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Section 123: Maintenance of records, registers and returns

The Code on Social Security, 2020 (Act No. 36 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter XI: Authorities, Assessment, Compliance and Recovery
Competent Labour Forum
Act No. 36 of 2020
Section 122 All 163 Sections of Code on Social Security, 2020 Section 124

Legal Commentary & Landmark Judgments: Section 123

Section 123 of the Code on Social Security, 2020 mandates the maintenance of comprehensive electronic registers, employee rolls, and contribution ledgers by all employers, while establishing an integrated electronic reporting system for the timely submission of unified statutory returns.

  • Mandatory Statutory Maintenance of Records and Registers: Requires every employer of an establishment covered under the Code to maintain such registers and records containing: (a) particulars of all persons employed, including contract, migrant, and fixed-term workers; (b) wage rates, hours of work, and deductions; (c) contributions payable and deposited; and (d) leave, maternity, and gratuity entitlements.
  • Digital Format and Electronic Portal Integration: Explicitly authorizes the maintenance of all statutory registers in digital or electronic form, provided they are accessible, tamper-proof, backed up, and integrated with the central Shram Suvidha and state labor compliance portals.
  • Unified Electronic Annual Return Compliance: Obligates every employer to submit a single, unified annual return in electronic format to the designated authority on or before the prescribed statutory due date, consolidating EPF, ESIC, maternity, gratuity, and welfare data into one filing.
  • Display of Abstract Notices at Workplaces: Mandates that employers shall prominently display notices containing statutory abstracts of the Code, worker entitlements, authorized rates of wages, and contact details of the local Inspector-cum-Facilitator in English, Hindi, and the majority local language at the workplace and on the corporate intranet.
Key Landmark Precedents:
  • Workmen of Food Corporation of India v. Food Corporation of India (1985) 2 SCC 136: The Supreme Court held that the legal duty to maintain employment registers lies strictly on the employer; where management fails to maintain statutory muster rolls, the court will draw an adverse inference and accept the workers' testimony regarding employment and continuous service.
  • Municipal Corporation of Delhi v. Female Workers (Muster Roll) (2000) 3 SCC 224: The Supreme Court affirmed that muster rolls and employment registers are vital legal instruments establishing worker rights, and employers cannot escape welfare obligations by maintaining informal or incomplete records.
  • Dharangadhra Chemical Works Ltd. v. State of Saurashtra 1957 SCR 152: Reiterated that records of wage payments, working hours, and operational supervision recorded in employer registers constitute the primary evidentiary basis for establishing the statutory employer-employee nexus.
Courtroom Practice & Strategic Litigation Guidance:

Enterprises must transition immediately from fragmented, decentralized spreadsheets to an integrated Human Resources Information System (HRIS) certified for Section 123 compliance. Ensure the HRIS automatically syncs payroll runs with EPF Electronic Challan-cum-Return (ECR) generation and ESIC monthly filings. File the unified electronic annual return by the statutory deadline each year and retain all electronic logs, challans, and muster rolls for a minimum statutory retention period of five years.

Section 122 All 163 Sections of Code on Social Security, 2020 Section 124