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CS Professional · Labour Laws and Practice · Industrial and Labour Laws Audit

Rajan Textiles Ltd. is being reviewed by a labour law auditor. The auditor notes that the company already holds a registration under an earlier Central labour law and asks whether a fresh registration under the Code on Social Security, 2020 is needed. What is the correct position?

No fresh registration is needed. Under the Code on Social Security, 2020, an establishment already registered under another Central labour law is not required to register again, and its existing registration is deemed to be registration for the purposes of the Code.

  1. AFresh registration is mandatory within the prescribed time, whatever registration exists
  2. BNo fresh registration is required, as the existing registration is deemed to be registration for the purposes of the CodeCorrect
  3. CFresh registration is required only if the establishment is in the process of closure
  4. DRegistration is needed only after a notice from the Inspector-cum-Facilitator

Explanation

Section 3(1) of the Code on Social Security, 2020 provides that an establishment already registered under any other Central labour law need not obtain registration again. Its existing registration is deemed to be registration for the purposes of the Code. The first option ignores this proviso. The closure option confuses registration with cancellation.

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