Section 121: Administration of welfare schemes

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 121

Section 121 of the Code governs the administration of welfare schemes framed under Section 120, prescribing organizational structures, fund management protocols, and institutional delivery mechanisms.

  • Dedicated Scheme Administration Authorities: Authorizes the creation or designation of specialized administrative boards, trusts, or agencies to manage welfare funds and disburse benefits.
  • Direct Benefit Transfer (DBT) Mandate: Requires that all monetary allowances, education grants, and maternity benefits be disbursed exclusively through digital Aadhaar-linked DBT systems.
  • Strict Fiduciary Accountability & Annual Financial Audits: Mandates annual audits by the Comptroller and Auditor General (CAG) or certified chartered accountants, ensuring complete fiscal transparency.
Key Landmark Precedents:
  • National Campaign Committee for CL v. Union of India (2018) 5 SCC 434: Supreme Court condemned the diversion or unutilized accumulation of worker welfare funds, directing strict administrative delivery through audited channels.
  • In Re: Problems and Miseries of Migrant Labourers (2021) SCC OnLine SC 422: Supreme Court mandated that social welfare administration must leverage digital infrastructure to ensure direct delivery without bureaucratic leakage.
  • Consumer Education & Research Centre v. Union of India (1995) 3 SCC 42: Affirmed that statutory welfare funds must be administered with the highest degree of fiduciary responsibility.
Courtroom Practice & Strategic Litigation Guidance:

Establishments participating in contributory welfare schemes must retain electronic confirmation receipts of all fund remittances, reconciling company payroll ledgers with welfare board accounts quarterly.