Major Changes in the Code on Social Security, 2020

Provision	Old laws	Social Security Code, 2020	Remarks
Applicability	EPF applies— (a) to every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed,	EPF applies— To Every establishment in which twenty or more employees are employed	Coverage as per 20 or more. There is no schedule of establishments.
New Worker Definitions	No such definitions	Newly introduced definitions for employee, Gig Workers, Platform Workers, Home-based workers, Wage worker, and Self-Employed Worker	Inclusive
Social Security Boards	No such provision	Central Government will constitute the Social Security Boards for Unorganized workers, gig Workers, Platform Workers and extend all social security to them. It will source the funds for the schemes to include funds from CSR funds or any other source specified by Central Government.	New governance
Inspection	Present: only physical inspections	The Central Government (as the case may be) or the appropriate Government is empowered to frame an inspection scheme that may provision for web-based information and calling for information electronically as well as assign duties to carry out such inspections based on a random selection.	Digital compliance
Employer Definitions	In PF Act “employer” means— (i) in relation to an establishment which is a factory, the owner or occupier of the factory, including the agent of such owner or occupier, the legal representative of a deceased owner or occupier and, where a person has been named as a manager of the factory under clause (f) of sub-section (1) of section 7 of the Factories Act, 1948 (63 of 1948), the person so named; and   (ii) in relation to any other establishment, the person who, or the authority which, has the ultimate control over the affairs of the establishment, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent	"employer" means — a person who employs, whether directly or through any person, or on his behalf, or on behalf of any person, one or more employees in his establishment and where the establishment is carried on by any department of the Central Government or the State Government, the authority specified, by the head of such department, in this behalf or where no authority is so specified, the head of the department and in relation to an establishment carried on by a local authority, the chief executive of that authority, and includes,— (a) in relation to an establishment which is a factory, the occupier of the factory; (b) in relation to mine, the owner of the mine or agent or manager having requisite qualification under the law for the time being in force and appointed by the owner or agent of the mine as such; (c) in relation to any other establishment, the person who, or the authority which has ultimate control over the affairs of the establishment and where the said affairs are entrusted to a manager or managing director, such manager or managing director; (d) contractor; and (e) legal representative of a deceased employer;	Code has expanded the definition of ‘employer’ to cover contractors
Inter State migrant worker	“workman” means any person employed in or in connection with the work of any establishment to do any skilled, semi-skilled or unskilled, manual, supervisory, technical or clerical work for hire or reward, whether the terms of employment be express or implied, but does not include any such person— (i) who is employed mainly in a managerial or administration capacity; or (ii) who, being employed in a supervisory capacity, draws wages exceeding five hundred rupees per mensem, or exercises, either by the nature of the duties attached to the office or by reason of the powers vested in him, functions mainly of a managerial nature.	Includes any person who (i)      is recruited by the employer or a contractor in one State for employment in an establishment in another State, and (ii) has come from one State and obtained employment in an establishment in another State (destination State) or has subsequently changed the establishment within the destination State. Further, this should be pursuant to an agreement/work arrangement, and the worker should not draw wages of more than INR 18,000 per month or a higher amount as may be notified by the Central Government.	The definition of inter-state migrant workers, has been widened to include workers who are recruited by the employer, or those workers who have changed an establishment in the destination State and a wage threshold has also been made applicable to the definition.
Fixed Term Employment (FTE)	As per certified standing orders of GPL, we have included the term “Fixed Term Employee” in view of that we are already engaging Retainers / Consultants for fixed term. The relevant provision is reproduced below:   IV (G) Fixed Term Employee: Fixed term employee is a person taken for employment for fixed term of duration, depending upon requirement of the Company. Such employee has no right for regularization of services and not entitled for retrenchment compensation as such	"fixed term employment" means the engagement of a worker on the basis of a written contract of employment for a fixed period. Provided that his hours of work, wages, allowances and other benefits shall not be less than that of a permanent worker doing the same work or work of similar nature. he shall be eligible for all statutory benefits available to a permanent worker proportionately according to the period of service rendered by him even if his period of employment does not extend to the qualifying period of employment required in the statute; and He shall be eligible for gratuity if he renders service under the contract even for a period of one year.	The SS Code defines a ‘fixed-term employment arrangement’ as one where an employee is engaged on the basis of a written contract of employment for a fixed period provided all benefits extended to permanent workers (such as hours of work, wages, allowances and other benefits) doing the same work or work of a similar nature, are made available to such fixed-term employees as well, for the period that such person is employed.
Registers and records	Physical records & registers to be maintained separately to each act	By consolidating the various registers and records, and permitting the maintenance of the same electronically. The SS Code recognizes the issuance of wage slips in electronic format to the employees.	The SS Code offers substantial relief to employers.
Limitation period for inquiry	There is no such time limit provision in  EPF Act     Sec. 45-A no such order shall be passed by the Corporation in respect of the period beyond five years from the date on which the contribution shall become payable.	Sec 125 (1) Any of the purposes relating to clause (a) and clause (b), conduct such inquiry, as he may deem necessary for such purposes: Provided that no proceeding under this sub-section shall be initiated after the expiry of the period of five years from the date on which the dispute referred to in clause (a) is alleged to have been arisen or, as the case may be, the amount referred to in clause (b) is alleged to have been due from an employer.
Power to defer or reduce Contributions In the  event of epidemic, pandemic or disaster	No such provisions	Sec 144. Notwithstanding anything contained in Chapter III or Chapter IV, the Central Government may by order, defer or reduce employer's contribution, or employee's contribution, or both, payable under Chapter III or Chapter IV, as the case may be, for a period up to three months at a time, in respect of establishment to which Chapter III or Chapter IV, as the case may be, applies, for whole of India or part thereof in the event of pandemic, endemic or national disaster	Newly introduced
Enquiry proceedings time limit	No such time limit	Sec. 125(2): The inquiry under sub-section (1), as far as practicable, shall be held on day-to-day basis and endeavour shall be made to ensure that the inquiry is concluded within a period of two years:	Newly included
Employer fails to pay contributions	No such provision	Sec 42: If any employer fails to pay ESI contributions, even then ESI has to pass on the benefits to the employee which ESIC can recover it from the employer
Career Center	Presently, Employment Exchanges are conducting Job fairs, providing job seeker’s data base as per requirement of Employer’s job specifications.	Renamed as Career Centers and these centers will offer vocational guidance, career counseling or guidance to start self-employment, organizing job-fairs and job drives, employment related surveys and studies employability enhancement activities and other services.	Instead of existing quarterly returns; annual returns to be submitted as per SS Code.
Sec 7B of EPF & MP Act	Review of orders passed under section 7A	Omitted
Sec 7C of EPF & MP Act	Determination of escaped amount.—Where an order determining the amount due from an employer under section 7A or section 7B has been passed and if the officer who passed the order.	Omitted
Deposit of amount due, on filing appeal.	In EPF : -- Sec.7(O) Deposit of amount due, on filing appeal.—No appeal by the employer shall be entertained by a Tribunal unless he has deposited with it seventy-five per cent. of the amount due from him as determined by an officer referred to in section 7A	In order to raise disputes before authorities such as the Employees’ Insurance Court or to appeals to tribunals with regard to determination and assessment of PF dues, an employer must deposit 25 percentage of the amount claimed before the concerned social security organisation or the court, as the case may be.	Earlier it was 75% & 25% deposit of amount mentioned in the Order for EPF & ESI respectively, for appeal. Now for both EPF & ESI appeals it is fixed as 25%.