Background
Code on Social Security, 2020 (Act No. 36 of 2020) is one of the four central labour codes enacted by Parliament to consolidate and rationalise India’s social security legislation. It amends and merges nine central enactments — the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952; the Employees’ State Insurance Act, 1948; the Employees’ Compensation Act, 1923; the Maternity Benefit Act, 1961; the Payment of Gratuity Act, 1972; the Cine Workers Welfare Fund Act, 1981; the Building and Other Construction Workers’ Welfare Cess Act, 1996; the Unorganised Workers’ Social Security Act, 2008; and the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 — into a single, unified framework covering provident fund, insurance, gratuity, maternity benefit, employee compensation, and welfare cess obligations. The Code received Presidential assent on 28 September 2020, and its substantive provisions, along with those of the Code on Wages, 2019, the Industrial Relations Code, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020, were brought into force with effect from 21 November 2025 vide Gazette Notification No. 5143. The Code introduces a common registration and return-filing architecture across establishments, extends coverage to unorganised, gig, and platform workers for the first time, and empowers the Central and State Governments to frame scheme-specific and procedural rules to operationalise its provisions.
Rajasthan Code on Social Security Rules, 2026 are the State-specific procedural rules framed by the Government of Rajasthan under the rule-making powers conferred by the Code, prescribing the forms, timelines, registers, and State-level compliance procedures applicable to establishments operating in Rajasthan. These Rules were released in draft form vide Notification S.O. 151/S.O. 152 dated 12–13 January 2026, inviting objections and suggestions from stakeholders, and cover matters such as registration and its cancellation, nomination and payment of gratuity, maternity and compensation benefits, contributions to provident fund and insurance schemes, cess on building and construction work, compounding of offences, and the filing of periodic returns. As of the date of this note, the Rajasthan Rules remain at the draft stage pending final notification — unlike the Rajasthan Occupational Safety, Health and Working Conditions Rules, 2026, which were finalised and brought into force on 30 June 2026 — and readers are encouraged to verify the current status of these Rules before relying on specific timelines or forms referenced below.
Applicability
The compliance obligations covered in this blog apply across the several categories of establishments and workers that the Code on Social Security, 2020 and the Rajasthan Rules bring within their fold: provident fund and insurance fund provisions extend to factories and other establishments employing 20 or more employees, while employees’ State insurance provisions cover factories, mines, and plantations (including those belonging to Government) and any shop or establishment employing 10 or more persons on any day of the preceding twelve months, as well as establishments carrying on hazardous or notified life-threatening activities employing even a single employee, and plantations that opt into the ESI scheme; gratuity obligations apply to factories, mines, oilfields, plantations, ports and railway companies, and to any shop or establishment employing 10 or more persons; employee compensation provisions apply to employers and employees of establishments — including plantations — to which the ESI provisions do not extend; maternity benefit obligations extend to establishments in the public sector, to private-sector establishments employing 50 or more employees or as otherwise notified, and more broadly wherever women are employed; obligations relating to unorganised workers apply to establishments in the unorganised sector and to gig and platform workers; and cess and welfare obligations for construction workers apply to establishments falling under building and other construction work. Establishments covered generally under the Code on Social Security, 2020 are additionally subject to common registration, record-keeping, and return-filing obligations irrespective of the specific chapter under which they qualify.
Compliance Requirement Under the act in Accordance with the Rules & Regulations:
A nomination shall be in Form-XI and submitted in duplicate by the employee either by personal service, after taking proper receipt or by registered post acknowledgement due or electronically to the employer,- (a) in the case of an employee who is already in employment for a year or more on the date of commencement of these rules but not submitted the nomination, ordinarily within ninety days from such date; and (b) in the case of an employee who completes one year of service after the date of commencement of these rules, ordinarily within thirty days of the completion of one year of service: Provided that nomination in Form-XI shall be accepted by the employer after the specified period, if filed and no nomination so accepted shall be invalid merely because it was filed after the specified period. A nomination, fresh nomination or notice of modification of nomination shall take effect from the date of receipt thereof by the employer.
Within thirty days of the receipt of nomination in Form-XI under sub-rule (1), the employer shall get the service particulars of the employee, as mentioned in the form of nomination, verified with reference to the records of the establishment and return to the employee, after obtaining a receipt thereof, the duplicate copy of the nomination in Form-XI duly attested either by the employer or an officer authorised in this behalf by him, as a token of recording of the nomination by the employer and the other copy of the nomination shall be recorded. A nomination, fresh nomination or notice of modification of nomination shall take effect from the date of receipt thereof by the employer.
A notice of modification of a nomination, including cases where a nominee predeceases an employee, shall be submitted in duplicate in Form-XI to the employer in the manner specified in sub-rule (1), and thereafter the provisions of sub-rule (2) shall apply mutatis mutandis. A nomination, fresh nomination or notice of modification of nomination shall take effect from the date of receipt thereof by the employer.
A nomination or a fresh nomination or a notice of modification of nomination shall be, signed by the employee or, if illiterate, shall bear his thumb impression and shall be submitted by the employee electronically or by registered post acknowledgement due A nomination, fresh nomination or notice of modification of nomination shall take effect from the date of receipt thereof by the employer.
An employee who is eligible for payment of gratuity under the Code, or any person authorised, in writing, to act on his behalf, shall apply, ordinarily within thirty days from the date the gratuity became payable, in Form-XIIto the employer: Provided that where the date of superannuation or retirement of an employee is known, the employee may apply to the employer before thirty days of the date of superannuation or retirement: Provided further that an employee on fixed term employment shall be eligible for gratuity, if he renders service under the contract for a period of one year and he shall be paid gratuity at the rate of fifteen days’ wages, based on the rate of wages last drawn by him, for every completed year of service or part thereof in excess of six months.
A nominee of an employee who is eligible for payment of gratuity under the second proviso to sub-section (1) of section 53 shall apply, ordinarily within thirty days from the date of gratuity became payable to him, in Form-XIIto the employer: Provided that an application in plain paper with relevant particulars shall also be accepted. The employer may obtain such other particulars as may be deemed necessary by him.
A legal heir of an employee who is eligible for payment of gratuity under the second proviso to sub-section (1) of section 53 shall apply, ordinarily within one year from the date of gratuity became payable to him, in Form-XII to the employer.
An application for payment of gratuity filed after the expiry of the periods specified in this rule shall also be entertained by the employer, if the applicant adduces sufficient cause for the delay in preferring his claim, and no claim for gratuity under the Code shall be invalid merely because the claimant failed to present his application within the specified period. Any dispute in this regard shall be referred to the competent authority for his decision
As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in Form XIII, writing to the person to whom the gratuity is payable and also to the competent authority specifying the amount of gratuity so determined.
(1) Within fifteen days of the receipt of an application under rule 79 for payment of gratuity, the employer shall,- (i) if the claim is found admissible on verification, issue a notice in Form-XIII to the applicant employee, nominee or legal heir, as the case may be, specifying the amount of gratuity payable and fixing a date, not being later than the thirtieth day after the date of receipt of the application, for payment thereof, or (ii) if the claim for gratuity is not found admissible, issue a notice in Form-XIII to the applicant employee, nominee or legal heir, as the case may be, specifying the reasons why the claim for gratuity is not considered admissible. (iii) in the case of denial of gratuity a copy of the notice shall be endorsed to the competent authority. (2) In case payment of gratuity is due to be made in the employer’s office, the date fixed for the purpose in the notice in Form-XIII under clause (i) of sub-rule (1) shall be re-fixed by the employer, if a written application in this behalf is made by the payee explaining why it is not possible for him to be present in person on the date specified. (3) If the claimant for gratuity is a nominee or a legal heir, the employer may ask for such witness or evidence as may be deemed relevant for establishing his identity or maintainability of his claim, as the case may be. In that case, the time limit specified for issuance of notices under sub-rule (1) shall be operative with effect from the date such witness or evidence, as the case may be, called for by the employer is furnished to the employer. (4) A notice in Form-XIII shall be served on the applicant either by personal service after taking receipt or by registered post with acknowledgement due or electronically.
The gratuity payable under the Code shall be paid through Demand Draft or by crediting in the bank account of the eligible employee, nominee or legal heir, as the case may be: Provided that intimation about the details of payment shall also be given by the employer to the competent authority of the area.
(1) If an employer, – (i) refuses to accept a nomination under rule 78 or to entertain an application sought to be filed under rule 79, or (ii) issues a notice under clause (1) of sub-rule (1)of rule 80 either specifying an amount of gratuity which is considered by the applicant less than what is payable or rejecting eligibility to payment of gratuity, or (iii) having received an application under rule 79 fails to issue notice as required under rule 80 within the time specified therein, the claimant employee, nominee or legal heir, as the case may be, may, within one hundred eighty days of the occurrence of the cause for the application, apply in Form-XIV to the competent authority for issuing a direction under sub-section (5) of section 56 with as many extra copies as are the opposite party: (iv) Provided that the competent authority may accept any application under this sub-rule, on sufficient cause being shown by the applicant, after the expiry of the specified period. (2) Application under clause (i) of sub-rule (1)rule 82 and other documents relevant to such an application shall be presented in person to the competent authority or shall be sent by registered post acknowledgement due or electronically.
Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years,— (a) on his superannuation; or (b) on his retirement or resignation; or (c) on his death or disablement due to accident or disease; or (d) on termination of his contract period under fixed term employment; or (e) on happening of any such event as may be notified by the Central Government 1) In case of working journalists, 5 years shall be deemed to be 3 years 2) Completion of 5 years not necessary where termination of employment is is due to death/disablement/expiry of fixed term of employment/happening of notified event 3) In case of death, gratuity payable to him shall be paid to nominee/heirs, if no nomination made. In case nominee/heir is a minor, gratuity shall be deposited with notified authority who shall invest the same in term deposit with the State Bank of India or Nationalised Bank, until such minor attains majority
For every completed year of service or part thereof in excess of six months, the employer shall pay gratuity to an employee at the rate of fifteen days’ wages or such number of days as may be notified by the Central Government, based on the rate of wages last drawn by the employee concerned: i) For a piece-rated employee, daily wages are computed based on the average total wages from the three months preceding employment termination, excluding overtime. ii) Seasonal employees receive gratuity at seven days’ wages per season. iii) Employees on fixed-term contracts or deceased employees receive gratuity on a pro-rata basis. iv) Amount of gratuity not to exceed amount notified by Central Government v) For computing gratuity for an employee who is employed on reduced wages after disablement, the wages before disablement are considered as received during that period, and the wages after disablement are considered as reduced vi) Nothing in this section shall affect the right of an employee to receive better terms of gratuity under any award or agreement or contract with the employer vii) For monthly rated employee, the fifteen days’ wages shall be calculated by dividing the monthly rate of wages last drawn by him by twenty-six and multiplying the quotient by fifteen
a) the gratuity of an employee, whose services have been terminated for any act, wilful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer, shall be forfeited to the extent of the damage or loss so caused
b) the gratuity payable to an employee may be wholly or partially forfeited—
(i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or
(ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided such offence is committed by him in the course of his employment. (A) An employee is in continuous service if uninterrupted, including interruptions due to sickness, accident, leave, absence without leave, lay-off, strike, lock-out, or cessation of work not caused by the employee. (B) An employee (not employed in seasonal establishment) who is not in continuous service as per (A) is deemed in continuous service if, in the preceding year or six months, they worked: (a) For one year: at least 190 days (below ground or <6-day workweek) or 240 days (others). (b) For six months: at least 95 days (below ground or <6-day workweek) or 120 days (others). (C) In a seasonal establishment, an employee who is not in continuous service as per (A),for any period of one year or six months, is deemed to be in continuous service if they worked at least 75% of the operational days in the period.
Employee/authorised person to make written application in Form IV for payment of gratuity. Employer must pay gratuity within 30 days from date it becomes payable. If gratuity is not paid within the specified period, the employer must pay simple interest from the due date until payment, at a rate set by the Central Government. No interest is payable if the delay is due to the employee’s fault and the employer has obtained written permission for the delay.
1)If the date of superannuation or retirement is known, the employee may apply for gratuity thirty days in advance
2) An employee on a fixed-term contract is eligible for gratuity after one year of service, paid at fifteen days’ wages per completed year or part thereof beyond six months
3) A nominee eligible for gratuity must apply in Form-IV within thirty days from when gratuity becomes payable. Applications on plain paper with relevant details are also accepted
4) A legal heir eligible for gratuity must apply in Form-IV within one year from when gratuity becomes payable
5) For gratuity payable before these rules, the limitation periods start from the rules’ commencement
6) Late applications are accepted if the applicant shows sufficient cause. Disputes are referred to the competent authority
7) Applications can be submitted electronically, in person, or by registered post
Records kept under the provisions Chapter V of the Code (i.e. Gratuity) and the rules framed thereunder shall be preserved for a period of two years from the date of their preparation.
Penalty and Consequences
Section 86(1): Contravention of Prior-Permission Requirements for Lay-Off, Retrenchment or Closure
An employer who contravenes the provisions of Section 78, Section 79 or Section 80 of the Code shall be punishable with a fine which shall not be less than one lakh rupees, but which may extend to ten lakh rupees.
Section 86(3): Contravention of Lay-Off, Retrenchment, Transfer or Closure Provisions
An employer who contravenes the provisions of Section 67, Section 70, Section 73 or Section 75 of the Code shall be punishable with a fine which shall not be less than fifty thousand rupees, but which may extend to two lakh rupees.
Section 86(5): Commission of Unfair Labour Practices
Any person who commits any unfair labour practice specified in the Second Schedule to the Code shall be punishable with a fine which shall not be less than ten thousand rupees, but which may extend to two lakh rupees.
Section 86(7): Default by a Registered Trade Union in Furnishing Notices or Documents
Where default is made by a registered Trade Union in giving any notice or sending any statement or other document required under the Code, every office-bearer or other person bound by the rules of the Trade Union to give or send the same shall be punishable with a fine which shall not be less than one thousand rupees, but which may extend to ten thousand rupees; a continuing default shall attract an additional penalty of fifty rupees per day for as long as the default continues.
Section 86(10): Failure to Submit or Unauthorised Modification of Standing Orders
An employer who fails to submit draft standing orders as required by Section 30, or who modifies standing orders otherwise than in accordance with Section 35, shall be punishable with a fine which shall not be less than fifty thousand rupees, but which may extend to two lakh rupees, and, in the case of a continuing offence, with an additional fine of two thousand rupees per day for as long as the offence continues.
Section 86(11): Contravention of Certified Standing Orders
An employer who does any act in contravention of the standing orders finally certified under the Code shall be punishable with a fine which shall not be less than one lakh rupees, but which may extend to two lakh rupees.
Section 86(13): Participation in an Illegal Strike
Any worker who commences, continues, or otherwise acts in furtherance of a strike that is illegal under the Code shall be punishable with a fine which shall not be less than one thousand rupees, but which may extend to ten thousand rupees, or with imprisonment for a term which may extend to one month, or with both.
Section 86(14): Declaration of an Illegal Lock-Out
Any employer who commences, continues, or otherwise acts in furtherance of a lock-out that is illegal under the Code shall be punishable with a fine which shall not be less than fifty thousand rupees, but which may extend to one lakh rupees, or with imprisonment for a term which may extend to one month, or with both.
Section 86(20): General Penalty for Other Contraventions
Any person who contravenes any other provision of the Code not covered under Section 86(1) to 86(19), or the rules or regulations framed under the Code, shall be punishable with a fine which may extend to one lakh rupees.
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