Compliances Related to Authorities, Assessment, and Recovery under Code on Social Security (Gujarat) Rules, 2021

Background

The Code on Social Security (Gujarat) Rules, 2021 have been framed by the Government of Gujarat in exercise of the powers conferred under the Code on Social Security, 2020. These Rules operationalise and give procedural effect to the provisions of the Code within the State of Gujarat.

The Rules lay down detailed mechanisms for implementation, administration, and enforcement of social security benefits relating to employment injury, medical benefits, sickness, maternity, disablement, dependants’ benefits, gratuity, and other allied matters. They supplement the substantive provisions of the Code by prescribing conditions, forms, timelines, eligibility criteria, and compliance requirements for employers, employees, and authorities.

Applicability

These Rules apply to:

a) Factory, mine, oilfield, plantation, port and Railway Company,

b) Shop or establishment having 10 or more employees on any day of preceding 12 months, in Gujarat

The Rules shall be read in conjunction with the Code on Social Security, 2020 and the Code on Social Security (Central) Rules, 2020.

Compliance Requirements under the Rules in Accordance with the Code

  1. Form XXIХ: Register of beneficiaries in Gujarat (Section 123(a), Rule 58)

Every employer shall maintain employment register under Section 123(a) as per Form-XXIХ.

  1. Information to be furnished by the employer as per Form XXXI (Section 123(d), Rule 71(1))

Every employer must file a return in Form-XXXI with the Assessing Officer within 60 days of commencing cess payment work, as required under Section 123(d).

  1. Intimation of modification or change in information of Form XXXI (Section 123(d), Rule 71(2))

Employers must inform the Assessing Officer of any change or modification in the return filed under Section 123(d). Such communication must be made immediately and not later than 30 days from the date the modification or change takes effect.

  1. Display of Notice in premises & issue of wage slips & filing of returns in Gujarat (Section 123(b), (c), (d))

An employer of an establishment shall display notices at the workplaces of the employees in such manner and form as may be prescribed by the appropriate Government and issue wage slips to the employees, in electronic forms or otherwise. Manner & period of filing returns to be as prescribed

1) Matters to be provided under the rules required to be made under this section relating to Chapter III shall, instead of providing them in rules to be made by the Central Government, be provided in the Provident Fund Scheme or the Pension Scheme or the Insurance Scheme, as the case may be

2) The forms of records and registers and that of the returns to be filed under Chapter IV shall be specified in the regulations instead of providing them in the rules.

  1. Form XXXII: Register of Women Employees in Gujarat (Section 123(d), Rule 82(1))

The employer of every establishment in which women are employed shall prepare and maintain a register of women employees in Form XXII electronically or in hard copy and shall enter therein particulars of all women workers in the establishment.

1) Register of women employees shall always be available for inspection under notified inspection scheme for the Inspector-cum Facilitator

2) The employer may enter in the register of women employees such other particulars as may be required for any other purpose of the Code

3) Matters to be provided under the rules required to be made under this section relating to Chapter III shall, instead of providing them in rules to be made by the Central Government, be provided in the Provident Fund Scheme or the Pension Scheme or the Insurance Scheme, as the case may be

4) The forms of records and registers and that of the returns to be filed under Chapter IV shall be specified in the regulations instead of providing them in the rules.

  1. Employer not to reduce wages, etc. in Gujarat (Section 124)

Employers are prohibited from reducing the wages or benefits of employees covered under this Code or its schemes solely because of their liability for contributions. This ensures employees receive their full entitlements as per their employment terms, whether stated explicitly or implied.

  1. Form XXXXIII: Sale or abandonment of the establishment (Section 123(d), Rule 82(3))

If the employer to which the Code applies sells, abandons the establishment, then, he shall, within one month of the date of such sale or abandonment as the case may be, upload online, on the web portal of the Labour, Skill Development and Employment Department, State Government, a further unified return in Form XXXIII in respect of the period between the end of the preceding year and the date of the sale, abandonment.

  1. Form XXXIII: Discontinuance of the working of the establishment (Section 123(d) – Rule 82(3))

If the employer to which the Code applies discontinues the working of the establishment, then, he shall, within four months of the date of such discontinuance, upload online, on the web portal of the Labour, Skill Development and Employment Department, State Government, a further unified return in Form XXXIII in respect of the period between the end of the preceding year and the date of the discontinuance.

  1. Form XXXV: Reporting of vacancies to the Career Centre in Gujarat (Section 139 – Rule 84(1))

Employers of Public Sector must report job vacancy to specified Career Centre before filling it, as required by the state’s notification & that of Private Sector to report to Regional Career Centre by a date specified in state’s notification. Vacancies to be reported in format specified in Form XXXV

1) When an employer reports a vacancy, the Career Centre will assign a unique vacancy reporting number and inform the employer within three working days, using email, digital, or other written communication

2) Types of vacancies to be reported & to which Career Centre:

(i) Vacancies in posts of Technical and Scientific nature carrying a minimum pay or pay level or both as notified by Central Government(CG), occurring in establishments in respect of which the CG is the appropriate Government under Code; and

(ii) Vacancies which an employer may desire to be circulated to the Career Centres outside State or Union Territory in which establishment is situated shall be reported to such Career Centre (Central) as may be specified by CG by notification

(iii) Vacancies other than above shall be reported to the Career Centre (Regional) concerned

(iv) Employers must report any changes to previously submitted vacancy details in writing, by official email, or digitally to the designated Career Centre

  1. Time limit in the reporting of vacancies to the Career Centre (Regional) (Section 139, Rule 58(4) of Code on Social Security (Central) Rules, 2020)

Vacancies, required to be reported to the Career Centre (Regional), shall be reported at least fifteen days before the last date of receipt of the applications of the prospective candidates for purpose of appointment or taking interview or test against the vacancies reported

  1. Maintenance of records by employers of Establishment in Public Sector in Gujarat (Rule 58(5) (a) of Code on Social Security (Central) Rules, 2020)

After commencement of this Code in any state or area thereof, the employers in every establishment in the public sector in that state or area shall maintain records manually or electronically or digitally about:

(i) Total number of employees (regular, contractual or fixed term employment) on 31st March of every year;

(ii) Persons recruited during the year ending on 31st March;

(iii) Vacancies for which suitable candidates were not available during the year ending on 31st March; and

(iv) Occupational details of approximate number of vacancies likely to occur during the next two financial years and the skill requirements thereof.

  1. Maintenance of records by employers of Establishment in Private Sector in Gujarat (Rule 58(5) (b) of Code on Social Security (Central) Rules, 2020)

Appropriate Government may by notification, require that from such date as may be specified in the notification, the employer in every establishment in private sector or every establishment pertaining to any class or category of establishment in private sector shall maintain records manually or electronically or digitally about

(i) Total number of employees (regular, contractual or fixed term employment) on 31st March of every year;

(ii) Persons recruited during the year ending on 31st March;

(iii) Vacancies for which suitable candidates were not available during the year ending on 31st March; and

(iv)  Occupational details of approximate number of vacancies likely to occur during the next two financial years and the skill requirements thereof.

  1. Form – XXXVI: Submission of EIR (Employment Information Return) (Section 139, Rule 84(6))

An employer shall furnish to the concerned Career Centre yearly returns in form EIR (Employment Information Return) as given at Form-XXXVI. Yearly returns shall be furnished manually or electronically with read receipt or otherwise or digitally, as the case may be, up to 31st May of the year.

Penalty & Punishment

  • Where no specific penalty provided for contravention of any provisions of the Code/rules/regulations framed thereunder, fine may be imposed which may extend to fifty thousand rupees
  • Failure or refusal to submit any return, report, statement or any other information required under this Code or any rules, regulations or schemes made or framed thereunder shall be punishable with fine which may extend to fifty thousand rupees.
  • If any person, in contravention of the provisions of this Code, reduces the wages or any privilege or benefits admissible to an employee shall be punished with fine which may extend to fifty thousand rupees.

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