Quick Summary
- 29 labour laws merged into 4 codes
- Impact on salary, PF, and compliance
- Implementation depends on states
What maternity leave is a woman entitled to?
- 80 days worked in prior 12 months → Average daily wage (min. wage floor)
- 26 weeks max (≤8 wks pre-delivery); 12 wks (≤6 wks) if 2+ surviving kids
- Death: Pays till woman's death; full period if child survives her (stillborn counts)
- Adopt/surrogate: 12 wks from child handover (< 3 months age)
- Work-from-home: Post-leave, if mutually agreed (same pay/designation)
What types of grievances can be raised before the GRC?
Any individual grievance arising out of the employment relationship may be raised, including:
- Wages & Allowances – such as non-payment, underpayment, or unlawful deductions from wages
- Working Hours & Leave – including overtime disputes or denial of leave entitlements
- Service Conditions – matters relating to transfers, promotions, or classification of workers
- Disciplinary Action – provided the matter is not already under formal adjudication
- Workplace Facilities – concerns relating to safety, hygiene, or amenities at the workplace
- Terms of Employment – including shift arrangements and standing order-related matters
- Termination & Retrenchment – cases of wrongful termination or denial of employment
Are performance-based payments included in wages?
No. The following shall not form part of wages:
- Performance-based incentives
- Employee Stock Option Plans (ESOPs)
- Variable components of salary
- Reimbursement-based payments made to employees
What is the 50% rule for allowances?
If the allowances and benefits together (except gratuity and retrenchment compensation) exceed 50% of the all remuneration, the excess amount shall be added back to wages. Such added amount shall be treated as wages for statutory purposes.
Whether Leave Encashment be part of allowances?
As mentioned in Section 2(y) of Code on Wages, 2019, leave encashment is not a part of allowances.
Does this definition of wages apply to all labour laws?
- This single definition of wages applies across all four Labour Codes
- The same definition applies uniformly for statutory calculations
Whether the person drawing wages ₹18,000/- or more will be covered under the definition of worker as per OSH & WC Code?
Any person, who is employed in a supervisory capacity drawing wages exceeding ₹18,000/- (or an amount as may be notified by the Central Government from time to time) is not included in the definition of worker.
What happens if an establishment fails to comply with wage payment timelines?
If a company does not pay wages on time:
- Penalty: The company can be fined up to ₹50,000/
- Worker’s right: Employees must be compensated for the delay.
- Repeat violations: If the company keeps breaking this rule, the punishment becomes stricter.
- Repeat offence (underpayment of wages) → Imprisonment up to 3 months or fine or both
- Repeat offence (other violations) → Imprisonment up to 1 month or fine or both
What happens if an employer doesn't pay wages on time or makes wrong deductions under the Code on Wages?
- Any worker can file a claim before the appointed Authority if wages are unpaid or wrong deductions are made.
- Claims must be filed within 3 years from the date wages were due or deduction was made.
- A single application can cover multiple workers from the same establishment.
- The Authority can order the employer to pay dues along with a compensation up to 10 times the withheld amount.
When should wages be paid to workers?
- Daily : End of the same shift/day
- Weekly : Last working day of the week (before weekly holiday).
- Fortnightly : Before the end of the 2nd day after fortnight closes.
- Monthly : Before expiry of the 7th day of the succeeding month (applicable to all establishments, no workforce-size distinction)
- On termination (removal, dismissal, retrenchment, resignation, closure): Within 2 working days of termination.
What is the threshold of workers required for an establishment to obtain permission before layoff,power to revise ?
Threshold and Prior Government permission for layoff/power to revise is required as follows:
- Threshold: Establishments employing 300 or more workers (Central Government may raise this limit by notification).
- Layoff & Retrenchment: Employer must seek prior permission from the appropriate Government before effecting layoff or retrenchment.
- Fortnightly : Before the end of the 2nd day after fortnight closes.
- Flexibility: Central Government empowered to increase the 300-worker threshold by notification.
What is the overtime rate prescribed under the Code on Wages, 2019?
Workers are entitled to overtime wages calculated as follows
- Rate: Double the ordinary rate of wages (2X) for all hours worked beyond normal limits.
- Daily Limit: Applies when work exceeds 9 hours in a day.
- Weekly Limit: Applies when total work exceeds 48 hours in a week - whichever calculation is more beneficial to the worker.
- Spread Over: Total spread over of working hours including rest intervals shall not exceed 12 hours on any day (extendable up to 12 hours in special cases by appropriate Government).
What is the worker threshold requiring prior government permission for lay-off, and who can revise it?
- Applies to non-seasonal factories, mines (Mines Act, 1952), and plantations (Plantations Labour Act, 1951) with 300+ workers (average per working day in prior 12 months).
- Permission needed before lay-off; deemed granted if no decision in 60 days.
- Central Government can raise the 300-worker threshold by notification.
Which establishments need no prior permission for lay-off, retrenchment, or closure?
- 50–299 workers: Pay statutory compensation, no prior permission required.
- Under 50 workers or seasonal/intermittent nature: Fully exempt from permission and compensation.
- Applies only to specified non-seasonal industrial setups (Factories Act, 1948).
Can an individual worker directly approach the Tribunal to raise an industrial dispute?
- No, must try conciliation first (45 days for firing cases).
- Apply to tribunal within 90 days if conciliation fails.
- 2-year deadline only for termination disputes.
- Tribunal decides after failed talks.
Under what 7 conditions are strikes/lock-outs strictly prohibited ?
These 7 situations make it completely illegal (if not followed/as case may be):
- Notice Rules: 60-day advance notice + 14-day wait mandatory
- No Early Action: Cannot start strike/lock-out before notice date specified
- Talks Ban: No action during conciliation period (+7 days after)
- Court Ban: No action during tribunal hearing(+60 days after)
- Arbitration Ban: No action during arbitration (+60 days after)
- Deal Protection: Cannot strike over active settlements/awards
- Boss Duty: Report all notices to govt in 5 days
Is the employer liable for safety failures of a contractor at his establishment?
Yes. The principal employer cannot escape liability by hiring a contractor.
- If a contractor fails on welfare/safety, the principal employer must step in — then recover the cost from the contractor.
- Contract workers are covered under the same safety standards as regular workers.
- Contractor must be licensed — unlicensed contractor makes principal employer directly liable.
- No distinction between direct-hire and contract labour for Health & Safety purposes
What are the legal limits and authorized reasons for making deductions from an employee's wages?
- Deductions are strictly prohibited unless they are specifically authorized under the Code on Wages, 2019, such as for fines, absence from duty, or the recovery of advances and loans
- The total amount of all deductions made in a single wage period is capped and cannot exceed fifty per cent of the employee's total wages.
- Deductions for damage or loss can only be made if they are directly caused by the employee's neglect or default, and the amount cannot exceed the actual value of the damage
- Employers are forbidden from imposing fines on any employee under the age of fifteen
- • Any fine imposed must not exceed three per cent of the wages payable for that period, and the employer must maintain a register of all such realisations to be used for the benefit of the employees
What are the mandatory timelines for the payment of wages for different classes of employees?
- For employees engaged on a daily basis, the employer must pay wages at the end of the shift
- For those on a weekly basis, wages must be paid on the last working day of the week, specifically before the weekly holiday begins
- Employees on a fortnightly basis are entitled to receive their wages before the end of the second day after the fortnight ends.
- For monthly wage periods, payment must be completed before the expiry of the seventh day of the following month
- In cases where an employee is dismissed, retrenched, resigns, or the establishment closes, all wages due must be paid within two working days
What powers does an Inspector-cum-Facilitator have, and how are first-time offences handled?
- Inspector-cum-Facilitators are appointed to advise employers and workers on compliance and to conduct inspections based on randomized, web-based schemes
- They have the power to examine persons on the premises, search for records, and seize copies of registers they believe are relevant to an offence
- For certain offences, such as improper record-keeping, the Inspector-cum-Facilitator is required to give the employer a written direction and an opportunity to comply before initiating any prosecution
- This mandatory opportunity to fix a violation is not available if the employer repeats the same offence within a period of five years
- In any legal proceeding regarding a claim of non-payment, the burden of proof lies on the employer to show that the wages or bonus were actually paid
What powers does an Inspector-cum-Facilitator have, and how are first-time offences handled?
- Inspector-cum-Facilitators are appointed to advise employers and workers on compliance and to conduct inspections based on randomized, web-based schemes
- They have the power to examine persons on the premises, search for records, and seize copies of registers they believe are relevant to an offence
- For certain offences, such as improper record-keeping, the Inspector-cum-Facilitator is required to give the employer a written direction and an opportunity to comply before initiating any prosecution
- This mandatory opportunity to fix a violation is not available if the employer repeats the same offence within a period of five years
- In any legal proceeding regarding a claim of non-payment, the burden of proof lies on the employer to show that the wages or bonus were actually paid
How does the Code on Social Security, 2020, extend coverage and benefits to unorganised workers, gig workers, and platform workers?
- Gig workers and platform workers are recognized as individuals who perform work or participate in work arrangements outside of traditional employer-employee relationships, often through digital intermediaries known as aggregators.
- To avail of benefits, these workers must undergo registration (including self-registration) by providing a self-declaration and their Aadhaar number to establish their identity.
- The Central Government is empowered to frame specific social security schemes for these categories, covering essential areas such as life and disability cover, health and maternity benefits, and old age protection.
- These welfare schemes are funded in part by aggregators, who are required to contribute between one and two per cent of their annual turnover, provided the contribution does not exceed five per cent of the amount payable to the workers.
- The Code establishes a dedicated Social Security Fund to collect these aggregator contributions, government grants, and other funding specifically for the welfare of unorganised and platform-based workers.
How does the Industrial Relations Code, 2020, regulate the recognition of negotiating unions and the legality of strikes?
- In an industrial establishment where multiple registered Trade Unions are functioning, the employer must recognize the union supported by fifty-one per cent or more workers on the muster roll as the sole negotiating union.
- If no single Trade Union reaches the fifty-one per cent threshold, the employer is required to constitute a negotiating council featuring representatives from every registered union that has the support of at least twenty per cent of the total workers
- The Code prohibits any worker from going on strike without giving the employer notice within sixty days before the strike and at least fourteen days before the strike begins.
- A "strike" is specifically defined to include concerted casual leave taken on a given day by fifty per cent or more of the workers employed in an industry
- Workers are forbidden from striking during the pendency of conciliation proceedings and for seven days after the conclusion of such proceedings.
- Similarly, strikes are prohibited during proceedings before a Tribunal or National Industrial Tribunal and for sixty days after those proceedings have concluded
What are the requirements and functions of Bi-partite Forums like Works Committees and Grievance Redressal Committees?
- A Works Committee must be constituted in any industrial establishment where one hundred or more workers are employed on any day in the preceding 12 months to promote measures for securing and preserving harmony and good relations between the employer and workers.
- This committee consists of representatives of both the employer and workers, ensuring the number of worker representatives is not less than the number of employer representatives.
- Every industrial establishment employing twenty or more workers is required to establish one or more Grievance Redressal Committees specifically for resolving individual grievances.
- A Grievance Redressal Committee can have up to ten members with equal representation for employer and workers, and must include adequate representation for women workers in proportion to their employment in the establishment.
- An aggrieved worker must file an application to the committee within one year from the date the cause of action arose, and the committee should ideally complete proceedings within thirty days.
- If a worker is dissatisfied with the committee's decision or the grievance remains unresolved after thirty days, they may apply for conciliation through a Trade Union of which they are a member within sixty days.
What are the legal limits and authorized reasons for making deductions from an employee's wages?
- Deductions are strictly prohibited unless they are specifically authorized under the Code on Wages, 2019, such as for fines, absence from duty, or the recovery of advances and loans
- The total amount of all deductions made in a single wage period is capped and cannot exceed fifty per cent of the employee's total wages
- Deductions for damage or loss can only be made if they are directly caused by the employee's neglect or default, and the amount cannot exceed the actual value of the damage
- Employers are forbidden from imposing fines on any employee under the age of fifteen
- Any fine imposed must not exceed three per cent of the wages payable for that period, and the employer must maintain a register of all such realisations to be used for the benefit of the employees
What are the legal limits and authorized reasons for making deductions from an employee's wages?
- Deductions are strictly prohibited unless they are specifically authorized under the Code on Wages, 2019, such as for fines, absence from duty, or the recovery of advances and loans.
- The total amount of all deductions made in a single wage period is capped and cannot exceed fifty per cent of the employee's total wages.
- Deductions for damage or loss can only be made if they are directly caused by the employee's neglect or default, and the amount cannot exceed the actual value of the damage.
- Employers are forbidden from imposing fines on any employee under the age of fifteen.
- Any fine imposed must not exceed three per cent of the wages payable for that period, and the employer must maintain a register of all such realisations to be used for the benefit of the employees.
What are the mandatory timelines for the payment of wages for different classes of employees?
- For employees engaged on a daily basis, the employer must pay wages at the end of the shift.
- For those on a weekly basis, wages must be paid on the last working day of the week, specifically before the weekly holiday begins.
- Employees on a fortnightly basis are entitled to receive their wages before the end of the second day after the fortnight ends.
- For monthly wage periods, payment must be completed before the expiry of the seventh day of the following month.
- In cases where an employee is dismissed, retrenched, resigns, or the establishment closes, all wages due must be paid within two working days.
What powers does an Inspector-cum-Facilitator have, and how are first-time offences handled?
- Inspector-cum-Facilitators are appointed to advise employers and workers on compliance and to conduct inspections based on randomized, web-based schemes.
- They have the power to examine persons on the premises, search for records, and seize copies of registers they believe are relevant to an offence.
- For certain offences, such as improper record-keeping, the Inspector-cum-Facilitator is required to give the employer a written direction and an opportunity to comply before initiating any prosecution.
- This mandatory opportunity to fix a violation is not available if the employer repeats the same offence within a period of five years.
- In any legal proceeding regarding a claim of non-payment, the burden of proof lies on the employer to show that the wages or bonus were actually paid.
How does the Code on Social Security, 2020, extend coverage and benefits to unorganised workers, gig workers, and platform workers?
- Gig workers and platform workers are recognized as individuals who perform work or participate in work arrangements outside of traditional employer-employee relationships, often through digital intermediaries known as aggregators.
- To avail of benefits, these workers must undergo registration, including self-registration, by providing a self-declaration and their Aadhaar number to establish their identity.
- The Central Government is empowered to frame specific social security schemes for these categories, covering essential areas such as life and disability cover, health and maternity benefits, and old age protection.
- These welfare schemes are funded in part by aggregators, who are required to contribute between one and two per cent of their annual turnover, provided the contribution does not exceed five per cent of the amount payable to the workers.
- The Code establishes a dedicated Social Security Fund to collect these aggregator contributions, government grants, and other funding specifically for the welfare of unorganised and platform-based workers.
How does the Industrial Relations Code, 2020, regulate the recognition of negotiating unions and the legality of strikes?
- In an industrial establishment where multiple registered Trade Unions are functioning, the employer must recognize the union supported by fifty-one per cent or more workers on the muster roll as the sole negotiating union.
- If no single Trade Union reaches the fifty-one per cent threshold, the employer is required to constitute a negotiating council featuring representatives from every registered union that has the support of at least twenty per cent of the total workers.
- The Code prohibits any worker from going on strike without giving the employer notice within sixty days before the strike and at least fourteen days before the strike begins.
- A "strike" is specifically defined to include concerted casual leave taken on a given day by fifty per cent or more of the workers employed in an industry.
- Workers are forbidden from striking during the pendency of conciliation proceedings and for seven days after the conclusion of such proceedings.
- Similarly, strikes are prohibited during proceedings before a Tribunal or National Industrial Tribunal and for sixty days after those proceedings have concluded.
What are the requirements and functions of Bi-partite Forums like Works Committees and Grievance Redressal Committees?
- A Works Committee must be constituted in any industrial establishment where one hundred or more workers are employed on any day in the preceding 12 months to promote measures for securing and preserving harmony and good relations between the employer and workers.
- This committee consists of representatives of both the employer and workers, ensuring the number of worker representatives is not less than the number of employer representatives.
- Every industrial establishment employing twenty or more workers is required to establish one or more Grievance Redressal Committees specifically for resolving individual grievances.
- A Grievance Redressal Committee can have up to ten members with equal representation for employer and workers, and must include adequate representation for women workers in proportion to their employment in the establishment.
- An aggrieved worker must file an application to the committee within one year from the date the cause of action arose, and the committee should ideally complete proceedings within thirty days.
- If a worker is dissatisfied with the committee's decision or the grievance remains unresolved after thirty days, they may apply for conciliation through a Trade Union of which they are a member within sixty days.
What are the legal requirements for the registration and closing of an establishment?
- Every employer must apply electronically for registration within sixty days of the Occupational Safety, Health and Working Conditions Code, 2020 becoming applicable to their establishment.
- If a registering officer fails to register the establishment or act on the application within the prescribed time, the registration is deemed granted, and an electronic certificate is auto-generated.
- Any change in ownership, management, or other registration particulars must be reported electronically by the employer within thirty days of the change.
- When closing an establishment, the employer must inform the registering officer within thirty days of the closure and certify that all dues to the workers have been paid.
- Employers are strictly forbidden from employing any person if the establishment is not registered or if its registration has been cancelled or revoked.
What mandatory welfare facilities must an employer provide at the workplace?
- Establishments that are factories, mines, or plantations ordinarily employing two hundred and fifty or more workers must appoint a qualified Welfare Officer to specifically oversee the well-being and welfare-related duties of the employees.
- A canteen facility must be provided in any establishment that ordinarily employs one hundred or more workers, including contract labourers.
- Creche facilities for children under the age of six must be provided in establishments with more than fifty workers, though employers may pool resources to set up a common creche.
- The employer is required to provide and maintain adequate first-aid boxes or cupboards with prescribed contents, ensuring they are kept readily accessible at the workplace during all working hours.
- An ambulance room is mandatory for every factory, mine, or construction site where more than five hundred workers are ordinarily employed.
What are the legal obligations of designers, manufacturers, and importers regarding workplace safety?
- Every person who designs, manufactures, imports, or supplies an article for use in an establishment must ensure, so far as is reasonably practicable, that the article is safe and without risk to the health of workers when properly used.
- These individuals are responsible for carrying out or arranging any tests and examinations necessary to ensure that the article meets all applicable safety and health standards.
- It is mandatory for them to provide adequate information regarding the article’s intended use and specify any conditions necessary to ensure it remains safe for workers.
- For articles designed or manufactured outside of India, the importer is legally obligated to verify that the item conforms to Indian standards, or to the higher national standards of the originating country.
- Designers and manufacturers are further required to undertake necessary research to discover and, as far as is reasonably practicable, eliminate or minimize any risks to health or safety that the article or substance might create.
- Any person who installs or erects an article for use in a factory must ensure that the installation itself does not create a safety hazard or a health risk for those working in the facility.
What are the rules for the payment of gratuity under the Code on Social Security, 2020?
- Gratuity is generally payable to an employee upon the termination of their employment after they have rendered continuous service for at least five years.
- The minimum service requirement is waived if the termination of employment is due to the employee's death or disablement, or the expiration of a fixed-term employment contract.
- In cases of fixed-term employment or for deceased employees, the employer is required to pay gratuity on a pro rata basis rather than requiring the standard five-year completion.
- An employer may forfeit gratuity, to the extent of the damage caused, if an employee’s services are terminated for negligence or wilful acts that cause loss or destruction to the employer's property.
- Gratuity may be wholly or partially forfeited if the employee is terminated for riotous or disorderly conduct, any other act of violence, or an offence involving moral turpitude committed during their employment.
- The employer must arrange to pay the gratuity within thirty days from the date it becomes due. If the gratuity is not paid within this thirty-day window, the employer is liable to pay simple interest on the amount, unless the delay is the fault of the employee and the employer has obtained government permission for the delay.
Under what circumstances can an employee be disqualified from receiving bonus under the Code on Wages, 2019?
- An employee may lose the right to receive bonus if their services are terminated on grounds involving serious misconduct recognised under the Code on Wages, 2019.
- This includes dismissal for acts of fraud committed against the employer or the establishment.
- Disqualification also applies where the employee is dismissed for riotous, disorderly, or violent behaviour while on the premises of the establishment.
- The Code further disqualifies employees who are dismissed for theft, misappropriation, or sabotage involving the property of the establishment.
- An employee convicted for sexual harassment is also disqualified from receiving bonus under the Code.
- Further, where an employee’s misconduct results in financial loss to the employer, the employer is legally entitled to deduct the amount of such loss from the bonus payable for that accounting year, and the employee will receive only the remaining balance, if any.
When is an employer liable to pay compensation for workplace injuries under the Code on Social Security, 2020?
- Under the Code on Social Security, 2020, an employer is liable to pay compensation where an employee suffers personal injury due to an accident arising out of and in the course of employment.
- The employer is generally not liable where the injury does not result in total or partial disablement for more than three days.
- Compensation may also be denied where the injury, not resulting in death or permanent total disablement, was directly caused by the employee being under the influence of alcohol or drugs, wilfully disobeying safety rules, or intentionally disregarding safety devices.
- An accident may still be treated as employment-related even if the employee acted without instructions or in contravention of rules, provided the act was connected with the employer’s business or trade.
- The Code also recognises commuting accidents as employment-related where a clear nexus between the accident, the time and place of occurrence, and the employee’s work can be established.
What are the rules relating to occupational diseases and compensation claims under the Code on Social Security, 2020?
- The Code recognises certain occupational diseases listed in the Third Schedule as injuries arising out of employment where they are peculiar to the employee’s nature of work.
- If an employee employed in a specified occupation contracts a listed occupational disease after continuous service of at least six months, the disease is presumed to have arisen during the course of employment unless proved otherwise.
- The Central Government or State Government may amend or expand the list of employments and occupational diseases covered under the Code after giving prior notice.
- Except in cases specifically covered under the Code, compensation is not payable unless the accident or disease is directly attributable to employment.
- An employee cannot simultaneously claim compensation under this Code and pursue a separate civil suit for damages relating to the same accident or occupational disease against the employer or any other person working with the establishment.
What are the requirements for changing service conditions under the Industrial Relations Code, 2020?
- An employer proposing to change any condition of service relating to matters specified in the Third Schedule must provide prior notice to the workers likely to be affected in the prescribed manner, and such change cannot be implemented within twenty-one days from the date of the notice.
- The matters under the Third Schedule for which notice is required include wages and mode of payment, employer contributions to provident fund or pension fund, compensatory and other allowances, hours of work and rest intervals, leave with wages and holidays, shift working, classification by grades, withdrawal of customary concessions or privileges, changes in usage, disciplinary rules, rationalisation or improvement of plant or technique likely to cause retrenchment, and any non-casual increase or reduction in workforce strength not arising from circumstances beyond the employer’s control.
- No prior notice is required where the change is effected pursuant to a settlement or award, in accordance with orders of the appropriate Government, or where the workers concerned are governed by specified service rules applicable to government employees and certain public sector employees.
- In emergent situations requiring change of shifts or shift working otherwise than in accordance with standing orders, the employer may implement such changes in consultation with the Grievance Redressal Committee.
- The Code mandates compliance with the statutory notice procedure before effecting substantial changes in service conditions affecting workers, except in situations specifically exempted under the law.
What notice and compensation are payable to workers in case of closure of an undertaking under the Industrial Relations Code, 2020?
- Where an establishment is closed down for any reason, every worker who has completed at least one year of continuous service immediately before such closure is entitled to one month’s notice in writing indicating the reasons for closure, or wages in lieu of such notice, along with retrenchment compensation in accordance with section 70, as if the worker had been retrenched.
- If the closure is due to unavoidable circumstances beyond the employer’s control, the retrenchment compensation payable to the worker cannot exceed the worker’s average pay for three months.
- Financial difficulties, financial losses, accumulation of undisposed stock, expiry of lease or licence, and exhaustion of minerals in mining operations are not considered unavoidable circumstances beyond the employer’s control.
- In case of closure of a mining undertaking due to exhaustion of minerals, workers are not entitled to notice or retrenchment compensation if the employer provides alternative employment within a radius of twenty kilometres on the same remuneration and service conditions, without interruption of service.
- Where an undertaking is established specifically for construction work and the project is completed within two years from the date of establishment, the workers are not entitled to retrenchment compensation upon closure of the project.
- If construction work continues beyond two years, workers become entitled to one month’s notice or wages in lieu thereof and retrenchment compensation for every completed year of continuous service or part thereof exceeding six months upon closure.
To which establishments do the standing orders provisions under the Industrial Relations Code, 2020 apply?
- The standing orders provisions apply to every industrial establishment employing three hundred or more workers, or which employed three hundred or more workers on any day during the preceding twelve months.
- The provisions do not apply to industrial establishments in so far as the workers employed therein are governed by specified government service rules and regulations.
- The Central Government is required to make model standing orders relating to conditions of service and matters incidental or connected thereto.
- From the date the standing orders provisions become applicable until the standing orders are finally certified, the model standing orders are deemed to have been adopted by the establishment.
- During such interim period, the provisions relating to operation and modification of standing orders apply to the model standing orders in the same manner as they apply to certified standing orders.
What is the procedure for preparation and certification of standing orders under the Industrial Relations Code, 2020?
- The employer is required to prepare draft standing orders within six months from the commencement of the Code based on the model standing orders and covering all matters specified in the First Schedule.
- The employer is required to consult the Trade Union, recognised negotiating union or members of the negotiating council before forwarding the draft standing orders to the certifying officer.
- Where an employer adopts the model standing orders of the Central Government in respect of matters relevant to the establishment, such standing orders are deemed to be certified.
- The certifying officer is required to issue notice to the Trade Union, negotiating union, negotiating council or worker representatives, invite comments, provide an opportunity of hearing and determine whether modifications or additions are necessary for certification.
- The certification process for draft standing orders or modifications is required to be completed within sixty days, failing which they are deemed to have been certified.
- The standing orders are certifiable only if they cover every applicable matter specified in the First Schedule and conform to the provisions of the Code.
What are the provisions relating to appeals, operation and modification of standing orders under the Industrial Relations Code, 2020?
- The certifying officer and appellate authority have the powers of a civil court for receiving evidence, administering oaths, enforcing attendance of witnesses, compelling production of documents and correcting clerical or arithmetical mistakes.
- An employer, Trade Union, negotiating union, negotiating council or worker representative body aggrieved by the order of the certifying officer may file an appeal before the appellate authority within sixty days from receipt of the order.
- The standing orders come into operation upon expiry of thirty days from dispatch of authenticated copies where no appeal is filed, or upon expiry of seven days from dispatch of the appellate authority’s order where an appeal is preferred.
- A copy of all finally certified standing orders is required to be filed in a register maintained by the certifying officer or uploaded electronically.
- Certified standing orders cannot be modified for six months from the date they came into operation or from the date of the last modification unless there is an agreement between the employer and the workers or their representatives.
What special provisions apply to joint standing orders and existing standing orders under the Industrial Relations Code, 2020?
- The draft standing orders and proposed modifications are required to be accompanied by prescribed particulars relating to the workers employed in the industrial establishment, the Trade Union to which they belong, and the negotiating union or negotiating council, if any.
- Subject to prescribed conditions, a group of employers in similar establishments may submit a joint draft of standing orders for certification under the Code.
- For proceedings relating to preparation, certification and modification of standing orders in respect of similar establishments, the expressions “employer”, “Trade Union” and “negotiating union or negotiating council” include all employers, Trade Unions and negotiating unions or negotiating councils connected with such establishments.
- The standing orders already existing in an industrial establishment or undertaking on the commencement of the relevant provisions of the Code continue to remain in force to the extent they are not inconsistent with the provisions of the Code or rules made thereunder.
Who is considered an “occupier” of a factory under the Occupational Safety, Health and Working Conditions Code, 2020?
- An occupier of a factory means the person who has ultimate control over the affairs of the factory.
- In the case of a firm or association of individuals, any one of the partners or members may be deemed to be the occupier.
- In the case of a company, any one of the directors, excluding an independent director under the Companies Act, 2013, may be deemed to be the occupier.
- In factories owned or controlled by the Central Government, State Government or a local authority, the person appointed to manage the affairs of the factory shall be deemed to be the occupier.
- In the case of a ship under repair or maintenance in a dry dock available for hire, the owner of the dock shall generally be deemed to be the occupier, except for prescribed matters directly relating to the condition of the ship.
What are the disclosure and safety obligations of occupiers of factories involving hazardous processes under the Occupational Safety, Health and Working Conditions Code, 2020?
- The occupier of every factory involving a hazardous process is required to disclose prescribed information regarding dangers, health hazards, hazardous substances, wastes and disposal methods, along with safety measures relating to manufacture, handling, transportation, storage and use of such substances.
- The occupier is required to formulate and communicate a detailed health and safety policy at the time of factory registration to the Chief Inspector-cum-Facilitator or Inspector-cum-Facilitator and the local authority.
- Every occupier is required, with prior approval of the Chief Inspector-cum-Facilitator, to prepare an on-site emergency plan, disaster control measures and safety procedures relating to accidents and hazardous substances.
- Where a factory proposes to commence a hazardous process after commencement of the Code, the occupier is required to inform the Chief Inspector-cum-Facilitator at least thirty days prior to commencement.
- Failure to provide the required prior intimation regarding commencement of a hazardous process may result in cancellation of the factory licence, in addition to penalties prescribed under the Code.
What are the specific responsibilities of an occupier in relation to hazardous processes under the Occupational Safety, Health and Working Conditions Code, 2020?
- The occupier is required to maintain accurate and up-to-date health or medical records of workers exposed to chemical, toxic or other harmful substances manufactured, stored, handled or transported in the factory.
- Such health or medical records are required to be accessible to the workers subject to conditions prescribed by the State Government.
- The occupier is required to appoint persons possessing prescribed qualifications and experience who are competent to supervise handling of hazardous substances within the factory.
- The occupier is required to provide all necessary facilities for protection of workers handling hazardous substances in the prescribed manner.
- The occupier is required to ensure medical examination of every worker before assignment to hazardous work, during employment in such work, and after cessation of such work at intervals not exceeding twelve months.
Can an audio-visual worker be employed without a written agreement under the Occupational Safety, Health and Working Conditions Code, 2020?
- No person can be employed as an audio-visual worker in connection with the production of an audio-visual programme unless a written agreement is entered into with the producer, contractor, or both, as applicable.
- Such agreement is required to be registered with the competent authority notified by the appropriate Government.
- The agreement is required to be in the prescribed form and contain particulars of the audio-visual worker as prescribed by the appropriate Government.
- Where the audio-visual worker is employed through a contractor, the agreement is required to provide that if the contractor fails to discharge obligations relating to wages or other matters, the producer shall also be liable to discharge such obligations.
- A copy of the agreement is also required to be forwarded to the prescribed authority where the audio-visual worker is covered under provident fund laws.
What are the mandatory matters required to be covered in an agreement with an audio-visual worker under the Occupational Safety, Health and Working Conditions Code, 2020?
- The agreement is required to include the nature of assignment of the audio-visual worker.
- The agreement is required to specify wages and other benefits, including provident fund benefits wherever applicable.
- The agreement is required to provide for health and working conditions, safety measures, hours of work, and welfare facilities for the audio-visual worker.
- The agreement is required to include a dispute resolution process or mechanism as prescribed by the appropriate Government.
- In case the dispute resolution mechanism fails to resolve the dispute, either party may approach the Industrial Tribunal.
- It is the responsibility of the producer of the audio-visual programme to provide the facilities specified in the agreement and ensure payment of wages through electronic mode.
What facilities and benefits are employers and contractors required to provide to inter-State migrant workers under the Occupational Safety, Health and Working Conditions Code, 2020?
- Every contractor or employer employing inter-State migrant workers is required to ensure suitable working conditions, taking into account that the worker is employed in a State other than their home State.
- In the event of a fatal accident or serious bodily injury to an inter-State migrant worker, the employer or contractor is required to report the incident to the specified authorities of both the State of employment and the worker's home State, as well as inform the worker's next of kin.
- The employer is required to extend to inter-State migrant workers all benefits available to other workers of the establishment, including benefits under applicable social security laws.
- The employer is required to provide inter-State migrant workers with the facility of medical check-ups as available to workers under the Occupational Safety, Health and Working Conditions Code, 2020.
What are the employer's obligations regarding journey allowance for inter-State migrant workers under the Occupational Safety, Health and Working Conditions Code, 2020 and the Occupational Safety, Health and Working Conditions (Central) Rules, 2026?
- Every employer is required to pay each inter-State migrant worker a lump sum amount towards the fare for a to-and-fro journey between the place of employment and the worker's native place.
- The employer is required to pay the journey allowance once every twelve months to an inter-State migrant worker who has completed not less than one hundred and eighty days of service in the concerned establishment during the preceding twelve months.
- The journey allowance is required to cover the fare by train not lower than II Class Sleeper, or by bus, or by any other mode of passenger transport from the place of employment to the worker's place of residence in the home State.
- The manner of payment of the journey allowance is to be determined having regard to the minimum service required for entitlement, periodicity, class of travel, and such other matters as may be prescribed.
- Where an inter-State migrant worker changes employers and has not availed the journey allowance from the previous employer, the present employer is required to pay the journey allowance subject to prescribed conditions.
What are the employer's obligations regarding washing facilities under the Occupational Safety, Health and Working Conditions (Central) Rules, 2026?
- Every employer of a factory, mine, building or other construction work, motor transport undertaking, dock work, or plantation is required to provide suitable and sufficient washing facilities at easily accessible locations with an adequate supply of water, soap, and separate towels for male, female, transgender, and persons with disabilities.
- The washing facilities are required to be separate from the workplace, well ventilated, provided with proper drainage, and maintained in a clean and hygienic condition.
- The washing facilities are required to have proper doors and fastenings and be capable of being secured from inside to ensure privacy.
- The use of common towels at washing facilities is prohibited.
- In the case of building or other construction work, where employees are exposed to poisonous, infectious, or irritating substances, or to oil, grease, or dust, the employer is required to provide adequate washing facilities or shower baths with hot and cold water.
What are the employer's obligations regarding the provision of canteen facilities under the Occupational Safety, Health and Working Conditions (Central) Rules, 2026?
- Every employer of a factory, mine, building or other construction work, industrial premises for the manufacture of beedi and cigar, motor transport undertaking, dock work, or plantation employing one hundred or more workers, including contract labour, is required to provide and maintain a canteen.
- The employer may provide the canteen facility through a common canteen located in or adjacent to the premises of the establishment.
- The canteen is required to be situated at an appropriate distance from any latrine, urinal, or process area to prevent contamination.
- The canteen must include a dining hall, kitchen, store room, pantry, and separate washing places for employees and utensils.
- A portion of the dining hall and service counter is required to be reserved for women employees and persons with disabilities, and separate, screened washing places must be provided for male, female, transgender, and persons with disabilities.
What are the requirements relating to the Canteen Management Committee under the Occupational Safety, Health and Working Conditions (Central) Rules, 2026?
- Every establishment employing one hundred or more workers, including contract labour, that is required to provide a canteen is required to constitute a Canteen Management Committee, except where the canteen is managed by a co-operative society registered under the Multi-State Co-operative Societies Act, 2002.
- The Canteen Management Committee is required to oversee matters relating to the quality and quantity of food served, the menu, meal timings, and other matters concerning the operation of the canteen.
- The committee is required to consist of an equal number of representatives of the employer and the workers.
- The tenure of the Canteen Management Committee is to be determined mutually, and one-third of the employer's and workers' representatives are required to be rotated every two years.
- The Canteen Management Committee is required to decide on the management and operation of the canteen in consultation with the canteen manager.
What are the requirements for ventilation, temperature and humidity in belowground mines under the Occupational Safety, Health and Working Conditions (Central) Rules, 2026?
- The employer must ensure that safe and comfortable atmospheric conditions are maintained at all workplaces in a belowground mine, including adequate air supply and prevention of stagnant or contaminated air.
- Adequate ventilation must be maintained to remove smoke, fumes, steam and dust and to reduce inflammable or harmful gases to levels that do not pose a danger to employees.
- Where employees may be exposed to extreme weather conditions, the employer must take appropriate protective measures, such as adjusting working hours, providing suitable protective clothing, or implementing other necessary safeguards.
- If natural ventilation is insufficient to provide adequate fresh air, or if it results in uncomfortable draughts, the employer must provide mechanical ventilation.
- At workplaces on the surface of the mine, the employer must ensure that the temperature remains suitable for the nature of work being performed.
- The employer must regularly monitor air quantity, temperature and humidity and ensure that the measurements are properly recorded and kept updated at the relevant air measurement stations.
What are the mandatory licensing requirements for using a place or premises as an industrial premises for Beedi and Cigar manufacturing under Section 74 of the OSH Code, 2020?
- No employer is permitted to use or allow the use of any place or premises as an industrial premises for Beedi and Cigar work unless they hold a valid license issued under Section 119 of the Code.
- The premises must be used strictly in accordance with the terms and conditions specified in the issued license.
- The application for the license must specify the maximum number of employees proposed to be employed on the premises.
What statutory welfare facilities is a plantation employer required to provide for workers and their families under Section 92 of the OSH Code, 2020?
- Housing and amenities: Necessary housing accommodation equipped with safe drinking water, kitchen, and toilet facilities for every worker, including their family.
- Creche facilities: Mandatory where fifty or more workers are employed, including contract workers; establishments may pool resources or utilize common creche facilities.
- Educational and health facilities: Educational facilities for children aged six to twelve if their number exceeds twenty-five, and health coverage either directly or via the ESI Act, 1948.
- Recreational facilities: Suitable recreational amenities, funded either from the employer's own resources or through Central/State Government, Municipal, or Panchayat schemes.
What specific safety and medical safeguards apply to plantation workers handling hazardous chemicals and pesticides under Section 93 of the OSH Code, 2020?
- Supervision and training: Employers must appoint qualified supervisors and ensure all workers handling, mixing, or applying insecticides or pesticides receive hazard and emergency response training.
- Medical examination and health records: Exposed workers must undergo periodic medical examinations, and employers must maintain up-to-date health records to which workers have full access.
- PPE, facilities and notices: Employers must provide washing, bathing, and cloakroom facilities along with protective clothing and gear, display permissible exposure concentration limits, and exhibit precautionary hazard notices.
How does the OSH Code, 2020 handle conflicts with other existing laws, agreements, or awards under Section 120, and are more favorable terms protected?
- Overriding effect: The provisions of the OSH Code generally override any inconsistent provisions contained in any other law, award, agreement, or service contract.
- Protection of more favorable benefits: If an existing award, agreement, or contract of service grants benefits or privileges that are more favorable to an employee than those under the Code, the employee continues to receive the more favorable terms.
- Freedom to agree on better terms: Nothing in the Code prevents an employee from entering into a new agreement with an employer that grants rights or privileges more beneficial than those provided by the Code.
What are the provisions regarding offences by companies under the Code on Wages, 2019?
- If an offence under the Code on Wages, 2019, is committed by a company, the company as well as every person in charge of and responsible for the conduct of its business at the time of the offence is deemed guilty and liable to be proceeded against.
- A responsible person will not be liable to punishment if they prove that the offence was committed without their knowledge or that they exercised all due diligence to prevent its commission.
- If it is proved that the offence was committed with the consent, connivance, or neglect of any director, manager, secretary, or other officer of the company, that officer is also deemed guilty and liable to be punished.
How are offences compounded under the Code on Wages, 2019?
- Compounding is permitted for certain first-time offences that are punishable with a fine only, allowing the matter to be settled without full criminal prosecution.
- Compounding requires the payment of a sum typically equal to fifty per cent of the maximum fine provided for that particular offence.
- The benefit of compounding is not available to an employer who repeats the same or a similar offence within a period of five years.
Under what conditions can an employer be exempted from liability when another person is the actual offender under the Code on Wages, 2019?
- An employer charged with an offence under the Code has the right to file a complaint to bring the actual offender before the court at the time of the hearing.
- If the commission of the offence is proved, the employer will be discharged from liability if they prove that they exercised due diligence to enforce the execution of the Code and that the other person committed the offence without their knowledge, consent, or connivance.
- In such cases, the actual offender will be convicted and subjected to the punishment that would otherwise apply to the employer.
What protection is provided regarding the attachment of an employer's assets held by the government under the Code on Wages, 2019?
- Any amount deposited by an employer with the appropriate government to secure the performance of a contract, or any amount payable by the government to the employer under a contract, is protected from attachment under any court decree or order for general debts or liabilities.
- The attachment or seizure of such money is permitted exclusively for debts or liabilities directly owed by the employer to employees employed in connection with that specific contract.
What are the rules regarding contributions for employees and contractors under the Code on Social Security, 2020?
- The employer is required to pay both the employer's contribution and the employee's contribution, along with any administrative charges for meeting the cost of administering the Provident Fund, in respect of employees directly employed or employed through a contractor.
- The employer may recover the employee's contribution from the wages payable to the employee, but is strictly prohibited from deducting the employer's contribution from the employee's wages.
- A contractor is prohibited from deducting the employer's contribution or administrative charges from the wages payable to any employee employed by or through them.
To which establishments does the Provident Fund chapter not apply under the Code on Social Security, 2020?
- The chapter does not apply to any establishment registered under the Co-operative Societies Act, 1912, or any other state law relating to co-operative societies, employing fewer than fifty persons and working without the aid of power.
- The chapter does not apply to any establishment belonging to or under the control of the Central Government or a State Government whose employees are already entitled to the benefit of a provident fund or pension scheme in accordance with government rules.
- The chapter does not apply to employees who, immediately before the commencement of the Code, were receiving provident fund benefits under any Central or State enactment.
What are the requirements for employers authorised to maintain provident fund accounts under the Code on Social Security, 2020?
- Where an establishment is authorised to maintain its own provident fund account, the employer is legally obligated to properly maintain such accounts and submit prescribed returns.
- The employer must deposit contributions in the prescribed manner and provide necessary facilities for inspection by authorised officers.
- The employer is required to pay prescribed administrative charges and abide by all terms and conditions specified under the Provident Fund Scheme.
What are the provisions governing the Employees' State Insurance Fund under the Code on Social Security, 2020?
- All contributions and user charges paid under the relevant chapter, along with all other moneys received on behalf of the Employees' State Insurance Corporation, must be paid into a dedicated fund called the Employees' State Insurance Fund.
- The fund is held and administered by the Employees' State Insurance Corporation for carrying out the purposes and benefits of the Code.
- The Corporation is permitted to accept grants, donations, corporate social responsibility funds, and gifts from the Central Government, State Government, local authority, or any individual or body corporate to support the fund.
What Employers Should Do
- Review salary structures
- Upgrade payroll systems
- Digitize compliance
- Train HR teams