CTE and CTO Approval from Pollution Control Board Chennai

CTE and CTO Approval from Pollution Control Board in Chennai

Struggling with TNPCB rules? This expert guide demystifies the process for CTE and CTO Approval from the Pollution Control Board in Chennai, providing actionable steps and insider tips to avoid costly delays and ensure your business gets its license to operate.

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Occupational Safety, Health & Working Conditions Code 2020

Occupational Safety, Health & Working Conditions Code 2020

India’s labour law reforms have introduced comprehensive frameworks to ensure employee safety, welfare, and regulatory compliance. One of the most significant legislations in this regard is the Occupational Safety, Health and Working Conditions Code (OSH Code), which consolidates multiple labour laws into a unified structure.

Definition: Occupational Safety, Health and Working Conditions Code, 2020

The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) is a comprehensive labour law enacted by the Government of India to consolidate, simplify, and regulate laws relating to occupational safety, health, and working conditions of workers across various establishments.

It aims to ensure that employees are provided with:

  • A safe and healthy working environment 
  • Adequate welfare facilities 
  • Humane working conditions

The Occupational Safety, Health and Working Conditions Code, 2020 consolidates and replaces 13 existing labour laws related to safety, health, and working conditions into a single framework.

Acts Included in the OSH Code

The following Acts have been merged into the OSH Code:

  1. Factories Act, 1948 
  2. Mines Act, 1952 
  3. Dock Workers (Safety, Health and Welfare) Act, 1986 
  4. Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 
  5. Plantation Labour Act, 1951 
  6. Contract Labour (Regulation and Abolition) Act, 1970 
  7. Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 
  8. Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 
  9. Working Journalists (Fixation of Rates of Wages) Act, 1958 
  10. Motor Transport Workers Act, 1961 
  11. Sales Promotion Employees (Conditions of Service) Act, 1976 
  12. Beedi and Cigar Workers (Conditions of Employment) Act, 1966 
  13. Cine Workers and Cinema Theatre Workers Act, 1981 

1. Mandatory Registration of Establishments

Under the Code, every applicable establishment must be registered before employing workers. Employers are required to:

  • Obtain registration through prescribed procedures 
  • Intimate any changes in ownership or management within 30 days 
  • Notify authorities about commencement and closure of operations electronically 

Failure to register prohibits the employer from engaging any workers. 

2. Duties of Employers: Ensuring Workplace Safety

Employers carry primary responsibility for maintaining a safe and healthy work environment. Key obligations include:

  • Providing a workplace free from hazards and occupational risks 
  • Ensuring compliance with prescribed safety standards 
  • Conducting periodic health examinations for employees 
  • Maintaining welfare facilities and safe working conditions 

These measures aim to reduce workplace injuries and promote employee well-being. 

3. Contract Labour: Compliance and Restrictions

The Code introduces stricter provisions governing contract labour:

Applicability:

  • Applies to establishments employing 50 or more contract workers 

Key Provisions:

  • Contractors must obtain valid licenses before engagement 
  • Wages must be paid through bank transfer or electronic mode 
  • Principal employer is liable if contractor fails to pay wages 
  • Welfare facilities must be provided by the principal employer 

Restrictions:

  • Employment of contract labour in core activities is generally prohibited, except under specific conditions such as:
    • Intermittent work 
    • Sudden increase in workload 
    • Activities traditionally outsourced 

4. Inter-State Migrant Workers Protection

The Code extends protection to inter-state migrant workers:

  • Applicable where 10 or more migrant workers are employed 
  • Employers must ensure:
    • Suitable working conditions 
    • Reporting of accidents to both states 
    • Welfare measures considering their migrant status 

Additionally, a centralized portal is introduced for worker registration and tracking. 

5. Health, Safety, and Welfare Measures

Employers must implement comprehensive safety systems, including:

  • Formation of Safety Committees in larger establishments 
  • Appointment of Safety Officers based on workforce size 
  • Maintenance of safe infrastructure, equipment, and work processes 
  • Protection against hazardous substances and occupational diseases 

The Code also lists notifiable diseases and mandates preventive actions. 

6. Special Provisions for Factories and Construction Work

Factories:

  • Prior approval required for site, construction, and expansion 
  • Licensing and renewal governed by prescribed rules 
  • Deemed approval if no response within specified time 

Construction Workers:

  • Employers must ensure workers are medically fit for hazardous tasks 
  • Workers with health risks cannot be assigned dangerous operations 
The Occupational Safety, Health and Working Conditions Code, 2020 (OSH&WC)
Sl.No Query Reply
1 Are 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? Leave provisions apply to workers as per the OSH & WC Code, 2020 and only to those supervisors having wage not exceeding Rs 18,000/ per month. The definition of worker includes sales promotion employees and working journalists.
2 What 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?		 A worker can carry forward up to 30 days of leave to the succeeding calendar year. Further, a worker who has applied for leave with wages and has not been granted, can carry forward the leave refused without any limit.
Sl.No Query Reply
3 Under the Labour Codes, who is eligible for leave encashment—only workers or employee? Whether the Relationship Manager and Sales person working independently (doesn’t supervises anyone) and drawing wage of more than ₹18,000 are entitled for Leave Encashment? Worker is entitled for leave encashment.

The sales promotion employees are included in the definition of Worker under Section-2(1)(zzl) of OSH&WC Code, 2020.
4 Is the provision of crèche facility dependent on any specific gender composition of
the workforce?		 The creche facility is available to employees, irrespective of gender.
5 At 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?		 The Code prescribes working hours as 8 hours per day.

If, a worker works for more than eight hours in any day as daily wager, or for more than forty-eight hours in any week, as the case may be, a worker shall in respect of such overtime work be entitled to wages at the rate of twice the normal rate of wages and shall be paid at the end of each wage period.
6 Where 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? The provision of the OSH&WC, 2020 Code will prevail over the State Law for provisions which are inconsistent with the Code. However, an employee is entitled to benefits under State Law if more favourable to him than those under the Code.
7 What is the maximum number of leave days that can be encashed under the applicable Labour Code(s)? There   is   no   prescribed   maximum   limit   for   leave encashment under the OSH&WC Code, 2020. Leave exceeding 30 days, if applied but not granted by the employer, can be encashed at the end of the calendar year. At the time of separation from service, the worker is entitled to encash the leave to his/ her credit.
8 Where the age threshold for annual health check-ups differ between Central Rules and State Rules, which provision will apply? Central rules will be applicable on the establishments where Central Government is Appropriate Government and state rules will be applicable on the establishments where State Government is Appropriate Government.

New Labour Codes

New Labour Codes

Navigating India’s New Labour Codes: What Every Business Must Know About Wage Restructuring & Compliance

India’s labour law landscape is undergoing one of its most significant transformations in decades. With the consolidation of 29 central laws into four comprehensive labour codes, businesses are entering a new era of compliance—one that demands not just awareness, but strategic action.

Yet, many organizations are still approaching these changes reactively.

This is where the real risk lies.

Understanding the Shift: The Four Labour Codes

The new framework is built on four pillars:

  • Code on Wages, 2019 – Standardizes wage definitions, ensures timely payments, and impacts salary structuring. 
  • Code on Social Security, 2020 – Expands benefits like EPF, ESI, and gratuity to a wider workforce, including gig workers. 
  • Industrial Relations Code, 2020 – Simplifies dispute resolution and regulations around layoffs and retrenchment. 
  • OSH Code, 2020 – Strengthens workplace safety, health standards, and working conditions. 

Together, these reforms aim to simplify compliance while increasing accountability.

The Game Changer: Definition of Wages

At the heart of this reform is a single, powerful rule:

Basic Pay + Dearness Allowance + Retaining allowance must be at least 50% of total remuneration.

This fundamentally changes how companies design salary structures.

Earlier, organizations could reduce statutory liabilities by increasing allowances. Now, if allowances exceed 50% of total pay, the excess is added back to “wages” for statutory calculations.

What this means:

  • Higher PF and gratuity contributions 
  • Reduced flexibility in salary structuring 
  • Increased compliance scrutiny 

Impact on Salary Structures

Most companies will need to re-engineer their compensation models.

Before:

  • Basic salary: 30–40% of CTC 
  • Higher allowances to maximize take-home pay 

Now:

  • Basic salary: Minimum 50% of CTC 
  • Allowances capped collectively at 50% 

This shift leads to:

  • Higher employer costs (PF, gratuity liabilities) 
  • Lower take-home salary for employees 
  • Greater transparency and standardization 

Financial & Operational Impact on Businesses

The implications go beyond payroll restructuring.

  • Provident Fund (PF): Contributions increase significantly 
  • Gratuity: Liability may rise by 25–50% 
  • Overtime: Payable at twice the wage rate 
  • Leave Encashment: Higher payouts due to increased wage base 
  • Final Settlement: Must be processed within 48 hours 

Additionally, organizations must upgrade systems for:

  • Digital compliance filings 
  • Real-time payroll adjustments 
  • Structured record-keeping 

Compliance Isn’t Optional: Penalties Are Severe

The new labour codes come with stringent penalties for non-compliance:

  • EPF/ESI violations: Up to 3 years imprisonment + ₹1 lakh fine 
  • Wage underpayment: Fine up to ₹50,000 (higher for repeat offences) 
  • Gratuity delays: Jail term + financial penalties 
  • Non-maintenance of records: Heavy fines under OSH Code 

Even restructuring salaries incorrectly—without reducing CTC—can still lead to violations if statutory benefits are impacted.

The Hidden Risk: Improper Salary Restructuring

Many companies attempt to absorb increased statutory costs within existing CTC.

While not illegal in itself, it becomes a compliance issue if:

  • Statutory contributions are reduced 
  • Wage definitions are manipulated 
  • Employee benefits are indirectly compromised 

This is where most audit failures occur—not due to ignorance, but due to improper execution.

What Businesses Should Do Now

To stay compliant and future-ready, organizations must:

  • Reassess salary structures in line with the 50% wage rule 
  • Evaluate financial impact on PF, gratuity, and other benefits 
  • Upgrade payroll systems for new compliance requirements 
  • Conduct periodic compliance audits 
  • Document everything—because proof of compliance is as important as compliance itself 

Final Thoughts

India’s new labour codes are not just a regulatory update—they represent a structural shift in how businesses manage workforce compliance.

Organizations that act early will not only avoid penalties but also build stronger, more transparent employee frameworks.

Those who delay may find themselves dealing with rising costs, audit failures, and legal exposure.

Compliance is no longer a backend function—it’s a strategic priority.