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Section 154: Effect of laws inconsistent with this Code

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

Statutory Mandate
Chapter XIV: Miscellaneous
Competent Labour Forum
Act No. 36 of 2020
Section 153 All 163 Sections of Code on Social Security, 2020 Section 155

Legal Commentary & Landmark Judgments: Section 154

Section 154 of the Code establishes the overriding effect of the Code on Social Security, 2020, declaring that the provisions of the Code shall have effect notwithstanding anything inconsistent therewith contained in any other law, contract, or instrument.

  • Express Non-Obstante Statutory Primacy: Enacts a definitive non-obstante clause ensuring that the social security, retiral, and maternity standards of the Code prevail over conflicting state enactments, private agreements, or corporate policies.
  • Nullification of Contracting-Out Clauses: Renders null and void any employment contract, vendor agreement, or collective bargaining settlement purporting to waive social security contributions or reduce statutory retiral benefits.
  • Harmonization with Superior Worker Benefits: Preserves more favorable benefits, higher gratuity payments, or superior pension covenants secured by workers under existing collective agreements or awards.
Key Landmark Precedents:
  • Regional Provident Fund Commissioner v. Hooghly Mills Co. Ltd. (2012) 2 SCC 489: Supreme Court held that non-obstante clauses in social security enactments ensure that protective minimum standards cannot be defeated through private contracts.
  • Steel Authority of India Ltd. v. National Union Waterfront Workers (2001) 7 SCC 1: Constitution Bench affirmed that statutory labor provisions override inconsistent private agreements and commercial subcontracts.
  • Bhilwara Dugdh Utpadak Sahakari Samiti Ltd. v. Vinod Kumar Sharma (2011) 15 SCC 209: Affirmed that private contractual arrangements designed to evade statutory labor protections are void ab initio.
Courtroom Practice & Strategic Litigation Guidance:

Review all vendor master service agreements, contractor standard terms, and employment contracts: excise any clause that seeks to limit statutory contractor welfare liabilities or shift employer social security liabilities, as Section 154 invalidates such clauses.

Section 153 All 163 Sections of Code on Social Security, 2020 Section 155