Recent Labour Law Amendments

& Updates
Labour Law Updates- Central

 ESI Act

 Extension of the ABVKY Scheme for another one year period i.e. from 1st July, 2020 to 30th June, 2021
 ESIC Invites Objections or Suggestions Regarding Relaxed Eligibility Conditions for Availing Relief under Atal Bimit Vyakti Kalyan Yojana
for the period 24.03.2020 To 31.12.2020. The relaxed eligibility criteria for availing the relief are as below:
i. The payment of relief has been enhanced to 50% of average of wages from earlier 25% of average wages payable upto maximum 90 days
of unemployment.
ii. Instead of the relief becoming payable 90 days after unemployment, it shall become due for payment after 30 days.
iii. The Insured Person (IP) can submit the claim directly to ESIC Branch Office instead of the claim being forwarded by the last employer and
the payment shall be made directly in the bank account of IP.
iv. The IP should have been in insurable employment for a minimum period of 2 years before his/her employment and should have
contributed for not less than 78 days in the contribution period immediately preceding to unemployment and minimum 78 days in one of
the remaining 3 contribution periods in 02 years prior to unemployment.
 ESIC issues instructions for submission of claims for Unemployment Benefit under Atal Bimit Kalyan Yojana

 The Industrial Relations Code, 2020 Notified

 The Occupational Safety, Health and Working Conditions Code, 2020 Notified
 The Code on Social Security, 2020 Notified
Labour Law Updates- States
 Maharashtra
 Further Extension Of Due Date For Filing Returns under the Maharashtra Professional Tax Act upto 30th September, 2020
 Online payment of Maharashtra Labour Welfare Fund extended upto 30th September, 2020
 The Maharashtra State Tax on Professions, Trades, Callings and Employments (Amendment) Act, 2020
 Provisions of the ESI Act made Applicable to Establishments employing Ten or more Persons in Maharashtra

 Himachal Pradesh
 The Industrial Disputes (Himachal Pradesh Amendment) Act, 2020
-A workman employed in continuous service for not less than one year under an employer shall not be retrenched until the workman has been paid
compensation equivalent to “sixty days” instead of “fifteen days” average pay (for every completed year of continuous service).
-threshold limit for applicability to Chapter V-B of the Act (regarding special provisions relating to lay-off, retrenchment and closure in certain
establishments) increased from “"one hundred" workmen to “two hundred" workmen

 The Contract Labour (Regulation and Abolition) Himachal Pradesh Amendment Act, 2020
Provisions of the CLRA Act applicable to Establishments and Contractors employing “thirty or more workmen” instead of “twenty or more
workmen

 The Factories (Himachal Pradesh Amendment) Act, 2020

- Increase in the threshold limit for applicability to the Act from “ten or more workers” to “twenty or more workers” for factories operating with
the aid of power and from “twenty or more workers” to “forty or more workers” for factories operating without the aid of power.
-State Government shall have the Power to make exempting orders subject to the condition that no worker shall be allowed to work overtime, for
more than seven days at a stretch and the total number of hours of overtime work in any quarter shall not exceed “one hundred and fifteen subject
to the condition that overtime shall have to be paid twice the rate of ordinary wages" instead of “seventy-five” hours.
Labour Law Updates- States
 Karnataka
 Karnataka HC Stays Government Order on Deferring Payment of VDA
 Implementation Of Auto-Renewal System under various Labour legislations In Karnataka

 Telangana
 Automatic Online Renewal of License under CLRA Act & ISMW Act in Telangana

 Dadra and Nagar Haveli and Daman and Diu

• The Dadra and Nagar Haveli and Daman and Diu Model Standing (Amendment) Orders, 2020- Introduction of Fixed Term Employment

 Tripura
 The Tripura Industrial Disputes (Second Amendment) Ordinance,2020

 Tamil Nadu
 Online submission of Form I and III under the Tamil Nadu Industrial Establishments (National, Festival And Special Holidays) Act, 1958

Union Territory Of Jammu And Kashmir

 The Union Territory Of Jammu And Kashmir Reorganisation (Adaptation Of Central Laws) Second Order, 2020
Adaptation of 11 Central Laws including the Contract Labour (Regulation And Abolition) Act, 1970, The Factories Act, 1948, The Industrial
Disputes Act, 1947, The Building And Other Construction Workers (Regulation Of Employment And Conditions Of Service) Act, 1996, The
Industrial Employment (Standing Orders) Act, 1946, The Trade Unions Act, 1926 , etc.
Labour Codes 2020

 Labour Reforms – An Introduction to the Codes

 The Occupational Safety, Health And Working Conditions Code, 2020

 The Industrial Relations Code, 2020

 The Code on Social Security, 2020

I. Labour Reforms- Introduction to the Codes
Ministry of Labour and Employment introduced Four Bills to consolidate 29
central laws.
2019
These Codes regulate: (i) Wages, (ii) Industrial Relations, (iii) Social Security,
and (iv) Occupational Safety, Health and Working Conditions.

While the Code on Wages, 2019 has been passed by Parliament, Bills on the other three areas were referred to
the Standing Committee on Labour.
The Standing Committee has submitted its report on all three Bills. The government has replaced these 2019 Bills with
new Labour Code Bills by incorporating certain changes as recommended by the parliamentary Standing Committee,
namely:-

The Occupational
The Industrial
Safety, Health And The Code on Social
Relations Code,
Working Conditions Security, 2020
2020
Code, 2020
 22nd September, 2020 Lok Sabha Passed the Bills

23rd September, 2020 Rajya Sabha Passed the Bills

Ministry Of Law and Justice vide. Notifications in the Gazette of India has
29th September, 2020 notified the enactment of the 3 Codes on receiving the assent of the President
on the 28th September, 2020

 With this, like the Code on Wages, all these 3 codes would be made effective by a separate notification in the Gazette by
the Central Govt. and different dates may be appointed for different provisions of these Codes
II. The Occupational Safety, Health And Working Conditions Code, 2020

 The OSH Code consolidates and amends the laws regulating the occupational safety, health and working conditions of the
persons employed in an establishment.

 The OSH Code is now notified as an Act on 29th Sep, 2020. The effective date or appointed date for its implementation
are pending.
i. The Factories Act, 1948;
ii. The Plantations Labour Act, 1951;
iii. The Mines Act, 1952;
iv. The Working Journalists and other Newspaper Employees
Thirteen Acts Subsumed In (Conditions of Service and Miscellaneous Provisions) Act, 1955;
The OSH Code, 2020 v. The Working Journalists (Fixation of Rates of Wages) Act, 1958;
vi. The Motor Transport Workers Act, 1961;
143 Sections, XIV Chapters vii. The Beedi and Cigar Workers (Conditions of Employment) Act,
1966;
viii. The Contract Labour (Regulation and Abolition) Act, 1970;
ix. The Sales Promotion Employees (Condition of Service) Act,
1976;
x. The Inter-State Migrant workmen (Regulation of Employment
and Conditions of Service) Act, 1979
xi. The Cine Workers and Cinema Theatre Workers Act, 1981;
xii. The Dock Workers (Safety, Health and Welfare) Act, 1986; and
xiii. The Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996.
 Applicability
The provisions of OSH Code applies to-
 a. every place carrying on any industry, trade, business, other manufacturing or occupation or motor transport undertaking, newspaper
establishment, audio-video production, building and construction work or plantation or factory (for licensing purposes) in which 10 or
more workers are employed;
 b. mine or port or vicinity of port where dock work is carried out
 All mines, docks, and establishments carrying out any hazardous or lifethreatening activity (may be notified by the central
government) regardless of the number of workers.

 Registration
 All establishments having ten or more employees have to obtain “registration”. It introduces a concept of "one registration" for all
establishments.
 Establishments covered by the Code are required to register within 60 days (of the commencement of the Code) with registering
officers, appointed by the central or state government.

 Schedules
 The Code includes three schedules containing lists of:-
i. 29 diseases that the employer is required to notify the authorities of, in case a worker contracts them,
ii. 73 safety matters that the government may regulate, and
iii. 40 industries involving hazardous processes. The lists may be amended by the central government Establishments covered by the
Code are required to register within 60 days (of the commencement of the Code) with registering officers, appointed by the central or
state government.
A. New Definitions

 Core activity of an establishment

 Any activity for which the establishment is set up and includes any activity which is essential or necessary to such activity.
 Definition of core activity introduced specifying list of 11 excluded activities including: (i) sanitation workers, (ii) security services,
and (iii) any activity of intermittent nature even if that constitutes a core activity of an establishment etc.
 The Code confers power on the appropriate government to decide whether an activity of the establishment is a core activity or
not.

 Inter-state migrant workmen -

 Person directly recruited by the employer in one State for employment in another State;
 The definition now also includes workers who have come on their own from one state to another.
 The Code also introduces a wage capping of INR 18,000 for a person to be referred as an inter-state migrant worker.
 That means, all migrant Workers Labour now to be covered instead of only those brought by contactors earlier
B. General duties of employer

 Mandatory Appointment Letter

 Issuing of appointment letter has been mandatory by the employer of an establishment to promote formalization in employment.

 Annual health check-ups

 The OSH code makes provision for providing free of cost annual health check-ups for employees above the specified age in all or certain
class of establishments by which it would be possible to detect diseases at an early stage for effective and proper treatment of the
employees.

 Notice of commencement, cessation and closure

 The Code states that all establishments now need to submit notice of commencement and cessation of operation and closure of
establishment to the appropriate authority.

 Notice of dangerous occurrences and accidents

 Now all establishments are required to submit notice of dangerous occurrences and accidents causing death or bodily injury preventing a
person from working for a period of 48 hours immediately after the accident
 Now all establishments to act upon intimation from the employees of an apprehension of imminent danger.

 Employing Women in all types of work and in Night shifts

 The OSH Code allows employing women in all establishments for all types of work and can also work at night, that is, beyond 7 PM and
before 6 AM subject to the conditions relating to safety, holiday, working hours and their consent

 Common License
 OSH Code makes provision of "common license" for factory, contract labour and beedi and cigar establishments and to introduce the
concept of a single all India license for a period of five years to engage the contract labour.
C. Hours of work and leave with wages

 Hours of work –
 No worker will be required or allowed to work in any establishment for more than eight hours in a day.

 Overtime
 workers must be paid at twice the rate of daily wages for Overtime hours
 The Code has introduced a provision stating that overtime of workers is subject to their consent for the work.

 Leave
 Weekly Off - Workers cannot be required to work for more than six days a week.
 Leave with wages – One day of leave for every 20 days of work per year, when work has been done for 180 days instead of 240 days.

D. General Welfare Facilities

 The Code specifies general welfare facilities like washing facilities, canteen, creche etc to be provided by all establishments for all
employees. Code provides a threshold of workers for canteen and creche as 100 and 50 respectively
 Safety Committee
 OSH Code has provision for the constitution of Safety Committee by the appropriate Government in any establishment or class
of establishments
 The committees will be composed of representatives of the employer and workers and will function as a liaison between them
wherein the number of representatives of workers in the committee must not be less than that of the employer.

 The Code provides for the establishment of a Social Security Fund for the welfare of unorganised workers. The amount collected
from certain penalties under the Code (including the amount collected through compounding) will be credited to the Fund. The
government may prescribe other sources as well for transferring money to the Fund.
E. Factories

 Applicability
o Earlier Threshold- ten workers in a factory
 For the applicability of all other provisions of the Code in respect of factories,
(with power) and twenty workers (without
except registration, the threshold has been fixed twenty workers in a factory
power). (Erstwhile Factories Act)
(with power) and forty workers (without power).

 The 2019 OSH Bill had excluded mines from the definition of a factory but the present 2020 Code has removed this provision.
 And Factories may be required to obtain a license to operate.

F. Inter-State Migrant Workers

 Applicability
 Provisions relating to Inter-State Migrant Workers applicable on the establishment o Earlier Threshold- 5 workers or more (erstwhile
in which ten or more migrant workers are employed or were employed on any day ISMW Act)
of the preceding twelve months

 Registration
 Inter- State Migrant may register himself as an Inter-State Migrant Worker on the portal on the basis of self-declaration and
Aadhaar

 Inter-State Migrant Worker has been provided with the portability to avail benefits in the destination State in respect of ration and
availing benefits of building and other construction worker cess.
 Compulsory facility for Helpline for redressal of problems of migrant workers.
 Migrant Workers to get journey allowance once a year from Employer, to visit home town once a year.
G. Contract Labour

 Contract labour under OSH Code excludes any person who is employed by the contractor on his permanent rolls for any
activity of his establishment

 Applicability o Earlier Threshold- 20 or more workmen

 The 2020 OSH Code will only apply to establishments or contractors (Erstwhile CLRA Act)
employing 50 or more contract workers (on any day in the last one year) o Provision for States to lower threshold by
 States cannot lower this threshold notification

 The OSH Code prohibits contract labour in core activities, except where:
 The normal functioning of the establishment is such that the activity is ordinarily
done through contractor,
 The activities are such that they do not require full time workers for the major
portion of the day, or
 There is a sudden increase in the volume work in the core activity which needs to
be completed in a specified time.
o The Govt. was empowered to prohibit
employment of contract labour in cases the work
is of a perennial nature, or the work performed by
contract workers is necessary for the business
carried out by the establishment, or the same
work is carried out by regular workmen in the
establishment.

 Exemption
 Power to the appropriate government to exempt contractors from the provisions of this Code in case of an emergency, subject to such
conditions as may be notified
 Applicability to offices of the central and state governments
 The Code will apply to contract labour engaged through a contractor in the offices of the central and state governments (where the
respective government is the principal employer).

 Exemption
 In the 2019 OSH Bill, the Contract workers engaged through a Contractor without a valid license were deemed to be employed by the
Principal employer, this draconian provision has been removed in 2020 OSH Code.

H. Employee Compensation

 In the event of death of a worker or injury to a worker due to an accident at his workplace, at least 50 % share of the penalty
would be given. This amount would be in addition to Employees Compensation.
 In case of fatal accidents the employer / contractor to report to both State authorities and also to the dependents and extend
benefits as per new norms.

I. Miscellaneous

 The Code has introduced provision relating to 'electronic filing' of return and 'electronic maintenance' of registers containing
particulars like: work performed by workers; wages paid, Leave, leave wages, overtime, attendance etc.
 The Code provides for a limitation period of 6 months for institution of proceedings in respect of an alleged offence that came to
the knowledge of the Inspector-cum Facilitator and a complaint was filed in that regard.
 The OSH Code bars civil courts from hearing any matters under this Code.
III. The Industrial Relations Code, 2020

 The IR Code consolidates and amends the laws relating to Trade Unions, conditions of employment in industrial
establishment or undertaking, investigation and settlement of industrial disputes.

 The IR Code is now notified as an Act on 29th Sep, 2020. The effective date or appointed date for its implementation are
pending.

Three Acts Subsumed In

i. Industrial Employment Standing Order Act, 1946
The
ii. Industrial Disputes Act, 1947
IR Code, 2020
iii. Trade Unions Act, 1926
104 Sections, XIV Chapters
 A. New Definitions

 Worker

 Now Includes workers in supervisory capacity earning wages upto INR

18,000 or an amount as may be notified by the Central Government from o This wage ceiling limit was at INR 10,000 in the
time to time. erstwhile ID Act.
 Doesn‟t include persons employed mainly in a managerial or
administrative capacity
 Apprentices registered under the Apprentices Act, 1961 are excluded
from the definition of "Worker" and "Employee"
 Fixed Term Employment
 The engagement of worker on the basis of a written contract of employment for a o Fixed-term employment was not defined
fixed period earlier
 New definition introduced for "Fixed Term Employment" (FTE) to provide benefits
to such employees at par with permanent worker(including gratuity), except for
notice period after conclusion of a fixed period, and retrenchment compensation..
 Industry

• Any systematic activity carried on by co-operation between an employer and
worker (whether such worker is employed by such employer directly or by
or through any agency, including a contractor) for the production, supply or
distribution of goods or services with a view to satisfy human wants or
wishes (not being wants or wishes which are merely spiritual or religious in
nature)
o "industry" means any business, trade,
undertaking, manufacture or calling of
employers and includes any calling service,
employment, handicraft or industrial occupation
or avocation of workmen in the erstwhile ID
Act.
 New Definitions

o "strike" means a cessation of work by a body

 Strike
of persons employed in any industry acting in
 Now includes the concerted casual leave on a given day by fifty per cent. combination or a concerted refusal, or a refusal
or more workers employed in an industry under a common understanding, of any number
of persons who are or have been so employed
to continue to work or to accept employment
in the erstwhile ID Act.
 Industrial Dispute
 Now includes the dispute arising out of discharge, dismissal, retrenchment or termination of such worker

 Re-skilling fund
 The appropriate Government shall, by notification, set up a fund to be called the worker re-skilling fund which shall consist of-
i. The contribution of the employer of an industrial establishment an amount equal to fifteen days wages last drawn by the worker
immediately before the retrenchment, for every retrenched worker in case of retrenchment only
ii. the contribution from such other sources as may be prescribed by the appropriate Government.
B. Industrial Disputes

 Disputes relating to individual worker

 The Code classifies any dispute in relation to discharge, dismissal, retrenchment, or otherwise termination of the services of an individual
worker to be an industrial dispute
 The worker may apply to the Industrial Tribunal 45 days after the application for the conciliation of the dispute was made.
 The application to the Tribunal before the expiry of two years from the date of discharge, dismissal, retrenchment or otherwise
termination of service (Three years in the erstwhile ID Act)

 Strikes and Lock outs

 Notice period for strike or lock-out - Within 60 days before strike o Notice period for strike - Within 6 weeks
 Prohibition on strike or lockout within 14 days of notice - applicable to before strike in the erstwhile ID Act.
all establishments

 Chapter VB of ID Act
 Obligation only on the part of industrial establishments pertaining to mine,
factories and plantation having three hundred or more workers to make prior
permission of the appropriate Government before lay-off, retrenchment and
closure o Earlier threshold -100 workers
 Threshold to take prior approval can be increased by government through
notification
  Grievance Redressal Committee
 Maximum number of members in the Committee increased to 10 in an o Earlier Threshold- Maximum number of
industrial establishment employing twenty or more workers. members in the Committee not exceeding 6,
 There shall be adequate representation of the women workers therein in the Every establishment with 50 or more workers
proportion of the women workers to the total workers employed in the
industrial establishment.

 Adjudication
 The central or state governments may appoint conciliation officers to mediate and promote settlement of industrial disputes.
 Code makes provision to set up Industrial Tribunals in the place of existing multiple adjudicating bodies like the Court of Inquiry, Board
of Conciliation and Labour Courts- 1 Judicial member & 1 Administrative member

 Notice of change
 Employers must not change the conditions of service in certain matters without giving notice of the proposed changes to the workers
being affected, or within 21 days of giving such notice. These matters include wages, contribution, allowances, working hours, and leave.
C. Standing Orders

 Applicability of threshold of three hundred or more workers for an industrial

establishment to obtain certification of standing orders
o Earlier threshold -100 workers
 No power to the Central Government to make provision related to Standing Orders
applicable in establishments with less than 300 workers
 FTE's are now included in the classification of workers for the matters listed out in
Schedule I for standing orders.
 The central government will prepare model standing orders, based on which the
industrial establishments will prepare their standing orders

D.Trade Unions

 Trade unions
 Under the Code, seven or more members of a trade union can apply to register it
 Trade unions that have a membership of at least 10% of the workers or 100 workers, whichever is less, will be registered
 The central or state government may recognize a trade union or a federation of trade unions as Central or State Trade Unions, respectively.
 New provision for appeal against non-registration or cancellation of registration of Trade Union before the Industrial Tribunal

 Negotiating Union and Negotiating Council

 The Code provides for a negotiation union in an industrial establishment, having registered trade unions, for negotiating with the employer.
 The criterion for recognition of negotiating union has been fixed at fifty-one per cent. or more workers on a muster roll of that industrial
establishment
 If there is only one trade union in an industrial establishment, the employer is required to recognize such trade union as the sole negotiating
union of the workers.
IV. The Code on Social Security, 2020

 The SS Code amends and consolidates the laws relating to social security with the goal to extend social security to all
employees and workers either in the organized or unorganized or any other sectors.

 The OSH Code is now notified as an Act on 29th Sep, 2020. The effective date or appointed date for its implementation
are pending.

i. The Employees' Compensation Act, 1923;

Nine Acts Subsumed In
The SS Code, 2020
164 Sections, XIV Chapters
ii. The Employees' State Insurance Act, 1948;
iii. The Employees' Provident Funds and Miscellaneous Provisions
Act, 1952;
iv. The Employment Exchanges (Compulsory Notification of
Vacancies) Act, 1959;
v. The Maternity Benefit Act, 1961;
vi. The Payment of Gratuity Act, 1972;
vii. The Cine Workers Welfare Fund Act, 1981;
viii. The Building and Other Construction Workers Welfare Cess Act,
1996; and
ix. The Unorganised Workers' Social Security Act, 2008.
A. Key Changes

 Applicability
The Code is applicable to all establishments subject to the minimum threshold of employees which is consistent with the current
regime such as:
 Employee Provident Fund - 20 or more employees
 Employee State Insurance - 10 or more persons;
 Maternity Benefit- 10 or more persons in shops and establishments
 Gratuity - 10 or more persons in shops and establishments etc.
Schedule 1 of the Code deals with the Applicability of the various Chapters under the Code

 New definitions introduced for "Platform Worker" , "Gig Worker“, “Unorganised workers” to Bring them under ambit of
social security under the SS Code (Chapter IX)
 “Gig worker" means a person who performs work or participates in a work arrangement and earns from such activities outside of
traditional employer-employee relationship
 “Platform worker" means a person engaged in or undertaking platform work. Platform work" means a form of employment in
which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or
to provide specific services in exchange for payment.
 Unorganised workers include home-based and self-employed workers

 Schemes for gig workers, platform workers, and unorganised workers may be financed through a combination of contributions
from the employer, employee (or aggregators for gig workers and platform workers), and the appropriate government.
 Any contribution from an aggregator may be at a rate notified by the government falling between 1-2% of the annual turnover of
the aggregator, subject to a cap of 5% of the amount paid or payable by an aggregator to the gig and platform workers.
 Registration o Currently, registration is only
 The Code requires all establishments to which it applies, to be required under EPF & ESI Act and
registered within the time prescribed by the Central Govt. only a notice of opening of
 Aadhar based registration is required for all employees and establishment is required under the
unorganised workers under the Code erstwhile Payment of Gratuity Act

B. ESIC

 Chapter IV of the SS Code deals with EMPLOYEES STATE INSURANCE CORPORATION

 The SS Code makes provision for the Government to notify an Employees‟ State Insurance (ESI) Scheme to provide sickness
related, maternity, and other benefits.
 The facility of ESIC would now be provided in all 740 districts i.e. PAN India.
 The ESI Scheme will apply to establishments with 10 or more employees.
 Establishments working in hazardous sectors would mandatorily be linked with ESIC, even if there is only one worker working in
it.
 SS code empowers the Central Government to frame schemes for unorganized workers, gig workers and platform workers and
the members of their families for providing benefits relating to ESIC.
 Also the Option for becoming member of ESIC has prescribed to establishments with less than 10 workers. This option was not
made available in the ESI Act.
 SS Code empowers the Central Government by order, to defer or reduce employer's contribution, or employee's contribution, or
both, payable for a period up to three months at a time in the event of pandemic, endemic or national disaster.
 During Insolvency proceedings, the amount due to ESIC by an employer, shall be treated as charge on the assets of the
establishment to which it relates and shall be paid in priority in accordance with the provisions of the Insolvency and Bankruptcy
 Code, 2016 i.e. Priority of payment of contributions over other debts.
C. EPFO

 Chapter III of the SS Code deals with EMPLOYEES’ PROVIDENT FUND

 Under the SS Code, the Central Government may notify various social security schemes for the benefit of workers. These include
an Employees‟ Provident Fund (EPF) Scheme, an Employees‟ Pension Scheme (EPS), and an Employees‟ Deposit Linked Insurance
(EDLI) Scheme.
 EPFO‟s coverage would be applicable on all establishments having 20 workers or more. At present, it was applicable only on
establishments included in the Schedule to the EPF&MP Act.
 Option to join EPFO has been given to establishments having less than 20 workers. This option is available even in the present
EPF&MP Act.
 Schemes would be formulated for bringing workers coming under the category of „Self-employed‟ or falling under any other
category under the aegis of EPFO.
 Central Government to specify by notification, rates of employees' contributions to the Employees' Provident Fund Scheme and
the period for which such rates shall apply for any class of employee.
 Limitation period of five years for initiation and two years for concluding enquiries has been statutorily prescribed now.
 Now an appeal against an order passed by any authority in regard to determination and assessment of dues and levy of damages
relating to Employees' Provident Fund by an employer only after depositing with Social Security Organization concerned, twenty-
five per cent. of the amount due from him as determined by the authority against whose order the appeal has been preferred.
 SS Code empowers the Central Government by order, to defer or reduce employer's contribution, or employee's contribution, or
both, payable for a period up to three months at a time in the event of pandemic, endemic or national disaster.
 During Insolvency proceedings, the any amount due to EPFO by an employer, it shall be treated as charge on the assets of the
establishment to which it relates and shall be paid in priority in accordance with the provisions of the Insolvency and Bankruptcy
Code, 2016 i.e. Priority of payment of contributions over other debts.
D. Social Security And Cess In Respect Of Building And Other Construction Workers

 Chapter VIII of the SS Code deals with Social Security And Cess In Respect Of Building And Other Construction Workers

 Under the SS Code, the def. of “building or other construction work” does not include building or other construction work
employing less than ten workers or if it's related to own residential purposes and the total cost of such work does not exceed
fifty lakhs rupees.
 Payment of BOCW Cess by employer in case of building and other construction work, on the basis of his self-assessment.
 This rate of the BOCW cess for the purposes of social security and welfare of building workers is set at minimum One percent
and max Two Percent of the cost of construction incurred by an employer.
 The SS Code prescribes Interest payable by the employer in case of delayed payment of the BOCW Cess and Penalty for non-
payment of BOCW cess within the specified time.
 SS Code requires Registration of building workers as beneficiaries.

E. Employment Information and Monitoring

 Chapter XIII of the SS Code deals with Employment Information and Monitoring
 SS Code may make it mandatory for all establishments with certain no. of workers or more to compulsorily report the vacancy
position in their establishments. (Exceptions like agriculture, domestic service, employment less than ninety days etc.)
 This information would be given on online portal to “Career Centre”. The SS Code defines "Career Centre" meaning any office
(including employment exchange, place or portal) established and maintained by the Central Government for providing career
services (including registration, collection and furnishing of information, relating to employers, persons who seek employment, and
occurrence of vacancies.
F. Miscellaneous

 Maternity Benefit (Chapter VI)

 “Maternity benefit” for women employees under the SS Code has been kept same as the existing Maternity benefit Act, whether
its applicability, eligibility, period of Maternity benefit, prohibition from work during certain periods, provision of nursing breaks,
crèche facility, claim for maternity benefits etc.
 Medical bonus is payable at INR 3500 subject to a maximum capping, which is yet to be defined by the Central Government.
(Earlier upper limit upto INR 20,000 in the MB Act)

 Gratuity (Chapter V)
 provisions for “Gratuity” has been kept unaltered from the present “payment of Gratuity Act” whether it‟s with respect to
applicability, eligibility etc. except for:
i. in the case of an employee employed on fixed term employment or a deceased employee, the employer shall pay gratuity on pro
rata basis and not on the basis of continuous service of five years;
ii. And, the eligibility for gratuity for working journalist, the eligibility period has been improved to three years of service instead of
five years for others.

 Under the SS Code, the appropriate government may appoint Inspector-cum-facilitators to inspect establishments covered by the
Code, and advise employers and employees on compliance with the Code.
 Penalties for various offences under the SS Code have been increased manifold to act as deterrent.
THANK YOU.