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Introduction To Labour Codes

The document discusses the introduction of Labour Codes in India, focusing on the consolidation of various labour laws to improve compliance, worker welfare, and industrial relations. It highlights the objectives of the Labour Codes, including the simplification of regulations and enhanced social security, along with specific provisions like the Code on Wages and the Occupational Safety, Health and Working Conditions Code. The reforms aim to address issues such as outdated legislation, rigid hiring processes, and the need for better social security for workers in both organized and unorganized sectors.

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0% found this document useful (0 votes)
45 views62 pages

Introduction To Labour Codes

The document discusses the introduction of Labour Codes in India, focusing on the consolidation of various labour laws to improve compliance, worker welfare, and industrial relations. It highlights the objectives of the Labour Codes, including the simplification of regulations and enhanced social security, along with specific provisions like the Code on Wages and the Occupational Safety, Health and Working Conditions Code. The reforms aim to address issues such as outdated legislation, rigid hiring processes, and the need for better social security for workers in both organized and unorganized sectors.

Uploaded by

sirihrd2024
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Labour Welfare and Industrial Relations

Module 12
Introduction to Labour Codes
Lecture 1
Introduction, labour reforms undertaken

Dr. Abraham Cyril Issac


Assistant Professor
School of Business
Indian Institute of Technology Guwahati
• Labour is a subject in the Concurrent List under the constitution of India.
• Both the Central & State Governments are competent to enact legislation.
• Certain matters being reserved for the Centre.

Labour Jurisdiction : Constitutional Status

Union List Concurrent List


Entry No. 55 Regulation of labour and safety in mines and oil fields
Entry No. 22 Trade Unions; industrial and labour disputes.
Entry No. 61 Industrial disputes concerning Union employees
Entry No. 23 Social Security and insurance, employment and unemployment.
Entry No. 65 Union agencies and institutions for "Vocational ...training..."

Entry No. 24 Welfare of labour including conditions of work, provident funds,


employers "invalidity and old age pension and maternity

Source: Ministry of Labour & Employment, Govt of India


Before Labour Reforms
• Complex and Fragmented Laws
• Rigid Hiring and Firing Processes
• Multiplicity of Inspections and Compliance
Procedures
• Informality and Lack of Social Security
• Lack of Flexibility in Work Arrangements
• Delayed Dispute Resolution
• Obsolete Legislation
• Resistance to Change
• For transparency and accountability, the usage of
IT-enabled system for inspection has been made
mandatory.
• The ceiling limit of gratuity has been increased
from Rs 10 Lakhs to Rs 20 Lakhs on 29.03.2018.
• On 16.02.2017, Payment of Wages Act enabled
payment of wages to employees by cheque or
crediting it to their bank account.
• Maternity Benefit Amendment Act, 2017, which
came into effect on 01.04.2017, increased the
paid maternity leave from 12 weeks to 26 weeks.

Source: Ministry of Information and Broadcasting, Govt of India


• Employment of workers on a
fixed-term basis for jobs that
need a continuous workforce.
• Concept of minimum wages.
• Standard provision for the
maximum number of working
hours in a day.
• Provision for overtime wages.
The Second National Commission
on Labour (2002) recommended
that the central labour laws should
be integrated into groups like:
 Industrial relations
 Wages
 Social security
 Safety
 Welfare and working
conditions
In 2019, the Central Government introduced four bills
on labour codes to consolidate 29 central laws.
These include:
 Code on Wages
 Industrial Relations Code
 Social Security Code
 Occupational Safety, Health and Working
Conditions Code

 The code on wages was passed in 2019


 The other three bills were referred to a Standing
Committee on Labour.
 As per their recommendations, the government
replaced these bills with new ones.
 Those were passed in September 2020
Overview to Labour Codes
The Central Government has amalgamated:
• 4 laws in the Wage Code,
• 9 laws in the Social Security Code,
• 13 laws in the Occupational Safety, Health
and Working Conditions Code, 2020 and
• 3 laws in the Industrial Relations Code.

• Four Labour Codes will be available to workers


of both organized and unorganized sector.
• Employees’ Provident Fund (EPF), Employees’
Pension Scheme (EPS) and coverage of all types
of medical benefit under Employees’ Insurance
will be available to all workers.
Source: Ministry of Information and Broadcasting, Govt of In
Objectives of Labour
Code in India
• Simplification and Consolidation.
• Ease of Compliance.
• Flexibility in Employment.
• Enhanced Social Security.
• Promotion of Industrial Relations.
• Worker Welfare.
• Adaptation to Modern Work Practices.
• Facilitation of Economic Growth.
Present Labour Reforms and Uncertainties

Definition of Workers and Employees

Inspector cum Facilitator

Social Security Coverage of Small Startups and Informal Sector

Unacknowledged Invisible Labour

Social security benefits of migrant workers,home-based workers, self-


employed workers,, and other vulnerable groups in rural areas

Charitable or Non-Profit Based Establishments


Email: [email protected]|[email protected]
Website: www.abrahamcyrilissac.com
Labour Welfare and Industrial Relations
Module 12
Introduction to Labour Codes
Lecture 2
Code on Wages 2019

Dr. Abraham Cyril Issac


Assistant Professor
School of Business
Indian Institute of Technology Guwahati
Code on Wages,
2019
Wages Bill was passed by the Parliament in 2019.
It seeks to regulate wage and bonus payments in
all employments where any industry, business,
trade or manufacture is carried out.

This code subsumed the following laws:


 Minimum Wages Act, 1948
 Payment of Wages Act, 1936
 Payment of Bonus Act, 1965
 Equal Remuneration Act, 1976

Source: THE GAZETTE OF INDIA


Coverage and Applicability
• The Code extends to the whole of India.
• The Code universalizes right to minimum wages
and timely payment of wages to all the employees
regardless of wage ceiling, employment sector.
• The Code prohibits gender discrimination on wage

The Code extends:


1. To all establishments where any trade, industry
or manufacturing process is carried on.
2. To all type of employees (irrespective of their wage
limit), skilled, semi-skilled, unskilled, supervisory,
managerial across all sectors.
3. To all type of employers who engage employees for
their trade, industry or manufacturing activities.
Source: THE GAZETTE OF INDIA
Definitions
Employee (Section 2k): Employee definition includes all employees engaged on wages to do
skilled, semi-skilled, unskilled, operational or manual work including managers, supervisors and
administrative staff. The term includes a person declared to be an employee by the appropriate
government.
Exemption: it does not include apprentice engaged under the Apprentices Act, 1961
and members of the Armed Forces of the Union.
Employer (Section 2l): Employer means a person who employs direct or indirect
employees(through contractor) in his establishment and where the establishment is carried on by
any department of the Central Government or the State Government, the authority
specified.
New concepts introduced in the definition of employer, ‘contractor’ as an employer and the
‘legal representative of a deceased employer’ will be treated as an employer.
Establishment (Section 2m): Means any place where any industry, trade, business,
manufacture or occupation is carried on and includes Government establishment.
Source: THE GAZETTE OF INDIA
Definitions
Inspector-cum-Facilitator (Section 2r): His role is to advise employer and workers relating
to compliance with the provisions of this Code and to inspect the establishments as assigned to
him by the appropriate Government
Worker (Section 2z): Worker definition includes any person employed in any Industry to do
any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or
reward.
• It also includes ‘working journalist’ and ‘sales promotion employees’

It does not include any such person:


a. who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or
b. who is employed in the police service or as an officer or other employee of a prison; or
c. who is employed mainly in a managerial or administrative capacity; or
d. who is employed in a supervisory capacity drawing wage of exceeding Rs.15,000 per month
or an amount as may be notified by the Central Government from time to time; or
e. who is apprentice engaged under the Apprentices Act, 1961. Source: THE GAZETTE OF INDIA
Discrimination against employees
Code on Wages prohibits discrimination amongst employees:
Code on Wages • On the grounds of gender
Provisions • In matters relating to payment of wages by same employer
• In respect of ‘same work’ or ‘work of similar nature’

Determination of floor wage


• A new concept under the Code.
• To be fixed by Central Government based on minimum living standards of workers.
• Floor wage may be different for different geographical areas.
• Floor wage functions as a baseline for State-level minimum wages
Limitation
• Appropriate Government can, under no circumstance, fix a minimum wage rate which is
lower than the floor rate.
• If the existing minimum wages fixed by the appropriate Government is higher than the floor
wage, they cannot reduce the minimum wages. Source: THE GAZETTE OF INDIA
Fixation of Minimum Wages
• Applicable to all including organized and unorganised sector.
• No employer shall pay to any employee wages less than the
minimum rate of wages notified by the Appropriate Government
• The appropriate Government shall fix a minimum rate of wages–
(a) for time work; or (b) for piece work.
• Where the employees are employed on piece work basis, the
appropriate Government, shall fix a minimum rate of wages for
securing such employees a minimum rate of wages on a time
work basis
• In case of time work the rates may be fixed in accordance with
by the hour, by the day or by the month
• Minimum wage will depend on factors like skills and difficulty of
work, ordinarily be revised at an interval not exceeding 5 years
Wage Period Time Limit for payment of wages

Daily basis At the end of the shift


Weekly basis On the last working day of the week

Fortnightly Before the end of the second day


basis after the end of the fortnight
Monthly basis Before the expiry of the seventh day
of the succeeding month

Source: V. V. Giri National Labour Institute, Noida


Payment of Bonus
All employees whose wages do not exceed a specific monthly amount, notified by the central or
state government and who has put in at least 30 days of work in an accounting year will be entitled
to an annual bonus.

Annual minimum Bonus will be at least: (i) 8.33% of his wages, or (ii) Rs 100, whichever is higher
irrespective of allocable surplus.

In addition, employer will distribute a part of the gross profits amongst the employees. This will be
distributed in proportion to the annual wages of an employee.

An employee can receive a maximum bonus of 20% of his annual wages in an accounting year.

Source: V. V. Giri National Labour Institute, Noida


Other Provisions
⁂ Every employer shall be responsible to pay all dues under the code to every
employee;
• Where employer fails to make such payment – company, firm, proprietor, owner
of the establishment shall be responsible to pay.
⁂ Where a claim has been filed on account of non-payment or less payment of
wages or bonus or for making deductions not authorized from the wages of an
employee:
• Burden to prove that the said dues have been paid shall be upon the employer.
• Every employer of an establishment shall maintain a register – persons
employed, muster roll, wages and other details
• Every employer shall display a notice on the notice board – at a prominent place
containing abstract of Code, category-wise wage rates, wage period, day or date
and time of payment of wages, & name & address of Inspector-cum-Facilitator.
Offences and Penalties
No court shall take cognizance of any offence punishable under this Code except on a
compliant made by –
Authority/official of appropriate Government or
by an employee or
a registered Trade Union or
an Inspector-cum-Facilitator.
No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the first
class shall try the offences under this Code
For imposing penalty appropriate Government to appoint officer not below the rank of
Under Secretary –
for holding enquiry and to summon & enforce attendance of any person acquainted with
the case to give evidence or to produce any document, and
if, on such enquiry, he is satisfied that the person has committed any offence, he may
impose such penalty as he thinks fit.
Source: V. V. Giri National Labour Institute, Noida
Offences Penalty
First offence: Payment to any Punishable with fine which may
employee less than the amount extend to fifty thousand rupees
due under this Code
Repeat offence: Within five years Punishable with imprisonment for
from the date of the commission a term which may extend to three
of the first or subsequent offence months or with fine which may
extend to one lakh rupees, or both
First offence: Contravenes any Punishable with fine which may
other provision of this Code or extend to twenty thousand rupees
any rule made, or order made or
issued thereunder
Repeat offence: Within five years Punishable with imprisonment for
from the date of the commission a term which may extend to one
of the first or subsequent offence month or with fine which may
extend to forty thousand rupees,
or both.
Offences of non-maintenance or Punishable with fine which may
improper maintenance of records extend to ten thousand rupees
in the establishment
Source: V. V. Giri National Labour Institute, Noida
Email: [email protected]|[email protected]
Website: www.abrahamcyrilissac.com
Labour Welfare and Industrial Relations
Module 12
Introduction to Labour Codes
Lecture 3
THE OCCUPATIONAL SAFETY, HEALTH AND WORKING
CONDITIONS CODE, 2020

Dr. Abraham Cyril Issac


Assistant Professor
School of Business
Indian Institute of Technology Guwahati
THE OCCUPATIONAL SAFETY, HEALTH AND WORKING
CONDITIONS CODE, 2020 (OSH CODE, 2020)
• An Act to consolidate and amend the laws regulating
the occupational safety, health and working conditions
of the persons employed in an establishment and for
matters connected therewith or incidental thereto (The
Gazette of India).
• The Parliament received the assent of the President on
the 28th September 2020.
• Consolidation of 13 Acts regulating health safety and
working conditions.
• It includes factories, mines, dock workers, building and
construction workers, plantation labour, contract labour,
inter-state migrant workers, working journalists, motor
transport workers, sales promotion employees, and
cine workers.
Salient Features of OSH Code

• It shall not apply to the offices of the Central Government, offices of the
State Government and any ship of war of any nationality. (but the Code
shall apply in case of contract labour employed through contractor in
these offices)
• The 2020 Bill includes all establishments where any hazardous activity
is carried out regardless of the number of workers.
• The code is applicable to establishments employing at least 10 workers.
• It applies to mines and docks even in case there is one worker.
• The Code fixes the daily work hour limit to a maximum of eight hours.
• The code does not apply to apprentices under the apprentices Act.
Source: The Gazette of India
Salient Features of OSH Code
• It defines an inter-state migrant worker as someone who has come on
his/her own from one state and received employment in another state
and earns up to Rs.18000 per month.
• It also empowers women to be employed in all kinds of establishments
and at night (between 7 PM and 6 AM) subject to their consent and
safety.
• The code removes the manpower limit on hazardous working
conditions and makes the application of the Code obligatory for
contractors recruiting 50 or more workers (earlier it was 20).
• Constitution of a National Occupational Safety and Health Advisory
Board (National Advisory Board) by the Central Government, which
shall be empowered to advise the Central Government.
Important Definitions
Employer – A person who employs, whether directly or through
any person, or on behalf of an establishment is called an
“Employer”. This person/authority has the ultimate control over
the establishment.

Employee: A person employed by an establishment on


wages and is required to do any skilled, unskilled, manual,
operational, supervisory, managerial, administrative,
technical, clerical or other work.

Contract Labour – A worker deemed to be employed in/in


connection with an establishment through a contractor
without having the knowledge of the principal employer is
called a “Contract Labour” as per OSH Code
Important Definitions
Establishment: Any place with ten or more workers where any industry, trade,
business, manufacturing or occupation is carried on (i) A motor transport
undertaking, newspaper establishment, audio-video production, building and other
construction work or plantation with ten or more workers (ii) Factory in which ten or
more workers are employed (iii) A mine or port or vicinity of the port where dock work
is carried out.

Hazardous Process – Any activity in relation to specific industries, where


raw/intermediate/finished/bye-products, etc., if not taken care of, may: (i) Cause
impairment to the health of the concerned person (ii) Harm the environment and
cause pollution

Source: The Gazette of India


Adaptations to the Definitions
• The Code expands the definition of a factory
as a premise where at least 20 workers work
for a process with power and 40 workers for a
process without power.
• Definition of Family extended to include
dependent grandparents of the worker
• Definition of cine worker got modified to
include all audio-visual works.
• Journalists working in electronic media got
included in the Definition of working
journalist.
Health Safety and Working Conditions
The Central Government may prescribe for providing
all or any of the following matters in the establishment
or class of establishments, namely:—
1. Cleanliness and hygiene;
2. Ventilation, temperature and humidity;
3. Environment free from dust, noxious gas, fumes
and other impurities;
4. Potable drinking water;
5. Adequate lighting;
6. Sufficient arrangement for latrine and urinal
accommodation to male, female and transgender
employee separately and maintaining hygiene
therein;
7. Effective arrangements for treatment of wastes and
effluents etc.
Provisions related to
Establishments
Establishments covered by the Code are required to register within 60 days (of
the commencement ) with registering officers, appointed by the central or state
government.
Electronic registration through Shram Suvidha portal. Certificate of registration
will be issued within 7 days.

The employer shall inform the closing of establishment within 30 days to the
registering officer and certify payment of all dues

Further, some establishments such as factories and mines, and those hiring
workers such as beedi and cigar workers, may be required to obtain additional
licenses to operate.
Source: The Gazette of India
Other Provisions
• For inter-state migrant workers:
(i) option to avail the benefits of the public distribution system either in the
native state or the state of employment
(ii) availability of benefits available under the building and other
construction cess fund in the state of employment,
(iii) insurance and provident fund benefits available to other workers in the
same establishment.
• Database for inter-state migrant workers: The central and state
governments maintain or record the details of inter-state migrant
workers in a portal.
• An inter-state migrant worker can register himself on the portal with self-
declaration and Aadhaar.
• Social Security Fund for the welfare of unorganised workers.
Duties of Employer, Employees and Consultants
Duties of Employer and Employee
• Providing a workplace that is free from hazard
• Providing free annual health check up
• Issuing appointment letters to employees (prescribed format)
• Informing relevant authorities in case an accident at the workplace leads to death or serious
bodily injury of an employee

Duties of Employees
• Take care of their own health and safety, complying with safety and health standards and
reporting unsafe work incidents to the inspector.

Duties of Consultants
• Manufactures, importers, designers, suppliers must ensure, the article created or provided by
them in an establishment is safe and should provide information on its safe handling
• Architects, engineers and designers must ensure the safety of structures designed by them.
Rights of Employees
Right to ask the employer about the information related to the employee’s health and
safety and enquire about the provision for the protection of the employee’s safety or
health in connection with the work activity in the workplace

In case of any threat or apprehension of a serious injury or danger to life, the


employee may bring it to the notice of the employer and the inspection-cum-facilitator

In case, as mentioned above, the employer shall immediately raise a complaint


against the same, in a manner prescribed by the Government

If the employer is not satisfied with the existence of any imminent danger as
apprehended by his/he employees, he/she can refer the matter to the inspector-cum-
facilitator whose decision shall be final
Source: The Gazette of India
Email: [email protected]|[email protected]
Website: www.abrahamcyrilissac.com
Labour Welfare and Industrial Relations
Module 12
Introduction to Labour Codes
Lecture 4
Industrial Relations Code, 2020

Dr. Abraham Cyril Issac


Assistant Professor
School of Business
Indian Institute of Technology Guwahati
The Industrial Relations Code, 2020
• To protect the rights of workers to make unions.
• To reduce the friction between the employers and workers.
• To provide regulations for settlement of industrial disputes.

Source: The Gazette of India


C O N S O L I D A T I O N OF
T H R EE AC T S

The
Industrial
The Employment
Industrial (Standing
The Trade Disputes Orders) Act,
U n i o n Act, Act, 1947 1946
1926
KEY DEFINITIONS
WORKERS
The d e f i n i t i o n of w o rk e r s ha s been e x p a n d e d
f u r t h e r t o i n clud e j o u r n a l i s t s , sales p r o m o t i o n
emp loy ees, a n d employees who are w o r k i n g as
s u p e rv i s o r s b u t are e a r n i n g less t h a n Rs.
18 , 000 per m o n t h .
TRADE UNION
A n y c o m b i n a t i o n , w h e t h e r t e m p o r a r y or p e r m a n e n t ,
f o r m e d p r i m a r i l y t o r e g u l a t e t he r e l a t i o n s b e t w e e n
w o r k e r s a nd e m p l o y e r s or b e t w e e n w o r k e r s a nd
work er s, or b e t w e e n e m p l o y e r s a n d e m p l o y e r s , or
for i m p o s i n g r e s t r i c t i v e c o n d i t i o n s on t he c o n d u c t
of a ny t r a d e or b u s i n e s s a nd i n c l u d e s any
f e d e r a t i o n of t w o or m o r e Tr a d e Unions.
KEY DEFINITIONS
INDUSTRIAL DISPUTE Any differences of o p i n i o n b e t we en employees a n d
emp l o y ers b e c ause of employee r e t r e n c h m e n t ,
d i smi ssal , o r t e r m i n a t i o n .
The w o r k e r c a n a p p e a l this with the g o v e rn i n g
b o d y ( also called the i n d u s t r i a l t r i b u n a l ) wi t h in 45
days f r o m the d a t e of r e t r e n c h m e n t o r t e r m i n a t i o n .

It exclude: Organisations offering charity, social, or INDUSTRIES


philanthropic service.
Organisations that are under the control of the
Government specifically dealing with defence
research, atomic energy, and space exploration.
Organisations specifically excluded by the central
government
KEY DEFINITIONS
FIXED TERM EMPLOYMENT Any f o r m of e mp l o y m e n t with a w r it t en
c o n t r a c t for a specific d u r a t i o n is cons idere d
fixed t e r m e mp l o yme n t .
The new d e f i n i t i o n p r o p o s e s social securit y
b en efits for fixed t e r m employees

D o e s n o t include : RETRENCHMENT
i . v o l u n t a r y r e t i r e m e n t of t h e wo r ke r
i i . r e t i r e m e n t of t h e wo r ke r on r e a c h i n g t he age of
superannuation
i i i . t e r m i n a t i o n of t h e s e r v i c e of t he wo r ke r as a
r e s u l t of t he n o n - r e ne wal of t he c o n t r a c t of
e mplo yme nt between the employer.
SCOPE & APPLICABILITY
Registration, Cancellation & Alteration of Name of Trade Union
Constitution of Work Committee & Grievance Redressal
Committee
Incorporation of a Registered Trade Union
Recognition of Negotiating Union
Preparation of Standing Order
Register of Standing Order
Constitution of Industrial Tribunal
Illegal Strikes and Lock-outs
Procedure for Retrenchment and Re-employment of
Retrenched Worker
Compensation to Workers in case of Transfer of Establishment
Prohibition of Lay-off
Closure of an Industrial Establishment
REGISTRATIONOFTRADEUNION
Any seven or more members of a trade union by
subscribing to their names, apply for registration of the
Trade Union.
At least ten per cent of the workers or 100 workers,
whichever is less, must be members of the Trade Union on
the date of making an application for registration.
Registered Trade Union shall continue to have at least ten
per cent of the workers or one hundred workers, whichever
is less, wherein a minimum of seven members are engaged
or employed in an industrial establishment or industry with
which it is connected.
If the name of the Trade Union proposed to be registered is
identical to an existing registered Trade Union, alteration of
the name is required as asked by the Registrar of Trade
Union.
Registered Trade Union shall be a body incorporated by the
registered name, having a common seal and perpetual
succession with the power to hold property.
• The Employer shall either give three months' notice or pay the retrenched worker
instead of the notice period.
• Where any worker is retrenched and the employer proposes to take into his
employment any person within one year of such retrenchment, an opportunity will
be given to the retrenched workers who are citizens of India to offer themselves
for re-employment.

Nonseasonal industrial establishments (i.e. mines, factories, and plantations) with 50


to 300 workers are required to:
• pay 50 /oof basic wages and dearness allowance to a worker who has been laid off
o

• give one month's notice or wages for the notice period to the retrenched worker
• non-seasonal industrial establishments with at least 300 workers are required to
take prior approval from central or state government before lay-off, retrenchment
or closure.
CLOSURE
Any Employer intending to close an Industrial Establishment is required to
serve 60 days’ advance notice to the Government.
Provision for compensation to those workers who are in a continuous period of
service not less than one year in case of Closure of Industrial Establishment.

Violation of provisions under lay-off, retrenchment, closure of


establishment.
For first time defaulters, it is a fine of up to Rs.10 lakhs.
For subsequent offences, afine up to 20 lakhs or imprisonment up to 6 months
or both.
WorkerRe-skilling Fund
The IR Code introduces provisions for
re-skilling of workers for the first time
for those workers who have been laid-

Other
off so that they are able to secure
employment again

Provisions Grievance handling committee


Any employer with 20 or more employees has

under the to have one or more grievance handling


committees.

Act
The panel cannot be more than 10 people, and
should have equal and fair representation from
employers, employees, and women
employees.

STRIKES AND LOCK-OUTS


Every person employed in an Industrial
Establishment is prohibited from strikes and
lock-out
Email: [email protected]|[email protected]
Website: www.abrahamcyrilissac.com
Labour Welfare and Industrial Relations
Module 12
Introduction to Labour Codes
Lecture 5
Code on Social Security, 2020

Dr. Abraham Cyril Issac


Assistant Professor
School of Business
Indian Institute of Technology Guwahati
The Code on Social
Security, 2020
• Aims to regulate the organized and unorganized sectors,
extending social security benefits to all employees and
workers across different organizations during sickness,
maternity, disability, and other situations.

• This comprehensive legislation integrates nine existing


labour laws to provide a unified framework for social security
coverage.
Coverage and Applicability

1 Expanded Coverage 2 Universal Applicability


The Code has widened coverage The Code applies to everyone
by including the unorganised on wages in an establishment,
sector, fixed term employees, gig irrespective of occupation.
workers, platform workers, and
inter-state migrant workers, in
addition to contract employees.
Important Chapter Headings and Applicability

Chapter Chapter Headings Applicability

III Employees' • Every establishment in which twenty or


Provident Fund more employees are employed.

• Every establishment in which ten or more


Employees’ State persons are employed other than a seasonal
IV factory.
Insurance
Corporation’ • It shall also be applicable to an
establishment, which carries on such
hazardous or life threatening occupation as
notified by the Central Government, in
which even a single employee is employed
Important Chapter Headings and Applicability

Chapter Chapter Headings Applicability


(a) every factory, mine, oilfield, plantation, port and
V Gratuity
railway company; and
(b) every shop or establishment in which ten or more
employees are employed, or were employed, on any
day of the preceding twelve months; and such shops or
establishments as may be notified by the appropriate
Government from time to time.

To every shop or establishment in which ten or more


employees are employed, or were employed, on any day
VI Maternity Benefit of the preceding twelve months; and such other shops or
establishments notified by the appropriate Government.
Important Chapter Headings and Applicability

Chapter Chapter Headings Applicability

Employee's • Subject to the provisions of the Second Schedule, it


VII applies to the employers and employees to whom
Compensation
Chapter IV does not apply.

Social Security and Cess in • Every establishment which falls under the
VIII respect of Building and Other building and other construction work.
Construction Workers

Employment • Career centres, vacancies, persons seeking


XIII Information and services of centres and employers.
Monitoring career
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