Legal Glossary

Source: Proviso to Section 2(y), Code on Wages, 2019

If the excluded components (HRA, conveyance, overtime, etc.) exceed 50% of the total remuneration, the amount exceeding 50% is deemed to be part of wages. This prevents employers from structuring salaries to minimise statutory liabilities by inflating allowances.

Thresholds: Exclusions capped at 50% of total remuneration

Example: If total CTC is ₹1,00,000 and basic + DA is ₹30,000, excluded components = ₹70,000 (70%). Since 70% exceeds 50%, the excess ₹20,000 is added back to wages, making effective wages ₹50,000.

Source: Section 142, SS Code, 2020

Mandatory linking of Aadhaar number for availing benefits under EPF, ESI, and other social security schemes. The Code makes Aadhaar the primary identifier for all social security registrations and benefit disbursements.

Source: Section 7, Code on Wages, 2019

The Central Government shall constitute a Central Advisory Board and each State Government shall constitute a State Advisory Board to advise the respective Governments on matters including fixation and revision of minimum wages, increasing employment opportunities for women, and other prescribed matters.

Boards include equal representation of employers and employees, independent members, and at least one-third women members.

Source: Section 2(2), SS Code, 2020

A digital intermediary or a marketplace for a buyer or user of a service to connect with the seller or the service provider. Examples include ride-hailing, food delivery, and e-commerce platforms. May be required to contribute 1-2% of annual turnover towards workers' social security.

Thresholds: Social security contribution: 1-2% of annual turnover

Source: Section 2(a), POSH Act, 2013

A woman of any age, whether employed or not, who alleges to have been subjected to any act of sexual harassment. Includes women visiting the workplace in any capacity.

Source: Sections 26-30, Code on Wages, 2019

Every employer is required to pay to every employee a minimum bonus of 8.33% of wages or ₹100 (whichever is higher), with a maximum of 20% of wages. Applicable to establishments with 20 or more employees. Employees drawing wages up to ₹21,000 per month are eligible.

Thresholds: Minimum bonus: 8.33% of wages; Maximum bonus: 20% of wages; Eligibility ceiling: ₹21,000/month; Establishment threshold: 20+ employees

Source: Section 6, OSH Code, 2020

Every employer shall issue an appointment letter to every employee upon engagement, containing prescribed particulars. This is now a statutory obligation under the Code, not merely a best practice.

First time in Indian labour law that issuing an appointment letter is a statutory mandate for all establishments.

The Central Government for establishments owned/controlled by it, railways, mines, oilfields, major ports, telecom, banking, insurance, and establishments with branches in more than one state. The State Government for all other establishments.

Determining the 'Appropriate Government' is the first step in any compliance analysis as it decides which authority has jurisdiction.

Source: Section 111, SS Code, 2020

A cess levied on the cost of construction at a rate between 1% and 2% (as notified by the Government). Collected from the employer and paid into the Building and Other Construction Workers' Welfare Fund. Used to fund welfare schemes for building workers.

Thresholds: 1-2% of cost of construction

Source: Section 31, Code on Wages, 2019

An employee can be disqualified from receiving bonus on four grounds: (1) Fraud; (2) Riotous or violent behaviour on the premises; (3) Theft, misappropriation or sabotage of property; (4) Conviction for sexual harassment.

The addition of sexual harassment as a disqualification ground is new under the Code.

Business Responsibility and Sustainability Reporting, a disclosure framework mandated by SEBI for the top 1,000 listed companies in India. Covers ESG (Environmental, Social, and Governance) parameters including labour practices, employee welfare, and compliance with labour laws.

Source: Section 2(d), OSH Code, 2020

Construction, alteration, repair, maintenance, or demolition of buildings, streets, roads, railways, tramways, airfields, irrigation, drainage, embankment, dams, and similar works. Specifically excludes construction carried out by a building worker in their own residence.

Source: Section 2(e), OSH Code, 2020

A person who is employed to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work for hire or reward in connection with any building or other construction work.

Source: Chapter XIII, SS Code, 2020

A facility established by the Government to provide career services including career counselling, vocational guidance, information about job vacancies and training opportunities. Every establishment with 500+ employees must report vacancies to the career centre.

Thresholds: Vacancy reporting mandatory for 500+ employee establishments

Source: Section 32, IR Code, 2020

An officer appointed by the Appropriate Government to certify the Standing Orders of an establishment. Reviews the draft, ensures conformity with the model, hears objections, and certifies the final Standing Orders.

The head of the inspection machinery appointed by the Appropriate Government. Supervises Inspector-cum-Facilitators, manages the web-based inspection system, and can direct special inspections.

Source: Section 74, IR Code, 2020

The permanent closing down of a place of employment or part thereof. Establishments with 300 or more workers require prior government permission. At least 60 days' advance notice must be given.

Thresholds: 60 days' advance notice required; Government permission needed for 300+ worker establishments

A single license issued to a factory or establishment that also employs contract labour, combining what used to require separate licenses under multiple acts. Simplifies compliance for employers operating factories with contract workers.

A mechanism whereby certain offences under the labour codes can be settled by paying a compounding fee instead of facing prosecution. First-time offences (other than those involving death or serious injury) may be compounded by paying 50% of the maximum fine. Repeat offences within 5 years cannot be compounded.

Thresholds: Compounding fee: 50% of maximum fine; Not available for repeat offences within 5 years

Source: Sections 4-8, IR Code, 2020

The process by which a Conciliation Officer mediates between the employer and workers to arrive at a fair and amicable settlement of an industrial dispute. Strikes and lock-outs are prohibited during conciliation proceedings.

Source: Section 10, POSH Act, 2013

Before initiating an inquiry, the Internal Committee may, at the request of the aggrieved woman, take steps to settle the matter between her and the respondent through conciliation. No monetary settlement is allowed. Settlement is recorded and no further inquiry is conducted.

Source: Section 4, IR Code, 2020

An officer appointed by the Appropriate Government for the purpose of mediating in and promoting settlement of industrial disputes. Must complete conciliation proceedings within 45 days.

Thresholds: 45-day timeline for conciliation proceedings

Labour is a subject in the Concurrent List (Entry 22-24, List III) of the Seventh Schedule of the Constitution, meaning both the Central and State Governments can legislate on it. Central law prevails in case of conflict, unless the State law has received Presidential assent.

Source: Section 58, SS Code, 2020

Uninterrupted service for a specified period. For gratuity, 5 years' continuous service is generally required (with pro-rata entitlement for fixed-term employees). A worker who has actually worked for at least 190 days (underground mines) or 240 days in a year is deemed to have completed continuous service.

Thresholds: 190 days for underground mines; 240 days for other establishments

Source: Section 2(g), OSH Code, 2020

A worker deemed to be employed as contract labour when hired in connection with the work of an establishment by or through a contractor, with or without knowledge of the principal employer. The Code prohibits employment of contract labour in core activities except in specific circumstances.

Thresholds: Applies to establishments employing 50+ contract workers, and contractors employing 50+ workers

Source: Section 50, OSH Code, 2020

A license required for any contractor supplying contract labour to an establishment. Must be obtained from the licensing officer and is subject to conditions including workers' welfare. Application in Form XIII under the draft rules.

Source: Section 2(h), OSH Code, 2020

Any activity for which the establishment is set up and includes any activity which is essential or necessary to such activity. Contract labour is generally prohibited in core activities, with limited exceptions.

Source: Proviso to Section 57, OSH Code, 2020

Contract labour may be employed in core activities only in three specific circumstances: (1) work is of intermittent or seasonal nature, (2) work is not done by regular workers in the normal course, (3) sudden increase in volume of work necessitating it for a limited duration.

The expenditure incurred by an employer on building and other construction work, on which the BOCW Cess is levied. Includes cost of material, labour, and other expenses directly related to the construction activity.

Source: Chapter VI, SS Code, 2020

Every establishment employing 50 or more employees shall provide a crèche facility within a prescribed distance, either individually or along with other establishments in a common facility. Women workers are entitled to visit the crèche 4 times daily including nursing breaks.

Thresholds: Mandatory for establishments with 50+ employees; 4 visits daily allowed

An occurrence in an establishment or class of establishments that is of a prescribed dangerous nature. Must be reported to the Inspector-cum-Facilitator immediately upon occurrence, with a detailed report within the prescribed timeframe.

Source: Section 18, Code on Wages, 2019

Permissible deductions that an employer can make from wages, subject to limits. Total deductions cannot exceed 50% of wages. Deductions are allowed for fines, absence from duty, accommodation, recovery of advances, income tax, PF contributions, and other prescribed items.

Thresholds: Maximum total deductions: 50% of wages

Source: Section 2(m) proviso, OSH Code, 2020

The Appropriate Government may declare any premises where a manufacturing process is carried on (even with fewer than the threshold number of workers) to be a factory for the purposes of the Code, if conditions of work so require.

If the registering authority does not communicate the decision on a registration application within the prescribed period, the registration shall be deemed to have been granted. Registration is valid for 24 months and must be renewed.

Thresholds: Registration validity: 24 months

An internal disciplinary proceeding conducted by the employer before terminating an employee for misconduct. Must follow principles of natural justice: written charge sheet, opportunity to present defence, examination of witnesses, and a speaking order. Non-compliance can render the termination void.

A national database of unorganised workers maintained by the Ministry of Labour & Employment. Workers can self-register using Aadhaar and mobile number. Provides Universal Account Number (UAN) for accessing social security benefits. Over 30 crore workers registered.

Source: Section 2(k), Code on Wages, 2019

Any person employed on wages by an establishment to do any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work, whether the terms of employment are express or implied. Excludes apprentices engaged under the Apprentices Act, 1961.

Exclusions: Apprentices under the Apprentices Act, 1961

A plan under which a company grants its employees the option to purchase shares of the company at a predetermined price (exercise/grant price) after a specified vesting period. Regulated by SEBI (for listed companies) and the Companies Act, 2013. Types include vanilla ESOPs, SARs, RSUs, and phantom stock.

Source: Chapter VII, SS Code, 2020

Compensation payable by the employer to a worker (or dependents) for injury or death arising out of and in the course of employment. Replaces the earlier Workmen's Compensation scheme. Not applicable where ESI is applicable.

Source: Chapter III, SS Code, 2020

A contributory savings scheme for employees. Applicable to establishments with 20 or more employees. Both employer and employee contribute 12% of wages. Provides retirement corpus, partial withdrawals for specific purposes, and pension through EPS.

Thresholds: 20+ employees; 12% contribution each from employer and employee

Source: Chapter IV, SS Code, 2020

A self-financing social security scheme providing medical, sickness, maternity, disablement, and dependent benefits to employees and their families. Applicable to establishments with 10 or more employees. Covers employees earning up to ₹21,000/month (₹25,000 for disabled).

Thresholds: 10+ employees; Wage ceiling: ₹21,000/month; ₹25,000/month for persons with disability

Source: Section 2(l), Code on Wages, 2019

A person who employs one or more employees in his establishment and where the establishment is carried on by any department of the Government, the authority appointed by the head of such department for supervision and control of employees. Includes contractors and legal representatives of a deceased employer.

Source: Section 3, Code on Wages, 2019

No employer shall discriminate between employees on grounds of gender in matters relating to wages for the same work or work of similar nature. Prohibits discrimination in recruitment as well, except where employment of women is restricted or prohibited by law.

Subsumes the earlier Equal Remuneration Act, 1976.

Source: Section 2(n), OSH Code, 2020

Includes (i) a place where any industry, trade, business, manufacture, or occupation is carried on, (ii) factories, motor transport undertakings, newspaper establishments, audio-video productions, plantations, and mines, (iii) building and other construction work.

A certificate issued by the contractor to contract workers upon completion of their engagement, in the prescribed form (Form XV under draft rules). Documents the worker's role, duration of service, and nature of work performed.

Source: Section 2(m), OSH Code, 2020

Any premises where (i) 10 or more workers are working with the aid of power, or (ii) 20 or more workers are working without the aid of power, and in any part of which a manufacturing process is being carried on.

Thresholds: 10+ workers with power; 20+ workers without power

Source: Section 2(o), IR Code, 2020

Employment of a worker on the basis of a written contract for a fixed period. The worker shall be eligible for all statutory benefits available to a permanent worker doing the same or similar work. Entitled to gratuity on a pro-rata basis even if the term is less than five years.

Fixed-term employees cannot be treated less favourably than permanent employees. This is a significant new provision replacing the earlier practice of unregulated contract renewals.

Source: Section 9, Code on Wages, 2019

The minimum benchmark wage level fixed by the Central Government, below which no State Government can set its minimum wage. Determined based on minimum living standards including food, clothing, housing, education, and medical care. Updated every five years based on living standard criteria.

First-ever national floor wage concept, earlier, minimum wages varied dramatically between states with no statutory floor.

The process of settling all dues between the employer and employee upon termination of employment. Includes 8 key components: (1) unpaid salary, (2) leave encashment, (3) gratuity, (4) EPF/ESI settlement, (5) bonus (if applicable), (6) retrenchment compensation (if applicable), (7) notice pay, and (8) deductions for outstanding loans/advances.

Section 6 of the General Clauses Act provides that when an Act is repealed and re-enacted, references to the repealed Act in any other enactment shall be construed as references to the new Act. This is significant for the transition from old labour laws to the new Codes.

Source: Section 2(35), SS Code, 2020

A person who performs work or participates in a work arrangement and earns from such activities outside of a traditional employer-employee relationship. Examples include freelancers, independent contractors, and on-demand workers.

First-ever statutory recognition of gig workers in Indian labour law.

Source: Chapter V, SS Code, 2020

A lump sum payment made by the employer to an employee on termination of employment after completing 5 years of continuous service. Calculated at 15 days' wages for every completed year of service (or part thereof exceeding 6 months). Fixed-term employees are eligible on a pro-rata basis regardless of 5-year requirement.

Thresholds: 5 years' continuous service (waived for fixed-term employees); 15 days' wages per year of service; Maximum: ₹20 lakh

Source: Section 4, IR Code, 2020

A committee constituted in every industrial establishment employing 20 or more workers. Consists of equal representation of employer and workers (max 10 members), with women representation proportional to workforce. Must resolve grievances within 30 days.

Thresholds: Mandatory in establishments with 20+ workers; Maximum 10 members; 30-day resolution timeline

Source: Section 2(o), OSH Code, 2020

Any process or activity in connection with an industry specified in the Schedule where, unless special care is taken, raw materials used or the intermediate or finished products handled are likely to cause material impairment to health of persons engaged in or connected with the process.

A notice issued by the Inspector-cum-Facilitator to an employer specifying the contravention and directing rectification within a prescribed period. Gives employers an opportunity to comply before prosecution is initiated.

Source: Code on Wages, 2019

Wages paid otherwise than in current coin or currency notes, i.e., payment in the form of goods, services, or other non-cash compensation. The Code permits in-kind wages subject to a maximum limit.

Thresholds: In-kind wages limited to 15% of total wages

Source: Section 2(q), IR Code, 2020

Any dispute or difference between employers and workers, or between workers and workers, which is connected with the employment or non-employment or the terms of employment or the conditions of labour of any person.

Source: Section 44, IR Code, 2020

A tribunal constituted by the Appropriate Government for adjudication of industrial disputes. Under the new Code, tribunals will be two-member benches (one judicial, one administrative) replacing the earlier single-member system.

The two-member bench is a significant departure from the old Industrial Disputes Act regime.

Source: Section 2(p), IR Code, 2020

Any systematic activity carried on by co-operation between an employer and his workers for the production, supply or distribution of goods or services with a view to satisfy human wants or wishes, whether or not any capital has been invested or any profit motive exists.

Exclusions: Institutions owned or managed by organisations wholly or substantially engaged in charitable, social or philanthropic service; Any activity of the Appropriate Government relatable to sovereign functions including defence, atomic energy, and space; Any domestic service; Any activity being a profession practised by an individual or body of individuals having a recognised qualification

Source: Section 37, SS Code, 2020

A government officer who replaces the earlier 'Inspector' role across all four labour codes. Dual mandate: enforcement (inspection, inquiry) and facilitation (advising employers on compliance). Inspections are assigned through a web-based, computerised system to reduce discretion and corruption.

This rebranding from 'Inspector' to 'Inspector-cum-Facilitator' across all codes reflects the shift from purely punitive to advisory enforcement.

Source: Section 2(p), OSH Code, 2020

A worker who has come from one State and obtained employment in another State. The worker's wages must not be less than what is applicable in the State of employment. Entitled to journey allowance, displacement allowance, and a helpline facility.

Source: Section 4, POSH Act, 2013

A committee constituted by every employer at each workplace employing 10+ employees to receive and redress complaints of sexual harassment. Composition: Presiding Officer (senior woman employee), minimum 2 internal members committed to women's causes, and 1 external member from an NGO or body familiar with sexual harassment issues.

Thresholds: Mandatory for workplaces with 10+ employees

Source: Section 61, OSH Code, 2020

An allowance payable by the employer to inter-state migrant workers for the to-and-fro journey from the worker's native state to the place of employment, once in a year. Also includes displacement allowance at the time of initial hiring.

Source: Section 2(q), IR Code, 2020

The failure, refusal, or inability of an employer to give employment to a worker whose name appears on the muster roll and who has not been retrenched. Entitles the worker to compensation equal to 50% of basic wages and dearness allowance for the lay-off period.

Thresholds: Compensation: 50% of basic wages + DA; Prior government permission needed for establishments with 300+ workers

Payment received by an employee for accumulated but unused leave at the time of retirement, resignation, or during service. Specifically excluded from the definition of 'allowances' for the purpose of wage calculations under the new Codes.

Source: Section 6, POSH Act, 2013

A committee constituted by the District Officer at the district level to receive complaints from workplaces where no Internal Committee is constituted (establishments with fewer than 10 employees) or where the complaint is against the employer.

Source: Section 2(r), IR Code, 2020

The temporary closing of a place of employment, or the suspension of work, or the refusal by an employer to continue to employ any number of persons employed by him. Subject to notice requirements and restrictions similar to strikes.

Lock-outs are prohibited during and up to 7 days after conciliation proceedings.

Source: Chapter VI, SS Code, 2020

Paid leave entitlement for women workers. 26 weeks for the first two surviving children and 12 weeks for subsequent children. Includes 6 weeks pre-delivery leave. Also covers miscarriage (6 weeks), tubectomy (2 weeks), and illness arising out of pregnancy.

Thresholds: 26 weeks (first two children); 12 weeks (third child onwards); 6 weeks pre-delivery

A lump sum amount of ₹3,500 payable by the employer to a woman worker if no pre-natal and post-natal care is provided free of charge by the employer. Payable along with maternity benefit.

Thresholds: ₹3,500

Source: Section 6, Code on Wages, 2019

The wage rate fixed by the Appropriate Government for different categories of workers in different geographical areas. No employer shall pay wages less than the minimum rate of wages. The Code universalises minimum wages to all employments, removing the earlier concept of 'Scheduled Employment'.

Under the old Minimum Wages Act, 1948, minimum wages applied only to 'Scheduled Employments' listed in the Schedule. The Code removes this restriction.

Source: Section 46, IR Code, 2020

A tribunal constituted by the Central Government for adjudication of industrial disputes involving national importance or establishments situated in more than one state. Also hears appeals from Industrial Tribunals.

Source: Section 17, OSH Code, 2020

An advisory body constituted by the Central Government to advise it on matters relating to occupational safety, health, and working conditions, including standards, rules, and regulations.

Source: Section 6, SS Code, 2020

A Board constituted by the Central Government to recommend social security schemes for unorganised workers, gig workers, and platform workers. Advises on matters such as the administration of the Social Security Fund and formulation of suitable welfare schemes.

Source: Section 14, IR Code, 2020

Where no single trade union has 51% membership, a council consisting of representatives of unions having at least 20% membership is formed to negotiate with the employer on behalf of all workers.

Thresholds: Minimum 20% membership for representation

Source: Section 14, IR Code, 2020

A registered trade union that has the support of at least 51% of workers on the muster roll of the establishment. If no single union has 51% support, a Negotiating Council is formed instead.

Thresholds: 51% membership of workers on muster roll

Source: Section 43, OSH Code, 2020

Women workers may be employed between 7:00 PM and 6:00 AM subject to conditions prescribed by the Appropriate Government regarding safety, holidays, and working hours. The employer must ensure adequate safeguards relating to safety of women, their transportation, and consent.

Thresholds: Night shift hours: 7:00 PM to 6:00 AM

This is a significant change, earlier legislation generally prohibited women from working night shifts in factories.

Source: Section 40, IR Code, 2020

An employer who proposes to effect any change in the conditions of service applicable to any worker in respect of a matter specified in the Third Schedule must give 21 days' notice to the workers. Matters include wages, hours of work, rest intervals, and leave.

Thresholds: 21 days' notice before implementing changes

A notice to be filed electronically by the employer before commencing operations or within the prescribed period. Contains prescribed particulars about the establishment, nature of work, and expected number of workers.

The period of advance notice required to be given by either the employer or employee before termination or resignation takes effect. Governed by the employment contract and Standing Orders. In lieu of notice, the party may pay wages for the notice period ('notice pay').

Source: Chapter VI, SS Code, 2020

A woman returning to work after delivery is entitled to two breaks for nursing the child until the child attains the age of 15 months. These breaks are in addition to the regular intervals for rest.

Thresholds: 2 nursing breaks daily; Until child reaches 15 months

Source: Section 2(x), OSH Code, 2020

The person who has ultimate control over the affairs of the factory. Where the affairs are entrusted to a managing agent, such agent shall be deemed to be the occupier. The occupier bears primary responsibility for the health, safety, and welfare of workers.

Source: Section 14, Code on Wages, 2019

Work done beyond normal working hours. Under the Code, overtime wages must be paid at twice the normal rate of wages. The Central Government may prescribe the maximum permissible overtime hours.

Thresholds: Overtime rate: 2x normal wages

The change in the present value of the defined benefit obligation for employee service in prior periods, resulting from a plan amendment or curtailment. Under Ind AS 19, past service cost must be recognised immediately in the profit and loss account in the period of the plan amendment.

Relevant for companies accounting for gratuity, leave encashment, and pension liabilities under the new codes.

Source: Section 2(56), SS Code, 2020

A form of employment in which organisations or individuals use an online platform to access other organisations or individuals to solve specific problems or to provide specific services in exchange for payment.

Source: Section 2(55), SS Code, 2020

A worker who accesses other organisations or individuals using online platforms to provide specific services in exchange for payment. Distinguished from gig workers by the necessary involvement of a digital platform.

Source: Section 4(2)(a), POSH Act, 2013

A senior-level woman employee nominated as the chairperson of the Internal Committee. Must be employed at a senior level at the workplace. If not available at the workplace, can be nominated from another office or unit.

Source: Section 2(z), OSH Code, 2020

The owner or occupier of the establishment where contract labour is employed. Responsible for ensuring the contractor complies with statutory obligations. Liability to pay wages if the contractor fails to do so.

Source: Section 83, IR Code, 2020

A fund to be constituted by the Appropriate Government for providing re-skilling to retrenched workers. The employer shall contribute an amount equal to 15 days' wages last drawn by the worker to this fund within 45 days of retrenchment.

Thresholds: Employer contribution: 15 days' wages; Payment deadline: within 45 days of retrenchment

A formal letter issued by the employer to the employee on the last working day, confirming that the employee has been relieved of duties and all formalities are completed. Essential for the employee's future employment as proof of proper separation from the previous employer.

Source: Section 2(zh), IR Code, 2020

The termination by the employer of the service of a worker for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action.

Exclusions: Voluntary retirement; Retirement on reaching the age of superannuation; Termination as a result of non-renewal of contract of employment on its expiry

Source: Section 70, IR Code, 2020

Compensation payable to a retrenched worker at the rate of 15 days' average pay for every completed year of continuous service, or any part thereof in excess of six months. Must be paid before retrenchment takes effect.

Thresholds: 15 days' average pay per completed year of service

Source: Section 22, OSH Code, 2020

A committee constituted in every establishment employing the prescribed number of workers (or carrying on hazardous processes) to promote safety awareness and advise on safety measures. Consists of representatives of both employers and workers.

Source: Section 22, OSH Code, 2020

A qualified officer appointed in factories and establishments employing the prescribed number of workers, responsible for ensuring compliance with safety provisions, conducting safety audits, and training workers in safe practices.

Source: Formerly Schedule to the Minimum Wages Act, 1948

A concept under the old Minimum Wages Act, 1948 where minimum wages applied only to employments listed in a schedule. The Code on Wages abolishes this concept entirely, minimum wages now apply to all employments universally.

This is one of the most significant changes under the new Code: approximately 50 crore additional workers will be covered by minimum wages.

Constituted in 1999 under Justice Ravindra Varma (later chaired by Ravindra Varma), the Commission submitted its report in 2002 recommending the consolidation of 44 Central labour laws into 4 Codes. This recommendation formed the basis for the current four Labour Codes.

The first National Commission on Labour was constituted in 1966 under Justice P.B. Gajendragadkar.

A mechanism under which employers can certify their own compliance with labour laws through online submission of returns. Reduces the need for physical inspections. Part of the government's ease-of-doing-business initiative.

Source: Section 2(n), POSH Act, 2013

Includes any unwelcome act or behaviour: (i) physical contact and advances, (ii) demand or request for sexual favours, (iii) making sexually coloured remarks, (iv) showing pornography, (v) any other unwelcome physical, verbal or non-verbal conduct of sexual nature.

A unified web portal of the Ministry of Labour & Employment for online registration, filing of returns, and compliance reporting. Provides a single Unified Annual Return that covers all four labour codes. Unique Labour Identification Number (LIN) is allotted to each establishment.

Source: Section 3, OSH Code, 2020

The Code introduces a simplified, single-window registration system for establishments. Every employer must apply for registration within 60 days of commencement. One registration covers all applicable labour laws.

Thresholds: Registration within 60 days of commencement

Replaces the earlier regime of multiple registrations under different acts.

Source: Section 141, SS Code, 2020

A fund constituted by the Central Government for welfare of unorganised workers, gig workers, and platform workers. Funded through contributions from the Central Government, State Governments, aggregators (1-2% of turnover), CSR funds, and other sources.

A person appointed to manage a mine in the absence of the owner, agent, or manager actually residing at or near the mine. Bears responsibility for the safety and health of workers in the mine.

Source: Section 30, IR Code, 2020

Rules of conduct and service conditions for workers in industrial establishments. The Code requires every establishment with 300 or more workers to prepare Standing Orders based on the Model Standing Orders. Establishments with fewer than 300 workers shall follow the Model Standing Orders issued by the Central Government.

Thresholds: 300+ workers: must prepare own Standing Orders; Below 300: Model Standing Orders apply automatically

Earlier threshold was 100 workers under the Industrial Employment (Standing Orders) Act, 1946.

Source: Section 2(zk), IR Code, 2020

A cessation of work by a body of persons employed in any industry acting in combination, including a concerted refusal or mass casual leave to continue to work. Workers in all industrial establishments must give 14 days' advance notice before going on strike.

Thresholds: 14 days' advance notice required; Strike prohibited during conciliation proceedings and 7 days after

Earlier, only public utility services required prior notice. Now extended to all establishments.

Rules, regulations, and notifications made by the Central or State Government under the authority delegated by the parent legislation (the Code). The four Labour Codes require extensive subordinate legislation (Rules) by both Central and State Governments before they can be fully implemented.

This is why the Codes cannot be enforced immediately upon passing, the Rules must be notified first.

Retirement of an employee upon reaching the age of superannuation as prescribed in the establishment's rules or Standing Orders. Triggers full and final settlement including gratuity, EPF accumulations, and other terminal benefits.

Source: Section 7, IR Code, 2020

A trade union of workers must have at least 10% of the workers or 100 workers (whichever is less) as members to be eligible for registration. Application is made to the Registrar of Trade Unions.

Thresholds: Minimum members: 10% of workers or 100, whichever is less

Source: Section 86, IR Code, 2020

Practices listed in the Second Schedule of the IR Code that are prohibited for both employers and trade unions/workers. Includes interference with trade union activities, discrimination, and acts of coercion. Punishable with fine up to ₹1 lakh or imprisonment up to 6 months.

Source: Section 2(85), SS Code, 2020

An enterprise owned by individuals or self-employed workers and engaged in the production or sale of goods or providing service of any kind, where the enterprise employs workers, the number of such workers being less than ten.

Thresholds: Less than 10 workers

Source: Section 2(86), SS Code, 2020

A home-based worker, self-employed worker, or a wage worker in the unorganised sector. Includes workers who are not covered under any of the specific social security schemes under the Code.

Establishments below the mandatory threshold can voluntarily opt for EPF and ESIC coverage for their employees. Once opted in, the provisions apply as if the establishment had met the threshold. Cannot be opted out of subsequently.

Source: Section 17, Code on Wages, 2019

The interval at which wages are due and payable. The Code recognises four wage periods: daily, weekly, fortnightly, and monthly. The employer must fix the wage period and pay within the prescribed timeline after the period ends.

Payment timelines: daily wage period, same day; weekly, before the last day of the next week; fortnightly, before the second day after the end of the fortnight; monthly, before the 7th of the next month.

Source: Section 16, Code on Wages, 2019

Every employer shall issue wage slips to employees in the prescribed form, either electronically or in writing, at least one day before the disbursement of wages. Must contain details of wages earned, deductions made, and net amount payable.

Source: Section 2(y), Code on Wages, 2019

All remuneration expressed in terms of money payable to a person employed for work done, including basic pay, dearness allowance, and retaining allowance. The definition uses an inclusion-plus-exclusion model: anything paid for work is wages unless specifically excluded.

Exclusions: Bonus payable under any law; Value of house accommodation, supply of light, water, medical attendance; Employer PF/pension contributions; Conveyance allowance or travel concession; House Rent Allowance; Remuneration payable under any award/settlement; Overtime allowance; Commission payable to the employee; Gratuity payable on termination; Retrenchment compensation

Thresholds: Total exclusions must not exceed 50% of total remuneration; if they do, the excess is treated as wages

This is the most consequential definition across all four codes because the wage ceiling directly affects PF, ESI, gratuity, bonus, and overtime calculations.

Source: Section 2(88), SS Code, 2020

The definition of wages under the Social Security Code mirrors the Code on Wages definition, with the same inclusion-exclusion model and the 50% rule. This ensures uniformity in calculating contributions to EPF, ESI, and other social security schemes.

Thresholds: 50% rule applies: exclusions capped at 50% of total remuneration

A computerised, randomised system for assigning inspection tasks to Inspector-cum-Facilitators. Eliminates discretion in selecting establishments for inspection. Inspection scheme is decided through a web-based system considering risk criteria and past compliance history.

An officer appointed by establishments employing the prescribed number of workers to look after the welfare of workers. Duties include overseeing working conditions, leave entitlements, grievances, and statutory benefits.

A license granted to a contractor for a specific work or project, replacing the earlier single-license model. The license is tied to the duration and scope of the contracted work.

Source: Section 2(zr), IR Code, 2020

Any person employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment are express or implied.

Exclusions: Persons subject to Air Force Act, Army Act, or Navy Act; Persons employed in police or prison service; Persons employed in managerial or administrative capacity; Persons employed in supervisory capacity drawing wages exceeding ₹18,000 per month; Apprentices

Thresholds: Supervisory wage ceiling: ₹18,000/month

Source: Section 2(zzl), OSH Code, 2020

Any person employed in any establishment to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward. Mirrors the IR Code definition with the same exclusions and supervisory wage ceiling.

Exclusions: Armed forces personnel; Police and prison service; Managerial/administrative capacity; Supervisory capacity drawing wages exceeding ₹18,000/month

Thresholds: Supervisory wage ceiling: ₹18,000/month

Source: Section 3, IR Code, 2020

A committee constituted by the employer consisting of representatives of employer and workers, for the purpose of promoting measures for securing and preserving amity and good relations between the employer and workers.

Thresholds: Mandatory in establishments with 100 or more workers