Section 120: Framing of welfare schemes for certain sectors

The Occupational Safety, Health and Working Conditions Code, 2020 (Act No. 37 of 2020) • Official Statutory Text & Plain English Practice Guide

Statutory Mandate
Chapter XIII: Social Security for Certain Workers
Competent Labour Forum
Act No. 37 of 2020

Legal Commentary & Landmark Judgments: Section 120

Section 120 of the Code empowers the Central and State Governments to frame welfare schemes for inter-State migrant workers, construction workers, and vulnerable informal labor segments.

  • Broad Statutory Scheme-Framing Powers: Authorizes executive formulation of customized welfare programs covering life and disability insurance, health and maternity benefits, and old age pensions.
  • Targeted Welfare Interventions: Enables governments to create specialized educational scholarships for children of migrant workers, skill enhancement training, and emergency transit housing.
  • Statutory Enforceability of Notified Schemes: Provides that upon notification in the Official Gazette, schemes framed under Section 120 possess the full force of statutory law, binding both employers and state agencies.
Key Landmark Precedents:
  • In Re: Problems and Miseries of Migrant Labourers (2021) SCC OnLine SC 422: Apex Court held that framing and notifying comprehensive welfare schemes for informal workers is an enforceable constitutional duty of the Union and States under Article 21.
  • National Campaign Committee for CL v. Union of India (2018) 5 SCC 434: Supreme Court affirmed that statutory welfare schemes must be proactively implemented with measurable physical delivery benchmarks.
  • Municipal Corporation of Delhi v. Female Workers (Muster Roll) (2000) 3 SCC 224: Reaffirmed that social security schemes must reach all categories of labor regardless of formal employment status.
Courtroom Practice & Strategic Litigation Guidance:

Verify whether your operational site falls within the geographical catchment of newly notified state welfare schemes under Section 120, facilitating worker enrollment during onboarding to avoid labor audit non-compliance.