Four Labour Codes 2020 — Set 6

Correct Answer: B. They receive all benefits proportionate to their service period

The Industrial Relations Code 2020 mandates that fixed-term employees receive all statutory benefits proportionate to their period of service. This includes gratuity, which is payable after one year of service (proportionate) rather than five years. Fixed-term employees doing the same work as permanent employees must receive equal wages and working conditions.

Correct Answer: B. Article 246

Article 246 of the Indian Constitution deals with the distribution of legislative powers between Parliament and State Legislatures through the three lists of the Seventh Schedule. The Concurrent List, which includes Labour as a subject, allows both Parliament and State Legislatures to pass laws on the listed subjects. In case of conflict between central and state laws, the central law prevails.

Correct Answer: B. Because labour is in the Concurrent List and states need to frame implementation rules

Although the four Labour Codes have been enacted by Parliament, they require states to draft and notify their own rules for implementation because Labour is a Concurrent List subject and the codes delegate rule-making powers to state governments. Each state must frame rules on procedural matters like registration, inspection, and penalties. This has led to uneven implementation across states.

Correct Answer: C. 51% membership

The correct answer is 51% membership. 51% membership. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: B. 1% to 2%

The Code on Social Security 2020 requires aggregator companies (platforms that connect gig workers to customers) to contribute between 1% and 2% of their annual turnover to a social security fund for gig and platform workers. This contribution is capped at 5% of the total wages paid to gig workers. The actual rate within this range is to be specified by the central government.

Correct Answer: D. Occupational Safety, Health and Working Conditions Code

The Mines Act 1952, which regulated safety, health, and welfare of workers employed in mines, is consolidated under the Occupational Safety, Health and Working Conditions Code 2020. Along with the Factories Act 1948, the Mines Act was one of the landmark occupational safety laws in India. The OSHWC Code now provides uniform standards applicable across mines, factories, and other establishments.

Correct Answer: C. 100 workers

Before the Industrial Relations Code 2020, the Industrial Disputes Act 1947 required establishments employing 100 or more workers to seek prior government permission before any layoff, retrenchment, or closure. The new code raised this threshold to 300 workers, giving employers of medium-sized establishments greater flexibility. This change was controversial as critics felt it reduced job security for workers.

Correct Answer: B. Contract labour provisions are extended and welfare provisions strengthened

The OSHWC Code 2020 incorporates and extends the provisions of the Contract Labour (Regulation and Abolition) Act 1970. The code retains the system of registration for principal employers and licensing for contractors while strengthening welfare provisions for contract workers. The code also includes provisions for equal pay for contract workers doing the same work as directly employed workers.

Correct Answer: B. 20 employees

Under the earlier ESI Act 1948, ESIC coverage applied to establishments with 20 or more employees (reduced to 10 under the Code). The Code on Social Security adds a new provision allowing ESIC coverage to be mandatorily extended to establishments in hazardous occupations regardless of their size. This ensures that even small units with dangerous work are covered under employee state insurance.

Correct Answer: C. Code on Social Security

The Payment of Gratuity Act 1972 is one of the nine laws consolidated under the Code on Social Security 2020. Gratuity provisions are retained in the code with the significant addition of proportionate gratuity for fixed-term workers. The code preserves the existing gratuity entitlements for permanent employees while extending the benefit to fixed-term and contract workers.