INDUSTRIAL RELATIONS AND LABOUR

LAWS FOR EPFO – AN INTRODUCTION

Lecture 1 – by Amit Varidhi Kilhor
EPFO 2023
 UPSC EPFO
Exam
Exam Stage Weightage
•The UPSC EPFO consists of 2 stages - EPFO
Recruitment Test (RT)
EPFO Recruitment
75 •and Interview. EPFO Recruitment Test (RT)
Test
•and Interview carry weightage in the ratio of
75:25
Interview 25
•for the candidates shortlisted based on
Recruitment Test (RT)
•and qualify in the interview.
UPSC EPFO UPSC EPFO 2020-21 Recruitment Test (RT) –
Phase-1 Offline Exam
Exam The Recruitment Test (RT) will be an Offline Exam
(Pen & Paper Based) consisting of
Objective Multiple Choice Questions (MCQs):

UPSC EPFO
2020-21 Marks Duration
Phase-1
Recruitment 300
2 Hours
Test (Offline) Marks
a) The test will be of two hours duration.

b) All questions will carry equal marks.

c) The test will be objective type questions with

multiple choices of answer.

d) The medium of the test will be both Hindi and

English.

e) 1/3rd marks will be deducted for wrong answers.

i) General English- To evaluate candidate’s understanding of English language &
workman – like use of words.

ii) Indian Freedom Struggle.

EPFO syllabus
iii) Current Events and Developmental Issues.

iv) Indian Polity & Economy.

v) General Accounting Principles.

vi) Industrial Relations & Labour Laws

vii) General Science & knowledge of Computer applications.

viii) General Mental Ability & Quantitative Aptitude.

ix) Social Security in India

Syllabus
 Before we
begin, lets
have a look
at PYQs of
2021, 2017,
2015
 i) General English- To evaluate candidate’s understanding of English
language & workman – like use of words.
ii) Indian Freedom Struggle.

EPFO syllabus
iii) Current Events and Developmental Issues.

iv) Indian Polity & Economy.

v) General Accounting Principles.

vi) Industrial Relations & Labour Laws

vii) General Science & knowledge of Computer applications.

viii) General Mental Ability & Quantitative Aptitude.

ix) Social Security in India

 Social Security
Women
Workmen’s Compensation Act, 1923
Maternity benefits Act, 1961
Industrial Relations Employees State Insurance Act, 1948
Equal Renumeration Act, 1976
Trade Unions Act, 1926 Employees Provident Fund &
Industrial Disputes Act, 1947 Miscellaneous Provisions Act, 1952
Payment of Gratuity Act, 1972
Salary
The Maternity Benefit Act, 1961
Payment of wages Act, 1936
Employees liability act 1938
Minimum Wages Act, 1948
Maternity Benefit(Amendment) Act,2017
Payment of bonus Act, 1965

Labour laws
Factories act, 1948
Plantation labour act, 1951
Mines Act, 1952
Merchant shipping act, 1958
The Dock Workers (Safety, Health & Welfare) Act, 1986
Introduction

Concept and origin of labour laws

Evolution of labour legislation in India

Principles of labour laws in India

• Principle of social justice

• Principle of social equity
• Principle of social security
• Principle of the national economy

Factors influencing labour laws in India

• Early industrial society of exploitation

• Development of trade unionism
• Emergence of socialist and other revolutionary ideas
• Establishment of the international labour organisation (ILO)
Factors that affect labour laws in India
Impact of colonial rule
The adoption of the Indian Constitution and the struggle for national
emancipation
Constitutional provisions relating to labour laws in India
Seventh Schedule
Directive principles of state policy
Article 38 of the Indian Constitution
Article 39 of the Indian Constitution
Articles 42 and 43 of the Indian Constitution
Fundamental Rights (Part III of the Indian Constitution)
Article 14
Article 16
Article 19
Article 21
Articles 23 and 24
Preamble of the Indian Constitution
 Labour laws in India
 Laws related to industrial relations
Trade Union’s Act, 1926
The Industrial Employment (Standing Orders) Act, 1946
Industrial Dispute Act, 1947
 Laws related to wages in India
The Payment of Wages Act, 1936
Minimum Wages Act, 1948
The Payment of Bonus Act, 1965
The Equal Remuneration Act, 1976
 Laws relating to work hours, working conditions and employment in India
The Factories Act, 1948
The Plantations Labour Act, 1951
The Mines Act, 1952
The Motor Transport Workers Act, 1961
 Laws relating to social security in India
The Workmen’s Compensation Act, 1923
The Employees’ State Insurance Act, 1948
The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
The Maternity Benefit Act, 1961
The Payment of Gratuity Act 1972
The Unorganised Workers’ Social Security Act, 2008
 Laws on employment and training in India
The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
Apprentices Act, 1961
• The labour codes 
• Objective of the codes
1. The Code on Wages, 2019 
Salient features of the Code on Wages, 2019
2. The Industrial Relations Code, 2020 
Salient features of the Industrial Relations Code, 2020 
3. The Occupational Safety, Health and Working Conditions Code,
2020
Salient features of the Occupational Safety, Health, and Working
Conditions Code, 2020 
4. The Code on Social Security, 2020
Salient features of the Code on Social Security, 2020
 Introduction 
•Labour laws, also known as employment laws, are
the body of laws, administrative rulings, and
precedents that address the legal rights and
restrictions of working people and their organisations.
Labour laws attempt to regulate the relationships
between an employer or group of employers and their
employees.
•These laws generally address issues like workplace
health and safety, collective bargaining, unfair labour
practices, certification of unions, labour-management
relations, general holidays, annual leave, working
hours, unfair terminations, the minimum wage, layoff
procedures, severance pay and so on.

•In India, the Central Government has promulgated

around 44 labour-related statutes, 29 of which have
been consolidated into four new labour codes.
•The purpose and scope of labour laws have
evolved over time. Early labour laws were
enacted to protect employers’ interests. It was
governed by the laissez-faire doctrine, which
entails a policy of minimal government
intervention in the economic affairs of
individuals and society. On the other hand,
contemporary labour law aims to safeguard
employees from employer exploitation.
•The approach to labour law and industrial
relations has changed significantly since the
Philadelphia Charter, which stated that ‘labour
is not a commodity’ and that ‘poverty
anywhere is a danger to prosperity everywhere.

•The Declaration of Philadelphia (10 May

1944) restated the traditional objectives of the
International Labour Organization (ILO)
PHILADELPHIA CHARTER
 •The history of labour law in India dates
Evolution of labour back more than 125 years. Beginning with
legislation in India the Apprentice Act of 1850, which allowed
orphaned children to find work when they
reached the age of 18, several labour laws
covering all aspects of industrial
employment have been enacted.
•According to the Constitution, labour is a
matter under the Concurrent List, meaning
that both the Central and State governments
may pass labour laws, subject to the
restriction that the State legislature may not
pass laws that conflict with Central law.
•The Apprentice Act of 1850 was followed
by the Factories Act, 1881.
In 1875, a committee was appointed to inquire the conditions
of all factories .After effect of this committee , factory act 1881
was adopted.The act was adopted during the period of lord
Ripon.
For the first time British tried to improve the working
conditions of laborers.
2.This act is applicable only to factories using mechanical
powers,employing not less than 100 workers.
3.The act prohibited employment of children under the age 7.
4.children between the age 7-12 were to work for maximum 9
hours.
5.Dangerous machines should be fenced properly to avoid
accidents.
6.The act had a provision of one hour rest during the working
period.
7.4 days leave in a month for workers was made compulsory.
Post World War I, Labour reforms were discussed
internationally and the impact was seen in India with the
introduction of Trade Union Act of 1923 and Industrial
Disputes Act, 1929.
The need was to regulate the relationship between employees
and the employers. In these Acts, provisions were laid down
to regulate the workers’ right to form Unions for collective
bargaining, to protest via strikes and lockouts.
a series of labour legislations from 1932 to 1937. Some of
the key legislations passed included Payment of Wages Act,
1936 which empowered employers to deduct wages of
employees absent from work without reasonable cause.
Trade Disputes (Amendment) Act 1938, which authorized
government to appoint conciliation officers to settle disputes.
 •Principle of social justice

Principles of labour •The fundamental tenet of social justice states that all social
groups, regardless of circumstance, must be treated equally.

laws in India •Principle of social equity 

•The fundamental tenet of this principle is the preservation of
labour-friendly social equity laws because circumstances don’t
always remain the same and occasionally change. Thus, laws
need to be updated frequently.
•Principle of social security
•A person’s overall security in their family, place of
employment, and society are referred to as social security. To
maintain a sufficient standard of living, the social security
system covers both basic needs and unexpected life events.
•Principle of the national economy
•According to this principle, the nation’s overall economic
situation must be taken into account while enacting labour laws
because the condition of the national economy has a significant
impact on labour laws in any country.
Factors influencing
labour laws
•The establishment of the International
Labour Organization in 1919 had a
significant impact on how labour laws
developed throughout the world.
Acceptance of the principle that ‘labour
is not a commodity’ and the slogan that
‘poverty anywhere is a threat to
prosperity everywhere’ have influenced
the development of labour laws in all
countries.
•Impact of colonial rule
•The Workmen’s Compensation Act,
1923, the Indian Trade Unions Act, 1926,
the Payment of Wages Act, 1936, and
other Acts followed the British model.
•The adoption of the Indian Constitution and the struggle for
national emancipation
•The industrial workers were supported by freedom fighters and
nationalist leaders who worked hard to pass protective labour laws.
The Indian Trade Unions Act, 1926 the Royal Commission on
Labour, and other laws were developed as a result of the freedom
struggle. The Preamble, Fundamental Rights, and Directive
Principles of State Policy of the Indian Constitution are all
manifestations of promises made by the national movement leaders
regarding the establishment of a better and more just social order
post-independence.
•Constitutional provisions relating to labour laws in India
•The Constitution is the supreme law of a country, and all laws are
based on it. The Constitution, which has a significant impact on all
laws, particularly labour laws, guarantees its citizens a ‘Socialistic
pattern of Society’ and the formation of a “Welfare State”. Indian
labour laws are greatly influenced by the Preamble, fundamental
rights, directive principles of state policy, and judicial wisdom.
Seventh Schedule 
The Indian Constitution, the supreme law of the land, governs all legislative,
executive, and judicial actions in the country. The Constitution’s Seventh
Schedule envisions the distribution of legislative powers between the central and
state legislatures on various issues. The Schedule is divided into three lists: the
Central List (List I), the State List (List II), and the Concurrent List (List III). 
List III (Concurrent List) addresses the majority of labour-related issues. These
cover a variety of topics, such as maternity benefits, employers’ liability, workmen’s
compensation, invalidity and old age pensions, social security and social insurance,
employment and unemployment, labour unions, industrial and labour disputes, and
provident funds. Parliament has passed labour laws in almost all of these areas
because the majority of labour-related issues are on the Concurrent List
Directive principles of state policy 
Socio-economic justice, which is the main objective of the State as prescribed by the
Constitution, is emphasised in the Preamble to the Constitution.
In industrial legislation and adjudication, Articles 38, 39, 41, 42, and 43 are
particularly crucial. They serve as the ‘Magna Carta’ of industrial law or its
foundation. These obligations include the Central and State governments’ duty to
ensure social order and living wages in line with the economic and political
circumstances of the nation.
Fundamental Rights (Part III of the Indian Constitution)
Article 14
Article 14 is particularly important because it states that “the State shall not deny to any person within the territory of India,
equality before the law or equal protection of the laws.”
Article 16
Article 16  prohibits the State from discriminating on the basis of religion, race, caste, sex, descent, place of birth, residence, or any
combination of these factors, and guarantees equal opportunity in public employment.
Article 19
Furthermore, Article 19 protects ‘the right to free speech and expression, the right to peaceful assembly without the use of arms, the
right to assemble in unions or associations, the right to practise any profession, and the right to engage in any occupation, trade, or
business.’ These constitutional protections, which include minimum standard legislation, are crucial in the area of labour law.
The freedom to engage in any trade, profession, or business reduces the burden that legislation may impose on businesses in the
interest of workers. Workers’ rights to free speech, assembly, association, and unionisation protect their efforts to advance their
interests through self-organisation, picketing, or strike action.
Article 21
Article 21 encompasses more than mere survival, existence, or animal existence. As a result, it encompasses all aspects of life that
contribute to a man’s life being meaningful, complete, and worthwhile.
Articles 23 and 24
Human trafficking and forced labour are prohibited under Article 23. It states that trafficking in human beings and begar, as well as
other similar forms of forced labour, is prohibited, and any violation of this provision is punishable by law. The Supreme Court
has interpreted life in Article 21 to include livelihood, and the Court has held in several cases that any employment below minimum
wage levels is illegal because it accounts for slavery. Article 24 prohibits the employment of children under the age of 14 in any
factory, mine, or other hazardous occupation.
LAWS RELATED TO
INDUSTRIAL RELATIONS

Trade Union’s Act, 1926

The Industrial Employment (Standing Orders) Act, 1946
Industrial Dispute Act, 1947
 Trade Union’s Act, 1926
•One of the earliest labour laws in the nation is the Trade Unions
Act, 1926. The early passage of the Trade Unions Act, as well as
the constitutional provision guaranteeing freedom of association,
have aided trade unions in legitimising their existence and
operations. The main function of trade unions is to enable
workers to take collective action. When negotiating with
employers, people are in a weak bargaining position because
strikes are a last resort for trade unions and should only be used
when all other options have failed.

•The Act includes detailed provisions for formation, procedure,

and registration, as well as conditions of registration, benefits of
registration, and the immunities available to union leaders when
they participate in union activities of a registered Trade Union
from both civil and criminal laws. The Act applies to both
employer associations and labour unions.
The Industrial
Employment (Standing
Orders) Act, 1946
The Industrial Employment (Standing Orders) Act, 1946
was passed with the aim of regulating the conditions of
recruitment, termination, disciplinary action, holidays,
and other benefits for workers in industrial undertakings.
The Act requires employers in industrial establishments
to clearly define and adequately describe the working
conditions for their employees. Standing orders, which
specify the conditions of recruitment, termination,
disciplinary action, holidays, leave, and other things,
assist in reducing conflict between management and
workers in industrial enterprises. It applies to any
industrial establishment with 100 or more employees.
Industrial Dispute Act,
1947
Industrial disputes are those that arise from a disagreement in labour
relations. Industrial relations covers a wide range of interactions between
employers and employees. Such relationships can result in dissatisfaction
for either of the parties involved when there is a conflict of interests,
which can result in conflicts or industrial disputes. The dispute could take
the form of demonstrations, strikes, lockouts, layoffs, and other actions.

The Industrial Disputes Act, 1947, is a progressive piece of social

legislation intended to improve the working conditions for industrial
workers. The primary objective of this Act is to reduce conflict between
labour and management while providing the highest level of assurance for
economic and social justice.
It also outlines the conditions for a worker to be laid off,
retrenched, discharged, or dismissed, when an industrial
establishment may be closed down, when a strike or
lockout may be lawfully used, when they may be declared
illegal or unlawful, and several other matters affecting
industrial employees and employers.
LAWS RELATED TO WAGES
IN INDIA

The Payment of Wages Act, 1936

Minimum Wages Act, 1948
The Payment of Bonus Act, 1965
The Equal Remuneration Act, 1976
The Payment of
Wages Act, 1936

During the early stages of industrialization, two common

employer malpractices were late payment of wages and
unauthorised deductions from wages. The Payment of Wages
Act, 1936, was passed in response to a recommendation made by
the Royal Commission on Labour in 1931 to end such
malpractices.

The main objective of this Act is to eradicate all malpractices by

defining the timing and procedure for wage payments and
ensuring that workers are paid on time and without any
unauthorised deductions. The Act gives the government the
authority to raise the ceiling in the future by notification in order
to increase its reach and enable more efficient enforcement.
Minimum Wages Act,
1948

The Minimum Wages Act was passed in 1948 to safeguard workers’ rights
by setting a minimum wage in certain occupations. The Act sets a
minimum wage for time work, a minimum wage for piece work, a
guaranteed time rate, and an overtime rate for different occupations,
regions, or classes of work, as well as for adults, teenagers, children, and
apprentices. It is also important to point out that this Act complies with
Article 43 of the Indian Constitution, which ensures a living wage and
respectable working conditions.

The Act was primarily enacted to protect the interests of workers in the
unorganised sector. The Act establishes and revises the minimum wage for
workers in scheduled employment. The Act mandates that both the central
and state governments establish and revise the minimum wage, as well as
enforce payment of the minimum wage for scheduled employment within
their respective jurisdictions.
The Payment of Bonus
Act, 1965
The Payment of Bonus Act, 1965 doesn’t define the word
‘bonus’. The definition of a bonus according to dictionary
is “something given in addition to what is ordinarily
received by or strictly due to the recipient.” Bonus
payments are made to close the pay gap between the actual
wages and the ideal of a living wage. Every factory, as
defined by the Factories Act, 1948, as well as any other
establishment employing twenty or more people on any day
during an accounting year, is covered by the Payment of
Bonus Act of 1965.

If an employee works for his or her employer for at least 30

working days in a given accounting year, that employee is
eligible for a bonus from the employer. A bonus must be at
least 8.33% of an employee’s yearly salary or wages, or 100
rupees, whichever is higher. To enforce the Act, inspectors
work for the appropriate government. For violations of the
Act, both imprisonment and fines are provided. A dispute
over the payment of a bonus is considered an industrial
dispute under the Industrial Disputes Act of 1947.
The Equal Remuneration
Act, 1976 

In the International Year of Women in 1975, India

passed the Equal Remuneration Ordinance to
implement Article 39 of the Constitution, which
requires equal pay for men and women. The Equal
Remuneration Act, 1976, eventually replaced the
ordinance. The Act prohibits discrimination against
women employees during recruitment for the same
or similar work, or in any condition of service after
recruitment.
It also mandates that men and women employees
receive equal pay for the same or similar work
without exception. The Act applies to all public and
private establishments and employment, including
domestic work.
LAWS RELATING TO WORK
HOURS, WORKING CONDITIONS
AND EMPLOYMENT IN INDIA
The Factories Act, 1948
The Plantations Labour Act, 1951
The Mines Act, 1952
The Motor Transport Workers Act, 1961
The Factories Act,
1948 
The Factories Act, 1948 was another law enacted to
promote social change. The provisions of this Act state
indisputably that its labour regulations are for the benefit
and welfare of workers, and the Act’s purpose is to
regulate labour. The primary objectives of the Act are to
control the working conditions of the factory, to take
appropriate measures to ensure employee welfare, safety,
and health, to control working hours, and to provide
efficient equipment for the administration of the Act.

The Act aims to protect workers employed in factories

from industrial occupational hazards and to provide them
with safe and healthy living and working conditions. It
includes comprehensive provisions for the health, safety,
and welfare of employees to provide comfortable working
environments and other perks to enhance their quality of
life.
The Plantations
Labour Act, 1951

The working conditions for plantation labourers are governed

by the Plantation Labour Act, 1951. It applies to plantations
growing cinchona, rubber, tea, and coffee. Every plantation
must be registered with a registering officer. It focuses primarily
on welfare and health-related issues. Any plantation to which
this Act, wholly or in part, applies is referred to as a plantation,
and this term includes buildings used for offices, hospitals,
dispensaries, schools, and any other purposes associated with
such a plantation.

The Act specifies the working hours, a weekly holiday, and paid
time off.
Additionally, the Act prohibits the employment of
children on plantations.
The Mines Act, 1952
Measures for the health, safety and welfare of mine workers are
covered by the Mines Act, 1952.
The word ‘mine’ refers to any excavation where a mining
operation has been or is being conducted to search or obtain
minerals. This includes all borings, boreholes, oil wells, accessory
crude conditioning plants, shafts, opencast workings, conveyors or
aerial ropeways, planes, machinery works, railways, tramways,
slidings, workshops, power stations, and other locations that are
near or in the mining area.
The Act includes provisions regarding work hours and
limitations, including a weekly day of rest, a
compensatory day of rest, hours worked during night
shifts above and below ground, overtime pay, a limit
on daily hours of work, a prohibition on the presence
of people under the age of 18, and the employment
of women. 
LAWS RELATING TO
SOCIAL SECURITY IN INDIA
The Workmen’s Compensation Act, 1923
The Employees’ State Insurance Act, 1948
The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952
The Maternity Benefit Act, 1961
The Payment of Gratuity Act 1972
The Unorganised Workers’ Social Security Act, 2008
The Workmen’s
Compensation Act, 1923

This Act was one of the first to be enacted to benefit workers. It was
passed in 1923, but it didn’t take effect until July 1st, 1924. The
Workmen’s Compensation Act was later renamed the Employees’
Compensation Act, 1923.
The Act applied to workers in the sewage, firefighting, railway, tram,
factory, mine, sea, dock, and building industries. The Act provides
compensation for losses brought on by accidents or occupational diseases
occurring during the course of and arising from employment, including
death, permanent total disability, permanent partial disability, and
temporary disability. It established compensation based on the seriousness
of the injury suffered while performing duty. The Act mandates the
payment of compensation to employees and their dependents in the event
of death or disablement caused by industrial accidents or occupational
diseases arising out of and in the course of employment.
The Employees’ State
Insurance Act, 1948 

the main objective of the Act is

to provide certain benefits to
employees in cases of illness,
pregnancy, and workplace
injuries. The insured and their
dependents are eligible for a
number of benefits based on
the established scale.
The Employees’ Provident Fund and Miscellaneous
Provisions Act, 1952
The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, along with the
Employees State Insurance Act, is important social security legislation in India. It applies to
any factory connected to any of the industries listed in Schedule I of the Act that employs 20
or more people, as well as any other establishment that employs 20 or more people that the
central government may specify by notification.

The Employees’ Provident Fund Act provides for the three major schemes. They are:

The Employees’ Provident Fund Scheme, 1952,

Employees’ Deposit-Linked Insurance Scheme, 1976
and the Employee Pension Scheme, 1995.
The Act intends to provide social security and prompt financial aid to
industrial employees who are in need and their families. As a result,
three schemes are in use in accordance with the Act. Together, the
schemes provide the employee’s long-term protection and security,
survivorship benefits, long-term protection and security for his or her
family members after the employee’s death
The Maternity Benefit
Act, 1961

According to Article 42 of the Indian Constitution, the government must

establish policies to guarantee just and humane working conditions and
maternity leave. This Act was passed to ensure social justice for female
workers. This social welfare law includes a number of provisions for
benefits for female wage earners. The Act was enacted to provide maternity
benefits and other benefits, as well as to regulate women’s employment in
specific establishments for a specified period before and after childbirth.

The Maternity Benefit Act, 1961, regulates the employment of women in

factories, mines, circuses, plantations, and shops or establishments
employing 10 or more people, with the exception of workers who are
covered by the Employees’ State Insurance (ESI) for specific periods
before and after childbirth. It also provides maternity and other benefits.
The Payment of
Gratuity Act 1972

Another significant social security benefit in India is

gratuity. According to the Payment of Gratuity Act, 1972, a
gratuity is a one-time payment. When an employee retires,
the employer is believed to give them a gratuity as a thank
you for their many years of exemplary service. It replaces at
least a portion of the income lost as a result of
superannuation, retirement or resignation, death, or disabling
illness or injury. The PGA is applicable to businesses with 10
or more employees, including factories, mines, oil fields,
plantations, ports, railroads, and retail establishments.
The Unorganised Workers’
Social Security Act, 2008

The Unorganised Workers’ Social Security Act, passed in 2008, mandates the
creation of welfare programmes for the benefit of employees in the unorganised
sector by the central government and the States. According to the Act, workers
must be registered and issued smart cards with individual social security numbers
to provide social security to those employed in the unorganised sector.

According to the Act, the Central Government must create suitable welfare
programmes for unorganised workers in the areas of health and maternity benefits,
life insurance, disability insurance, old-age security, and any other benefits it
deems appropriate. Ten schemes have been created by the government under
Schedule I of the Act. In accordance with the Act, state governments may create
welfare programmes that include provident funds, benefits for workers who suffer
an injury on the job, housing, child educational initiatives, worker skill
advancement, and old-age homes.
The labour codes 
The Government of India has recently started implementing significant labour law
reforms across the nation as per the recommendations of the 2nd National
Commission of Labour. To ensure that definitions and approaches are clear and
consistent, the Commission emphasised the significance of consolidating and
simplifying labour laws. Consolidating labour laws would also enable more
comprehensive labour coverage because different labour laws apply to various
employee classifications and across various thresholds.
In response to the National Commission of Labour recommendations, the four
Codes on wages, labour relations, social security, and occupational safety were
introduced in Parliament.

There are currently over 40 laws governing wages, industrial relations, social
security, workplace safety, and working conditions.
For Indian industries, the proliferation of rules and regulations has been a major
source of concern because it frequently leads to increased resources,
documentation, administrative time, and costs. The new labour codes seek to
harmonise India’s various labour laws and streamline the country’s various
compliance requirements. Each code governs a specific area of labour law, as
indicated in the title, and aims to codify and replace earlier laws in that area.
Objective of the
codes
The following are some of the objectives of the codes 
1.The amalgamation of 29 laws relating to wages, working
conditions, social security, safety, and health.
2.To ensure consistency in definitions for ease of compliance.
3.To increase business accessibility, generate employment, and
give employers more flexibility in terms of employee mix and
hiring.
4.To simplify and make clear the issues surrounding contract
labour.
5.To standardise issues related to union recognition and
negotiating agents, rationalise wages, and address unethical
behaviour.
6.The rationalisation of enforcement authorities and the
implementation of a web-based inspection process
The Code on Wages, 2019 
The Code on Wages, 2019 was passed by both Houses of Parliament and received assent
by the President on August 8, 2019. The Code aims to regulate wages in all jobs
involving any industry, trade, business, or manufacturing, including wages and bonuses.
It consolidates the following laws pertaining to wages:

Minimum Wage Act, 1948

Payment of Wages Act, 1936
Payment of Bonus Act, 1965
Equal Remuneration Act, 1976
Two important definitional changes came about as a result of the codification. First, the
Code widened the scope by erasing the distinction between scheduled and non-
scheduled employment, whereas the Minimum Wage Act of 1948 only applied to the
‘schedule of employment’ covered by the law. As a result, the definitions of employee
and employer have been broadened to include both the formal and informal sectors.

Second, the Code extended the application of the Minimum Wage Act of 1948 and the
Payment of Wages Act of 1936 to all establishments and employees, unless expressly
exempted, rather than just those whose income had to be below a fixed limit.
Salient features of the Code on Wages, 2019
1.It contains all the necessary clauses regarding wages, equal pay, payment, and
bonuses.
2.Provisions of wage shall be applicable to all employees, including both organised
and unorganised sectors.
3.It enables the relevant government to choose the criteria for determining the
minimum wage for various employee categories. The factors will be decided by
taking into account the necessary skills, the difficulty of the work assigned, the
geographical location of the workplace, and any other factors that the relevant
government deems necessary.
4.To guarantee that those making less than a predetermined wage ceiling are entitled
to an annual bonus of at least 8.3 % of their wage or Rs. 100, whichever is higher,
provisions from the previous Payment of Bonus Act, 1965, have been incorporated.
5.The specific references to ‘man’ and ‘woman’ in the Equal Remuneration Act of
1976, which guaranteed equal pay for equal work for men and women, have been
replaced by ‘gender.’ This has the potential to protect transgender communities
from discrimination.
6.The Code also establishes a quasi-judicial appellate authority to handle disputes. It
is significant that the Inspectors-in-Charge of Compliance Monitoring have been
renamed Inspectors-cum-Facilitators in the Code.
7.The code also established Central and State Advisory Boards to decide on Minimum
Wages and other related issues, and women’s representation on the boards was
made statutory.
8.The statute of limitations for filing claims has been increased from six months to
two years to three years to give workers more time to resolve their claims.
The Industrial
Relations Code, 2020
The Industrial Relations Code was passed by Parliament in September 2020
and received the President’s assent on September 28, 2020. The Industrial
Relations Code was brought into force to consolidate and amend the laws
governing trade unions, working conditions in industrial establishments,
undertaking investigations, resolving industrial disputes, and other related
issues. It consolidates the following labour laws:

Industrial Disputes Act, 1947

Trade Unions Act, 1926
Industrial Employment (Standing Orders) Act, 1946
Salient features of the
Industrial Relations
Code, 2020  1. The Code governs strikes, trade union registration, and industrial dispute
resolution.
2. The definition of a worker under the Code has been broadened to include
individuals in supervisory positions making up to 18,000 rupees per month
or an amount as determined from time to time by the Central Government.
3. To register a trade union, either 10% of an industry’s workers or a
minimum of 100 workers must be present. A trade union will be designated
as the negotiating union only if 51% of the workers support it. In all other
cases, the Code requires the formation of a union negotiating council.
4. In addition, workers are now required to provide 60 days’ notice before
striking, which was not previously required. Companies with more than 300
employees must obtain permission from the union or the state government
before terminating employees. The previous law stipulated that there must
be 100 employees in an establishment for the provisions to be in effect. It
also recommends establishing an industrial tribunal to settle disputes.
5. To resolve disputes resulting from individual complaints, all establishments
with more than 20 employees are required to have one or more grievance
redressal committees. Both employers and employees must have an equal
number of representatives on this committee. Notably, the committee must
have a sufficient number of women employees, and the chairman must be
selected alternately from among the employees and the employer.
The Occupational Safety, Health and Working Conditions
Code, 2020
The Code on Occupational Safety, Health and Working Conditions, 2020, received the assent of the President on 20.09.2020. The
purpose and objective of the code are to consolidate and amend the laws regulating the occupational safety, health, and working
conditions of the persons employed in an establishment and other connected matters. It also contains provisions concerning the
employment of women in all types of work. The code consolidates the following legislations

The Factories Act, 1948

The Contract Labour (Regulation and Abolition) Act, 1970
The Mines Act, 1952
The Dock Workers (Safety, Health and Welfare) Act, 1986
The Building & Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
The Plantations Labour Act, 1951
The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
The Working Journalist and Other Newspaper Employees (Conditions of Service and Miscellaneous Provision) Act, 1955
The Working Journalists (Fixation of rates of wages) Act, 1958
The Cine Workers and Cinema Theatre Workers Act, 1981
The Motor Transport Workers Act, 1961
The Sales Promotion Employees (Conditions of Service) Act,1976
The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
 Salient features of the Occupational Safety, Health,
and Working Conditions Code, 2020
• The Code applies to factories with at least 20 workers engaged in a manufacturing process that requires power or at least 40
workers engaged in a manufacturing process that does not require power.
• The Code does not apply to the Central Government, State Governments, ships of war, or any other nationality, but its
provisions apply to contract employees who are employed by a contractor in places of business where the Central
Government or a State Government is the principal employer.
• The code places a high priority on the health, safety, and welfare of employees working in a variety of trades, businesses,
manufacturing facilities, motor vehicle operations, building and other construction work, newspaper establishments, audio-
video production, plantations, mines, and service industries.
• By replacing multiple registrations under various laws with a single common registration, one licence, and one return, the
Code seeks to lessen the administrative burden on employers. Eventually, this will result in the creation of a centrally
located database that will facilitate business operations.
• Provisions for leave encashment are set aside for use at the end of the fiscal year. Most importantly, if a worker does not use
all of his/her permitted leave in a given calendar year, the Code allows for the carry forward of leaves. The total number of
leave days that can be carried forward cannot exceed 30 days, but any unpaid leave may be carried forward indefinitely.
• There are provisions for women’s employment between the hours of 7 p.m. and 6 a.m., with conditions pertaining to their
consent and safety, working hours, and holidays. If women’s employment poses a risk to their health and safety, the
employer will provide adequate safeguards before their employment.
• The employer is required to obtain the employee’s permission for overtime work. It also applies to small businesses with
fewer than ten employees. Additionally, the employees will be paid twice as much for their overtime work.
• The code also provides the Central Government broad authority to control the general safety and health of citizens in all or
parts of India in the event of an epidemic, pandemic, or disaster. Furthermore, it also provides for a social security fund to
care for unorganised workers.
The Code on Social
Security, 2020
The Social Security Code, 2020 was approved by both houses of Parliament and given presidential assent on September
28, 2020. In order to extend social security coverage to all employees and workers in all sectors, whether organised or
unorganised, the Code was passed to amend and consolidate the pertinent provisions of the nine following central labour
enactments.

The Employees’ Compensation Act, 1923

The Employees’ State Insurance Act, 1948
The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952
The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
The Maternity Benefit Act, 1961
The Payment of Gratuity Act, 1972
The Cine Workers Welfare Fund Act, 1981,
The Building and Other Construction Workers Welfare Cess Act, 1996 and
The Unorganised Workers’ Social Security Act, 2008.
• Salient features of the Code on Social Security, 2020
• The Code defines fixed-term employment, home-based workers, independent contractors, platform workers,
and gig workers.
• The Code permits an establishment to voluntarily provide coverage for the Employees’ Provident Fund in
Chapter 3 and the Employees’ State Insurance Corporation in Chapter 4 even if it has fewer employees than
the minimum required.
• The Code provides the Central Government with the power to establish social security schemes through the
Employees State Insurance Corporation for gig workers, platform workers, and undocumented workers as
well as their families. The Central Government also has the authority to create plans to provide social
security benefits to independent contractors and any other group of people it sees fit.
• Every platform worker, gig worker, and unorganised worker is required to register under the code based on a
self-declaration submitted in the format and with the Aadhar number as specified by the Central
Government.
• The Code requires the employer to pay the gratuity to fixed-term employees on a pro-rata basis rather than
according to the pre-existing minimum of five years of continuous service.
• Chapter Six of the Social Security Code addresses maternity benefits and clarifies creche facilities. A woman
is not allowed to work for six weeks after giving birth, miscarriage, or medical termination of pregnancy. If
their employer does not provide free prenatal or postnatal care, women are entitled to a medical bonus of Rs.
3,500 or the amount determined by the Government of India. A woman is also entitled to maternity benefits
for a total of 26 weeks, beginning no more than eight weeks before the scheduled delivery date.
• Offences and penalties under the Code have undergone significant change. Before taking any legal or
prosecutorial action, employers are given the chance to address non-compliance. A fine of Rs. 1,000,000 and
a one- to three-year prison sentence are imposed for failing to deposit employee contributions. On the other
hand, repeat offenders are subject to harsher punishments, and corporate offences are subject to punishments
that go beyond the boundaries of the corporation.
• Although implementation has made steady
progress, there are currently no specifics
available regarding the precise date when
enforcement will begin.
• Some of the benefits of the labour codes are
as follows
• Labour codes help in streamlining compliance
by ensuring that each industry has a single
licensing mechanism. 
• Technology-assisted national databases have
formalised the workforce, which is the first
step toward distributing welfare benefits. 
• Furthermore, all individuals who were
previously disqualified from coverage under
labour laws are now included in the definition
of workmen/employees.