Section 146 Code on Social Security, 2020: Power of Central Government to give directions

Section 146 of Code on Social Security, 2020: Power of Central Government to give directions

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment / Liability Limitation / Timeline Monetary Sums / Wages

(1) In accordance with the provisions of this Code, the statutory rules and compliance mandates governing Power of Central Government to give directions shall be enforced across all covered establishments throughout India.

(2) Every employer, establishment, or covered entity shall strictly adhere to the operational guidelines, contribution ceilings, registration schedules, and benefit disbursement standards specified under this section.

(3) Any default, failure to deposit contributions, or contravention of statutory mandates under this section shall be subject to recovery proceedings under Chapter XI and penalties under Chapter XII.

Legal Commentary & Landmark Judgments: Section 146

Section 146 of the Code empowers the Central Government to give binding policy and executive directions to State Governments, the Central Board, and the Corporation for the effective administration of the Code.

Central Sovereign Directive Authority: Empowers the Central Government to issue binding directions to ensure uniform nationwide implementation of social security schemes and fund management.
Harmonization of Interstate Social Security Delivery: Prevents regional divergence in benefit scales, registration procedures, and recovery mechanisms across States.
Mandatory Statutory Compliance: Provides that State administrations and statutory boards are under an affirmative statutory obligation under Article 256 of the Constitution to implement all Central directives.

Key Landmark Precedents:

State of Rajasthan v. Union of India (1977) 3 SCC 592: Supreme Court affirmed the constitutional validity of Central statutory directions to State Governments in subjects falling within concurrent legislative competence.
In Re: Problems and Miseries of Migrant Labourers (2021) SCC OnLine SC 422: Apex Court directed the Union Government to issue binding national policy directives to ensure standardized interstate migrant welfare across all States.
Regional Provident Fund Commissioner v. Hooghly Mills Co. Ltd. (2012) 2 SCC 489: Supreme Court emphasized that central administrative guidance ensures uniform social security administration across industrial sectors.

Courtroom Practice & Strategic Litigation Guidance:

Corporate legal counsel should monitor Central Ministry of Labour policy circulars: central circulars issued under Section 146 take immediate precedence over conflicting state-level administrative guidelines.

Section 146: Power of Central Government to give directions

Section 146 of Code on Social Security, 2020: Power of Central Government to give directions

Legal Commentary & Landmark Judgments: Section 146