1. Background & Legal Context
The Government of Andhra Pradesh has
published the Draft Code on Social Security (Andhra Pradesh) Rules, 2026 via
G.O.Rt.No.43 dated 23.02.2026 from the Labour, Factories, Boilers &
Insurance Medical Services (Lab.II) Department.
These draft rules are issued:
- Under powers in sections 154 and 156 of the Code on Social
Security, 2020 (Central Act 36 of 2020)
- In view of:
- Central Code on Social Security, 2020 (notified 29.09.2020)
- Appointed day 21.11.2025 notified by Central Government (S.O.
5319(E))
- Draft Central Social Security Rules, 2025 (GSR 935(E) dated
30.12.2025)
They supersede earlier State rules
under:
- Employees’ Compensation Act, 1923
- Maternity Benefit Act, 1961
- Payment of Gratuity Act, 1972
- Unorganised Workers’ Social Security Act, 2008
The draft is open for objections &
suggestions for 45 days from the date the Gazette copy is made available to the
public. Submissions can be made online:
- Labour Dept Portal: https://labour.ap.gov.in
- Email: aplabourcodes2026@gmail.com
2. Scope & Key Definitions
2.1 Short Title & Commencement
- Called “The Code on Social Security (Andhra Pradesh) Rules,
2026”.
- Will come into force from the date of publication in the
Official Gazette.
2.2 Important Definitions for HR
Some key defined terms that matter for
HR & Compliance:
- “Assessing Officer” – Gazetted officer appointed by State
Government for assessment of building & construction cess.
- “Cess collector” – Officer appointed to collect cess under
Chapter VIII of the Code.
- “Competent authority” – Authority appointed under section 91
(Employees’ Compensation) and section 56 (Gratuity disputes).
- “Inspector-cum-Facilitator” – Appointed under section 122;
responsible for inspection and guidance.
- “Career centre (regional)” – State‑notified career/employment
centre for vacancy reporting, returns etc.
- “Fund” – AP Building & Other Construction Workers Welfare
Fund or Social Security Fund under section 141.
- “Register of women employees” – Specific register in Form XX.
Implication: HR teams must be familiar with these authorities and forms—they are
the key contact points for disputes, registration, cess, maternity, gratuity
etc.
3. Digital Registration &
Cancellation of Establishments (Rule 3)
3.1 New Registration Process
Every unregistered establishment
must:
- Apply electronically using Form-I of the Occupational Safety,
Health & Working Conditions (AP) Rules, 2026 via the State Labour Dept
portal.
- Use this common form for registration under multiple labour
codes.
- Provide:
- Establishment details
- Employer identity & address proofs
- PAN / other unique IDs, which may be verified online.
Timeline & Deeming Provision
- Registration certificate must be issued immediately, and in any
case within 7 days of submission of complete application.
- If not issued within 7 days, registration is deemed granted and
a certificate shall be auto‑generated.
Exceptional Situations
- State Government may temporarily dispense with electronic
registration (e.g., certain classes/areas) and allow physical submission,
via notification.
3.2 For Establishments Already
Registered under Other Labour Laws
- Employers must update particulars on the State Labour portal
within the period specified by a government notification.
3.3 Expiry of Registration
- A registration expires automatically if no compliance is
reported for 24 months using that registration number.
- It can be revived upon application on the portal.
3.4 Cancellation of Registration
- If registration obtained by wrong information, it may be
cancelled after:
- 30‑day show cause notice (served electronically or otherwise).
3.5 Employer Obligations
- Quote registration number on all documents & correspondence
under the Code, schemes, rules and regulations.
- Update any change in particulars on the portal within 30 days.
- For closure: apply for cancellation of registration online with
complete details and status of all contributions & dues.
- Application is allowed only if all returns filed, all dues
paid, and self‑certification is attached.
- Must be decided within 90 days of complete application.
HR Action Point:
✅ Ensure your
establishment’s data is fully updated on the AP Labour Portal and monitor
compliance activity so that your registration does not lapse after 24 months of
inactivity.
4. Unorganised Workers Social Security
& BOCW Welfare (Rules 4–12)
4.1 Andhra Pradesh Unorganised Workers
Social Security Board (Rule 4–8)
Tenure & Limit on Terms
- Non‑ex officio members: 3‑year term, eligible for re‑nomination,
but maximum 2 terms total.
Representation Structure
- 7 members from unorganised workers
- 7 from employers of unorganised workers
- 5 eminent persons (labour welfare, management, finance, law,
admin)
- 2 MLAs (nominated via Speaker)
- 10 from concerned departments
With mandatory representation (within
the 7 worker reps) for:
- SC, ST, Minorities, and Women.
Vacancy, Resignation & Removal
- Members can resign by letter to State Government.
- Vacancies filled for the remainder of term through nomination.
- Members must abstain from meetings if removal proceedings are
pending; Government’s decision on disqualification/removal is final.
4.2 AP Building and Other Construction
Workers Welfare Board (Rules 9–10)
The Board must formulate schemes to:
- Pay premiums for Group Insurance for beneficiaries.
- Provide educational schemes for children of beneficiaries.
- Support medical expenses for treatment of major ailments of
beneficiaries or dependents.
Central Government may also formulate
additional welfare schemes for building workers in a State if required.
4.3 Governance: Meetings, Quorum,
Allowances (Rule 11–12)
- Minimum 3 meetings per year for both the Unorganised Workers
Board and BOCW Board.
- 15 days’ notice for ordinary meetings (with agenda & brief
notes); shorter notice allowed for emergency meetings.
- Quorum:
- 10 members for Unorganised Workers Board
- 4 members for BOCW Board
- Provision to appoint substitutes to attend meetings on behalf
of members, subject to:
- Written authority
- Approval by Chairperson
- Member remains liable for any misappropriation or
misapplication by substitute.
- Minutes to be circulated within 4 weeks and confirmed in next
meeting.
- Non‑official members entitled to TA/DA at State Government
officer rates; MLAs as per MLA rules; Ministers as per their own service
rules.
HR Relevance:
For construction‑heavy employers and contractors in AP, these Boards are the
primary entities for BOCW registration, cess utilisation and welfare benefits.
5. Employees’ State Insurance Society
(Rule 13–16)
5.1 Creation of State ESIS Society
State Government may establish an
Employees’ State Insurance Society as a managerial and healthcare body. It will
have:
- Governing Body
- Executive Committee
- Chief Executive Officer
- Secretariat
Society to be registered under
applicable State Societies Registration Act & Public Trust Act.
5.2 Governing Body Composition
Includes:
- Chief Secretary – Chairperson
- ACS/Principal Secretary/Secretary (Labour/Health) – Vice‑Chairperson
- ACS/Principal Secretary/Secretary (Health/Labour) – Member
- ACS/Principal Secretary/Secretary (Finance) – Member
- Director, ESIS – CEO‑cum‑Member Secretary
- ESIC nominees
- 3 Employers’ reps
- 3 Employees’ reps
- Regional Director, ESIC
- State Medical Officer, ESIC
5.3 Executive Committee & Meetings
- Executive Committee chaired by ACS/Principal
Secretary/Secretary overseeing ESIS.
- Quorum: 1/3 or at least 3 of filled posts.
- Governing Body: meets at least twice a year.
- Executive Committee: at least quarterly.
5.4 Budgeting & Accounts
- Budget to be submitted by 10th December every year.
- Accounts audited by CAG annually.
- Financial year: 1 April – 31 March.
- Financial statements to be ready by 31 May, and annual report +
accounts to ESIC within 6 months of year‑end.
5.5 Other Key Points
- Society may sue or be sued through CEO or appointed member.
- Employees will be on deemed deputation from
Govt/PSU/ESIC with pension liabilities resting with parent organisation.
HR Angle:
For ESI‑covered establishments, this Society will influence service quality of
ESIS hospitals/dispensaries, timelines for reimbursements, and general
administration.
6. Gratuity – Detailed Operational Rules
(Rules 17–21 + Forms I–VII)
6.1 Gratuity for Minors (Rule 17)
Where gratuity is payable to a minor
nominee or heir, the Competent Authority must invest the amount in a term
deposit with SBI or any nationalised bank until the minor attains majority.
6.2 Nomination (Rule 18, Form I)
- Nomination must be given in Form I, in duplicate, within 90
days:
- Existing employees (1+ year service) – within 90 days of
commencement of rules.
- New employees – within 90 days of completing 1 year.
- Employer must:
- Verify service particulars
- Return one attested copy to employee within 30 days
- Retain the other. citeturn3search1
- If employee has no family at nomination time, a fresh
nomination is mandatory within 90 days of acquiring family status.
- Modifications in nomination (e.g., nominee predeceases
employee) also through Form I.
- Nominations take effect from date of receipt by employer.
6.3 Claiming Gratuity (Rule 19, Forms
II–VII)
Application by Employee / Nominee /
Legal Heir
- Employee: within 30 days of gratuity becoming payable (can
apply 30 days before known superannuation/retirement date).
- Fixed‑term employees: eligible if they complete 1 year; period
> 6 months is rounded off to 1 full year.
- Nominee: within 30 days of gratuity becoming payable.
- Legal heir: within 1 year.
- Delayed applications must be accepted if sufficient cause is
shown; delay alone cannot render claim invalid.
Employer’s Decision & Timelines
Within 15 days of application:
- If admissible → issue Form III
specifying amount & payment date (within 30 days of application).
- If not admissible →
issue Form III with reasons and copy to Competent Authority.
Gratuity must be paid via Demand Draft
or bank transfer.
Disputes & Appeals
- If employer:
- Competent Authority:
- Issues notice in Form V to both parties, conducts hearing, may
summon witnesses, and records findings.
- If gratuity is payable, issues Form VI to employer directing
payment within 30 days.
- Appeal:
- To Appellate Authority within prescribed time, attaching
Competent Authority’s order.
- Appellate Authority decision communicated to both parties;
Competent Authority modifies its direction accordingly and may issue
revised Form VI with modified amount and 15‑day payment timeline.
- If employer still doesn’t pay, employee/nominee/legal heir may
seek recovery through Form VII, which allows recovery under section 129.
6.4 Management of Gratuity Trust (Rule
20)
For exempted establishments with
approved Gratuity Fund (Section 57(2)):
- Board of Trustees must be formed with equal representation of
employers & employees.
- Employer serves as Chairperson but must maintain arm’s length
in decisions.
- Board meets at least once every three months.
- Governance conditions (tenure, elections, quorum, records,
etc.) shall be as per the approved Gratuity Fund.
Any interpretation disputes under this
rule are to be referred to Government/Commissioner of Labour; their
interpretation is binding.
7. Maternity Benefit – Detailed
Provisions (Rules 22–27 + Forms VIII–XII, XX)
7.1 Medical Certificates & Proofs
(Rule 22, Form VIII)
Pregnancy, delivery, miscarriage, MTP,
tubectomy and related illness can be certified by:
- Registered Medical Practitioner
- Accredited Social Health Activist (ASHA)
- Auxiliary Nurse Midwife (ANM)
Additional acceptable documents include:
- Birth certificate from municipality/gram panchayat
- Extract from birth/death register
- Certificate by Gram Pradhan / Village Administrative Officer /
Municipal Officer, etc.
7.2 Claim Notice & Payment (Form IX)
- Woman must give notice for maternity benefit in Form IX,
including nominee details under section 62.
- Employer must:
- Pay maternity benefit & other amounts to the woman, or if
she dies, to her nominee/legal representative.
- Deposit payment with Competent Authority within 2 months of
death if there is doubt about rightful payee.
- Medical bonus to be paid with the second instalment of
maternity benefit.
- Wages under section 65 (miscarriage/illness etc.) to be paid
within 48 hours of producing Form X.
7.3 Nursing Breaks (Rule 23)
- Two breaks of 15 minutes each for nursing up to child’s age of
15 months.
- Extra travel time of up to 15 minutes to/from creche or place
where child is left.
- Any dispute over extra time → to
Competent Authority.
7.4 Creche Facilities (Rule 24)
Mandatory for establishments with 50+
employees:
- To provide and maintain a creche for children under 6 years.
- Within 1 km of establishment; relaxation allowed for industrial
parks/areas with common creche.
- At least 10 sq. ft per child; safe, rainproof building, fenced
play area, proper hygiene.
- Working hours aligned with employee shift patterns.
- Staffed by a woman with midwifery/creche training + 1 ayah per
10 children.
- Must provide cots, beds, sheets, blankets, toys, first-aid,
kitchen, milk, refreshments, toilets, wash basins, etc.
Creche Allowance (Instead of Physical
Creche)
- Where there is a sole negotiating union / council, it may agree
with employer to give creche allowance instead of on-site creche for
eligible employees (women, widowers, single parents with children < 6
years).
- Where no such union/council exists, majority of employees may
similarly agree.
- Amount not less than ₹500
per month per child, or higher as notified by Central Government;
applicable for up to 2 children (with exception for multiple births in
second childbirth).
7.5 Gross Misconduct & Appeals (Rule
25)
Acts constituting “gross misconduct”
(relevant for deprivation of maternity benefit under Section 68):
- Wilful destruction of employer’s property
- Assault on superior/co‑worker at workplace
- Criminal offence involving moral turpitude with conviction
- Theft/fraud/dishonesty related to employer’s business or
property
- Wilful non‑observance of safety measures / interference with
safety devices or fire‑fighting equipment
Appeal against deprivation of maternity
benefit to Competent Authority in Form X.
7.6 Complaints & Duties of Inspector‑cum‑Facilitator
(Rules 26–27)
- Complaints regarding withheld benefits or wrongful dismissal:
to Inspector‑cum‑Facilitator in Form XI.
- Inspector must:
- Examine employer records & employees
- Issue orders within 45 days if benefit is improperly withheld.
- Appeals against Inspector’s decision go to Competent Authority
(also Form XI).
- Inspector must check compliance with key provisions: sections
59, 62(5),(6), 64–67, 69, 71 and previous irregularities.
Register of Women Employees (Form XX)
Employers must maintain detailed
Register of Women Employees capturing: appointment, leave, notices, proofs,
payments of maternity benefit, bonus, leave wages, nominee details, etc.
8. Records, Registers & Unified
Annual Return (Rule 28, Form XIII)
8.1 Registers to Maintain
Every employer must maintain:
- Register of employees – Form I of AP Code on Wages Rules, 2026
- Attendance / muster – Form IX of AP Code on Wages Rules, 2026
- Wages/overtime/advances/fines/deductions – Form IV of AP Code
on Wages Rules, 2026
- Register of women employees – Form XX under these rules
Registers may be electronic or physical,
in English + Hindi or local majority language, and must be kept updated.
- Preserve all registers for 5 calendar years from last entry.
- Produce them on demand to Inspector‑cum‑Facilitator.
8.2 Unified Annual Return – Form XIII
- Employers to file Unified Annual Return (online) in Form XIII
on State portal by 1st February each year for the preceding year.
- In case of sale, abandonment or discontinuance of
establishment:
- File additional unified return within 1 month of
sale/abandonment or 4 months of discontinuance, covering period since
last calendar year‑end.
The return consolidates requirements
under Wages, OSH, IR & Social Security Codes into a single integrated
filing.
9. Offences & Compounding (Rule 29,
Form XIV)
- State Government may authorise a Compounding Officer to handle
offences under section 138.
- Compounding process:
- Compounding notice in Form XIV (Part I) issued electronically.
- Employer has 15 days to pay composition amount and submit Part
III.
- If paid → Compounding Officer
issues Composition Certificate (Part IV) within 10 days.
- If not paid → Prosecution will be
initiated for the offence mentioned in the notice.
10. Employment Information &
Monitoring (Rules 32–33, 68–70)
10.1 Career Centres (Rule 32)
- State Government may establish or notify career centres or
convert existing employment exchanges into career centres; may also
partner with institutions, local bodies, or private bodies.
- Functions:
- Collect job seeker & vacancy data
- Provide career counselling & vocational guidance
- Organise job fairs/drives
- Conduct employment surveys & employability enhancement
activities.
10.2 Reporting of Vacancies (Rule 33,
Form XV)
Public Sector:
- All public sector establishments must report vacancies to
career centre before filling them.
Private Sector:
- Private establishments (or specific classes) will report from
date notified by State Government.
Timelines & Modes:
- Use Form XV, via writing/email/digital mode.
- To regional Career Centre at least 15 days before last date for
applications.
- For all‑India or multi‑State recruitment → also report to Central career centre / digital portal.
- Career Centre must allot unique vacancy ID and inform employer
within 3 working days (or up to 7 days for NE States).
10.3 Employment Information Return –
Form XVII
- Employer to file Form XVII (EIR) within 30 days of end of
financial year with Regional Career Centre.
- EIR includes:
- Total manpower (including contractual, outsourced)
- Vacancies occurred, reported & filled
- Manpower shortages and skill gaps
- Estimated manpower requirements for next year
11. Employees’ Compensation (Rules
34–48, Forms XVI–XIX)
Key HR‑relevant points:
- Interest on delayed compensation – 12% p.a. simple interest if
not paid within 30 days (or rate as notified by Central Government).
- Funeral expenses amount fixed at ₹20,000, subject to change by State notification.
- Claim applications to Competent Authority in Form XVI, can be
by post or electronically.
- Venue of proceedings: area where accident occurred / employee
(or dependants) reside / employer’s registered office.
- Transfer of records/money between Competent Authorities handled
through Forms XVIII & XIX and electronic/banking modes.
- Employer must inform each employee in writing and
electronically about their rights under Employee’s Compensation provisions
at the time of employment.
12. Exemptions – Eligibility Conditions
(Rule 49)
An establishment seeking exemption under
Section 143 must:
- Provide benefits substantially similar or superior to those
under:
- Chapter III schemes or
- Chapter IV benefits (as applicable).
- Apply electronically or otherwise as prescribed.
13. What HR & Employers in AP Should
Do Now
Here’s how you can translate the draft
into concrete internal steps:
- Registration & Portal Readiness
- Check if your establishment details on AP Labour Portal are
accurate and live.
- Map responsibility for timely returns & updates to
a specific HR/compliance owner.
- Gratuity & PF–Linked Practices
- Ensure Form I, II, III, IV–VII workflows for gratuity are
built into HRIS or manual SOPs.
- For any in‑house gratuity trust, review governance vs. Rule 20
and Board of Trustees structure.
- Maternity Policy & Creche
- Align your maternity policy, including:
- Eligibility checks
- Form VIII/IX usage
- Payment timelines
- Nursing breaks & creche/allowance.
- For 50+ employee locations, plan for on‑site creche or creche
allowance agreement as per Rule 24.
- Registers & Records
- Integrate Form XX (Register of Women Employees) and ensure
other registers/records are maintained for 5 years.
- Prepare to file Unified Annual Return – Form XIII online by
1st February each year.
- Vacancy Reporting & Employment Returns
- If you fall under public sector/ notified private category,
set a process for:
- Reporting vacancies in Form XV,
- Filing Form XVII yearly to Regional Career Centre.
- Safety & Compensation
- Inform all employees of their Employee’s Compensation rights
in writing and electronically at joining.
- Ensure compensation and funeral expense limits are understood
by HR and line managers.
