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Date of Adoption: 28 Sep 2020

Date of Enforcement: 
The Code is not yet in force

The Code consolidates 13 existing labor laws into a single framework to simplify and modernize regulations related to workplace safety, health, and working conditions. It is one of four major labor codes passed in India in 2020.

Key objectives are to ensure safe working conditions for all workers - including in the unorganized sectors - , promote health and welfare of employees across sectors, and streamline compliance for employers by unifying multiple laws.

Full list of labor laws consolidated by the Code: 

  • The Factories Act, 1948
  • The Plantations Labour Act, 1951
  • The Mines Act, 1952
  • The Working Journalists and other Newspaper Employees (Conditions of Service and Miscellaneous Provisions) Act, 1955
  • The Working Journalists (Fixation of Rates of Wages) Act, 1958
  • The Motor Transport Workers Act, 1961
  • The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
  • The Contract Labour (Regulation and Abolition) Act, 1970
  • The Sales Promotion Employees (Condition of Service) Act, 1976
  • The Inter-State Migrant workmen (Regulation of Employment and Conditions of Service) Act, 1979
  • The Cine Workers and Cinema Theatre Workers Act, 1981
  • The Dock Workers (Safety, Health and Welfare) Act, 1986 
  • The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996

The PSCI is not a certification or compliance body but it offers tools to members that can used as part of your company’s due diligence processes.

Please note that this summary was drafted by the PSCI Secretariat. PSCI members and suppliers are advised to read the legislation in its entirety.


Anti-bribery & corruption

Legislative provisions

The following legislative provisions are included:

Scope of application

The provisions below are applicable to:

  • Establishments employing at least 50 contract laborers at the current time or on any day of the preceding 12 months through contract;
  • Every manpower supply contractor who has employed, on any day of the
    preceding 12 months, at least 50 contract laborers

The provisions shall not apply to establishments in which work only of an intermittent or casual nature is performed, i.e. if it was performed for less than 120 days in the preceding 12 months or if it is of seasonal character and is performed for less than 60 days in a year.

(Code, Article 45)

Licencing obligation

No contractor to whom those requirements applies shall:

  • supply or engage contract laborers in any establishment; or
  • undertake or execute the work through contract laborers
    except under and in accordance with a licence issued by the authority after satisfying that the contractor fulfills such requisite qualifications or criteria as may be prescribed by the Central Government and such licence shall, among others, specify the number of such contract laborers who can be supplied or engaged, hours of work, or fixation of wages, or the amount of security to be deposited by the contractor.

Please note that, where the contractor does not fulfil the requisite qualifications or criteria referred above, the relevant authority may issue a "work specific licence" electronically renewable within such period as may be prescribed by the Central Government to supply or engage the contract laborers, or execute the work through contract laborers, only for the concerned work order as may be specified in such licence and subject to such conditions as may be specified in such licence.

(Code, Article 47)

For more details on the procedure to follow to obtain or renew a licence, see Articles 47(3)(b) and 48

Prohibition to charge contract labourers

The contractor shall not charge directly or indirectly, in whole or in part, any fee or commission from the contract laborers.

(Code, Article 49)

Notification to Government

  • When a contractor receives work order from an establishment either to supply contract laborers in the establishment or to execute the contract through contract laborers in the establishment they shall, within such time and in such manner as may be prescribed, intimate to the relevant authority.
  • Where the contractor fails to give notification, the designated authority may, after giving the holder of the licence an opportunity of showing cause, suspend or cancel the licence in such manner as may be prescribed by the appropriate Government.

(Code, Article 50)

Welfare facilities

Welfare facilities (see the relevant section on this page below for details) shall be provided by the principal employer of the establishment to the contract laborers who are employed in such establishment.

(Code, Article 53)

Effect of employing contract laborers from a non-licenced contractor

Where any principal employer of an establishment is employing contract laborers through a contractor who is required to obtain a licence, butthey have not obtained such licence, then, such employment shall be deemed to be in contravention of the provision of this Code.

(Code, Article 54)

Payment of wages

  • A contractor shall be responsible for payment of wages to each contract laborer employed by them and such wages shall be paid before the expiry of such period as may be prescribed by the appropriate Government.
  • Every contractor shall, make the disbursement of wages through bank transfer or electronic mode and inform the principal employer electronically the amount so paid by such mode. Provided that where it is not practicable to disburse payment in the mode specified in this section, then, the payment shall be made in such manner as may be prescribed by the appropriate Government.
  • In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then, the principal employer shall be liable to make payment of the wages in full or the unpaid balance due, as the case may be, to the concerned contract laborer employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

(Code, Article 55)

Experience certificate

Every concerned contractor shall issue, on demand, an experience certificate, in such form as may be prescribed by the appropriate Government, to the contract laborer giving details of the work performed by such contract labour.

(Code, Article 56)

Prohibition of employment of contract laborers

Employment of contract laborers in core activities of any establishment is prohibited, except if:

  • the normal functioning of the establishment is such that the activity is
    ordinarily done through contractor; or
  • the activities are such that they do not require full time workers for the major portion of the working hours in a day or for longer periods, as the case may be;
  • any sudden increase of volume of work in the core activity which needs to be accomplished in a specified time

(Code, Article 57)

Please note that the requirements above do not apply to certain types of mining operations. See Article 68 for more details.


PSCI Principles

The following PSCI sub-principles are relevant to this issue:
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Contract workers

Legislative provisions

The following legislative provisions are included:

Scope of application

The provisions below are applicable to:

  • Establishments employing at least 50 contract laborers at the current time or on any day of the preceding 12 months through contract;
  • Every manpower supply contractor who has employed, on any day of the
    preceding 12 months, at least 50 contract laborers

The provisions shall not apply to establishments in which work only of an intermittent or casual nature is performed, i.e. if it was performed for less than 120 days in the preceding 12 months or if it is of seasonal character and is performed for less than 60 days in a year.

(Code, Article 45)

Licencing obligation

No contractor to whom those requirements applies shall:

  • supply or engage contract laborers in any establishment; or
  • undertake or execute the work through contract laborers
    except under and in accordance with a licence issued by the authority after satisfying that the contractor fulfills such requisite qualifications or criteria as may be prescribed by the Central Government and such licence shall, among others, specify the number of such contract laborers who can be supplied or engaged, hours of work, or fixation of wages, or the amount of security to be deposited by the contractor.

Please note that, where the contractor does not fulfil the requisite qualifications or criteria referred above, the relevant authority may issue a "work specific licence" electronically renewable within such period as may be prescribed by the Central Government to supply or engage the contract laborers, or execute the work through contract laborers, only for the concerned work order as may be specified in such licence and subject to such conditions as may be specified in such licence.

(Code, Article 47)

For more details on the procedure to follow to obtain or renew a licence, see Articles 47(3)(b) and 48

Prohibition to charge contract labourers

The contractor shall not charge directly or indirectly, in whole or in part, any fee or commission from the contract laborers.

(Code, Article 49)

Notification to Government

  • When a contractor receives work order from an establishment either to supply contract laborers in the establishment or to execute the contract through contract laborers in the establishment they shall, within such time and in such manner as may be prescribed, intimate to the relevant authority.
  • Where the contractor fails to give notification, the designated authority may, after giving the holder of the licence an opportunity of showing cause, suspend or cancel the licence in such manner as may be prescribed by the appropriate Government.

(Code, Article 50)

Welfare facilities

Welfare facilities (see the relevant section on this page below for details) shall be provided by the principal employer of the establishment to the contract laborers who are employed in such establishment.

(Code, Article 53)

Effect of employing contract laborers from a non-licenced contractor

Where any principal employer of an establishment is employing contract laborers through a contractor who is required to obtain a licence, butthey have not obtained such licence, then, such employment shall be deemed to be in contravention of the provision of this Code.

(Code, Article 54)

Payment of wages

  • A contractor shall be responsible for payment of wages to each contract laborer employed by them and such wages shall be paid before the expiry of such period as may be prescribed by the appropriate Government.
  • Every contractor shall, make the disbursement of wages through bank transfer or electronic mode and inform the principal employer electronically the amount so paid by such mode. Provided that where it is not practicable to disburse payment in the mode specified in this section, then, the payment shall be made in such manner as may be prescribed by the appropriate Government.
  • In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then, the principal employer shall be liable to make payment of the wages in full or the unpaid balance due, as the case may be, to the concerned contract laborer employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

(Code, Article 55)

Experience certificate

Every concerned contractor shall issue, on demand, an experience certificate, in such form as may be prescribed by the appropriate Government, to the contract laborer giving details of the work performed by such contract labour.

(Code, Article 56)

Prohibition of employment of contract laborers

Employment of contract laborers in core activities of any establishment is prohibited, except if:

  • the normal functioning of the establishment is such that the activity is
    ordinarily done through contractor; or
  • the activities are such that they do not require full time workers for the major portion of the working hours in a day or for longer periods, as the case may be;
  • any sudden increase of volume of work in the core activity which needs to be accomplished in a specified time

(Code, Article 57)

Please note that the requirements above do not apply to certain types of mining operations. See Article 68 for more details.


PSCI Principles

The following PSCI sub-principles are relevant to this issue:
Example Text Example Text

Lorem ipsum.


SAQ & Audit template

89636

Resources

javax.servlet.jsp.JspException: java.lang.RuntimeException: Unexpected exception
Occupational health & safety

Legislative provisions

The following legislative provisions are included:

Scope of application

The provisions below are applicable to:

  • Establishments employing at least 50 contract laborers at the current time or on any day of the preceding 12 months through contract;
  • Every manpower supply contractor who has employed, on any day of the
    preceding 12 months, at least 50 contract laborers

The provisions shall not apply to establishments in which work only of an intermittent or casual nature is performed, i.e. if it was performed for less than 120 days in the preceding 12 months or if it is of seasonal character and is performed for less than 60 days in a year.

(Code, Article 45)

Licencing obligation

No contractor to whom those requirements applies shall:

  • supply or engage contract laborers in any establishment; or
  • undertake or execute the work through contract laborers
    except under and in accordance with a licence issued by the authority after satisfying that the contractor fulfills such requisite qualifications or criteria as may be prescribed by the Central Government and such licence shall, among others, specify the number of such contract laborers who can be supplied or engaged, hours of work, or fixation of wages, or the amount of security to be deposited by the contractor.

Please note that, where the contractor does not fulfil the requisite qualifications or criteria referred above, the relevant authority may issue a "work specific licence" electronically renewable within such period as may be prescribed by the Central Government to supply or engage the contract laborers, or execute the work through contract laborers, only for the concerned work order as may be specified in such licence and subject to such conditions as may be specified in such licence.

(Code, Article 47)

For more details on the procedure to follow to obtain or renew a licence, see Articles 47(3)(b) and 48

Prohibition to charge contract labourers

The contractor shall not charge directly or indirectly, in whole or in part, any fee or commission from the contract laborers.

(Code, Article 49)

Notification to Government

  • When a contractor receives work order from an establishment either to supply contract laborers in the establishment or to execute the contract through contract laborers in the establishment they shall, within such time and in such manner as may be prescribed, intimate to the relevant authority.
  • Where the contractor fails to give notification, the designated authority may, after giving the holder of the licence an opportunity of showing cause, suspend or cancel the licence in such manner as may be prescribed by the appropriate Government.

(Code, Article 50)

Welfare facilities

Welfare facilities (see the relevant section on this page below for details) shall be provided by the principal employer of the establishment to the contract laborers who are employed in such establishment.

(Code, Article 53)

Effect of employing contract laborers from a non-licenced contractor

Where any principal employer of an establishment is employing contract laborers through a contractor who is required to obtain a licence, butthey have not obtained such licence, then, such employment shall be deemed to be in contravention of the provision of this Code.

(Code, Article 54)

Payment of wages

  • A contractor shall be responsible for payment of wages to each contract laborer employed by them and such wages shall be paid before the expiry of such period as may be prescribed by the appropriate Government.
  • Every contractor shall, make the disbursement of wages through bank transfer or electronic mode and inform the principal employer electronically the amount so paid by such mode. Provided that where it is not practicable to disburse payment in the mode specified in this section, then, the payment shall be made in such manner as may be prescribed by the appropriate Government.
  • In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then, the principal employer shall be liable to make payment of the wages in full or the unpaid balance due, as the case may be, to the concerned contract laborer employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

(Code, Article 55)

Experience certificate

Every concerned contractor shall issue, on demand, an experience certificate, in such form as may be prescribed by the appropriate Government, to the contract laborer giving details of the work performed by such contract labour.

(Code, Article 56)

Prohibition of employment of contract laborers

Employment of contract laborers in core activities of any establishment is prohibited, except if:

  • the normal functioning of the establishment is such that the activity is
    ordinarily done through contractor; or
  • the activities are such that they do not require full time workers for the major portion of the working hours in a day or for longer periods, as the case may be;
  • any sudden increase of volume of work in the core activity which needs to be accomplished in a specified time

(Code, Article 57)

Please note that the requirements above do not apply to certain types of mining operations. See Article 68 for more details.


PSCI Principles

The following PSCI sub-principles are relevant to this issue:
Example Text Example Text

Lorem ipsum.


SAQ & Audit template

89636

Resources

javax.servlet.jsp.JspException: java.lang.RuntimeException: Unexpected exception
Handling of hazardous chemicals

Legislative provisions

The following legislative provisions are included:

Scope of application

The provisions below are applicable to:

  • Establishments employing at least 50 contract laborers at the current time or on any day of the preceding 12 months through contract;
  • Every manpower supply contractor who has employed, on any day of the
    preceding 12 months, at least 50 contract laborers

The provisions shall not apply to establishments in which work only of an intermittent or casual nature is performed, i.e. if it was performed for less than 120 days in the preceding 12 months or if it is of seasonal character and is performed for less than 60 days in a year.

(Code, Article 45)

Licencing obligation

No contractor to whom those requirements applies shall:

  • supply or engage contract laborers in any establishment; or
  • undertake or execute the work through contract laborers
    except under and in accordance with a licence issued by the authority after satisfying that the contractor fulfills such requisite qualifications or criteria as may be prescribed by the Central Government and such licence shall, among others, specify the number of such contract laborers who can be supplied or engaged, hours of work, or fixation of wages, or the amount of security to be deposited by the contractor.

Please note that, where the contractor does not fulfil the requisite qualifications or criteria referred above, the relevant authority may issue a "work specific licence" electronically renewable within such period as may be prescribed by the Central Government to supply or engage the contract laborers, or execute the work through contract laborers, only for the concerned work order as may be specified in such licence and subject to such conditions as may be specified in such licence.

(Code, Article 47)

For more details on the procedure to follow to obtain or renew a licence, see Articles 47(3)(b) and 48

Prohibition to charge contract labourers

The contractor shall not charge directly or indirectly, in whole or in part, any fee or commission from the contract laborers.

(Code, Article 49)

Notification to Government

  • When a contractor receives work order from an establishment either to supply contract laborers in the establishment or to execute the contract through contract laborers in the establishment they shall, within such time and in such manner as may be prescribed, intimate to the relevant authority.
  • Where the contractor fails to give notification, the designated authority may, after giving the holder of the licence an opportunity of showing cause, suspend or cancel the licence in such manner as may be prescribed by the appropriate Government.

(Code, Article 50)

Welfare facilities

Welfare facilities (see the relevant section on this page below for details) shall be provided by the principal employer of the establishment to the contract laborers who are employed in such establishment.

(Code, Article 53)

Effect of employing contract laborers from a non-licenced contractor

Where any principal employer of an establishment is employing contract laborers through a contractor who is required to obtain a licence, butthey have not obtained such licence, then, such employment shall be deemed to be in contravention of the provision of this Code.

(Code, Article 54)

Payment of wages

  • A contractor shall be responsible for payment of wages to each contract laborer employed by them and such wages shall be paid before the expiry of such period as may be prescribed by the appropriate Government.
  • Every contractor shall, make the disbursement of wages through bank transfer or electronic mode and inform the principal employer electronically the amount so paid by such mode. Provided that where it is not practicable to disburse payment in the mode specified in this section, then, the payment shall be made in such manner as may be prescribed by the appropriate Government.
  • In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then, the principal employer shall be liable to make payment of the wages in full or the unpaid balance due, as the case may be, to the concerned contract laborer employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

(Code, Article 55)

Experience certificate

Every concerned contractor shall issue, on demand, an experience certificate, in such form as may be prescribed by the appropriate Government, to the contract laborer giving details of the work performed by such contract labour.

(Code, Article 56)

Prohibition of employment of contract laborers

Employment of contract laborers in core activities of any establishment is prohibited, except if:

  • the normal functioning of the establishment is such that the activity is
    ordinarily done through contractor; or
  • the activities are such that they do not require full time workers for the major portion of the working hours in a day or for longer periods, as the case may be;
  • any sudden increase of volume of work in the core activity which needs to be accomplished in a specified time

(Code, Article 57)

Please note that the requirements above do not apply to certain types of mining operations. See Article 68 for more details.


PSCI Principles

The following PSCI sub-principles are relevant to this issue:
Example Text Example Text

Lorem ipsum.


SAQ & Audit template

89636

Resources

javax.servlet.jsp.JspException: java.lang.RuntimeException: Unexpected exception
Risk management

Legislative provisions

The following legislative provisions are included:

Scope of application

The provisions below are applicable to:

  • Establishments employing at least 50 contract laborers at the current time or on any day of the preceding 12 months through contract;
  • Every manpower supply contractor who has employed, on any day of the
    preceding 12 months, at least 50 contract laborers

The provisions shall not apply to establishments in which work only of an intermittent or casual nature is performed, i.e. if it was performed for less than 120 days in the preceding 12 months or if it is of seasonal character and is performed for less than 60 days in a year.

(Code, Article 45)

Licencing obligation

No contractor to whom those requirements applies shall:

  • supply or engage contract laborers in any establishment; or
  • undertake or execute the work through contract laborers
    except under and in accordance with a licence issued by the authority after satisfying that the contractor fulfills such requisite qualifications or criteria as may be prescribed by the Central Government and such licence shall, among others, specify the number of such contract laborers who can be supplied or engaged, hours of work, or fixation of wages, or the amount of security to be deposited by the contractor.

Please note that, where the contractor does not fulfil the requisite qualifications or criteria referred above, the relevant authority may issue a "work specific licence" electronically renewable within such period as may be prescribed by the Central Government to supply or engage the contract laborers, or execute the work through contract laborers, only for the concerned work order as may be specified in such licence and subject to such conditions as may be specified in such licence.

(Code, Article 47)

For more details on the procedure to follow to obtain or renew a licence, see Articles 47(3)(b) and 48

Prohibition to charge contract labourers

The contractor shall not charge directly or indirectly, in whole or in part, any fee or commission from the contract laborers.

(Code, Article 49)

Notification to Government

  • When a contractor receives work order from an establishment either to supply contract laborers in the establishment or to execute the contract through contract laborers in the establishment they shall, within such time and in such manner as may be prescribed, intimate to the relevant authority.
  • Where the contractor fails to give notification, the designated authority may, after giving the holder of the licence an opportunity of showing cause, suspend or cancel the licence in such manner as may be prescribed by the appropriate Government.

(Code, Article 50)

Welfare facilities

Welfare facilities (see the relevant section on this page below for details) shall be provided by the principal employer of the establishment to the contract laborers who are employed in such establishment.

(Code, Article 53)

Effect of employing contract laborers from a non-licenced contractor

Where any principal employer of an establishment is employing contract laborers through a contractor who is required to obtain a licence, butthey have not obtained such licence, then, such employment shall be deemed to be in contravention of the provision of this Code.

(Code, Article 54)

Payment of wages

  • A contractor shall be responsible for payment of wages to each contract laborer employed by them and such wages shall be paid before the expiry of such period as may be prescribed by the appropriate Government.
  • Every contractor shall, make the disbursement of wages through bank transfer or electronic mode and inform the principal employer electronically the amount so paid by such mode. Provided that where it is not practicable to disburse payment in the mode specified in this section, then, the payment shall be made in such manner as may be prescribed by the appropriate Government.
  • In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then, the principal employer shall be liable to make payment of the wages in full or the unpaid balance due, as the case may be, to the concerned contract laborer employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

(Code, Article 55)

Experience certificate

Every concerned contractor shall issue, on demand, an experience certificate, in such form as may be prescribed by the appropriate Government, to the contract laborer giving details of the work performed by such contract labour.

(Code, Article 56)

Prohibition of employment of contract laborers

Employment of contract laborers in core activities of any establishment is prohibited, except if:

  • the normal functioning of the establishment is such that the activity is
    ordinarily done through contractor; or
  • the activities are such that they do not require full time workers for the major portion of the working hours in a day or for longer periods, as the case may be;
  • any sudden increase of volume of work in the core activity which needs to be accomplished in a specified time

(Code, Article 57)

Please note that the requirements above do not apply to certain types of mining operations. See Article 68 for more details.


PSCI Principles

The following PSCI sub-principles are relevant to this issue:
Example Text Example Text

Lorem ipsum.


SAQ & Audit template

89636

Resources

javax.servlet.jsp.JspException: java.lang.RuntimeException: Unexpected exception
Cruel, inhumane or degrading treatment by security forces

Legislative provisions

The following legislative provisions are included:

Scope of application

The provisions below are applicable to:

  • Establishments employing at least 50 contract laborers at the current time or on any day of the preceding 12 months through contract;
  • Every manpower supply contractor who has employed, on any day of the
    preceding 12 months, at least 50 contract laborers

The provisions shall not apply to establishments in which work only of an intermittent or casual nature is performed, i.e. if it was performed for less than 120 days in the preceding 12 months or if it is of seasonal character and is performed for less than 60 days in a year.

(Code, Article 45)

Licencing obligation

No contractor to whom those requirements applies shall:

  • supply or engage contract laborers in any establishment; or
  • undertake or execute the work through contract laborers
    except under and in accordance with a licence issued by the authority after satisfying that the contractor fulfills such requisite qualifications or criteria as may be prescribed by the Central Government and such licence shall, among others, specify the number of such contract laborers who can be supplied or engaged, hours of work, or fixation of wages, or the amount of security to be deposited by the contractor.

Please note that, where the contractor does not fulfil the requisite qualifications or criteria referred above, the relevant authority may issue a "work specific licence" electronically renewable within such period as may be prescribed by the Central Government to supply or engage the contract laborers, or execute the work through contract laborers, only for the concerned work order as may be specified in such licence and subject to such conditions as may be specified in such licence.

(Code, Article 47)

For more details on the procedure to follow to obtain or renew a licence, see Articles 47(3)(b) and 48

Prohibition to charge contract labourers

The contractor shall not charge directly or indirectly, in whole or in part, any fee or commission from the contract laborers.

(Code, Article 49)

Notification to Government

  • When a contractor receives work order from an establishment either to supply contract laborers in the establishment or to execute the contract through contract laborers in the establishment they shall, within such time and in such manner as may be prescribed, intimate to the relevant authority.
  • Where the contractor fails to give notification, the designated authority may, after giving the holder of the licence an opportunity of showing cause, suspend or cancel the licence in such manner as may be prescribed by the appropriate Government.

(Code, Article 50)

Welfare facilities

Welfare facilities (see the relevant section on this page below for details) shall be provided by the principal employer of the establishment to the contract laborers who are employed in such establishment.

(Code, Article 53)

Effect of employing contract laborers from a non-licenced contractor

Where any principal employer of an establishment is employing contract laborers through a contractor who is required to obtain a licence, butthey have not obtained such licence, then, such employment shall be deemed to be in contravention of the provision of this Code.

(Code, Article 54)

Payment of wages

  • A contractor shall be responsible for payment of wages to each contract laborer employed by them and such wages shall be paid before the expiry of such period as may be prescribed by the appropriate Government.
  • Every contractor shall, make the disbursement of wages through bank transfer or electronic mode and inform the principal employer electronically the amount so paid by such mode. Provided that where it is not practicable to disburse payment in the mode specified in this section, then, the payment shall be made in such manner as may be prescribed by the appropriate Government.
  • In case the contractor fails to make payment of wages within the prescribed period or makes short payment, then, the principal employer shall be liable to make payment of the wages in full or the unpaid balance due, as the case may be, to the concerned contract laborer employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor under any contract or as a debt payable by the contractor.

(Code, Article 55)

Experience certificate

Every concerned contractor shall issue, on demand, an experience certificate, in such form as may be prescribed by the appropriate Government, to the contract laborer giving details of the work performed by such contract labour.

(Code, Article 56)

Prohibition of employment of contract laborers

Employment of contract laborers in core activities of any establishment is prohibited, except if:

  • the normal functioning of the establishment is such that the activity is
    ordinarily done through contractor; or
  • the activities are such that they do not require full time workers for the major portion of the working hours in a day or for longer periods, as the case may be;
  • any sudden increase of volume of work in the core activity which needs to be accomplished in a specified time

(Code, Article 57)

Please note that the requirements above do not apply to certain types of mining operations. See Article 68 for more details.


PSCI Principles

The following PSCI sub-principles are relevant to this issue:
Example Text Example Text

Lorem ipsum.


SAQ & Audit template

89636

Resources

javax.servlet.jsp.JspException: java.lang.RuntimeException: Unexpected exception
Companies in scope

The Code applies to

  • Factories (with 10+ workers using power, or 20+ without power)
  • Mines, docks, construction sites, plantations
  • Contract and inter-state migrant workers
  • Gig and platform workers (to a limited extent)

Are excluded:

  • Offices of the Central and State Gorvernments
  • Warships and military establishments
Business requirements

Establishments must be registered within 60 days of the commencement of the Code, electronically to the registering officers; additional licences may be needed for factories, mines, or operations with beedi and cigar workers.


Employers shall: 

  •  ensure that workplace is free from hazards which cause or are likely to cause injury or occupational disease to the employees
  • comply with the occupational safety and health standards under this Code (among others)
  • provide annual health examination or test free of costs to certain class / types of employees
  • provide and maintain, as far as is reasonably practicable, a working environment that is safe and without risk to the health of the employees
  • ensure the disposal of hazardous and toxic waste including disposal of e-waste
  • issue a letter of appointment to every employee on their appointment in the establishment
  • ensure that no charge is levied on any employee, in respect of anything done or provided for maintenance of safety and health at workplace including conduct of medical examination and investigation for the purpose of detecting occupational diseases
  • relating to factory, mine, dock work, building or other construction work or plantation, ensure and be responsible for the safety and health of employees, workers and other persons who are on the work premises of the employer, with or without their knowledge, as the case may be

Owners and agents of mines shall make financial and other provisions and take such other steps as may be necessary for compliance with the provisions of this Code


Employees shall:

  •  take reasonable care for the health and safety of themselves and of other persons who may be affected by their acts or omissions at the workplace
  • comply with the safety and health requirements specified in the standards
  • co-operate with the employer in meeting the statutory obligations of the employer under this Code 
  • if any situation which is unsafe or unhealthy comes to their attention, as soon as practicable, report such situation to their employer or to the health and safety representative and in case of mine, agent or manager, safety officers or an official for their workplace or section thereof
  • not wilfully interfere with or misuse or neglect any appliance, convenience or other thing provided at workplace for the purpose of securing the health, safety and welfare of workers
  • not do, wilfully and without reasonable cause, anything, likely to endanger themselves or others; and
  • perform such other duties as may be prescribed by the appropriate Government
  • have the right to obtain from the employer information relating to employee's health and safety at work and represent to the employer directly or through a member of the Safety Committee regarding inadequate provision for protection of their safety or health in connection with the work activity in the workplace, and if not satisfied, to the Inspector-cum-Facilitator
  • have the right, if they have reasonable apprehension that there is a likelihood of imminent serious personal injury or death or imminent danger to health, to bring it to the attention of their employer directly or through a member of the Safety Committee and simultaneously to the Inspector-cum-Facilitator
  • take immediate remedial action if they are satisfied about the existence of such imminent danger and send a report of the action taken to the Inspector-cum-Facilitator in such manner as may be prescribed by the appropriate Government.
    Please note that, if the employer is not satisfied about the existence of any imminent danger as apprehended by their employees, they shall, nevertheless, refer the matter to the Inspector-cum-Facilitator whose decision on the question of the existence of such imminent danger shall be final.

Every person who designs, manufactures, imports or supplies any article for use in any establishment shall: 

  • ensure so far as is reasonably practicable, that the article is so designed and constructed in the establishment as to be safe and without risk to the health of the workers when properly used - and carry out tests to ensure this requirement is effectively implemented
  • take steps as may be necessary to ensure that adequate information will be available  in connection with the use of the article in any establishment, about the use for which such article is designed and tested, and about any conditions necessary to ensure that the article, when put to such use, shall be safe, and without risk to the health of the workers

Every person who erects or installs any article for use in a factory, shall ensure, so far as practicable, that such article so erected or installed does not make it unsafe or a risk to health when that article is used by the persons in such factory.


Other categories of individuals (e.g. architect, project engineer, designer) also have specific duties; please see the [Code](https://labour.gov.in/sites/default/files/osh_gazette.pdf) for further details.

Reporting requirements
  • TBA

 

Penalties / Non-compliance / Enforcement & sanctions
  • TBA

 

Key definitions
  • Contract labour:

A worker who shall be deemed to be employed in or
in connection with the work of an establishment when they are hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer and includes inter-State migrant worker but does not include a worker (other than part time employee) who is regularly employed by the contractor for any activity of their establishment and their employment is governed by mutually accepted standards of the conditions of employment (including engagement on
permanent basis), and gets periodical increment in the pay, social security coverage and other welfare benefits in accordance with the law for the time being in force in such employment

 

  • Employee:

A person (other than an apprentice engaged under the Apprentices Act, 1961) employed on wages by an establishment to do any skilled, semi-skilled, unskilled, manual, operational, supervisory, managerial, administrative, technical, clerical or any other work, whether the terms of employment be express or implied.
The definition of employee has been made consistent in all the new codes.

 

  • Employer:

A person who employs, whether directly or through any
person, or on their behalf, or on behalf of any person, one or more employees in their establishment and who has ultimate control over the affairs of the establishment.

 

  • Establishment: 
  •  A place where any industry, trade, business, manufacturing or occupation is carried on in which ten or more workers are employed;
  • Motor transport undertaking, newspaper establishment, audio-video production, building and other construction work or plantation, in which ten or more workers are employed; or
  • Factory in which ten or more workers are employed 
  • A mine or port or vicinity of port where dock work is carried out

 

  • Hazardous process:

Any process or activity in relation to an industry or plantation where, unless special care is taken, raw materials used therein or the intermediate or finished products, bye-products, hazardous substances, wastes or effluents thereof or spraying of any pesticides, insecticides or chemicals used therein, as the case may be, would:

  • cause material impairment to the health of the persons engaged in or

connected therewith, or

  • result in the pollution of the general environment

 

  • Principal employer: 
  •  Any person responsible for the supervision and control of the establishment where contract labor is employed or engaged; or
  • The owner or the occupier of the factory or, if relevant, the manager of the factory.

 

  • Wages:

All remuneration whether by way of salaries, allowances or
otherwise, expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes basic pay, dearness allowance, and retaining allowance, if any, but does not include (with some exceptions): 

  • bonuses payable under any law for the time being in force, which does not form part of the remuneration payable under the terms of employment
  • the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the appropriate Government
  • any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;
  • any conveyance allowance or the value of any travelling concession;
  • any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment;
  • house rent allowance;
  • remuneration payable under any award or settlement between the parties or order of a court or Tribunal;
  • any overtime allowance;
  • any commission payable to the employee;
  • any gratuity payable on the termination of employment;
  • any retrenchment compensation or other retirement benefit payable to the employee or any ex gratia payment made to him on the termination of employment