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

Suvarna Textiles Ltd, already registered under an existing Central labour law before the Code on Social Security, 2020 commenced, is preparing a labour audit checklist. The audit team asks whether the company must obtain a fresh registration under the Code to be treated as compliant. Which is correct?

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 that earlier registration is deemed to be registration for the purposes of the Code.

  1. ANo fresh registration is needed; the earlier registration is deemed registration for the purposes of the CodeCorrect
  2. BFresh registration is needed within 30 days of commencement of the Code
  3. CFresh registration is needed only if the establishment employs more than 100 workers
  4. DEarlier registration lapses automatically and a new licence must be obtained

Explanation

Section 3 of the Code on Social Security, 2020 provides that an establishment already registered under any other Central labour law is not required to obtain registration again, and the existing registration is deemed to be registration under the Code. The distractors invent a fresh-registration requirement that the proviso removes.

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