17 of 40

CODE ON SOCIAL SECURITY, 2020

Gratuity

Gratuity?

A statutory terminal benefit paid by the employer to an employee for long and continuous service.

Governed earlier by the Payment of Gratuity Act, 1972 — now subsumed under the Code on Social Security, 2020.

Purpose:

To reward employees for loyalty and continuous service.

Acts as a form of post-employment social security.

Applicability:

employing 10 or more persons (including factories, mines, shops, etc.).

permanent, temporary, and fixed-term

Includes contract workers if employed

18 of 40

ELIGIBILITY (OLD VS. NEW PROVISIONS)

Gratuity

Category	Earlier Rule (1972 Act)	Code on Social Security, 2020
Permanent employee	After 5 years of continuous service	Same
Fixed-term employee	Not eligible (unless 5 years completed)	Eligible proportionately, even if <5 years
Seasonal employee	Eligible only for active working season	Eligible proportionately
Death/Disability	No minimum service requirement	No change

Exemptions:

Apprentices and trainees under Apprentices Act.
Employees covered under a separate Gratuity Scheme with better benefits may be exempted.
Seasonal workers get gratuity only for periods actually worked.

Maximum Limit:

₹20 lakh (as per 2018 amendment, expected to continue).
Govt may notify revised limit in future.

Payment Rules:

Payable within 30 days of separation, resignation, retirement, or death.
If delayed → employer must pay 10% simple interest per annum.
Nomination required; multiple nominees allowed.

BPO hires employees on 1 year

proportionate gratuity.

19 of 40

REGISTRATION & COMPLIANCE

20 of 40

INDUSTRIAL RELATIONS CODE 2020

21 of 40

INDUSTRIAL RELATIONS CODE 2020

22 of 40

EMPLOYEE FLEXIBILITY AND COMPLIANCE

23 of 40

HR IMPLICATIONS

24 of 40

OSH & WORKING CONDITION CODE, 2020

25 of 40

OSH & WORKING CONDITION CODE

26 of 40

OSH & WORKING CONDITION CODE

27 of 40

SAFETY HEALTH AND WELFARE

28 of 40

COMPLIANCE

29 of 40

CODE ON WAGES, 2019

To regulate wage and bonus payments, ensure minimum and equal wages, and simplify wage-related compliance across all sectors.

Section	Topic	Details
2	Definitions	Defines crucial terms — “wages,” “employee,” “employer,” “appropriate government.” The definition of “wages” now includes basic pay, dearness allowance, and retaining allowance.
3	Fixation of Minimum Wages	Appropriate government to fix minimum wages based on skill level and nature of work.
6	Floor Wage	Central Government to fix a floor wage; State minimum wages can’t be below this.
8	Revision of Minimum Wage	Minimum wages must be reviewed or revised every 5 years.
12	Payment of Wages	Specifies permissible deductions (fines, PF, advances) and timelines for payment.
14	Equal Remuneration	Prohibits gender-based discrimination in wage payment or recruitment.
17–19	Bonus Payment	Lays down eligibility (≥30 days worked), calculation formula (8.33% to 20%), and disqualification grounds (fraud, misconduct).
43–55	Inspector-cum-Facilitator & Enforcement	Enables self-certification and inspection through digital systems; defines penalties for non-compliance.

30 of 40

INDUSTRIAL RELATIONS CODE, 2020

To balance the rights of workers and employers, streamline dispute resolution, and strengthen collective bargaining.

Section	Topic	Details
2	Definitions	Defines “industry,” “employer,” “employee,” “strike,” “lockout,” etc. Harmonizes earlier definitions for uniformity.
4–21	Trade Unions	Simplifies registration; introduces recognition of a negotiating union or council (majority-based).
22–33	Standing Orders	Employers with ≥300 workers must prepare standing orders (service conditions, discipline, leave, termination).
39–50	Grievance Redressal Committee	Establishment of a GRC in units with ≥20 workers to address individual disputes.
51–63	Industrial Disputes Resolution	Covers conciliation, voluntary arbitration, and adjudication processes.
62	Notice of Strike/Lockout	Mandatory 14-day notice period for strikes and lockouts in all establishments.
77–78	Lay-off, Retrenchment & Closure	Employers must seek prior permission for layoff/retrenchment in establishments with ≥300 workers; provides retrenchment compensation (15 days’ average pay per completed year).
99–113	Penalties	Compounding of minor offences; stringent penalties for illegal strikes or unfair practices.

31 of 40

OCCUPATIONAL SAFETY, HEALTH & WORKING CONDITIONS (OSH) CODE, 2020

To ensure a safe and healthy work environment, regulate working conditions, and provide welfare measures for all employees.

Section	Topic	Details
2	Definitions	Introduces terms like “inter-state migrant worker,” “contract labour,” “platform worker,” etc.
6	Duties of Employers	Employers must ensure safety, provide free annual health check-ups, and notify accidents.
8	Duties of Employees	Workers must follow safety norms and report hazards.
18	Inspector-cum-Facilitator	Appointed to advise and inspect establishments; promotes digital compliance.
23–25	Health, Safety & Welfare	Covers ventilation, drinking water, restrooms, first aid, canteens, crèches, etc.
26	Working Hours & Leave	8-hour daily limit, one weekly rest day, and annual leave entitlement.
32–38	Licensing & Registration	Mandatory registration of establishments and contractors; license portability for contract labour.
53–60	Contract & Migrant Workers	Defines conditions for employment, displacement allowance, journey allowance, and wage parity.
74–83	Sector-Specific Provisions	Additional rules for mines, ports, construction, plantations, etc.
103–109	Offences & Penalties	Prescribes fines and imprisonment for unsafe work conditions or accidents due to negligence.

32 of 40

CODE ON SOCIAL SECURITY, 2020

To extend social security coverage to all workers, including gig, platform, and unorganised sectors.

Section	Topic	Details
2	Definitions	Expands scope to include gig workers, platform workers, and unorganised sector employees.
3–6	Social Security Boards	Establishment of Central & State Boards to oversee schemes and funds.
15–22	Provident Fund & Pension	Continuation of EPF and EPS schemes under a unified framework.
23–29	Employees’ State Insurance	Provides medical, sickness, maternity, and disablement benefits.
53–56	Gratuity	Payable to employees completing 5 years; includes fixed-term and working journalists.
60–65	Maternity Benefit	26 weeks’ paid leave, nursing breaks, and prohibition on dismissal during maternity.
67–70	Employees’ Compensation	Compensation for injury, disability, or death during employment.
109–114	Gig & Platform Workers	Enables registration and framing of welfare schemes for drivers, delivery partners, etc.
135–144	Enforcement	Empowers Inspector-cum-Facilitator to conduct digital inspections and ensure compliance.
141–152	Penalties	Penalties for failure to contribute, maintain records, or submit returns.

33 of 40

CASE STUDY

34 of 40

HR ROAD AHEAD

36 of 40

FURTHER ENGAGEMENT

Background:�Shakti Components Pvt. Ltd. (SCPL) is a Tier-II supplier for multiple automobile OEMs at Pune�Workforce:

1,200 workers (600 permanent, 400 contract, 200 gig/platform-based delivery staff)
30 HR/admin staff

Violations under the Code on Wages, 2019

Improper Wage Structure:

Only 30% of CTC classified as “Basic + DA” — violating 50% wage rule.

Delayed Payments:

Contract workers paid after the 15th of each month.

Unequal Remuneration:

Female machine operators paid ₹1,000 less than male counterparts for same output.

Violations under the Code on Social Security, 2020

Non-registration of gig and platform workers:

200 delivery drivers engaged for parts logistics not registered on e-Shram portal.

ESI/PF Non-compliance:

Contract labour working for over 2 years not covered under ESI or PF.

Gratuity Violation:

Fixed-term engineers (1.5 years tenure) denied proportionate gratuity.

HR Corrective Measures:�✅ Revise pay structure ensuring “Basic + DA” ≥ 50% of total wages.�✅ Automation to ensure salary credit by 7th of following month.�✅ “Equal Pay Audit” to rectify gender pay gaps.

HR Corrective Measures:�✅ Register all employees (inc gig/contract staff) on SS portal.�✅ Initiate ESI/PF deduction from day one�✅ Process proportionate gratuity for all fixed-term contracts.�✅ Quarterly audits with Payroll for contributions reconciliation.

37 of 40

ENGAGEMENT CONTD..

Background:�Shakti Components Pvt. Ltd. (SCPL) is a Tier-II supplier for multiple automobile OEMs at Pune�Workforce:

1,200 workers (600 permanent, 400 contract, 200 gig/platform-based delivery staff)
30 HR/admin staff

Violations under the OSH & Working Conditions Code, 2020

Unsafe Work Conditions:

Welding section lacked exhaust fans; workers without PPE.

Women Working at Night Without Safety Measures:

50 women in packaging night shift, no transportation or security guard.

Overtime Violations:

12-hour shifts, no double wages for overtime.

Violations under the Industrial Relations Code, 2020

No Standing Orders:

Establishment employs >300 workers → mandatory under Section 28, not implemented.

Unlawful Strike:

Contract workers struck work without 14 days’ notice (non-compliance with Section 62).

No Grievance Redressal Committee:

Absence of internal committee → direct escalations to external unions.

HR Corrective Measures:�✅ Draft & display Standing Orders (attendance, discipline, termination, leave).�✅ Form Grievance Redressal Committee (with 1 female member).�✅ Conduct monthly joint consultative meetings between HR, management, and unions.�✅ Train supervisors on legal strike protocols & mediation.

HR Corrective Measures:�✅ Implement digital safety audit checklist; record monthly inspections.�✅ Provide PPE kits and training in local language.�✅ Introduce night shift security policy: CCTV, escort vehicles, panic alarm system.�✅ Track overtime via biometric system; double pay automatically applied beyond 48 hrs/week.

38 of 40

THANK �YOU

ANUPAM1905@GMAIL.COM

9820275390

39 of 40

Labour Code	Year	Earlier Acts Merged	Key Focus / Coverage Areas
1. Code on Wages	2019	4 Acts: • Payment of Wages Act, 1936 • Minimum Wages Act, 1948 • Payment of Bonus Act, 1965 • Equal Remuneration Act, 1976	• Uniform definition of wages • Floor wage by Central Govt • Minimum wages for all sectors • Timely wage payment & bonus • Equal pay for equal work
2. Code on Social Security	2020	9 Acts: • EPF Act, 1952 • ESI Act, 1948 • Employees’ Compensation Act, 1923 • Maternity Benefit Act, 1961 • Payment of Gratuity Act, 1972 • Cine Workers Welfare Fund Act, 1981 • Building & Other Construction Workers Cess Act, 1996 • Unorganised Workers’ Social Security Act, 2008 • Employment Exchanges Act, 1959	• PF, ESI, Gratuity & Maternity • Welfare for unorganised & gig workers • Aggregator contributions • Employment exchange reforms

40 of 40

Labour Code	Year	Earlier Acts Merged	Key Focus / Coverage Areas
3. Industrial Relations Code	2020	3 Acts: • Industrial Disputes Act, 1947 • Trade Unions Act, 1926 • Industrial Employment (Standing Orders) Act, 1946	• Recognition of trade unions • Strikes & lockouts rules • Lay-offs, retrenchment & closure • Dispute settlement mechanism
4. OSH (Occupational Safety, Health & Working Conditions) Code	2020	13 Acts: • Factories Act, 1948 • Mines Act, 1952 • Dock Workers Act, 1986 • BOCW Act, 1996 • Plantations Labour Act, 1951 • Contract Labour Act, 1970 • Inter-State Migrant Workmen Act, 1979 • Working Journalists Acts (1955, 1958) • Cine Workers Act, 1981 • Motor Transport Workers Act, 1961 • Beedi & Cigar Workers Act, 1966 • Sales Promotion Employees Act, 1976	• Workplace safety & health • Working hours & welfare • Registration of establishments • Contract & migrant workers • Women in night shifts allowed with safeguards

1 of 40

2 of 40

3 of 40

4 of 40

5 of 40

6 of 40

7 of 40

8 of 40

9 of 40

10 of 40

11 of 40

12 of 40

13 of 40

14 of 40

15 of 40

16 of 40