One Term, Four Meanings: Understanding 'Appropriate Government' across the Labour Codes

The simplest way to understand these four definitions is:

Appropriate Government" means which government authority (Central Government or State Government) will administer, regulate, inspect, hear disputes, issue notifications, and enforce the provisions of the Code for a particular establishment

While all four Codes follow the same broad principle, there are some significant differences.

1. Code on Wages, 2019, Basic inclusions -

Central Government is the Appropriate Government for:

1. Central Government establishments
2. Railways
3. Mines
4. Oil fields
5. Major ports
6. Air transport services
7. Telecommunication
8. Banking companies
9. Insurance companies
10. Corporations established by a Central Act
11. Central PSUs
12. Subsidiaries of Central PSUs
13. Autonomous bodies owned or controlled by Central Government
14. Contractors engaged in such establishments

State Government is the Appropriate Government for:  Every other establishment.

This is the most basic definition. It does not specifically cover-

1. Controlled industries
2. Multi-state establishments
3. Companies with 51% Central Government shareholding
4. Special treatment for factories

2. Social Security Code, 2020 , Widest inclusions -

This Code significantly expands the Central Government's jurisdiction. In addition to everything covered under the Wage Code, it also includes -

1. Controlled Industries - If the Central Government declares an industry as a "controlled industry", the Central Government becomes the Appropriate Government. Example:Defence manufacturing, Certain strategic industries
2. Metro Railways - Metro Railways are expressly included
3. Companies with 51% or More Central Government Shareholding - If the Central Government holds 51% or more paid-up share capital then Central Government becomes the Appropriate Government.
4. Multi-State Establishments - This is one of the biggest additions. If an establishment has following then Central Government becomes the Appropriate Government.

Departments in more than one State, or

Branches in more than one State

5. CPSU Protection - Even if Government shareholding later falls below 50%, the Central Government continues to remain the Appropriate Government for the CPSU

The Social Security Code gives the widest scope to Central Government jurisdiction among all four Codes.

3. OSHWC Code, 2020 – Factory-Centric inclusions -

The OSHWC Code follows the Social Security Code to some extent but introduces a major exception.

Central Government is the Appropriate Government for:

1. Controlled industries
2. Railways
3. Metro railways
4. Mines
5. Oil fields
6. Major ports
7. Air transport
8. Telecom
9. Banking
10. Insurance
11. Central PSUs
12. Central Government establishments

The Code specifically provides for major exceptions which are: State Government shall be the Appropriate Government for the following even if these fall under the categories defined for Central Government:

1. Factories
2. Motor Transport Undertakings
3. Plantations
4. Newspaper Establishments
5. Beedi & Cigar Establishments

4. Industrial Relations Code, 2020 – Labour Dispute Focused inclusions -

This definition is similar to Social Security Code but tailored for industrial relations.

Central Government is the Appropriate Government for:

1. Controlled industries
2. Railways
3. Metro railways
4. Mines
5. Oil fields
6. Major ports
7. Air transport
8. Telecom
9. Banking
10. Insurance
11. Central PSUs
12. Companies with 51% Central Government shareholding
13. Autonomous bodies owned/controlled by Central Government

State Government is the Appropriate Government for:

1. All other industrial establishments
2. State PSUs
3. Subsidiaries of State PSUs
4. State autonomous bodies

Special Provision for Contract Labour Disputes - This is unique to the Industrial Relations Code. Where there is a dispute between Contractor and Contract labour, the Appropriate Government will be the Government controlling the principal industrial establishment. For Instance-  If contract workers are engaged in a Railway establishment, Central Government will have jurisdiction. If contract workers are engaged in a private factory in Haryana, Haryana State Government wil be appropriate Government.

Quick Glance-

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