12 March, 2026

Mandatory Annual Health Check-Up Under New Labour Code


✍️ CA RAMAKRISHNA SANJAY

  📞 +91 77602 52581

India’s labour law reforms aim to strengthen worker safety, health monitoring, and workplace welfare. One important compliance requirement relates to periodic medical examinations of workers.

This requirement arises from the Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code).

This guide explains in a simple and practical manner:

✔ Who is covered
✔ Which establishments must comply
Employee thresholds
✔ Applicability date
✔ Possible exemptions


⚖️ What Does the New Labour Code Say?

The OSH Code, 2020 empowers the government to require free medical examinations for workers in certain situations.

💡 Important:

The entire cost of the medical check-up must be borne by the employer.


👷 Who Are Covered Under This Provision?

The rule mainly applies to “Workers” under the labour code.

A worker generally includes persons employed in:

🏭 Factories
🏗 Construction establishments
⛏ Mines
⚓ Dock work
🏭 Manufacturing units
🚬 Beedi and cigar establishments

Managerial and administrative employees are generally not treated as workers under this code.


🏢 Which Establishments Are Covered?

The OSH Code regulates establishments where industrial operations or labour-intensive activities exist.

Covered Establishments

✔ Factories
✔ Mines
✔ Building & construction establishments
✔ Dock work establishments
✔ Beedi and cigar manufacturing units
✔ Establishments employing contract labour
✔ Establishments employing inter-state migrant workers

These establishments must follow health, safety, and welfare provisions under the Code.


📊 Threshold Limits for Applicability

The applicability depends on the number of workers employed.

🏭 Establishment📌 Threshold
Factory using power10 or more workers
Factory without power20 or more workers
Building & construction establishments10 or more workers
Contract labour establishments50 or more contract workers
Inter-state migrant workers10 or more workers
Mines & dock workNo specific threshold

Once these thresholds are crossed, health and safety provisions become applicable.


🩺 When Is Annual Health Check-up Required?

Medical examinations are mandatory in the following situations.

👤 Category of Worker🏥 Requirement
Workers aged 45 years and aboveFree annual health check-up
Workers in hazardous occupationsPeriodic medical examination
Workers exposed to chemicals, dust, or industrial hazardsMandatory medical monitoring

💡 Employer must bear the full cost of these medical examinations.


🧾 Frequently Asked Questions (FAQs)

❓ Is annual health check-up mandatory under the new labour codes?

Yes. The OSH Code, 2020 empowers the government to mandate free medical examinations for certain categories of workers, particularly older workers and those working in hazardous environments.


❓ Who must bear the cost of the medical check-up?

💡 The employer must bear the entire cost of the medical examination.

Workers should not be charged for these health check-ups.


❓ Are office employees or IT professionals covered?

Generally no.
The provision mainly applies to workers in industrial establishments such as factories, construction sites, mines, and manufacturing units.


❓ Is this rule already in force?

No.
Although the OSH Code was enacted in 2020, it will come into effect only after government notification of the rules.


❓ Are health check-ups required only for workers above 45 years?

Workers above 45 years typically require annual check-ups, but workers involved in hazardous processes may require periodic medical examinations regardless of age.


❓ What records should employers maintain?

Employers may need to maintain:

✔ Medical examination reports
✔ Worker health records
✔ Hazard exposure monitoring data

These records help demonstrate compliance with workplace safety laws.


✍️ CA RAMAKRISHNA SANJAY

  📞 +91 77602 52581


What is Crèche Pay in the New Labour Code?

 


Code on Social Security, 2020 and Maternity Benefit Act, 1961 require certain employers in India to provide crèche (child-care) facilities for employees with young children. Many employees and HR professionals commonly refer to the monetary alternative as “crèche pay.”

This article explains what crèche pay means, when it is applicable, and how employers comply with the rule under the new labour framework.


👶 What is Crèche Pay?

Crèche pay is a child-care allowance paid by an employer when a physical crèche facility is not provided.

Legally, the law mandates a crèche facility, but many organizations provide a monthly childcare allowance or reimbursement instead. This allowance is informally called crèche pay.

👉 In simple words:
Crèche Pay = Childcare allowance given instead of providing a crèche facility.


🏢 When is Crèche Facility Mandatory?

Under Indian labour law:

✔ A crèche facility must be provided if an establishment employs 50 or more employees.

This rule applies to:

  • Companies

  • Factories

  • Shops and establishments

  • Offices and corporate workplaces

The requirement originally comes from the Maternity Benefit Act amendment and continues under the Code on Social Security framework.


📊 How Employers Comply with the Crèche Requirement

Compliance MethodExplanation
In-house crècheChild-care facility inside the office or factory
Shared crècheFacility shared with nearby establishments
Tie-up with daycareAgreement with external childcare centres
Crèche allowance (Crèche Pay)Monthly reimbursement to employees

Many modern companies prefer crèche allowance because maintaining a physical facility can be operationally difficult.


⏰ Special Rights for Employees

If a crèche facility exists, employees are entitled to:

4 visits per day to the crèche
✔ Visits include rest intervals
✔ Facility must be within prescribed distance from the workplace

These rights primarily support working mothers returning from maternity leave.


💡 Example to Understand Crèche Pay

Example 1 – IT Company

Employees: 200

Instead of running an office daycare, the company provides:

₹5,000 per month childcare allowance

This allowance is commonly called crèche pay.


📌 Quick Summary

ParticularDetails
Applicable lawCode on Social Security & Maternity Benefit Act
Threshold50 or more employees
RequirementProvide crèche facility
Alternative practiceChildcare allowance (Crèche Pay)
Employee benefit4 visits per day to the crèche

🔎 Frequently Searched Questions

Is crèche pay mandatory in India?
The law mandates a crèche facility, not specifically “crèche pay.” However, many companies provide childcare allowance as an alternative.

At what employee strength is crèche mandatory?
When an establishment has 50 or more employees.

Can companies give allowance instead of a crèche?
Many companies provide childcare reimbursement, but compliance depends on state labour rules.


Conclusion

Crèche provisions under the new labour framework aim to support working parents and promote workplace inclusion

Understanding this provision helps both employers stay compliant and employees know their workplace rights.



CA RAMAKRISHNA SANJAY
📞 +91 77602 52581



Impact of New Labour Codes on Contract Labour in India – Simple Guide for Businesses

 


📘 Contract Labour under India’s New Labour Codes – 

India has simplified labour regulations by introducing four new labour codes. These reforms aim to protect workers while making compliance easier for businesses.

One major area affected is contract labour — how companies hire workers through contractors.

The main laws governing this are:

Understanding these rules is important for business owners, HR professionals, and compliance advisors.


⚖️ Core Activity vs Non-Core Activity

The new labour codes focus on where contract labour can be used.

🔹 Core Activity

Core activity means the main business work of an organisation — the activity that generates revenue.

Examples:

BusinessCore ActivityContract Labour
🏭 Manufacturing companyProducing goods❌ Generally not allowed
💻 IT companySoftware development❌ Generally not allowed
🏥 HospitalMedical treatment❌ Generally not allowed

For such activities, companies should normally hire regular employees or fixed-term employees.


🔹 Non-Core Activity

Non-core activities are support services that help the business operate but are not the main work.

Examples:

BusinessNon-Core ActivityContract Labour
🏢 OfficeHousekeeping✅ Allowed
🏭 FactorySecurity services✅ Allowed
🏥 HospitalCanteen management✅ Allowed

These activities are commonly outsourced to contractors.


📊 Threshold Limit Increased

Earlier, under the
Contract Labour (Regulation and Abolition) Act, 1970,
the law applied when 20 contract workers were employed.

Under the new labour codes:

✔ The law applies when 50 or more contract workers are engaged.

This change reduces compliance burden for smaller establishments.


🪪 Single License for Contractors

The new framework allows contractors to obtain a single license valid across India.

Benefits include:

✔ Easier deployment of workers
✔ Reduced paperwork
✔ Simplified labour administration


👨‍💼 Responsibility of the Principal Employer

Even when workers are hired through a contractor, the principal employer may still be responsible if the contractor fails to:

  • pay wages

  • follow labour laws

  • provide welfare facilities

Therefore companies must monitor contractor compliance carefully.


🚨 Common Mistakes Companies Make

Many businesses face labour disputes due to these mistakes:

❌ Using contract labour in core business activities
Keeping contract workers continuously for many years
❌ Poor contractor agreements
❌ Not maintaining proper labour records
❌ Weak monitoring of contractor compliance



📌 Practical Example

ActivityCore / Non-CoreContract Labour
Machine operation in factoryCore❌ Not allowed
Packaging supportNon-Core✅ Allowed
Security servicesNon-Core✅ Allowed
Special technical installationException⚠ Possible

Businesses should review their manpower structure, contractor agreements, and compliance systems to align with the new labour law framework.



CA RAMAKRISHNA  SANJAY

📞 +91 77602 52581



Worker vs Employee under India’s New Labour Codes – Meaning, Differences, Examples & Legal Impact

 


📘 Worker vs Employee under India’s New Labour Codes – Why the Difference Matters

India has consolidated 29 labour laws into four major labour codes to simplify compliance and strengthen worker protection. Understanding the difference between “Employee” and “Worker” under these codes is extremely important for businesses, HR professionals, and compliance advisors.

The key legislations are:

These codes use the terms Employee and Worker in different contexts, and the distinction directly impacts labour rights, employer obligations, and litigation exposure.


👨‍💼 What is an “Employee”?

An Employee means any person employed on wages by an establishment to perform work such as:

✔ Skilled work
✔ Unskilled work
✔ Technical work
✔ Clerical work
✔ Managerial or administrative work

👉 In simple terms: Employee is a broad category covering almost everyone working for wages.

Examples of Employees

  • Accountant in a company

  • HR Manager

  • Software engineer

  • Factory supervisor

  • Office assistant

All these individuals are employees under labour laws.


👷 What is a “Worker”?

A Worker is a subset of employees.

A worker is typically someone engaged in:

✔ Manual work
✔ Skilled or unskilled labour
✔ Technical work
✔ Operational work
✔ Clerical work

However, the following are generally excluded:

Managerial employees
Administrative employees
Supervisors above prescribed wage limits

👉 Therefore:

All Workers are Employees, but not all Employees are Workers.


📌 Why This Classification is Extremely Important

Correct classification affects several labour law rights and employer obligations.

1️⃣ Industrial Dispute Protection

Under the Industrial Relations Code, only workers can raise disputes before labour authorities.

Example:
A factory labourer dismissed unfairly can approach the labour tribunal.


2️⃣ Trade Union Rights

Only workers can:

✔ Form trade unions
✔ Participate in collective bargaining
✔ Strike under labour law provisions.

Managers or administrative employees cannot exercise these rights.


3️⃣ Retrenchment and Termination Protection

When terminating workers, employers must follow strict procedures such as:

Failure to comply can result in labour litigation and penalties.


4️⃣ Safety and Working Conditions

Under the Occupational Safety Health and Working Conditions Code, workers receive:

✔ Workplace safety protections
✔ Maximum working hours
✔ Overtime wages
✔ Welfare facilities

This is especially relevant in factories, construction sites, and industrial establishments

⚠️ Compliance Risk for Employers

Many companies misclassify employees by giving managerial titles such as:

“Assistant Manager” or “Team Leader”.

However, courts evaluate the actual nature of duties, not job titles.

If the work is clerical or operational, the person may legally be considered a Worker, resulting in:

  • Retrenchment liability

  • Labour court jurisdiction

  • Union rights

This can significantly impact legal risk and compliance costs.


CA RAMAKRISHNA SANJAY

7760252581

How Income from House Property is Taxed in India – Complete Beginner Guide

 


(A Simple Guide for Taxpayers)

Owning a house is not just an emotional investment — it also has tax implications. Under the Income Tax Act, 1961, income from house property is taxed under a separate head called “Income from House Property.”

This guide explains the basic concept in simple terms, so that property owners clearly understand how such income is calculated and taxed.


📌 What is Income from House Property?

Income from house property refers to income earned from buildings or land attached to buildings.

👉 This typically includes:

  • Rent received from letting out a house

  • Deemed rent from property that is not actually rented

  • Commercial buildings or residential properties given on rent

⚠️ Important Condition

For taxation under this head:

✔ The taxpayer must be the owner of the property
✔ The property must consist of building or land appurtenant to it

If these conditions are satisfied, income will be taxed under House Property, even if the property is used for business by the tenant.


🏡 Types of House Property for Tax Purposes

1️⃣ Self-Occupied Property

A property used for your own residence is called self-occupied property.

✔ Annual value considered = Nil

However:

  • Deduction for housing loan interest is allowed up to ₹2,00,000 per year (subject to conditions).


2️⃣ Let-Out Property

A property given on rent is called a Let-Out Property.

Here, tax is calculated based on the actual rent or expected rent, whichever is higher.

Typical examples:

  • Residential house rented to tenant

  • Commercial building rented to business


🧾 How Income from House Property is Calculated

The taxation follows a standard formula under the Income Tax Act, 1961.

Step-by-Step Computation

Step 1 — Determine Gross Annual Value (GAV)
Higher of:

  • Expected rent

  • Actual rent received

Step 2 — Less: Municipal Taxes Paid

Result → Net Annual Value (NAV)

Step 3 — Deductions Allowed

Two deductions are allowed under Section 24:

30% Standard Deduction (for repairs and maintenance)
Interest on Housing Loan


📊 Simple Example

ParticularsAmount
Annual Rent Received₹3,00,000
Less: Municipal Taxes₹20,000
Net Annual Value₹2,80,000
Less: 30% Standard Deduction₹84,000
Less: Interest on Loan₹1,00,000
Taxable Income₹96,000

💡 Key Points Every Taxpayer Should Know

✔ Up to two houses can be treated as self-occupied
✔ Standard deduction of 30% is mandatory (no proof required)
✔ Housing loan interest deduction can be significant tax benefit
✔ Loss from house property can be set-off up to ₹2 lakh against other income
✔ Balance loss can be carried forward for 8 years


CA RAMAKRISHNA SANJAY

7760252581

11 March, 2026

New Board Report Disclosure Rules 2025: Sexual Harassment Cases & Maternity Benefit Compliance Explained

📢 The Ministry of Corporate Affairs (MCA) has introduced new disclosure requirements in the Board’s Report under the Companies (Accounts) Second Amendment Rules, 2025.



Companies must now disclose:

✔ Sexual Harassment complaints at the workplace
✔ Compliance with the Maternity Benefit Act

This article explains who must report these disclosures, when they become applicable, and what details must be included in the Board’s Report.


📌 Applicability of the New Disclosure

The new disclosure requirements become effective from 14 July 2025.

They apply to:

✔ Private Companies
✔ Public Companies
✔ Listed Companies

In short, every company preparing a Board’s Report under Section 134 of the Companies Act, 2013 must include these disclosures.


1️⃣ Disclosure of Sexual Harassment Cases in Board’s Report

Companies are now required to report details of sexual harassment complaints received at the workplace during the financial year.

This requirement aligns with the Prevention of Sexual Harassment (POSH) Act, 2013.


📊 Details to be Disclosed

The Board’s Report must include the following information:

Number of sexual harassment complaints received during the year

Number of complaints disposed of during the year

Number of complaints pending for more than 90 days

These details must be based on records maintained by the Internal Complaints Committee (ICC).


📌 Suggested Disclosure Format

Companies may present the disclosure in a simple table:

ParticularsNumber
Complaints received during the yearXX
Complaints disposed during the yearXX
Complaints pending for more than 90 daysXX

2️⃣ Disclosure of Compliance with Maternity Benefit Act

Another new requirement is disclosure regarding compliance with the Maternity Benefit Act, 1961.

This law protects the rights of women employees during pregnancy and maternity leave.

Companies must confirm that they follow maternity benefit provisions applicable to employees.


📊 What Companies Must Report

The Board’s Report must confirm compliance with:

✔ Maternity leave provisions
✔ Payment of maternity benefits
✔ Protection of employment during maternity leave


📌 Example Disclosure in Board’s Report

A simple disclosure may read:

“The Company confirms that it has complied with the provisions relating to maternity benefit as prescribed under the Maternity Benefit Act, 1961.”


📌 Conclusion

The Companies (Accounts) Second Amendment Rules, 2025 introduce important disclosures that strengthen workplace governance and employee protection.

From 14 July 2025, companies must ensure their Board’s Report includes:

✔ Sexual harassment complaint details
✔ Confirmation of maternity benefit compliance

Companies should maintain proper coordination between HR departments, Internal Complaints Committee (ICC), and management to ensure accurate reporting.


CA RAMAKRISHNA SANJAY

Chartered Accountant 

7760252581


Mandatory Annual Health Check-Up Under New Labour Code

✍️  CA RAMAKRISHNA SANJAY    📞 +91 77602 52581 India’s labour law reforms aim to strengthen worker safety, health monitoring, and workplac...

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