Significance-
• redistribute legal power, wealth and more importantly, bargaining power in an
economy.
• establish a legal system that facilitates productive individual and collective
employment relationships,
facilitates a productive economy
need to reform
• Complexity and plethora of laws -both at the centre (>40)and in states
(>100)
• Poor enforcement of laws-CAG noted that the effectiveness
of adjudication-diluted by-delays in referrinf disputes for adjudication-
delay in disposal of cases-delay in implementation of award-
• Contractualization of labour-share of contract workers in factories-
increased from 26% in 2004-05 to 36% in 2017-18.
lack of formal recognition to unions hampers the process of collective
bargaining
second National Commission of labour had recommended
simplification, amalgamation and rationalisation of Central Labour
Laws
Code on Wages, 2019
Features
Floor wage to be fixed by the Central Government taking into account
living standards of workers. • Fixing the minimum wage:interval of not
more than five years.
Overtime Wages-e at least twice the normal rate of wages.
Wage deduction of an employee-not exceed 50% of the employee’s total
wage.
Determination of bonus-can receive a maximum bonus of 20% of his
annual wages.
Prohibition of Gender discrimination
CODE ON INDUSTRIAL RELATIONS, 2020
Features-
Definition of ‘worker’- as any person who work for hire or reward
• Standing Orders: All industrial establishment with 300 workers or more
must prepare
• matters relating to: o classification of workers, o manner of informing
workers about work hours, holidays, paydays,
termination of employment, and o grievance redressal mechanisms
• Negotiating Union and Council
Sole Negotiating Union: If there are more than one registered trade
union of workers-trade union having more than 51% of the workers as
members would be recognised as the sole negotiating union.
Negotiation Council: In case no trade union is eligible as sole
negotiating union, then a negotiating council will be formed consisting
of representatives of unions that have at least 20% of the workers
• Tribunals for settlement of disputes:consist of a Judicial member and an
Administrative member
• Re-skilling fund: To re skill those workers who are fired from their jobs.
issues
• May impact ability of workers to strike & employers to lock out
workers:prior notice of 14 days is required before a strike or lock-out
Earlier these provisions were applicable only for public utility services
• Violation of the principle of separation of executive and judiciary: -code
gives extensive power to government to modify or reject tribunal awards
through executive action
• states that the awards passed by a Tribunal will be enforceable on the expiry
of 30 days.
• However, the government can defer the enforcement s on public grounds
affecting national economy or social justice.
• Impact on formation of trade unions: It is unclear as to what will happen in
case-•
• -but no union has the required support of at least 20% workers
• Provisions on fixed term employment o Power to renew such contracts lies
with the employer. This may result in job insecurity
• Certain terms not defined in the Code: it does not define the terms
‘manager’, ‘supervisor’, ‘contractor’ and ‘establishment’ leaving them open
to wider interpretation.
wf
• 2 nd National Commission on Labour (2002) had recommended that no
worker should be kept continuously as a casual or temporary worker
against a permanent job for more than two years.
CODE ON SOCIAL SECURITY, 2020
• Code replaces nine laws related to social security. These include the
Employees’ Provident Fund Act, 1952- Maternity Benefit Act, 1961, -
Unorganised Workers’ Social Security Act,
Major provisions
• code is applicable to any establishment
• Social security fund:-e central government will set up such a fund for
unorganised workers, gig workers and platform workers
• Provisions for registration of all three categories of workers -
unorganised workers, gig workers and platform workers.
• National Social Security Board: for the purposes of welfare of above
three categories of workers
• reduces the gratuity period from five years to three years for working
journalists.
• Additional powers during an epidemic-central government may defer or
reduce the employer’s or employee’s contributions (under PF and ESI)
for a period of up to three months
Key issues-
• No Universal social security: o Benefits, such as pension and medical
insurance, continue to be mandatory only for establishments with a
minimum number of employees (such as 10 or 20 employees).
✓ Periodic Labour Force Survey Report (2018-19) indicates that 70% of
regular wage/salaried employees in the nonagricultural sector did not
have a written contract, and 52% did not have any social security
benefit.
code continues to treat employees within the same establishment
differently based on the amount of wages earned.
Provisions on gig workers and platforms workers are unclear-some
overlap between their definitions.
For example, a driver working for an app-based taxi aggregator is a gig
worker, a platform worker and an unorganised worker at the same time
Mandatory linking with Aadhaar may violate Supreme Court’s
Puttaswamy judgement.
o In its judgement, the Court had ruled that the Aadhaar card/number may only
be made mandatory for expenditure on a subsidy, benefit or service incurred
from the Consolidated Fund of India.
CODE ON OCCUPATIONAL SAFETY, HEALTH AND WORKING
CONDITIONS, 2020
consolidates 13 existing acts regulating health, safety and working conditions.
These include the Factories Act, 1948, the Mines Act, 1952, and the Contract
Labour (Regulation and Abolition) Act,1970.
Occupational Safety Architecture in India
Constitutional Provisions- ensures occupational health and safety for
workers in the form of three Articles i.e. 24, 39(e) (health and strength
of workers are not abused) and 42 (just and humane conditions of work
and maternity relief).
• Union List- The regulation of labour and safety in mines and oil fields.
• Concurrent List- The welfare of labour including conditions of work,
provident funds
• National Safety Council (NSC)--an apex non-profit making- generate,
develop and sustain a voluntary movement on Safety, Health and
Environment (SHE) at national level
Directorate General of Mines Safety (DGMS) and Directorate General
Factory Advice Services & Labour Institutes (DGFASLI) assist the
Ministry in technical aspects of occupational safety
Major provisions
Daily work hour limit: fixes the maximum limit at eight hours per day..
Employment of women: women will be entitled to be employed in all
establishments for all types of work
▪ Exemption: The code empowers the state government to exempt any
new factory from the provisions e in order to create more economic
activity and employment
Benefits for inter-state migrant workers: include: (i) option to avail the
benefits of the public distribution system either in the native state or the
state of employment, (ii) availability of benefits under the building and
other construction cess fund
Database for inter-state migrant workers:
e code removed the provision for Displacement allowance which was
there in the 2019 bill to pay a displacement allowance to inter-state
migrant workers at the time of their recruitment,
Social Security Fund for the welfare of unorganised workers: The
amount collected from certain penalties under the Code will be credited
to the Fund
Issues-
While special provisions for hazard-prone establishments such as
factories and mines seems justified, the rationale for mandating special
provisions for other workers is not clear.
• Civil Court barred from hearing matters under the Code
only recourse available would be to directly file a writ petition before
the relevant High Court
General issues-
Many acts not implemented in right spirit.
Inadequate Legal framework for Agriculture.
Dilution of laws some laws.
• Limited research on occupational safety- as there are less
research institutions,
• Lack of effective coverage- In India, occupational health is not
integrated with
Benefits of Labour Codes?
Simplification of the Complex laws: by consolidating 29 central
reduce multiplicity of definition and authority for businesses
Easier Dispute Resolution
Ease of Doing Business
boost investment
Grey Areas Related to the Current Labour Reforms?
role of an "Inspector-cum-Facilitator"-responsibility of checking for
compliance as well as facilitating businesses
Lack of Clarity : distinction between workers and employees, overtime
compensation (particularly in light of Covid's remote working
policies) and gig workers.
Small Startups and Informal Sector Left-out From Social Security
Coverage-establishments having less than 300 workers
Migrant workers, self-employed workers, home-based workers-not
covered under social security benefits.
Non-Inclusion of Charitable or Non-Profit Based Establishments: Code
on Occupational Safety, Health and Working Conditions
No Recognition for Invisible Labour -Childcare, household work,
looking after the elderly
Way Forward?
Vocational Training: Establish recognising/accrediting agencies for
vocational training institutes
welfare services to the unorganised workers such as compensation for
accidents at work, death
Employment Information Service: provided through e-governance.
