Rationalization of Sections in Labour Codes

Name of the Code Number of Sections in Sections in

Acts the existing proposed
subsumed Acts Code
Code on Wages 4 125 69
Code on Occupational 13 622 143
Safety, Health and
Working Conditions
Code on Industrial 3 135 104
Relations
Code on Social Security 9 350 164
TOTAL 29 1232 480

1
• The Code on Wages, 2019 envisages:

– Method of fixation of multiple wage rates simplified. Factors to

be taken into account are skills and geographical location as
against the present system of wages being fixed employment-
wise.
– Maximum, minimum wage rate would be around 200 in the
entire country as against 10000 at present.
– In central sphere, there would be only 12 minimum wage rates as
against 542.
– Revision of minimum wages every 5 years.
– A statutory concept of ‘Floor Wage’ introduced .

2
The Industrial Relations Code, 2020 envisages :-

 Settlement of disputes through conciliation, Industrial

Tribunals; provisions relating to strike, compensation/ notice
& permission before retrenchment, closure and layoff.

 Registration of trade unions, their rights and obligations,

negotiating union, negotiating council etc.

 Model standing orders for establishments having 300 or more

workers.

3
The Occupational Safety Health and Working Conditions Code
– Matters relating to Factories, Mines, Dock, Construction
Workers, Plantation, Motor Transport & Beedi and Cigar
– Contract Labour & Inter- State Migrant Workers

• Code envisages:
– Occupational Safety standards for various sectors
– Health and Working Conditions : ventilation, drinking water,
etc.
– Hours of Work , Overtime hours, Leave, Holiday, etc.
– Welfare provisions : canteen, crèche, rest rooms, first aid, etc.
Threshold for Standing Orders under IR Code
Position in the IR Code
 The Industrial Relations Code
includes the following changes:
i.Increased the threshold to 300
workers
ii.No flexibility to the State
Government to reduce below 300
workers
iii.Preparation of Model Standing
Orders
iv.Certification only required in
respect of provisions which are
different from model Standing Order
within 60 days

5
 Fixed Term Employment

Fixed Term Employment defined in the main Code

itself
― Working conditions, wages, statutory benefits (EPF,
ESIC, Pro-rata Gratuity) equivalent to regular
worker
― Universal Applicability for all establishments
― No restriction of sector, period, number of tenure
and number of employees.
― No requirement of separate notification by
Appropriate Government
6
 Related to Trade Union
• New Provisions
• Negotiation with management at unit level -
Recognition of Negotiating Union/ Council:

i. Negotiating Union, if one trade union has 51% or more

workers.
ii. Negotiating Council (representatives of trade unions): One
member in the Council for membership of every 20%
of workers.
iii. For sole negotiating union, criterion to be prescribed by
appropriate Government.
7
 Related to Strike
• Present: 14 days prior notice before going on strike/
lockout for public utility services only
• Proposed in the code introduced: Notice period of
14 days before going on strikes/ lockouts extended to
all establishments
• Advantage :
• Flash strikes would be averted
• More time for conciliation
• Avoidance of loss of production

8
 Related to Tribunal

• Present: One member Central Government Industrial

Tribunal dealing with Industrial Disputes
• Proposed in the code introduced: Two Member
Tribunal including an administrative member
– Disputes like retrenchment, closure, strike to be adjudicated
mandatorily by 2 -members bench.
– Remaining cases by either of the Member.
– Avoids stoppage of functioning of Tribunal on account of
single members’ absence due to leave, non-filling of post,
resignation, etc.
– Increase in workload due to inclusion of EPF related matters
( by merger of industrial tribunal and EPF tribunal).
9
The Occupational Safety, Health &
Working Conditions Code, 2020

10
Threshold under OSH Code
Position in the Code
 In the OSH Code the threshold for
applicability of the code has been increased
to 20 or more workers (with power) and 40
or more workers (without power).

 Enabling provision has been made in Code

permitting states to exempt a new
establishment from any provision of the
Code in public interest.

11
 Salient Features of the Code: Workers

• Appointment letters to every employee- promotes formalization.

• Employer to provide free of cost annual health check-up for

employees above prescribed age, tests, employees and class of
establishments by appropriate Government (section 6 (1) (c)).

• Expansion of the definition of “audio visual production” by

including feature films, non-feature films, television, web- based
serials, talk shows, reality shows and sport show.(section 2 (1) (e)

• Audio-visual workers to include the dubbing artists and stunt

person (Para 47 & 48 of the report and section 2(1)(f)).
12
 Salient Features of the Code: Employers
• Easy Compliance
– One Registration in place of 6
– One License in place of 4
– One Return in place of 21
• A single all India license with 5 years validity for
hiring contract workers introduced, de-linking from
the present system of obtaining license for each
“work order” (section 48 (3)).
• Limit on Overtime hours to be prescribed by the
appropriate government in place of existing 50 hours
in a quarter (section 25, 27 & 91)
13
 Definition of Core activity of an establishment

New definition:-

“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 the core ' activity, but does not include,-
(i)sanitation works, including sweeping, cleaning, dusting, and
collection and disposal of all kinds of waste;
(ii)watch and ward services including security service;
(iii)canteen and catering services;
(iv)loading and unloading operations;
(v)running of hospitals, educational and training Institution, guest
houses, clubs and the like where they are in the nature of support
services of an establishment;
14
 Definition of Core activity of an
establishment Contd.
(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
they are in nature of support services of an establishment;
(x)transport services including, ambulance services;
(xi)any activity of intermittent in nature even if that constitutes a core
activity of an establishment; and
(xii)any other activity which is incidental to the core activity:
Provided that the activities specified in this clause by themselves are
not the “core activities” of such establishment;
15
Inter-state Migrant Worker in OSH Code
Changes made in the OSH Code to address the issues of
definition, portability of benefits, data collection, etc.

 Definition of ISMW to include (a) recruited through

contractor (b) directly recruited by the employer (c) ISMW
comes of his own for employment .
 Requirement of registration and licensing has been done
away with.
 Journey Allowance - lump-sum allowance for undertaking
journey by migrant worker to visit his native place, as
determined by appropriate Government.

16
Inter-state Migrant Worker in OSH Code… contd..
Changes made in the OSH Code to address the issues of
definition, portability of benefits, data collection, etc.
 Portability of benefits introduced  - to formulate schemes
for providing portability of benefits under public
distribution system and (ii) for availing benefits under
building and construction worker cess

 Data collection - The Central and State Governments shall

maintain data base for ISMW electronically in such form or
manner as may be prescribed by the Central Government.

 All benefits viz., ESIC, EPFO, medical check-up as applicable

to other workers, will also be available.
17
The Social Security Code, 2020

18
 Salient Features of SS Code
• Rate of interest to be notified on delayed payment
(contributions etc. due from EPF or ESI) (sec. 129)
• An enabling provision made that the ESIC’s medical,
nursing, dental colleges and training institutes could be
managed by Central or State Government, or PSU or “any
other body to be notified by Central Government” (39(5))
• Self-assessment and payment of cess by employer on cost
of construction of building within 60 days or such period
as notified by appropriate Government. (sec. 103)
• Enabling provision introduced for constituting of a special
purpose vehicle for implementation of schemes for
unorganised workers. (Sec. 109)
19
 Gig and Platform workers
Social security schemes for gig workers and platform workers on matters relating to
(a) life and disability 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. (Para 4.50)

Contribution from aggregators for welfare of gig and platform workers.

Contribution at the rate of 1% of turnover but not exceeding 2% subject
to limit of 5% of amount payable by aggregator to gig workers.
A separate account will be maintained of the contributions received
from aggregators and applied for the welfare of gig and platform
workers.
Management of funds will be through National Social Security Board.
Date of commencement of contribution from aggregator shall be
notified by the Central Government.

20
 EPFO- Assessment matters
• Limitation period of 5 years introduced for initiating a case against
an establishment.
• Period for conducting inquiry restricted to 2 years initially and can
be extended up to 1 year.
• Pre-deposit amount before filing appeal in tribunal fixed at 25% of
the assessed amount .
• A period of one year provided for Tribunal to decide the appeal.
• Removal of clause providing power to Assessing Officers to review
suo-moto the orders passed by him, on discovery of a new
evidence.
• Removal of power of Assessing Officer to reopen the case within 5
years in respect of “escaped amount”, if he has reason to believe
that an employer had omitted to provide an information.

21
 Advantages of Codification
• One Registration; One Licence ; One
Return; Minimum Forms
• Uniform definitions

22
 Social Security Code, 2020

Subsumes 9 Central Labour Acts

• The Employees’ Compensation Act, 1923
• The Employees’ State Insurance Act, 1948
• The Employees Provident Fund & Misc. Provisions Act, 1952
• The Employment Exchanges (Compulsory Notification of
Vacancies) Act, 1959
• The Maternity Benefit Act, 1961
• The Payment of Gratuity Act, 1972
• The Cine Workers Welfare Fund Act, 1981
• The Building and Other Construction Workers Welfare Cess Act,
1996
• The Unorganised Workers’ Social Security Act, 2008
23
 Acts covered under four Labour Codes
Code on Wages
1. The Minimum Wages Act, 1948
2. The Payment of Wages Act, 1936
3. The Payment of Bonus Act, 1965
4. The Equal Remuneration Act, 1976
Code on OSH
5.The Factories Act, 1948
6.The Plantation Labour Act, 1951
7.The Mines Act, 1952
8.The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Act, 1996
9.The Motor Transport Workers Act, 1961
10.
The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
11.
The Contract Labour (Regulation and Abolition) Act, 1970.
12.
The Sales Promotion Employees (Conditions of Service) Act, 1976
13.
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979.
14.
The Cine Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981
15.
The Dock Workers (Safety, Health and Welfare) Act, 1986
16.
The Working Journalists and Other Newspapers Employees (Conditions of Service) and Miscellaneous Provisions
Act, 1955
17.
The Working Journalists (Fixation of rates of Wages) Act, 1958

24
Acts covered under four Labour Codes
Code on Industrial Relations
1. The Industrial Disputes Act, 1947
2. The Trade Unions Act, 1926
3. The Industrial Employment (Standing Orders) Act, 1946

Code on Social Security

4. The Employees’ Compensation Act, 1923
5. The Employees’ State Insurance Act, 1948
6. The Employees Provident Fund & Miscellaneous Provisions Act, 1952
7. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
8. The Maternity Benefit Act, 1961
9. The Payment of Gratuity Act, 1972
10.The Cine Workers Welfare Fund Act, 1981
11.The Building and Other Construction Workers Cess Act, 1996
12.The Unorganised Workers’ Social Security Act, 2008
25
Comparative Penalties in
all codes

26
 Comparison of penalties- The Code on Wages
Name of the Act Existing Penalty Penalty in Code
1 Minimum Wages  Fine extendable up to Rs.  First offence: Fine up to Rs
Act, 1948 – 500 or imprisonment up 50000/-
to 6 months or both  Compoundable
 Subsequent Offence: Fine
Non-payment of up to 1 lakh or
minimum wage imprisonment up to 3
etc months or both
2 Payment of Wages  Fine not less than Rs.  First offence: Fine up to Rs.
Act, 1936 – Delay 1500/- but which may 50000/-
in payment of extend up to Rs. 7500/-  Compoundable
wages,
unauthorized  Subsequent Offence: Fine
deduction, non- up to 1 lakh or
payment of imprisonment up to 3
overtime etc months or both
 Comparison of penalties- The Code on Wages
Name of the Act Existing Penalty in Code
3 Payment of Bonus Fine extendable up to Rs.  First offence: Fine up to
Act, 1965 – Non- 1000 or imprisonment up to Rs 50000/-
payment of bonus 6 months or both  Compoundable

 Subsequent Offence: Fine

up to 1 lakh or
imprisonment up to 3
months or both
4 Equal  Fine between Rs10,000/-  First offence: Fine up to
Remuneration Act, to Rs 20,000/- or with Rs 50000/-
1976 – imprisonment not less  Compoundable
Gender-based than 3 months which may
discrimination for extend to 1 year or both.  Subsequent Offence-
employment and Fine up to 1 lakh or
wages  For subsequent offences imprisonment up to 3
 imprisonment up to 2 months or both
years
Comparative Statement of Penalty - OSH Code
Nature of offence Existing Revised/proposed

1 Falsification of Fine upto Rs. 10,000 or Fine upto Rs. 1,00,000 or

records imprisonment upto 6 months imprisonment upto 3
or with both months or with both (sec.
98)
Compoundable

2 Penalty for Fine up to Rs. 1 lakh or Fine of Rs. 1 lakh which

omission to furnish imprisonment up to 2 years or may extends to 2 Lakh (sec.
plan (Sec. 92) with both. 99)
Compoundable

29
Comparative Statement of Penalty - OSH Code
Nature of offence Existing Revised/proposed

3 Penalty of Upto Fine Rs 1,000 or Upto Fine Rs -1 lakh or

disclosure of imprisonment upto 6 months imprisonment upto 3
information or with both months or with both (Sec.
100)
Compoundable
4 Penalty for Fine upto Rs. 10,000 or Fine upto Rs. 50,000 or
wrongfully imprisonment upto 6 months imprisonment upto 6
disclosing result of or with both months or with both (Sec.
analysis 101)
Compoundable

5 Contravention of Upto Fine Rs 2 lakh or Upto Fine Rs -5 lakh or

duties related to imprisonment upto 7 imprisonment up to 2
hazardous years or with both years or with both
process (Sec.102)
Non Compoundable

30
 Comparative Statement of Penalty – OSH
Code
Nature of offence Existing Revised/proposed
6 Contravention of Upto Fine Rs -1 lakh or Upto Fine Rs -5 lakh or
duties resulting in an imprisonment upto 2 imprisonment upto 2
accident years or with both years or with both (Sec.
103)

7 Offences by employees Upto Fine Rs 500 Fine up to Rs 10,000(Sec.

106)
Compoundable

31
 Comparative Statement of Penalties - Social Security Code

Offence Existing Revised/proposed

Maternity Penalty for Fine of Rs. 2000-5,000 or Fine up to Rs. 50,000 or

Benefit contravention of imprisonment between 3 imprisonment up to 6
Act the Act months to 1 year (Sec. 21) months , or both
(Sec. 133)
Compoundable

Fine upto Rs.50000 or

  Obstructing Fine up to Rs. 5000 or imprisonment upto 6
inspector imprisonment up to 1 year months or both (Sec. 133)
  or both Compoundable
(Sec. 22)

32
Comparative Statement of Penalties - Social Security Code
Offence Existing Revised/proposed
The Knowingly makes Fine up to Rs. 10,000 or Fine up to Rs.50,000 or
Payment or causes to be Imprisonment for a term Imprisonment for a term
of made any false which may extend to six which may extend to six
Gratuity statement or false months, OR with BOTH months, OR with BOTH
Act representation (Sec – 9) (Sec. 133)
  Compoundable 

  non-payment of imprisonment for a term

imprisonment for a term
any gratuity which shall not be less
which shall not be less
payable under this than six months but which
than six months but
Act may extend to two which may extend to one
years(Sec – 9 (2)) year (Sec. 133)
Compoundable 
  Penalty for Rs.10,000 – Rs.20,000 or Fine up to Rs.50,000
contravention of Imprisonment between 3 (Sec. 133)
the Act months to 1 year OR both Compoundable 
(Sec. 9(2))

33
 Comparative Statement of Penalties - Social Security Code
Offence Existing Revised/proposed

ESI Act Punishment for false Fine up to Rs. 2000 or imprisonment up Fine up to Rs. 50,000 or
statement to 6 months , OR with both (Sec – 84) imprisonment up to 6
months, OR with both (Sec –
  133)
Compoundable 
  Punishment for failure Fine of Rs. 5000 and imprisonment Fine up to Rs. 50,000
to pay contributions, between 6 months to 3 years (Sec – 85(i) imprisonment between
etc (b)) 2 months to 6 months (Sec
– 133)
Compoundable

  Failure to deposit Fine of Rs. 10,000 and imprisonment Fine of Rs. 1 lakh and
Employees deducted between 1 year to 3 years (Sec – 85(i)(a)) imprisonment between 1
from wages year to 3 years (Sec – 133)
Non compoundable

34
 Comparative Statement of Penalties - Social Security Code

Offence Existing Proposed

ESIC Enhanced punishment in certain Fine up to Rs. 5000 Fine up to Rs. 2,00,000
cases after previous conviction and imprisonment up and imprisonment up to
Act to 5 years, (Sec. 85(a) two years. (Sec. 136)
Non Compoundable 

Subsequent offence is for the Fine up to Rs.25000 Fine up to Rs. 3,00,000

failure by the employer to pay and imprisonment and imprisonment upto
any contribution, etc. between 2-5 years 3 years (Sec. 136)
(Sec– 85(a)(Proviso) (proviso)
Non Compoundable 

35
 Comparative Statement of Penalties - Social Security Code
Offence Existing Revised/proposed

EPF Knowingly makes or Fine of Rs. 5000 or Fine Upto Rs. 50,000 or
Act* causes to be made any imprisonment up to one imprisonment up to 6
false statement or false year, OR with both (Sec. months, OR with both (Sec –
representation 14(1)) 133)
Compoundable 

  Default in payment of Fine of Rs. 10,000 and Fine of Rs. 1 lakh or

the employees’ imprisonment between 1 to imprisonment between 1
contribution which has 3 years (Sec. 14(1a)) year to 3 years (Sec.133))
been deducted by the
employer from the Non Compoundable 
employees’ wages

36
 Comparative Statement of Penalties - Social Security Code
Offence Existing Revised/proposed

 The (a) fails to maintain a Fine up to Rs. 5000 Fine up to Rs. 50,000 (Sec 133)
Employees notice-book (Sec 18(A))
Compensation (b) fails to send to the Compoundable 
Act Commissioner a
statement which he
is required to send
(c) fails to send a report
which he is required
to send
(d) fails to make a return
which he is required
to make

37
 Comparative Statement of penalties - Social
Security Code
Offence Existing Revised/proposed

BOCW Furnishes any return Fine up to Rs. 1000 or Fine up to Rs. 50,000 or
Cess knowingly, or having imprisonment which may imprisonment up to 6
reason to believe, the extend to six months, OR months, or with both (Sec
same to be false. both (Sec -12(1)) -133)
Compoundable 

  Wilfully or Amount not specified Fine up to Rs. 50,000 or

intentionally evades imprisonment which may imprisonment up to 6
or attempts to evade extend to six months, or months, OR with both (Sec
the payment of cess with fine (Sec -12(2)) -133)
Compoundable 

38
 Comparison of Penalties – IR Code
Violation Existing Revised/proposed
1 Section 25Q. Lay-off Fine which may extend to Rs. No imprisonment. Fine
and retrenchment 1000/-. Imprisonment up to between Rs. 1 lakh to 10
without previous one month, or both.
permission.
lakh.
Same penalty each time. Compoundable
Section 25R. Closure Imprisonment up to 6 months,
without complying with or fine which may extend to Subsequent offence:
the provisions of sub- Rs. 5000/- or both.
section (1) of Section Fine between Rs. 5 lakh to
25-O. 20 lakh or imprisonment
  upto 6 months or with
 
  both.
Section 30A. Penalty for Imprisonment for a term
closure without notice. which may extend to 6 Compoundable
(90 days) months, or with fine which (Sec. 86(1) & (2))
may extend to rupees five
thousand, or with both.

39
 Comparative Statement of Penalty - IR Code
Violation Existing Revised/proposed
2 Sec 26. Illegal Strikes  Imprisonment up to one In case of worker - Fine
and Lock-outs. month, or fine up to Rs. 50/- between Rs. 1000/- to Rs.
  or with both 10,000/- or with
imprisonment up to one
month, or with both.
 In case Employer (Sec.86(13)) - Compoundable
commence lockout illegal  
imprisonment upto one In case of employer - Fine
month, or fine upto Rs. between Rs. 50000/- Rs.
1000/-, or with both 100000/- or with
imprisonment upto one
month, or with both (Sec.
86(14)) - Compoundable
 

40
 Comparative Statement of Penalty - IR Code
Violation Existing Revised/proposed

3 Section 27. Penalty Imprisonment up to Fine between Rs. 10000/-

for instigation, etc. of six months, or fine up 50000/- or with imprisonment up
a strike or lock-out to Rs. 1000/-. to one month, or with both.
which is illegal under (Sec.86(15)) - Compoundable
the Act.

4 Section 28. Penalty Imprisonment for a Fine between Rs. 10000- 50000/
for giving financial aid term which may or imprisonment for a term up
to illegal strikes and extend to six months, to one month, or both. -
lock-outs. or fine which may Compoundable
  extend to Rs. 1000/-
  (Sec.86(16))
 
 
 
 
41
 Comparative Statement of Penalty - IR Code
Violation Existing Penalties Proposed Penalties under Code

5 Section 29. Imprisonment upto six Fine between Rs. 20,000/- to Rs.
Penalty for months, or with fine (No 2,00,000 or with imprisonment up to 3
breach of amount indicated), or with months or with both. (Sec.86(17)) –
settlement or both, Compoundable
award.
 
Before Continuing breach: Further For continuing breach:
Conciliation fine up to Rs. 200/- per day
Officer, Tribunal’s during which the breach Additional fine up to Rs. 1000/- for
award continues after the conviction every day during which the breach
for the first offence. continues after the first conviction. (Sec
86(18).

42
 Comparative Statement of Penalty - IR Code
Violation Existing Revised/proposed
6 Sec 30. Penalty for Imprisonment upto six Fine which may extend to
disclosing confidential months, or with fine upto Rs 20000/-, or with
information. Rs 1000/-, or with both. imprisonment up to 1 month
or with both. (Sec.86(19)) –
Compoundable

7 Sec. 31. (1)  Imprisonment upto six Imprisonment removed.

Contravening the months, or with fine
provisions of Section 33 upto Rs 1000/- , or Any other violations fine
(Changing conditions of
service during pendency
with both. which may extend to Rs
of conciliation 100000/- (Sec 86(20)) -
proceedings etc.) Compoundable
(2) Contravening any of  Fine upto Rs 1000/-
the provisions under the (for any other violation) Example: Not setting up of
Act or any rule made grievance Redressal
thereunder if no other committee, works
penalty is elsewhere committee etc.
provided.

43
 One Registration

• Presently, 6 Acts have provision of Registration

– The Factories Act, 1948

– The Building and other Construction Workers Act, 1996

– The Contract Labour Act, 1970

– The Plantation Labour Act, 1951

– The Motor Transport Act, 1961
– The Inter State Migrant Workers Act, 1979

44
 One License

• Presently, 4 Acts have provision of License

– The Factories Act, 1948

– The Contract Labour Act, 1970

– The Inter State Migrant Workers Act, 1979

– The Beedi and Cigar Workers Act, 1981

45
 One Return
• Presently, 21 Returns in following 9 Acts
Name of the Act Number of Name of the Act Number of
Returns Returns
Factories Act, 1948 03 Contract Labour, Act, 1970 02
Mines Act, 1952 03 Inter-State Migrant 04
Workmen Act, 1979
Dock Workers 02 Motor Transport Workers 01
(Safety & Health) Act, 1961
Act, 1986
Plantation Labour 02 Beedi and Cigar Workers Act, 02
Act, 1951 1966
Building and Other 02
Construction
Workers Act, 1996

46
 Salient features of Social Security Code

• Definition of wage to include all remuneration including basic pay, dearness

allowance, and retaining allowance, if any. Cap of 50% on all remuneration
provided for allowances. If allowances exceed 50% or such percent as may
be notified, then it will be added back to the wages.
• Impact:
 Existing Acts have 12 different definitions of wages.
 Allowances were hidden and are given different names by the employer to
reduce payment of EPF and ESIC subscription.
 Definition seeks to create balance between the rights of employer and
employees as employer. Now an employer can rightfully exclude up to
50% of the basic pay and DA from the wages as allowance. However
employer cannot now hide allowances by different names with the
intention of payments towards EPF and ESIC as all such allowances will be
added back to the wages.
 Rate of contribution of ESIC will go down (because HRA is not part of the
wage) so as the corresponding payments from ESIC funds (for maternity
benefit et.)
 Provides flexibility to vary the ceiling of 50% by notification.
47
 Impact of Reforms- The Code on wages
Prior to After Reform Remarks
reforms
1 No of Acts 4* 1 *the Minimum wages act, the
payment of wages act, the equal
remuneration act and the bonus act
2 No of Sections 115 69 Reduces effort, cost, ease of
compliance
3 No of rules under 4 acts 163 58 Reduces effort, cost, ease of
compliance
3 No of Registers 24 2 Reduces effort, cost, ease of
compliance
4 No of columns in the 221 50 Reduces effort, cost, ease of
compliance
register
4 No of wage rates States- 1915 200(max.) Reduces effort, cost, ease of
Central-540 12 (max.) compliance and reduce litigation

5 No of Returns 6 1 Reduces effort, cost, ease of

compliance

6 No of definition of 12 1 Brings uniformity, reduces litigation

“wages” in various Acts
 Impact of Reforms- The Code on wages
Prior to After Reforms Remarks
reforms
7 Forms of claims 5 1 Reduces effort, cost and ease of
living
8 No of claim 4 1 Reduces administrative cost
authorities
9 Imprisonment 2 of the nil Decriminalization of offences
provisions 4 acts
10 No compounding Compounding Decriminalization of offences
introduced
11 No concept of notice Concept of Decriminalization of offences
before prosecution improvement
notice introduced