As per the OSH Code, a contractor who has an establishment in more than one State and is desirous of obtaining a license for supplying or engaging contract labour or undertaking or executing the contract work in more than one State or for pan-India makes provision for “National License” for a contractor but this is subject to requisite qualifications or criteria to be fulfilled by the Contractor as may be prescribed by the Central Government.

While the OSH Code applies to all establishments having 10 or more employee therein, the specific chapters thereunder would apply based on the subject matter it governs.
The Contract Labour chapter will only apply to establishments or contractors employing 50 or more contract workers.
And the Factories chapter would apply to factories (without the aid of power) employing 40 or more workers and if they are running with aid of power, then 20 or more workers therein. Such factories would also require a licence in the same manner as required currently under Factories Act. But factories having less than 20 employees (but more than 10 employees) will have to comply with the registration requirement under the OSH Code.

Chapter X of the OSH Code prescribes special provision relating to the employment of women and are entitled to be employed in all establishments for all types of work and they may also be employed, with their consent before 6 a.m. and beyond 7 p.m. i.e., night. But this is subject to conditions relating to holidays, working hours and adequate safety, which shall be prescribed in the Rules.

Gratuity calculation remains the same as per the Payment of Gratuity Act. However, the wages to be considered may be impacted based on the salary structure of an employee which should be in line with the definition of wages as per the new Codes.

Yes! The Standing Orders are applicable for the IT/ITeS sector as well unless no specific exemption is granted.
As per the new definition of “Industry” under the Industrial Relations Code, 2020, all IT/ITeS companies would be Industry. All their establishments would be Industrial Establishments. Therefore, as per the IR Code, any such establishment engaging 300 or more workers would not obtain a Standing Order. They can either adopt the Model Standing Order or get their Standing Order certified.

Yes. It is not only the definition of wage that is expected to change. For example, the concept of who is a “Worker” is now clearly defined. The term “Employee” is also defined clearly, and it includes “Worker”. There are few provisions such as the ones that regulate working hours, overtime, annual leave that apply only to workers and not all employees. Similarly, all IR Code provisions apply only to workers. Therefore, it is important that every employer relooks at their HR policies, organization structure, role, and responsibility of every employee to understand the impact of provisions of the code and realign as required.

OT applies to all the workers including the person engaged in supervisory levels earning less than INR 18,000 (Rupees Eighteen Thousand only) per month. But it does not apply to employees engaged in a supervisory capacity drawing a wage exceeding INR 18,000 (Rupees Eighteen Thousand only) per month or such other amount as may be notified by the Central Government and to employees engaged in a managerial and administrative capacity.