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CAREER CENTRES EMPLOYMENT EXCHANGES
CHAPTER 3
CONTRACT LABOUR
3.6-1
3.6-2
3.6-7
3.6-8 New requirement of amendment of licence for increase in the number of contract labour employed to above the number stated in the licence 18
3.7 Contractor’s obligation to give intimation of receipt of work order to the designated authority 19
3.7-1 Obligation on contractor to intimate receipt of work order for supply of contract labour/execute through contract labour to the designated authority 19
3.7-2 Consequences of not giving intimation of receipt of work order 19
3.7-3 Requirement to give notice of commencement of operations has been extended by this Code to mines and establishments relating to contract labour also 19
3.8 Contract labour employed in his establishment, principal employer to provide welfare facilities for 20
3.8-1 New requirement making it the primary obligation of the principal employer to provide welfare facilities for contract labour 20
3.9 Payment of wages to contract labour 21
3.9-1 OSHWC Code, 2020, introduces enabling provision for payment of wages to contract labour through bank or electronic mode 21
6.2-1
New rule as to when an accident or disease shall be deemed to arise out of and in the course of employment, notwithstanding that the employee was acting in contravention of any applicable law, or of any orders of his employer or that he was acting without instructions from his employer
6.2-2 New rule as to when an accident occurring to an employee while commuting to and fro office and residence, shall be deemed to have
6.2-3 New provision of section 75: Liability of employer to pay compensation for death/injury to worker or his family member due to collapse of house provided by employer in plantation
6.2-4 Threshold increased for amount of compensation which may be deposited with the authority instead of paying directly to employee
6.2-5
6.2-6 New provisions as to when failure to give a notice shall not be a bar to the maintenance of proceedings in
6.2-7
New provisions as to period for which no half-monthly payment shall be payable
6.2-8 Competent authority may provide an advocate to dependant of deceased employee where he is not in position to engage an advocate to file a claim 33
6.2-9 Application for claim or settlement may be made electronically 34
6.2-10
6.2-11
Limitation period of 60 days for filing appeal to HC shall be reckoned from the date of passing of the order by the competent authority
Provision regarding misuse of benefits have been extended to all social security benefits under the Code
6.3 Amount of compensation payable by employer under CSS 2020 vis-a-vis that payable under section 4 of EC Act
CHAPTER 7
EMPLOYEES’ PROVIDENT FUND (EPF)
7.1 Changes in applicability of Employees’ Provident Fund (EPF) Provisions
7.1-1
7.1-2
EPF benefits now universally applicable to all establishments in which 20 or more employees are employed
Establishment with less than 20 employees to which PF provisions were made applicable by agreement between employer & majority of employees can opt out of the PF provisions by a like agreement
7.2-1 Rates of contributions (percentages) to PF unchanged but will apply on increased base of entire wages and not basic+DA+
7.2-2 Rate of employer’s contribution to EDLIS remains unchanged @ 1% but will be on the higher base of entire wages instead of only on basic+DA+RA
7.2-3 Amount of employees’ contributions recovered by principal employer from contractor may, in turn, be deducted by
7.2-4 Chapter III of CSS 2020 not to apply to employees who were receiving PF benefits under any Central or State enactment immediately prior to 21.11.2024
7.2-6 No appeal against Notification issued u/s 1(6) by Central Govt. extending EPF provisions to establishments employing less than 20 persons
7.2-7 No appeal against notification extending provisions of EPF to an establishment based on agreement between employer and majority of his employees
7.2-8 Pre-deposit for entertaining appeal by employer reduced from 75% of amount due by employer as determined by authorised officer to 25% of such amount
7.2-9 Omission of powers of Tribunal to amend order to rectify mistake apparent from record
7.2-10 New limitation period of 5 years stipulated for initiation of proceedings concerning Chapter III (EPF provisions)
7.2-11 New limitation period of 5 years stipulated for initiation of proceedings concerning Chapter IV (ESI provisions)
7.2-14 Omission of floor and ceiling on Rate of simple interest that can be notified by the Central Govt. as regards interest payable on any amount due by employer
7.2-15 Liability of employer to pay damages not exceeding the arrears which was applicable to defaults under EPF has now been extended to ESI
7.2-16
procedure for coercive recovery of amounts due by defaulting employer under the provisions of
8.1
7.2-17 Provision regarding misuse of benefits have been extended to all social security benefits under the Code
7.2-18 New provision regarding prescribing the manner to ascertain the misuse of any EPF benefits
CHAPTER 8
EMPLOYEES’ STATE INSURANCE (ESI)
8.3-2 Omission of redundant provision of sub-section (2) of section 52A of ESI
8.3-3
8.3-4 Omission of provision entitling insured person to medical benefit during any period in which he is qualified to claim sickness benefit/maternity benefit/disablement benefit
8.3-5
Central Govt. shall be the appropriate Govt. in the states where medical benefit is provided by ESIC 57
8.3-6 Bar on receiving benefits under other provisions by a person entitled to benefits under ESI 57
8.3-7 Corporation’s rights over employer to ensure that employee does not suffer due to specified lapses of employer-Enlargement in the scope of specified lapses 58
8.3-8 Change in amount that ESIC can recover from defaulting employer 59
8.3-9
Power of Central Govt. to frame scheme for unorganised workers, gig workers and platform workers and their family members 60
8.3-10 New limitation period of 5 years stipulated for initiation of proceedings concerning Chapter IV (ESI provisions) 61
8.3-11 Order of the appellate authority in respect of Chapter IV is a matter to be decided by an ESI Court 61
8.3-12
8.3-13
Omission of power of ESI Court to direct ESIC to obtain the decision of a medical appeal board/medical appeal tribunal 62
Clarification that Limitation period of 60 days for filing appeal to HC shall be reckoned from the date of the order of the ESI Court 62
8.3-14
8.3-15
Liability of employer to pay damages not exceeding the arrears which was applicable to defaults under EPF has now been extended to ESI defaults also 62
Uniform procedure for coercive recovery of amounts due by defaulting employer under the provisions of EPF, EC, ESI, PG and BOCWW 64
CHAPTER 9
EQUAL REMUNERATION
9.1 No discrimination against transgenders also in matters of employment 65
CHAPTER 10
FACTORIES
10.1 Definition of Factory
10.1-1
Threshold of number of workers increased from 10 to 20 for manufacturing with the aid of power and from 20 to 40 for manufacturing without the aid of power 67
10.1-2 Definition of “factory” for the purposes of Chapter II of this Code relating to registration 68 10.2 Hazardous
10.5-1 New definition of “industrial premises” applies for all the purposes in this code and not only to provisions pertaining to beedi and cigar workers
10.6-1 This code replaces the inclusive old definition of “machinery” with an exhaustive new definition 69
CHAPTER 11
GRATUITY
11.2-1 Changes in gratuity payable to an employee due to a change in the definition of ‘wages’ 71
11.2-2 Gratuity now payable on termination of service due to the expiration of the term of FTE/happening of any notified event 74
11.2-3 Gratuity is payable if service is terminated at the end of FTE without completing 5 years of continuous
11.2-4
11.2-5 Continuous service period requirement for working journalists reduced from 5 years to 3 years 75
11.2-6 Ceiling of Rs. 3,50,000 on gratuity amount is replaced with a ceiling amount as may be notified by the Central Govt. 75
11.2-7 Decriminalisation of non-compliance by the employer with provisions for compulsory insurance of his gratuity liability 76
11.2-8 Changes in provisions relating to competent authority 76
11.2-9
Provision regarding misuse of benefits has been extended to all social security benefits under the Code 77
11.3 Accounting for increase in gratuity liability due to application of new labour codes 77
11.3-1 Accounting for current and deferred tax implications of an increase in gratuity and/or leave encashment obligation arising from the New Labour Codes 78
11.4 Whether listed entities need to recognise additional gratuity obligation from new labour codes in interim results for December, 2025 80
11.5 Presentation of additional expense resulting from increase in gratuity/leave obligation as an exceptional item in the statement of profit and loss 80
11.6 Impact of New Labour Codes on financial statements for FY 2024-25 81
CHAPTER 12
INDUSTRIAL DISPUTES
CHAPTER 13
INTER-STATE MIGRANT WORKERS
13.1-1 New wage limit introduced in the new definition of “inter-State migrant worker” 94
13.2 Applicability of inter-State migrant workers provisions 94
13.2-1 Threshold of number of ISMWs employed, for the purposes of applicability of provisions relating to ISMW, increased from 5 to 10 94
13.3 Provision of facilities to inter-State migrant workers 95
13.3-1 Duty of contractor or the employer of an establishment employing inter-State migrant workers to provide EPF/ESI benefits & medical check up facility to inter-State migrant workers 95
13.4 Journey allowance to inter-State migrant worker 95
13.4-1 Change in entitlement of journey allowance to ISMWs 95
13.4-2 Omission of entitlement to wages during the period of such journeys 96
13.5 PDS portability for inter-State migrant workers 96
13.5-1 New provision of portability of PDS (ration) introduced for inter-State migrant workers 96
13.5-2 Obligations of the appropriate Government 96
13.6 Toll-free helpline for inter-State migrant workers 97
13.6-1 New provision enabling provision of facility of toll free helpline to the inter-State migrant workers (Section 63 of OSHWC Code, 2020) 97
CHAPTER 14
MATERNITY BENEFIT
14.1 Change in application of maternity benefits provisions vis-a-vis MB Act 98
14.2 Clarification of the expression “any work of arduous nature” by inserting a new Explanation98
14.3 Change in “Average Daily Wage”, for computing the maternity benefit payment 99
14.4 Omission of exemption from qualifying period of minimum 80 days to woman who has immigrated to Assam 99
14.5 Notice by pregnant woman shall claim maternity leave/benefit of max. 8 Weeks upto expected date of delivery 100
14.6 Increase in medical bonus from Rs. 1000 to Rs. 3500 or amount as notified by Central Govt. 100
14.7 CAP of Rs. 20,000 on amount of medical bonus done away with 100
14.8 Threshold number of employees in establishment for applicability of mandatory requirement to provide crèche facility 101 14.8-1 New common crèche facility provision 101
14.9 Provision regarding misuse of benefits have been extended to all social security benefits under the code 101
CHAPTER 15
MINES
15.1 Notice of commencement of operations by employer 103
15.1-1
Requirement to give notice of commencement of operations have been extended by OSHWC Code 2020 to mines and establishments relating to contract labour also 103
15.1-2 New requirement to give notice to authority of cessation of operation of establishment 104
15.1-3
15.2
15.3
15.5
15.3-1 Requirement in repealed acts which applied to factories and mines has been extended by this Code to all establishments
15.4-1 Requirement to appoint qualified safety officer/(s) extended by the Code to factories and mines employing threshold limit number of workers or more
15.5-1 Provisions applicable in repealed acts to factories have been extended by the Code to mines also 106
CHAPTER 16
REGISTRATION OF ESTABLISHMENTS UNDER CODE ON SOCIAL SECURITY, 2020
16.1 Changes in provisions as regards registration 107
CHAPTER 17
STANDING ORDERS
17.1 Changes in provisions 109
CHAPTER 18
TRADE UNIONS
18.1 New provision of section 14 of the Code providing for recognition of Negotiating Union or Negotiating Council 111
18.1-1 New provision regarding adjudication of disputes of Trade Unions 111
18.1-2 New provision regarding recognition of Trade Unions at the Central and State level 112
18.2 Changes in provisions 112
CHAPTER 19
UNORGANISED WORKERS’ SOCIAL SECURITY
19.1 Omission of Schedule I to UWSS Act giving exhaustive list of schemes deemed to be welfare schemes for unorganised workers 116
19.2 Toll free call centres or helplines or facilitation centres for unorganised workers, gig workers and platform workers 117
19.3 Registration of gig workers and platform workers also provided for 118
19.4 Minimum age limit requirement for registration and enrolment for welfare schemes changed from 14 years to 16 years or such age as may be prescribed 118
19.5 Self-declaration required for registration may be submitted by the worker electronically 118
19.6 Aadhaar number made compulsory for registration of unorganised workers, gig workers and platform workers 119
19.7 Provision regarding misuse of benefits have been extended to all social security benefits under the code 119
CHAPTER 20 WAGES
20.1 Changes in definition of “Employer” 120
20.1-1 Omission of reference to “scheduled employment” to make minimum wages applicable universally 120 20.1-2 Uniform definition of “employer” 121
20.2 Threshold limit of number of employees for applicability of Code on Wages, 2019 121
20.3 Non-applicability to MNREGA 121
20.4 Definition of Employee 121
20.4-1 Changes in provisions vis-à-vis the repealed acts 121
20.4-2
Uniform definition of “employee” for all purposes under the Code 122
20.5 Definition of Wages 122
20.5-1
Uniform definition of “wages” for all the purposes under the Code 122
20.5-2 Table showing treatment of different items for computing “wages” under the Code 123
20.6
20.8-1
20.8-2
Uniform time limits for wage payment, irrespective of the number of persons employed in the establishment
Uniform time limits for wage payment, irrespective of the amount of wages drawn by the employee per month
20.8-3
20.8-4
20.9-1 New sub-section (5) in section 18No liability of employee where for any amount deducted has been by the employer from the wages but not deposited with the authorities, as required by law
20.9-2 Changes in deductions permissible from wages of an employee during a wage period
20.9-3 Cap on permissible deductions from wages of an employee reduced from 75% of wages for a wage period to 50%
20.10-1 The time limit for filing claims before the Authority for amounts due to workers increased from 6 months to 3 years
20.10-2 Appeal against the decision of the authority
20.11 Protection against attachments of EMD/security deposit of employer
20.11-1
20.11-2 Can the EMD/security deposit of the employer placed with the Government under a tender for the due performance of the contract, or bills payable by the Government, be attached for the debt/liability of the employer under any court order?
CHAPTER 21
WOMEN, EMPLOYMENT OF
21.1 Provision for employing women in all establishments for all types of work and allowing women to work at night
21.2 Powers of appropriate Govt. to make rules prescribing adequate safeguards for employing women in dangerous operations
CHAPTER 22
SPECIAL CATEGORIES OF WORKERS
The scope of the term “working journalist” expanded to include journalists employed in establishments related to any electronic media or digital media
Definition of “audio-visual production” is wider than “feature film”
22.2-2 Definition of “Audio-visual worker” in OSHWC Code, 2020 is wider than “cine-worker”
22.2-3
22.2-4
Wage limits of monthly remuneration & lumpsum remuneration shall be amounts as may be notified by the Central Govt. instead of amounts specified in definition itself 142
New definition of producer is with reference to any audio-visual production and not only with reference to feature films 142
22.2-5
22.2-6
22.2-7
Audio-visual worker not to be employed without written agreement
New provisions as to mandatory contents of the written agreement between the producer and audio visual worker
New provisions as to responsibility of the producer of the audio-visual programme
143
143
22.2-8
144
New provisions regarding failure of resolution of the dispute in the dispute resolution process or mechanism provided in the agreement 144
22.3 Building and other construction workers welfare 145
22.3-1
22.3-2
Construction, alteration etc. in relation to internet towers is specifically enumerated as “building or other construction work” in clause (h) of sub-section (1) of section 2 of OSHWC Code, 2020 145
Power to specify any work as “building or other construction work” 145
22.3-3
22.3-4
Exclusion of building or other construction work for own residential purposes where total cost does not exceed Rs. 50 lakhs or such higher notified amount 145
New definition of “building worker” in clause (i) of sub-section (1) of section 2 of OSHWC Code, 2020, excludes a person employed mainly in supervisory capacity regardless of monthly wages drawn by him 146
22.4 Building and other construction workers, social security and cess in respect of
22.4-1
Changes in the definition of the term “building or other construction work”
22.4-2 Changes in the definition of the term “building worker”
22.4-3 New Explanation inserted to clarify the term “cost of construction” 147
22.4-4
Interest rate changed from 2% every month or part thereof to such rate as may be prescribed by the Central Government 148
22.4-5 Power to exempt from cess has been transferred from the State Govt. to the appropriate Government 148
22.4-6
Payment cess by employer on self-assessment basis before filing the return. Officer/authority not required to assess the cess based on the return in every case and issue an order demanding the amount 149
22.4-7 Omission of provisions for opportunity of hearing before rejection of application for registration and for appeal against such rejection
22.4-8 Provision regarding misuse of benefits have been extended to all social security benefits under the code
22.5-1 New definition of cargo also includes anything carried or to be carried in a
22.5-2 New definition of “Dock work” specifically includes all repairing and maintenance processes connected with any storage area on board the ship or in the docks
FAQs AND ILLUSTRATIONS ON WAGE STRUCTURE
FAQs and illustrations on wage structure 155
Subject Index 167
