Government FAQs on the Labour Codes

127 answers

• Wagesa. Does overtime payment form part of the 50 percent wage calculation rule? What constitutes “total remuneration” for applying the 50% wage floor? 1. Is actual gratuity paid included? 2. Is gratuity included where shown as part of CTC? 3. Are employer contributions to PF and other social security benefits included? b. With reference to FAQ Question No. 7 of the MoLE FAQs under the Code on Wages, 2019, clarification is sought on: whether statutory components such as employer/employee PF contribution, statutory bonus, ESI, or other retirement benefits are included within “Other Allowances” or whether the illustration is based only on gross monthly salary excluding statutory contributions.
• WagesAre there any specific legal provisions in place for the wage protection of white-collar employees?
• WagesCan wages and minimum wages be treated as the same?
• WagesDo annual performance-based incentives form a part of “wages” for computation under the Labour Codes?
• WagesWho is eligible for overtime wages—only workers or it is applicable for Employees also? If so does the entitlement also extend to supervisory and managerial staff?
• WagesIs the revised definition of “wages” under the Code on Wages, 2019 applicable for gratuity calculation from the date of enforcement of the Code, i.e., 21.11. 2025?
• WagesFrom which date does the definition of “wages” under the Labour Codes come into effect?
• WagesWhether variable components of wages such as overtime (OT) allowance are included while calculating the “wages” under the Codes?
• WagesWhat is the distinction between “minimum wages” and “wages” under the Labour Codes?
• Social SecurityDoes fixed-term employment cover contract labour engaged through contractors, or only direct employees of the principal employer?
• Social SecurityWhether Gratuity calculation will be applicable prospectively or retrospectively?
• Social SecurityHow will the ESI coverage be governed until the finalization of Rules?
• Social SecurityFor the calculation of gratuity, will wage components other than those specified under clauses (a) to (c) of included part and (a) to (k) of excluded part of Section 2(88) of the Code on Social Security, 2020, be included?
• Social SecurityFor Fixed Term Employees (FTE), is gratuity payable on completion of exactly one year of service or more than one year of service is required for calculation of gratuity under the Labour Codes?
• Social SecurityWhether States can levy cess on gig and platform workers, and if so, this will results in a dual financial burden on aggregators?
• Social SecurityIn case of contract labour, whether gratuity liability is to be borne by the Principal Employer or the Contractor?
• Social SecurityWhether gratuity for service rendered prior to 21 November 2025 will be calculated under the Payment of Gratuity Act, 1972, and service on or after that date under the Labour Codes?
• Social SecurityWhat types of benefits or facilities will be considered as “remuneration in kind” under the definition of wages? Please provide illustrative examples.
• Industrial RelationsIs a fixed-term employee engaged for 11 months eligible for gratuity upon contract expiry? Is gratuity payable where a fixed-term employee exits before completion of the contracted tenure?
• OSHAre leave encashment provisions under the OSH & WC Code applicable only to workers, sales promotion employees, and working journalists, or to all employees? Leave-related provisions apply to managerial, supervisory, and corporate office staff?
• OSHWhat is the maximum number of days of leave that can be carried forward to the succeeding year under the applicable Labour Codes and Rules? If Employer agrees to carry forward 120 days of Leave to next calendar year, whether he is allowed to do so?
• OSHUnder the Labour Codes, who is eligible for leave encashment—only workers or employee? Whether the Relationship Manager and Salesperson working independently (doesn’t supervises anyone) and drawing wage of more than ₹18,000 are entitled for Leave Encashment?
• OSHIs the provision of crèche facility dependent on any specific gender composition of the workforce?
• OSHAt what stage does overtime become payable under the OSH&WC Code, when it exceeds 8 hrs of daily working hours or 48 hrs of weekly limit? If maximum working hours limit is prescribed as 12 Hours by the appropriate government, whether Overtime is applicable for Hours exceeding 8 Hours on a particular day?
• OSHWhere the OSH&WC Code permits accumulation of leave up to 30 days, but a State law (e.g., Andhra Pradesh) allows 60 days, which provision will prevail?
• OSHWhat is the maximum number of leave days that can be encashed under the applicable Labour Code(s)?
• OSHWhere the age threshold for annual health check-ups differs between Central Rules and State Rules, which provision will apply?
• OSHApplicability of OSH&WC Code provisions for dock workers (other than major ports). As the State Govt. is the appropriate authority for ports other than major ports as defined in clause-8 of Indian Ports Act, 1908; whether the draft central rule for dock workers shall be applicable to the ports under the jurisdiction of State Govt. or the State has to frame separate rules?
• OSHAnnual health examination of employees. The draft Occupational Safety, Health & Working Conditions (Central Rules) 2020 framed under Clause (c) of sub Section-1 of Section- 6 prescribes annual health check-up of employees, who has completed 40 years of age. Whether the workers below the age of 40 shall be exempted from annual health examination engaged in hazardous processes notified in first schedule under Section 2(za) and dangerous operations under Section 82 of the OSH & WC Code, 2020?
• OSHMeasures or standards prescribed by the State Government. Whereas Section 18 of the OSH & WC Code, 2020 prescribes that the Central Govt. shall declare standards on occupational safety and health for workplaces relating to factory, whether the State Govt. has to prescribe measures or standards for health and safety under Section 86(1) of the OSH & WC Code, 2020?
• OSHWill replacing inspectors with inspector-cum-facilitators not weaken the enforcement?
• OSHWhether OSH & WC Code favours employers by reducing penalties for violations?
• OSHAre contract workers covered for welfare facilities?
• OSHWhether contract labour worker be issued an experience certificate?
• Social SecurityAre all procedures under the Social Security Rules mandatory in digital mode?
• Social SecurityDoes registration under the Rules guarantee automatic payment of benefits?
• Social SecurityCan the Social Security Rules be amended only through Parliament?
• Social SecurityCan Social Security Funds be merged with general government accounts?
• Social SecurityCan maternity benefit claims be rejected for not using prescribed forms?
• Social SecurityIs certification by a registered medical practitioner mandatory for maternity benefits?
• Social SecurityAre nursing breaks strictly limited to two fixed intervals?
• Social SecurityMust crèche facilities always be located within the employer’s premises?
• Social SecurityCan gratuity be claimed only after employment ends?
• Social SecurityDoes delay in filing gratuity applications lead to forfeiture of claims?
• Social SecurityHow is gratuity payable to minor nominees protected?
• Social SecurityDo employers have unfettered discretion to reject gratuity claims?
• Social SecurityIs BOCW Welfare Cess payable only after completion of construction?
• Social SecurityCan BOCW Cess be paid in instalments without disclosures?
• Social SecurityIs refund of excess BOCW Cess allowed?
• Social SecurityWho is responsible for payment of BOCW Cess?
• Social SecurityDo construction workers lose welfare benefits when they move across States?
• Social SecurityAre only direct engagements by aggregators covered?
• Social SecurityDoes failure to update gig worker data permanently disqualify workers?
• Social SecurityAre inspections under the Rules routine and random?
• Social SecurityAre penalties imposed automatically for every non-compliance?
• Social SecurityAre appeals under the Rules time-bound?
• Social SecurityAre exempted establishments free from regulatory oversight?
• Social SecurityAre trusts managing exempted funds unregulated?
• Social SecurityMust all records be maintained only at the workplace?
• Social SecurityAre the Social Security Rules rigid and inflexible?
• GeneralWhich rules will be applicable during the transition period?
• WagesWhat does the term “wages” mean?
• WagesDefinition of wages and the components it would cover.
• WagesWhat is the 50% rule for allowances?
• WagesWhether Leave Encashment be part of allowances?
• WagesDoes this definition of wages apply to all labour laws?
• WagesExplain the allowance rule with a clear illustration?
• Social SecurityWhether Gratuity calculation will be applicable prospectively or retrospectively.
• Social SecurityClarification on gratuity calculation in view of many companies considering December month as year end.
• Social SecurityWhen gratuity is payable to an employee?
• Social SecurityAre there any special provisions related to gratuity in certain cases?
• Social SecurityHow is gratuity calculated?
• Social SecurityDoes gratuity affect other agreements or awards?
• OSHWhether the person drawing wages ₹18,000/- or more will be covered under the definition of worker as per OSH & WC Code.
• OSHClarity on Core and Non-core activities.
• OSHWhether Journey Allowance for ISMW within the State for the long-distance workers may be allowed.
• Social SecurityHow will the ESI coverage be governed until the finalisation of Rules?
• WagesWhether Data Entry Operators and employees in similar categories are included under the minimum wage provisions of the Code on Wages, 2019?
• WagesIs a daily wage worker not eligible for bonus??
• WagesWill the new concept of floor wage reduce the minimum wages fixed by the State??
• WagesWill the revised definition of wages under the Code, 2019 reduce employee wages?
• WagesDoes the Code on Wages allow employers to make too many deductions from workers’ wages?
• WagesWill the fixation of minimum wages become arbitrary under Central Government control?
• WagesWill the inspector under the Code facilitate only the employers?
• WagesIs it true that working hours been extended in a way that deprives workers of overtime?
• WagesAre transgender persons not provided benefits under the Code on Wages, 2019?
• WagesDoes compounding of offences allow employers to escape punishment?
• WagesIs only permanent employee covered under the Code?
• WagesDoes the Code on Wages benefit only organized sector workers?
• Industrial RelationsWhether the Industrial Relation Code in any way takes back workers’ right relating to form trade unions?
• Industrial RelationsWhether IR Code bans all strikes?
• Industrial RelationsWhether the worker will need government permission to go on strike in IR Code?
• Industrial RelationsWhether IR Code allows employers to retrench workers freely?
• Industrial RelationsIs it true that trade unions lose their grievance redressal role?
• Industrial RelationsWhether, the Code ends job security for permanent workers and promotes hire and fire?
• Industrial RelationsIs it true that Fixed-Term Employment (FTE) is exploitative?
• Industrial RelationsWhether the new provisions under IR Code will allow the employers with less than 300 workers to fire without restriction?
• Industrial RelationsWhether the conciliation mechanism is abolished under IR Code?
• Industrial RelationsIs it true that Labour Courts are being abolished?
• Industrial RelationsIs it true that workers cannot collectively bargain or protest?
• Industrial RelationsIs it true that Industry closure no longer needs approval?
• Industrial RelationsIs it true that workers’ participation in management is removed?
• Industrial RelationsWhether penalty provision for employer violations in IR Code are removed?
• Industrial RelationsIs it correct that IR Code centralizes all labour powers?
• Industrial RelationsWhether abolition of Labour Courts will delay the workers justice?
• Industrial RelationsWhether the Code favours employers only?
• Industrial RelationsWhether sales promotion employees are not treated as “employees” and therefore not entitled to labour protections?
• Industrial RelationsIs it true that the “Journalists” are freelancers and therefore not “employees”?
• OSHWhether raising the threshold for definition of “factory” (from 10 workers with power / 20 without power to 20 workers with power / 40 without power) will exclude workers from safety and welfare protections?
• OSHDoes increased licensing threshold for contract labour from 20 to 50 will deprive contract workers of protections?
• OSHWill allowing flexibility in working hours up to 12 hours per day will exploit workers?
• OSHWhether it is not unsafe to allow women to work at night?
• OSHWill replacing inspectors with inspector-cum-facilitators not weaken the enforcement?
• OSHIs it true that health and welfare facilities are limited to large establishments only?
• OSHWill rationalization of 13 labour laws into one Code, dilute workers’ rights?
• OSHWhether portability of migrant worker benefits is ineffective and would not reach to beneficiary?
• OSHWill state rule-making powers cause dilution of worker protections?
• OSHIs it true that duties of employers are towards regular workers only and do not cover contract workers and inter-state migrant worker (ISMW) ?
• OSHIs it true that allowing women to work in hazardous occupations is unsafe?
• OSHIs it true that no protection provided to fixed-term employment workers in the code?
• OSHWhether OSH & WC Code favours employers by reducing penalties for violations?
• OSHDoes OSH Code provide any specific welfare facilities for transgender workers?
• OSHIs there any specific provision for drivers under the OSH Code?
• OSHAre contract workers covered for welfare facilities?
• OSHIs it true that stuntmen and dubbing artists are not provided any benefits under the OSH Code?
• OSHWhat is the minimum criterion in terms of number of days for a worker to be eligible for annual leave with wages as per the provisions of OSH&WC Code, 2020?
• OSHWhether contract labour worker be issued an experience certificate?