New Labour

Codes 2020

Comparison of New Labour Codes with Previous Acts

Part- 2 : Previous Acts and Code on Occupational Safety,
Health and Working Conditions, 2020(OSHWC)
 Code on Occupational
Code on Industrial
Safety, Health and
Relations
Working Conditions

New Labour Code

2020

Code on Social
Code on Wages
Security
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 New Labour Codes, 2020
2. Labour Code on
1. Labour Code on 3. Labour code 4. Labour Code on social
Occupational Safety,
Industrial Relations on Wages security
Health and Working
Conditions
Minimum Wages Employees’ Provident Fund
Trade Unions Act,
Act, and Miscellaneous Provisions
1926, Factories
Act,
Act, • Payment of
Wages Act,
Industrial
• Payment of Employees’ State Insurance
Employment
Bonus Act, Corporation Act,
(Standing Orders) Mines Act
Act, 1946, and • Equal
Remuneration
Act. Maternity Benefits
Industrial Disputes Dock Workers (Safety, Act,
Act, 1947. Health and Welfare) Act.

Building and Other

Construction Workers Act and
the Employees’ Compensation
Act

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 The Code subsumes 633 provisions of 13 major labour laws into one single
Code with 143 provisions. The laws to be subsumed are:
1. The Factories Act, 1948
2. The Contract Labour (Regulation and Abolition) Act, 1970
3. The Mines Act, 1952
4. The Dock Workers (Safety, Health and Welfare) Act, 1986
5. The Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
6. The Plantations Labour Act, 1951
7. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
8. The Working Journalist and other News Paper Employees (Conditions of Service and Miscellaneous Provision)
Act, 1955
9. The Working Journalist (Fixation of rates of wages) Act, 1958
10. The Cine Workers and Cinema Theatre Workers Act, 1981
11. The Motor Transport Workers Act, 1961
12. The Sales Promotion Employees (Conditions of Service) Act, 1976
13. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966

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 Previous Acts Code Occupational Safety, Health and
Working Conditions, 2020

Applicability Every industrial Every industrial establishment

establishment
2. Definition 1. 10 workers, if the 1. 20 workers for premises
of Factory process is carried out where the manufacturing
using power, or process is carried out using
2. 20 workers, if it is power, and
carried out without 2. 40 workers for premises
using power. where it is carried out without
(The Factories Act, using power.
1948)

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 Previous Acts Code Occupational Safety, Health
and Working Conditions, 2020

3.Establishme Factories Act covered All establishments where

nts engaged only the hazardous any hazardous activity is
in hazardous industries where any
carried out regardless of
activity business, trade, or
occupation is carried the number of workers
out with 10 or more
workers.
(The Factories Act,
1948)

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 Previous Acts Code Occupational Safety, Health and
Working Conditions, 2020

4. The government may prohibit New Code prohibits contract labour

employment of contract in core activities, except where:
Contract labour in some cases including
workers where:
(i) the work is of a
perennial nature, or
(ii) the work performed by
contract workers is
necessary for the business
carried out by the
establishment, or
(iii) the same work is
carried out by regular
workmen in the
establishment.
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(i) the normal functioning of the
establishment is such that the
activity is ordinarily done
through contractor,
(ii) the activities are such that
they do not require full time
workers for the major portion of
the day, or
(iii) there is a sudden increase in
the volume work in the core
activity which needs to be
completed in a specified time.
 Contract workers:
It specifies that the Code will apply to establishments or contractors
employing 50 or more workers (on any day in the last one year).

The 2020 code prohibits contract labour in core activities, except where:

• (i) the normal functioning of the establishment is such that the

activity is ordinarily done through contractor,
• (ii) the activities are such that they do not require full time
workers for the major portion of the day, or
• (iii) there is a sudden increase in the volume work in the core
activity which needs to be completed in a specified time.
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The appropriate government will decide whether an activity of the establishment is
a core activity or not. The code defines a list of non-core activities where the
prohibition would not apply. This includes a list of 11 works including:
• (i) sanitation workers,
• (ii) security services, and
• iii) any activity of intermittent nature even if that constitutes a core activity of
an establishment.
The Bill allows the appropriate government to exempt contractors from the
provisions of the code in case of an emergency, subject to such conditions as may be
notified.

The 2020 Code clarifies that 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).

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 Previous Acts Code Occupational Safety,
Health and Working
Conditions, 2020
5. Work hours Maximum limit at 9 Maximum limit at 8 hours per
hours per day. day.
6. A woman worker Women will be entitled to be
Employment cannot be employed employed in all establishments
of women beyond the hours 6 for all types of work
a.m. to 7.00 pm.

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 Employment of Women
A woman worker cannot be employed beyond the hours 6 a.m. to
7.00 pm.

State Government can grant exemption to any factory or group or

class of factories, but no woman can be permitted to work during 10
PM to 5 AM.

Shift change can be only after weekly or other holiday and not in
between.

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 Previous Acts Code Occupational Safety, Health and
Working Conditions, 2020

7. Inter-state Not Defined Inter-state migrant worker as a

migrant workers person who:
and unorganized (i) has been recruited by an
workers employer or contractor for
working in another state, and
(ii)draws wages within the
maximum amount notified by
the central government;
(iii)any person who moves on his
own to another state and obtains
employment there will also be
considered an inter-state migrant
worker.
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 Inter-state migrant workers and unorganized workers
Inter-state migrant worker as a person who:
• (i) has been recruited by an employer or contractor for working in another state, and
• (ii) draws wages within the maximum amount notified by the central government.

The 2020 Code adds

• that any person who moves on his own to another state and obtains employment there will also be
considered an inter-state migrant worker.
• The 2020 Code also specifies that only those persons will be considered as inter-state migrants who are
earning a maximum of Rs 18,000 per month, or such higher amount which the central government may
notify.

Benefits for inter-state migrant workers, these include:

• (i) Option to avail the benefits of the public distribution system either in the native state or the state of
employment,
• (ii) Availability of benefits available under the building and other construction cess fund in the state of
employment, and
• (iii) Insurance and provident fund benefits available to other workers in the same establishment.
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 Previous Acts Code Occupational Safety,
Health and Working
Conditions, 2020
Social No such provisions Establishment of a Social
Security Security Fund for the
Fund welfare of unorganised
workers

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Changes with respect to Facilities and Safety in Occupational Safety, Health and Working Conditions Code, 2020(OSHWC)

Changes with respect to Facilities and Safety in Occupational

Safety, Health and Working Conditions Code, 2020(OSHWC)

Creche Facility If 30 or more women If 50 or more women

workers are employed workers are employed

Canteen facility if 250 or more if 100 or more

workers are employed workers are employed

Welfare officers if factory employs 500 reduced to 250

or more workers employees.

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Next Session:
Labour code on
Wages