Comparison of New Labour Codes with Previous Acts

Part- 4 : Previous Acts and Code on Industrial Relations

New Labour
Codes 2020
 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

www.successtree.in
 Previous Acts Code on Social
Security
Applicability As per various social Subject to size-threshold as
security Acts. may be notified
Definition of Not include workers Include workers employed
‘Employees’ employed through through contractors
contractors

Definition of Not include self- include self-employed workers

“inter-state employed workers from another state
migrant
workers”
www.successtree.in
 Previous Acts Code on Social
Security
Gig workers Not defined Defined and provide provision
and Platform for their social security
workers through social security funds
and National Social Security
Board

www.successtree.in
The 2020 code makes the following changes for such workers:

Central government will set up social security funds for unorganised

workers, gig workers and platform workers.

Further, State governments will also set up and administer separate

social security funds for unorganised workers.

Registration of all three categories of workers - unorganised workers,

gig workers and platform workers.
It mandates an employee or a worker (including an unorganised worker)
to provide his Aadhaar number to receive social security benefits or to
even avail services from a career centre.
www.successtree.in
National Social Security for gig workers and platform workers

National Social Security Board may also act as the Board for the purposes of
welfare of gig workers and platform workers and can recommend and monitor
schemes for gig workers and platform workers.

The Board will comprise of a different set of members including:

• (i) five representatives of aggregators, nominated by the central government,

• (ii) five representatives of gig workers and platform workers, nominated by
the central government,
• (iii) Director General of the ESIC, and
• (iv) five representatives of state governments.

www.successtree.in
Combination of contributions from the central government,
state governments, and aggregators.
• These mention nine categories including ride sharing services, food and
grocery delivery services, content and media services, and e-
marketplaces.
• Any contribution from such an aggregator may be at a rate notified by the
government falling between 1-2% of the annual turnover of the
aggregators.
• However, such contribution cannot exceed 5% of the amount paid or
payable by an aggregator to gig workers and platform workers.

www.successtree.in
 Gratuity Previous Acts Code on Social Security
Eligible Every factory; Every shop Every shop or establishment in
employees or establishment in which which 10 or more employees are
10 or more persons are employed, and a continuous service
employed; Any of 5 years in general
establishment employing 10
or more persons
(The Payment of Gratuity
Act, 1972)
Case of Fixed Not Defined Workers with fixed term
term employment will be eligible for
employment gratuity only if they complete a one-
year contract.
www.successtree.in
Changed Provisions on gratuity as per Labour codes 2020.
Fixed term employees
o Earlier criteria of minimum five years of service has been now reduced
to one year. Fixed term employees will be eligible for gratuity just after
one year of serving an organisation.
o Code on Industrial Relations, 2020 defines fixed term employment as
workers employed for a fixed duration based on a contract signed
between the worker and the employer.
Permanent employees
o Permanent employees will continue to be eligible for gratuity after five

years of service.
Working journalists-
o The 2020 Bill reduces the gratuity period from five years to three years

for working journalists.

www.successtree.in
 Employees Previous Acts Code on Social Security
State
Insurance
Eligible Where 10 or more Allows for voluntary
employees persons are registration;
employed and Government has the power
therefore applies to to extend the Employee
both organised and State Insurance Scheme to
unorganised sectors. any hazardous occupation
(ESI Act, 1948) irrespective of the number
of employees employed.

www.successtree.in
 Maternity Previous Acts Code on Social Security
Benefit
Applicability Every shop or Every shop or establishment
establishment wherein in which ten (10) or more
10 or more persons are employees are employed
employed
(Maternity Benefit
(Amendment) Act,
2017)

www.successtree.in
Maternity Benefit Child Leaves
The maximum period for which any woman shall
be entitled to maternity benefit shall be twenty- Two surviving 26 weeks to
six weeks of which not more than eight weeks children leave
shall precede the date of her expected delivery:
• Organizations will also facilitate work from More than two 12-week leave
home conditions children
• Mandatory provision of Creche when
organizations having more than 50 Adopt a child 12-week
employees.
• The female employee is also entitled to a ‘Commissioning 12 weeks
medical bonus of Rs 3,500/-( as per
mother’ and
Maternity Benefit (Amendment) Act, 2017)
‘Adopting
mother’