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Labour Laws CBMBL5T04

RTMNU B.Com Semester 5 · Minor: Business Legislations · 4 units · notes for every unit

UniversityRTMNU – Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur
CourseB.Com (Four Year UG Programme, NEP 2020)
SemesterSemester V
Paper codeCBMBL5T04
Paper titleLabour Laws
CategoryMinor: Business Legislations
Credits4 credits
Marks80 marks theory paper (3 hours)
Syllabusas per official RTMNU NEP 2020 B.Com syllabus for Sem V & VI (session 2026-27 onwards)

Unit topics below follow the official RTMNU syllabus. RTMNU official website · All RTMNU B.Com papers

Units

  1. 1Unit I: The Code on Wages 2019 (Wage Code)Notes
  2. 2Unit II: The Industrial Relations Code 2020 (Industrial Relations Code)Notes
  3. 3Unit III: The Code on Social Security 2020 (Social Security Code)Notes
  4. 4Unit IV: The Occupational Safety, Health and Working Conditions Code 2020 (OSH Code)Notes

RTMNU B.Com Sem 5 · CBMBL5T04 · Unit I

Unit I: The Code on Wages 2019 (Wage Code)

Syllabus topics (RTMNU)

  • Objectives and Scope of The Code on Wages 2019
  • The salient features of the Code on Wages 2019
  • Minimum Wages - Definitions - Meaning of Minimum wages
  • Components of minimum wages
  • Wages for overtime
  • Fixation of Minimum wage & procedure of fixation of minimum wages
  • Deductions from wages and Fines
  • Payment of Bonus – Eligibility for bonus, Disqualification for bonus
  • Payment of bonus out of allocable surplus
  • Computation of gross profits, available surplus
  • Offences and Penalties & Power of Appropriate Government
Remember: The four Labour Codes — Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020 and OSH Code 2020 — were brought into force from 21 November 2025. The Code on Wages replaces four old Acts: the Payment of Wages Act 1936, the Minimum Wages Act 1948, the Payment of Bonus Act 1965 and the Equal Remuneration Act 1976. Rules under the Codes are framed by the Centre and each State, so exact figures can differ — check latest.

Objectives and Scope of the Code on Wages 2019

Definition: The Code on Wages 2019 is a central law that brings together all the rules on payment of wages, minimum wages, bonus and equal pay into one simple Code, applicable to all employees in India.

Objectives:

  1. Simplification: to replace four old wage laws with one Code, with one set of definitions.
  2. Universal minimum wage: to give every employee (organised and unorganised) the right to a minimum wage. Earlier the Minimum Wages Act covered only "scheduled employments".
  3. Timely payment: to make sure wages are paid on time and without unfair cuts.
  4. Equal pay: to stop discrimination on the basis of gender in wages and recruitment for the same or similar work.
  5. Ease of doing business: fewer registers, fewer returns, electronic records and a helpful "Inspector-cum-Facilitator".

Scope: It extends to the whole of India. Provisions on minimum wages and timely payment apply to all employees, whatever the wage level. Bonus applies to establishments with 20 or more persons (as under the old Act).

Salient Features of the Code on Wages 2019

  1. One definition of "wages": wages mean basic pay, dearness allowance and retaining allowance. Some items (HRA, conveyance, overtime, bonus, commission etc.) are excluded, but if the excluded items are more than 50% of total pay, the excess is added back to wages. This stops employers from keeping basic pay artificially low.
  2. Floor wage: the Central Government fixes a national floor wage. No State can fix a minimum wage lower than this floor.
  3. Revision: minimum wages are to be reviewed normally at intervals of not more than five years.
  4. Timely payment: daily-rated workers at the end of the shift, weekly-rated on the last working day of the week, monthly-rated before the 7th of the next month.
  5. No gender discrimination in wages for the same or similar work.
  6. Inspector-cum-Facilitator instead of only an inspector; web-based inspection.
  7. Compounding of offences for first offences by paying a sum.

Minimum Wages: Meaning and Components

Minimum wage is the lowest wage, fixed by the government, that an employer must pay to an employee for work done, so that the worker can meet the basic needs of life. Paying less is an offence, even if the worker agrees.

Components of minimum wages (the Code allows the government to fix):

  1. Basic rate of wages and a cost of living allowance (like DA), adjusted to the cost of living index; or
  2. Basic rate with or without cost of living allowance, plus the cash value of concessions (e.g. cheap ration supply); or
  3. An all-inclusive rate covering basic rate, cost of living allowance and cash value of concessions.

Minimum wages can be fixed by time (hour, day, month) or by piece. While fixing, the government considers the skill of workers (unskilled, semi-skilled, skilled, highly skilled), the geographical area and the difficulty of work (e.g. high temperature, risk).

Wages for Overtime

When an employee works more than the normal working hours fixed for a day, he must be paid overtime at not less than twice the normal rate of wages. Example: if the normal rate is ₹80 per hour, overtime must be at least ₹160 per hour.

Fixation of Minimum Wages and Procedure

The appropriate government (Central for central sphere like railways, mines, banks; State for others) fixes minimum wages by one of two methods:

  1. Committee method: the government sets up committees to hold enquiries and advise; then it fixes wages by notification.
  2. Notification method: the government publishes its proposals in the Official Gazette, invites objections and suggestions (generally within two months), considers them and then fixes the wage by final notification.

Advisory Boards (Central and State) with equal numbers of employers and employees plus independent persons (one-third women) advise the government.

Exam tip: In a 16-mark answer, write meaning → components → factors considered → two methods of fixation → advisory board → review every 5 years.

Deductions from Wages and Fines

Only authorised deductions can be made, such as: fines, absence from duty, damage or loss of goods by negligence, house accommodation provided, recovery of advances and loans, income tax, provident fund and ESI contributions, court orders, and contributions to cooperative societies or insurance with consent.

  • Limit: total deductions in a wage period cannot exceed 50% of wages.
  • Fines: only for acts or omissions listed in a notice approved by the government; the employee must get a chance to explain; a fine cannot exceed 3% of wages for that wage period; it must be recovered within 90 days; fines go to a fund used for workers' welfare.

Payment of Bonus: Eligibility and Disqualification

Bonus is an annual payment, over and above wages, linked to profit or productivity, which shares the prosperity of the business with employees.

Eligibility: an employee whose wages do not exceed the limit notified by the appropriate government (it was ₹21,000 per month under the old Act — check latest) and who has worked for at least 30 days in the accounting year.

Disqualification: an employee is not entitled to bonus if dismissed for (a) fraud, (b) riotous or violent behaviour on the premises, (c) theft, misappropriation or sabotage of property, or (d) conviction for sexual harassment.

Amount: minimum bonus is 8.33% of wages or ₹100, whichever is higher, even if there is no profit; maximum bonus is 20% of wages. For calculation, wages are taken up to a ceiling (₹7,000 or the minimum wage, whichever is higher, under the old Act — check latest notified figure).

Bonus out of Allocable Surplus; Gross Profit and Available Surplus

  1. Gross profit: net profit as per the profit and loss account, adjusted (adding back items like bonus provided, depreciation, direct taxes, and removing capital receipts) as per the schedule to the Code.
  2. Available surplus = Gross profit − prior charges (depreciation allowed under income tax, direct taxes payable, and other sums prescribed).
  3. Allocable surplus = 60% of available surplus (67% for a foreign company or one that has not made arrangements for dividend in India).
  4. Bonus is paid out of allocable surplus between the minimum 8.33% and maximum 20%. Excess or shortage is carried forward to later years (set-on and set-off).
Format: Net Profit → (adjust) → Gross Profit → less Prior Charges → Available Surplus → × 60% → Allocable Surplus → Bonus (between 8.33% and 20%).

Offences, Penalties and Power of the Appropriate Government

  • Paying an employee less than the amount due is punishable with a fine (up to ₹50,000 under the Code); a repeat offence within five years can lead to imprisonment up to three months or a higher fine.
  • Other contraventions (e.g. not keeping records) attract a smaller fine; repeated offences carry higher punishment.
  • First offences can be compounded by paying an amount fixed by a gazetted officer.

Powers of the appropriate government: fix and revise minimum wages, notify wage ceilings for bonus, appoint Inspector-cum-Facilitators, set up advisory boards, make rules, exempt establishments in certain cases, and appoint authorities to hear claims.

Remember: Penalty amounts above are from the Code as enacted; rules and amounts may be amended — check latest.

Likely exam questions

  1. (Long, 8/16 marks) Explain the objectives and salient features of the Code on Wages 2019.
  2. (Long, 8/16 marks) What is minimum wage? Explain its components and the procedure for fixation of minimum wages under the Code on Wages 2019.
  3. (Short, 4 marks) State the rules regarding deductions from wages and fines.
  4. (Short, 4 marks) Who is eligible for bonus? When is an employee disqualified from bonus?
  5. (Short, 4 marks) Explain available surplus and allocable surplus.

RTMNU B.Com Sem 5 · CBMBL5T04 · Unit II

Unit II: The Industrial Relations Code 2020 (Industrial Relations Code)

Syllabus topics (RTMNU)

  • The salient features & Objectives of the IR Code 2020
  • Important definitions: Appropriate Govt, Industrial Dispute, strike, Layoff, Lockout, Retrenchment and closure, Work committee and Grievance Redressal Committee
  • Trade Union – Registrar of Trade union, Criteria of registration, Provisions to be contained in constitution or rules of trade union, Registration and cancellation of registration of Trade Unions
  • Voluntary Reference of Disputes to Arbitration
  • Mechanism for Resolution of Industrial Disputes, Powers of the conciliation officer, the Tribunal and the National Industrial Tribunal
  • Strikes and lockouts – meaning and prohibition of strikes and lockouts, Illegal strikes and lockouts
  • Special provisions for Layoff, Retrenchment and closure: Prohibition of lay-off, conditions precedent to retrenchment of workers, procedure for closing down an industrial establishment & Offences and penalties
Remember: The IR Code 2020 (in force from 21 November 2025) replaces the Trade Unions Act 1926, the Industrial Employment (Standing Orders) Act 1946 and the Industrial Disputes Act 1947 — check latest rules of your State.

Objectives and Salient Features

Definition: The Industrial Relations Code 2020 is a law that consolidates the rules on trade unions, standing orders and the settlement of industrial disputes, to maintain peace and good relations between employers and workers.

  1. Industrial peace: prevent and settle disputes quickly through bipartite talks, conciliation, arbitration and tribunals.
  2. Recognition of unions: a "negotiating union" (a union with 51% or more workers) or a "negotiating council" of unions (each having at least 20%).
  3. Standing orders compulsory for establishments with 300 or more workers.
  4. Higher threshold for prior government permission for layoff, retrenchment and closure: 300 workers (earlier 100).
  5. Notice for strike required in all industrial establishments.
  6. Fixed-term employment recognised, with same benefits as permanent workers.
  7. Worker Re-skilling Fund for retrenched workers.
  8. Labour courts replaced by Industrial Tribunals with a judicial member and an administrative member.

Important Definitions

  • Appropriate Government: the Central Government for central undertakings, railways, mines, oil fields, ports, banks, insurance etc.; the State Government for other establishments.
  • Industrial dispute: any dispute between employers and workers (or employers and employers, workers and workers) connected with employment, non-employment, terms of employment or conditions of labour. A dispute of an individual worker about discharge, dismissal or retrenchment is also an industrial dispute.
  • Strike: stopping of work by a group of workers acting together, or refusal to work. Mass casual leave by 50% or more workers on one day is also treated as a strike.
  • Lay-off: failure or inability of an employer, due to shortage of coal, power or raw material, breakdown of machinery, natural calamity etc., to give work to a worker on the muster roll.
  • Lockout: temporary closing of a place of work, or suspension of work, or refusal by the employer to employ workers.
  • Retrenchment: termination of service of a worker by the employer for any reason, other than as punishment, voluntary retirement, superannuation, non-renewal of fixed-term contract or continued ill-health.
  • Closure: permanent closing down of a place of employment or part of it.
  • Works Committee: in establishments with 100 or more workers, a committee with equal representatives of employer and workers to promote good relations.
  • Grievance Redressal Committee: in establishments with 20 or more workers, up to 10 members (equal from both sides, with fair representation of women) to resolve individual grievances.

Trade Unions: Registrar, Registration, Rules and Cancellation

A trade union is an association of workers (or employers) formed to regulate relations between them and protect their interests.

  • Registrar: appointed by the appropriate government to register unions and maintain records.
  • Criteria: any 7 or more members can apply, but at least 10% of workers or 100 workers, whichever is less, must be members on the date of application; at least 7 must be workers of that establishment.
  • Rules/constitution must contain: name, objects, purposes for which funds will be used, list of members, admission of members, subscription (minimum fees), procedure for election and removal of office-bearers, safe custody and audit of funds, inspection of books by members, and dissolution.
  • Registration: application with rules is filed; if all is in order, the Registrar registers the union and issues a certificate. A registered union becomes a body corporate.
  • Cancellation: if registration was got by fraud, the union has ceased to exist, violates the Code, or its membership falls below the minimum. The union gets notice and a hearing; appeal lies to the Tribunal.

Voluntary Reference of Disputes to Arbitration

Before a dispute is referred to a Tribunal, the employer and workers may agree in writing to refer it to an arbitrator of their choice. A copy of the agreement is sent to the government and conciliation officer. The arbitrator investigates and gives an arbitration award, which is binding. It is quicker, cheaper and friendlier than going to a tribunal.

Mechanism for Resolving Industrial Disputes

  1. Grievance Redressal Committee (bipartite, inside the unit).
  2. Conciliation officer: mediates; can enter premises, call for documents and examine parties; tries to bring a settlement; a settlement signed before him is binding; sends failure report if no settlement.
  3. Voluntary arbitration.
  4. Industrial Tribunal: adjudicates disputes; has powers of a civil court (summon witnesses, demand documents); gives an award.
  5. National Industrial Tribunal: set up by the Central Government for disputes of national importance or affecting establishments in more than one State.

Strikes and Lockouts

No worker in any industrial establishment shall go on strike, and no employer shall declare a lockout:

  1. without giving 14 days' notice, within 60 days before the strike;
  2. before the expiry of the date mentioned in the notice;
  3. during conciliation proceedings and 7 days after they end;
  4. during proceedings before a Tribunal or National Tribunal and 60 days after they end;
  5. during arbitration and 60 days after;
  6. while a settlement or award is in force on the same matter.

A strike or lockout in breach of these rules is illegal. Workers on illegal strike lose wages and may face penalties; abetting or financing an illegal strike is also an offence.

Lay-off, Retrenchment and Closure

  • Lay-off compensation: 50% of basic wages and DA for the days of lay-off (worker must have 1 year continuous service).
  • Prohibition of lay-off: in establishments with 300 or more workers, no lay-off without prior permission of the government (except due to power shortage or natural calamity).
  • Conditions precedent to retrenchment: (a) one month's notice in writing with reasons, or wages in lieu; (b) compensation of 15 days' average pay for every completed year of continuous service; (c) notice to the government; (d) "last come, first go" rule; plus 15 days' wages into the Worker Re-skilling Fund.
  • Closure: an employer intending to close must give notice to the government at least 60 days before; for 300 or more workers, apply for permission at least 90 days before. Workers get compensation like retrenchment.
  • Offences and penalties: fines for illegal strikes, illegal lockouts, and closure or retrenchment without permission, with higher fines for employers — amounts as per the Code, check latest.

Likely exam questions

  1. (Long, 8/16 marks) Explain the mechanism for resolution of industrial disputes under the Industrial Relations Code 2020, with the powers of the conciliation officer and Tribunals.
  2. (Long, 8/16 marks) What is a strike and a lockout? Explain the prohibition of strikes and lockouts and when they become illegal.
  3. (Short, 4 marks) Define industrial dispute, lay-off and retrenchment.
  4. (Short, 4 marks) State the criteria for registration of a trade union.
  5. (Short, 4 marks) What are the conditions precedent to retrenchment?

RTMNU B.Com Sem 5 · CBMBL5T04 · Unit III

Unit III: The Code on Social Security 2020 (Social Security Code)

Syllabus topics (RTMNU)

  • The salient features of the Code 2020
  • Important Definitions – Employee, employer, total disablement, partial disablement, temporary disablement, permanent, gig workers
  • Objectives of Code
  • Employees Provident Fund
  • Employees State Insurance Corporation: salient features, Employees State Insurance Fund its uses, Benefits to workers
  • Gratuity - Payment of Gratuity and main provisions relating to Gratuity
  • Maternity Benefits – main provisions: benefits
  • Employees Compensation – main provisions
  • Social Security for Unorganised workers, GIG Workers and Platform workers – schemes for GIG workers and Platform workers
Remember: The Code on Social Security 2020 (in force from 21 November 2025) replaces nine Acts, including the EPF Act 1952, ESI Act 1948, Employees' Compensation Act 1923, Maternity Benefit Act 1961, Payment of Gratuity Act 1972 and the Unorganised Workers' Social Security Act 2008. Contribution rates and wage ceilings are notified by government — check latest.

Objectives and Salient Features

Social security means protection given by society to its members against risks like sickness, old age, maternity, injury, disability and death.

Objectives: (1) extend social security to all workers — organised, unorganised, gig and platform; (2) simplify nine laws into one; (3) provide a single registration and electronic filing; (4) protect workers and their families against life risks.

Salient features:

  1. First Indian law to define and cover gig workers and platform workers.
  2. ESIC coverage can extend to all districts and to hazardous units even with one worker.
  3. Gratuity for fixed-term employees on a pro-rata basis without the five-year condition.
  4. A National Social Security Board for unorganised, gig and platform workers.
  5. Aggregators (like food delivery and cab apps) contribute to a social security fund.
  6. Registration of unorganised workers on a portal (e-Shram) with Aadhaar.

Important Definitions

  • Employee: any person employed on wages in an establishment to do skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work, directly or through a contractor.
  • Employer: the person who has ultimate control over the affairs of the establishment (owner, occupier, manager, director etc.).
  • Total disablement: disablement, temporary or permanent, which makes the employee unable to do all work he could do at the time of the accident.
  • Partial disablement: reduces the earning capacity — temporary partial (only in the job he was doing) or permanent partial (in every job).
  • Temporary disablement: disablement that lasts for a limited time and from which the worker recovers.
  • Permanent disablement: disablement that lasts for life.
  • Gig worker: a person who works and earns outside the traditional employer–employee relationship (e.g. a freelance delivery partner).
  • Platform worker: a person who works through an online platform to provide services to customers (e.g. Swiggy, Zomato, Ola, Uber partners).

Employees' Provident Fund (EPF)

Applies to establishments with 20 or more employees. Employer and employee each contribute a fixed percentage of wages (generally 12%; part of the employer's share goes to the Employees' Pension Scheme). Benefits: lump sum at retirement, pension (EPS), insurance (EDLI) to family on death, and partial withdrawals for housing, marriage, education and illness. Administered by the EPFO. Rates and wage ceiling — check latest.

Employees' State Insurance (ESI)

Salient features: applies to establishments with 10 or more employees (as notified); run by the Employees' State Insurance Corporation (ESIC); contributory scheme — both employer and employee contribute a small percentage of wages (check latest rates and wage ceiling); medical care through ESI hospitals and dispensaries.

ESI Fund and its uses: contributions, grants and donations go into the ESI Fund, used for paying benefits, medical treatment, building hospitals, administrative expenses and staff salaries.

Benefits:

  1. Medical benefit for insured person and family.
  2. Sickness benefit — cash payment during certified sickness.
  3. Maternity benefit for insured women.
  4. Disablement benefit for employment injury.
  5. Dependants' benefit to family on death due to employment injury.
  6. Funeral expenses.
  7. Unemployment allowance in certain cases.

Gratuity

Gratuity is a lump-sum payment made by the employer to an employee as a reward for long service, on leaving the job.

  • Payable on: superannuation, retirement, resignation, death or disablement (due to accident or disease), or termination of fixed-term contract.
  • Service condition: at least 5 years continuous service — not needed on death or disablement; fixed-term employees get it pro-rata.
  • Amount: 15 days' wages for each completed year of service. Formula for monthly-rated: Last drawn wages × 15/26 × completed years.
  • Ceiling: a maximum limit notified by government (₹20 lakh under the old Act — check latest).
  • Gratuity cannot be attached by a court decree; it can be forfeited for misconduct like violence or offence involving moral turpitude.
Example: Last wages ₹26,000, 10 years' service → 26,000 × 15/26 × 10 = ₹1,50,000.

Maternity Benefit

  • Eligibility: a woman employee who has worked at least 80 days in the 12 months before expected delivery.
  • Leave: up to 26 weeks paid leave (not more than 8 weeks before delivery); 12 weeks for adopting a child below three months or for a commissioning mother.
  • Payment at the rate of average daily wage.
  • Medical bonus if no free pre-natal and post-natal care is provided.
  • Leave for miscarriage (6 weeks) and nursing breaks.
  • Creche facility in establishments with 50 or more employees; work from home if nature of work allows.
  • No dismissal during maternity leave.

Employees' Compensation

The employer must pay compensation if an employee suffers personal injury by an accident arising out of and in the course of employment, or suffers an occupational disease. The Code also covers accidents while commuting between home and workplace. No compensation if injury is due to the worker being drunk, wilful disobedience of safety rules, or wilful removal of safety devices (except in death or permanent total disablement). Compensation depends on monthly wages, age (relevant factor) and type of injury — death, permanent total, permanent partial or temporary disablement.

Social Security for Unorganised, Gig and Platform Workers

  • Central and State governments can frame schemes for life and disability cover, health and maternity, old-age protection, education and housing.
  • Aggregators contribute 1–2% of annual turnover (capped at 5% of amount paid to such workers) to the Social Security Fund.
  • e-Shram portal for registration of unorganised and gig workers; a universal account number.
  • Schemes: PM Jeevan Jyoti Bima Yojana, PM Suraksha Bima Yojana, PM Shram Yogi Maandhan (pension), Ayushman Bharat PM-JAY health cover extended to registered platform workers (announced in Budget 2025-26) — check latest.

Likely exam questions

  1. (Long, 8/16 marks) Explain the salient features and objectives of the Code on Social Security 2020 and the important definitions under it.
  2. (Long, 8/16 marks) Explain the main provisions relating to gratuity and maternity benefits under the Code on Social Security 2020.
  3. (Short, 4 marks) Who are gig workers and platform workers? State any two schemes for them.
  4. (Short, 4 marks) State the benefits provided to workers under ESI.
  5. (Short, 4 marks) Write a note on employees' compensation.

RTMNU B.Com Sem 5 · CBMBL5T04 · Unit IV

Unit IV: The Occupational Safety, Health and Working Conditions Code 2020 (OSH Code)

Syllabus topics (RTMNU)

  • Objects and the salient features of the Code
  • Health and Safety and Working Conditions Provisions
  • Welfare of worker provisions
  • Hours of work and Annual Leave with Wages & Welfare provisions
  • Social Security Fund
  • Inspector cum Facilitator – Appointments and their power
  • Special provision for the employment of women
  • Functions of the National Occupational Safety and Health Advisory Board
Remember: The OSH Code 2020 (in force from 21 November 2025) replaces 13 Acts, including the Factories Act 1948, Mines Act 1952, Contract Labour (Regulation and Abolition) Act 1970, Inter-State Migrant Workmen Act 1979, Plantations Labour Act 1951 and the Building and Other Construction Workers Act 1996. Numbers below are from the Code; States may notify their own rules — check latest.

Objects and Salient Features

Definition: The OSH Code 2020 is a law that regulates the occupational safety, health and working conditions of persons employed in establishments, so that work is safe, healthy and humane.

Objects: (1) protect workers from accidents and diseases at work; (2) ensure decent working conditions — hours, leave, welfare; (3) one registration, one licence, one return in place of many; (4) cover contract and inter-State migrant workers.

Salient features:

  1. Applies to establishments with 10 or more workers, and to all mines and docks.
  2. Definition of factory: 20 or more workers with power, or 40 or more without power.
  3. Single registration for an establishment, electronically.
  4. Appointment letter compulsory for every employee.
  5. Free annual health check-up for employees of a prescribed age group.
  6. Women may work at night with their consent and with safety arrangements.
  7. Inter-State migrant workers get a journey allowance and portable benefits.
  8. Inspector-cum-Facilitator and web-based inspection.

Health, Safety and Working Conditions

  • Duties of employer: keep the workplace free from hazards that may cause injury or disease; provide free health examinations; give information, training and supervision; provide safe machines and protective equipment (helmets, gloves, masks) free of cost.
  • Duties of employees: take care of own and others' safety, follow safety rules, use safety equipment, report unsafe conditions.
  • Working conditions (as per standards notified): cleanliness, disposal of wastes and effluents, ventilation and temperature, dust and fume control, artificial humidification, avoidance of overcrowding, lighting, drinking water, latrines and urinals, spittoons.
  • Safety committees and safety officers in larger or hazardous establishments; special care for hazardous processes.

Welfare Provisions

  1. Washing facilities and facilities for storing and drying clothes.
  2. Sitting arrangements for workers who stand for long.
  3. First-aid boxes.
  4. Canteen in establishments with 100 or more workers.
  5. Creche in establishments with 50 or more workers (for children of employees).
  6. Shelters, rest rooms and lunch rooms.
  7. Welfare officer in establishments with 250 or more workers.

Hours of Work and Annual Leave with Wages

  • Daily hours: no worker shall be required to work more than 8 hours a day; weekly hours and spread-over are as prescribed by rules.
  • Weekly holiday: at least one day in seven.
  • Overtime: only with consent, at twice the ordinary rate of wages.
  • Annual leave with wages: a worker who has worked for 180 days or more in a calendar year gets leave at the rate of one day for every 20 days of work. Unused leave can be carried forward (up to a limit) or encashed at the end of the year.
  • Example: a worker who worked 240 days gets 240 ÷ 20 = 12 days' leave.

Social Security Fund

The Code provides that part of the amounts collected as penalties and compounding fees under the OSH Code is credited to the Social Security Fund created under the Code on Social Security 2020. This fund is used for the welfare of unorganised workers (for example, life and disability cover, health benefits and old-age protection). Thus fines paid by defaulting employers are used to help workers — check latest rules.

Inspector-cum-Facilitator: Appointment and Powers

The appropriate government appoints Inspector-cum-Facilitators by notification, with jurisdiction over areas or establishments. Inspection follows a web-based, randomised scheme.

Powers:

  1. Enter and inspect any premises at reasonable times.
  2. Examine any person and take statements.
  3. Require production of registers and records, and seize or copy them.
  4. Take samples and photographs, and investigate accidents.
  5. Issue orders to stop dangerous work in emergencies.
  6. Facilitate: give information and advice to employers and workers on how to comply with the Code.

Special Provisions for Employment of Women

  • Women are entitled to be employed in all establishments for all types of work.
  • They may work before 6 a.m. and after 7 p.m. only with their consent, and subject to conditions on safety, holidays, working hours and transport.
  • Where work is hazardous for women (as notified), the employer must provide adequate safeguards before employing them.
  • Separate latrines, washing facilities and rest rooms; creche facilities.
  • Equal treatment and protection against harassment at the workplace.

National Occupational Safety and Health Advisory Board

A tripartite board set up by the Central Government with representatives of government, employers, employees and experts (including women members).

Functions:

  1. Advise the Central Government on standards, rules and regulations under the Code.
  2. Advise on matters referred to it about safety, health, welfare and working conditions.
  3. Recommend policies to prevent occupational accidents and diseases.
  4. Constitute sub-committees for particular sectors (factories, mines, plantations, construction, docks).
  5. Review the working of the Code and suggest improvements.
Exam tip: For a 16-mark question on OSH Code, write: objects → applicability → health & safety → welfare → hours and leave → women → inspectors → advisory board. Mention that it replaced the Factories Act 1948.

Likely exam questions

  1. (Long, 8/16 marks) Explain the objects and salient features of the Occupational Safety, Health and Working Conditions Code 2020.
  2. (Long, 8/16 marks) Explain the provisions relating to health, safety and welfare of workers under the OSH Code 2020.
  3. (Short, 4 marks) State the provisions regarding hours of work and annual leave with wages.
  4. (Short, 4 marks) Explain the special provisions for employment of women under the OSH Code.
  5. (Short, 4 marks) State the powers of an Inspector-cum-Facilitator.