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New Labour Law Legislation

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0% found this document useful (0 votes)
58 views5 pages

New Labour Law Legislation

Uploaded by

Samprity Kar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Title: The essence of New Labour Law Legislation.

I. Introduction:
A. Brief overview of the importance of labour law
Labour law compliance has become more important. With the changing landscape
of the modern workplace, businesses must understand and comply with labour
laws to protect the rights of their employees, avoid legal and financial
consequences, and maintain a positive company culture. Labour laws cover many
issues, including minimum wage, working hours, overtime pay, sick leave,
vacation time, and more. Compliance with the labour laws is a legal obligation
and a moral responsibility to protect employee rights, avoid legal and financial
consequences, maintain a positive company culture, keep up with changes in
labour laws, and attract and retain top talent.
B. Context for the introduction of new labour law legislation.
The empowerment of workers is necessary for an empowered, prosperous and
Aatmanirbhar India. Even after 73 years of Independence, approximately 90% of
workers work in the unorganized sector that do not have access to all the social
securities. The total number of workers, comprising of organized and unorganized
sectors, is more than 50 crores. It is for the first time that any Government has
cared for the workers in both organized and unorganized sectors and their
families. Earlier, the working class was entangled in web of multiple labour
legislations. The Central Government has taken a revolutionary step in the right
direction to provide them freedom in true sense. For this, the Central Government
has taken historical step of codifying 29 laws into 4 Codes, so that workers can
get security along with respect, health and other welfare measures with ease.
The far reaching vision of the existing Government for workers became clear in
October 2014 itself. The moment Prime Minister Modi took over the reign of the
Government, the Shramev Jayate Scheme was started. Giving importance to the
workers when the Prime Minister had started “Shramev Jayate” on 16th October,
2014 at that moment, while terming the workers as “Nation Builders”, he had said
that the power of “Shramev Jayate” for growth of the country was equal to that of
“Satyamev Jayate”. Workers were given the benefit of portability through
Universal Account Number (UAN) so as to enable them to withdraw their
provident fund securely from anywhere. In addition, the system of 'inspector raj'
was removed by making the role of inspector to that of advisor and facilitator for
workers.
 Labour Code (Wage Code) – 2019: Workers will get benefitted
Equal remuneration to male and female workers. The determination of minimum wages has
been made easy. It will be based on criteria such as skill level and geographical area. From
28.08.2017 Payment of Wages Act has increased the wage ceiling from Rs. 18000 to Rs.
24000.

 Social Security Code, 2020:


Expansion of ESIC hospitals, dispensaries and branches upto district level. This facility to be
increased from 566 districts to all the 740 districts of the country. • Even if a single worker is
engaged in hazardous work, he would be given ESIC benefit.
 OSH Code (Occupational, Safety, Health and Working Conditions Code) -
2020
Various provisions in the OSH Code will ease the lives of the Inter-State Migrant Workers.
Anomalies of the Inter-State Migrant Workers Act, 1979 have been comprehensively Chapter
7 New Labour Code For New India 16 addressed in the OSH Code. Earlier only workers
appointed by a contractor were recognized as Inter-State Migrant Workers. However, under
the new provisions of the Code, workers can be Aatmanirbhar as they can now register
themselves as Inter-State Migrant Workers on the national portal. By this provision, the
worker would get a legal identity which would enable them to get benefits of all social
security schemes.
 Women empowerment through the Labour Codes
Maternity Benefit Act was amended in 2017 to increase the paid Maternity leave for women
workers from 12 to 26 weeks and ensure mandatory crèche facility in all establishments
having 50 or more workers.
 Industrial Relations (IR) Code, 2020
Industrial Tribunals to have 2 members to facilitate faster disposal of cases. In industrial
establishments, a Trade Union having 51 per cent votes shall be recognised as the sole
negotiating union which can make agreements with employers.

II. Historical background:


A. Evolution of labour laws in the jurisdiction
The evolution of labor law jurisdiction in India has been a dynamic process,
shaped by historical, social, and economic factors.
Pre-Independence Era:
During British rule, labor laws were primarily geared towards protecting the
interests of the colonial administration and the industrialists.
The Factories Act of 1881 and the Trade Unions Act, 1926, was one of the
earliest legislations that aimed at regulating the working conditions in factories.
Post-Independence Reforms (1947-1960s):
After independence in 1947, there was a push for labor law reforms to address the
socio-economic challenges facing the country.
The Industrial Disputes Act, 1947, was enacted to regulate industrial relations,
providing mechanisms for dispute resolution and collective bargaining.
The Minimum Wages Act, 1948, and the Employees' State Insurance Act, 1948,
were also introduced during this period.
Expansion of Labor Laws (1970s-1980s):
The 1970s and 1980s witnessed an expansion of labor laws to cover a broader
range of industries and workers.
The Employees' Provident Funds and Miscellaneous Provisions Act, 1952, and
the Payment of Bonus Act, 1965, were amended to enhance worker benefits.
The Contract Labour (Regulation and Abolition) Act, 1970, and the Equal
Remuneration Act, 1976, were enacted to address specific issues in labor
relations.

III. Key objectives for new legislation:


A. Protecting Workers Rights: Compliance with labour laws ensures that
employees' rights are protected. These laws provide guidelines on fair pay,
working hours, and safe working conditions, among other things. By adhering to
these laws, businesses can ensure that their employees are treated fairly and
equitably. Emphasis on fair wages, working hours, and workplace safety.

B. Adapting to modern workplace dynamics


1. Recognition of gig economy and flexible work
arrangements- Recognizing and embracing the gig economy involves understanding the
rise of short-term, flexible jobs. This shift signals the evolution of traditional full-time
employment models. Companies should weigh the pros and cons of gig work, such as
accessing diverse talent, providing flexibility for workers, and ensuring cost-effectiveness.
Modern workplaces must establish flexible work policies, incorporating remote work,
flexible hours, and project-based contracts. Cultivating an environment that prioritizes output
over office hours fosters a results-oriented culture, accommodating the diverse needs of
employees.

2. Addressing challenges posed by technological


advancements- Upskilling and Reskilling: Companies must invest in continuous
learning for workforce adaptability to rapid tech changes.
Embracing Automation: Maintain a balanced view on automation, emphasizing efficiency
and investing in human-centric roles requiring creativity and critical thinking.
Cybersecurity Measures: Robust cybersecurity is crucial amid digital reliance, ensuring data
protection and trust through regular training on best practices.
Digital Collaboration Tools: Adopt and optimize tools for seamless communication and
teamwork, especially in remote work, enhancing productivity and fostering team connection.

C. Promoting equality and inclusion


1. Measures to eliminate discrimination in the workplace-
Implement measures to eradicate discrimination within the workplace, fostering an
environment where all individuals are treated fairly and with respect.

2. Support for diversity and inclusion initiative- Provide active


support for initiatives that embrace diversity and promote inclusion, ensuring a workplace
culture that values and celebrates differences among its members.
D. Enhancing collective bargaining
1. Strengthening the role of unions or workers representatives-
Strengthen the influence and effectiveness of unions or worker representatives to ensure
robust advocacy for employee rights and interests.

2. Facilitating fair negotiations between employers and employees-


Promote mechanisms that facilitate equitable negotiations between employers and employees,
fostering a balanced and collaborative approach to resolving workplace issues.

IV. Conclusion
The introduction of new labor law legislation marks a pivotal moment in India's journey
toward empowering its workers and fostering a self-reliant nation. The amalgamation of 29
laws into four Codes signifies a significant step in providing comprehensive social security,
health benefits, and improved working conditions for both organized and unorganized
sectors. Prime Minister Modi's commitment to the welfare of workers is evident in initiatives
like "Shramev Jayate" and the subsequent codification of labor laws.
The new legislation addresses various facets of labor relations, promoting gender equality,
empowering workers in the gig economy, and addressing challenges posed by technological
advancements. It emphasizes collective bargaining, recognizing the pivotal role of unions and
worker representatives in advocating for employee rights. The establishment of regulatory
bodies underscores the importance of compliance, with stringent penalties for non-
compliance and robust inspection and auditing processes.
Historically, labor laws in India evolved to protect the interests of colonial administration and
industrialists. Post-independence reforms aimed to address socio-economic challenges,
leading to the expansion of labor laws in subsequent decades. The key objectives of the new
legislation revolve around protecting workers' rights, adapting to modern workplace
dynamics, promoting equality and inclusion, and enhancing collective bargaining.
As India embraces these new labor laws, the vision for an empowered, prosperous, and
Aatmanirbhar (self-reliant) nation becomes clearer. By fostering fair labor practices,
embracing diversity, and facilitating negotiations between employers and employees, the
legislation lays the foundation for a more equitable and sustainable future. The success of
these reforms hinges on effective implementation, ensuring that workers' rights are
safeguarded, workplaces are inclusive, and the nation progresses towards a brighter economic
future.

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