground of continued
workers support, shall be
ill-health is considered as retrenchment
recognised as sole
4. Concerted mass casual leave also be construed as strike
negotiating union
5. The total number of members of the Grievance Redressal Committee
3. If more than one trade unions
increased from six to ten
are functioning and if no
6. Notice shall not be required for effecting change in case of emergent
trade union is having 51% or
situation requiring change of shift or shift working otherwise than
more workers support,
(except) in accordance with standing orders, in consultation with
negotiating council to be
Grievance Redressal Committee
formed (i.e @1
7. Prohibits strikes and lockouts in any industrial establishment
representative for each 20%
without giving notice of 14 days
members)
8. Notice of strike or lockout validity is amended from 6 weeks to 60
4. Only one-third of the total
days
number of office bearers of
9. Wilful go-slow shall be construed as unfair labour practice on the
the union or five office
part of worker
bearers, whichever is lower,
10. Time period for filing a grievance application is reduced from three
can be from outside the
years to one year
industry with which the
11. Time period for raising industrial dispute before the conciliation
union is connected.
officer is reduced to 2 years from 3 years
12. Factories, mines or plantations shall obtain permission from the
appropriate govt. for retrenchment or lay-off if 300 or more workers
13. Only tribunal has the power to entertain any suit in relation to
dispute concerning trade unions and the members.
14. The employer shall contribute an amount equivalent to 15 days
wages for every retrenched worker towards the workers reskilling
fund
STANDING ORDERS
OTHER CHANGES
1. Chapter IV concerning the Standing orders
1. Empowers the app. Govt. to appoint officers for holding
shall apply to the industrial establishment
enquiry and impose penalty in certain contraventions
in which 300 or more workers are
punishable with fine up to Rs. 50000/-
employed (currently it is 100 or more)
2. Central govt. would be the appropriate govt. for metro
2. Central government shall draft model
railways
standing orders (currently both central
3. The Central Government will be the appropriate govt.
and state govt. has this power)
for the establishment of contractors serving to the
3. The central govt. would be the appropriate
establishment, undertakings etc. of Central Govt.
govt. for telecommunication, insurance
4. To provide penalty for different types of violations
and banking companies
commensurate with gravity
4. Employers shall consult the trade unions
5. There is an increase in Penalty in case of violation of the
or negotiating union/council before
provisions of this code
submitting the draft standing orders to the
6. Provision for compounding of offence is introduced
certifying officer.
5. Certifying officer to look in to the fairness
or reasonableness of the provisions of any
standing orders
6. Certifying officer shall certify the standing
orders within 60 days and in case of failure
to certify within the time limit, then it will
be deemed to have been approved.
7. Standing orders already certified shall
continue to be inforce