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CS Executive · Setting Up of Business, Industrial and Labour Laws · The Code on Social Security, 2020

Sunrise Textiles Pvt Ltd, Surat, has been paying gratuity and maternity benefit as per the Payment of Gratuity Act, 1972 and the Maternity Benefit Act, 1961. Under the Code on Social Security, 2020, what is the legal position of these two Acts?

Both the Payment of Gratuity Act, 1972 and the Maternity Benefit Act, 1961 are repealed by the Code on Social Security, 2020. Anything done under them is deemed done under the corresponding provisions of the Code, so past actions are saved and not rendered void.

  1. ABoth Acts are repealed by the Code, and actions taken under them are deemed taken under the corresponding provisions of the CodeCorrect
  2. BBoth Acts continue to operate in parallel with the Code
  3. COnly the Maternity Benefit Act, 1961 is repealed
  4. DBoth Acts are repealed and all past actions under them become void

Explanation

Section 164(1) repeals the Payment of Gratuity Act, 1972 and the Maternity Benefit Act, 1961 along with other enactments. Section 164(2)(a) saves actions taken, which are deemed taken under the corresponding provisions of the Code. Treating past actions as void is wrong because of this savings clause.

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