INTRODUCTION:
September 2021, labour codes refer to sets of laws and regulations that govern the rights,
obligations, and protections of workers in a particular jurisdiction.These codes are instrumental
in safeguarding the rights and interests of workers while providing guidelines for employers to
adhere to in their treatment of employees. These codes typically cover various aspects of
employment, such as working hours, minimum wages, leave entitlements, workplace safety,
collective bargaining, and dispute resolution mechanisms.In some countries, labour codes are
consolidated and presented as comprehensive legal frameworks that encompass all labour-
related matters. (Gupta & Gupta, 2019).
To comprehend the implications and challenges of labour codes, researchers and legal experts
often refer to authoritative sources and scholarly articles. For a comprehensive understanding of
the labour codes in India, Gupta and Gupta's book "The Labour Code of India: Consolidation
and Codification" is a valuable resource (2019). Additionally, to gain insights into the broader
impact of labour codes on labour relations and social justice, Jain and Singh's article "Labor
Codes in India: A Comprehensive Review" offers an in-depth analysis (2021). Scholars and
practitioners also rely on primary legal sources such as the published texts of the individual
labour codes, like the "Industrial Relations Code, 2020" and the "Occupational Safety, Health
and Working Conditions Code, 2020" (Government of India, 2020a; Government of India,
2020b).
In India, four major labour codes were enacted in 2020, namely, the Code on Wages, the
Industrial Relations Code, the Code on Social Security, and the Occupational Safety, Health,
and Working Conditions Code (Government of India, 2020a; Government of India, 2020b).
IMPORTANCE:
Labour codes were introduced to establish comprehensive and structured legal frameworks
aimed at regulating labour relations, protecting the rights and interests of workers, and
promoting fair and equitable employment practices. These codes address various aspects of
labour, including wages, working hours, safety standards, social security benefits, and dispute
resolution mechanisms. The introduction of labour codes is often driven by the need to
consolidate and modernise existing labour laws, which may have been fragmented and
outdated.
Additionally, labour codes aim to provide clarity and consistency in labour regulations, making it
easier for both employers and employees to understand their rights and obligations.
By consolidating labour laws into comprehensive codes, policymakers seek to create a more
conducive environment for industrial growth and investment, while ensuring adequate protection
for workers' rights. The process of introducing labour codes involves careful consideration of
various stakeholders' interests, balancing the needs of employers and employees, and aligning
with international labour standards.
Labour codes were introduced to provide a unified and modernised framework for regulating
labour relations and protecting workers' rights. They aim to promote transparency, consistency,
and efficiency in labour laws, which in turn contributes to a more sustainable and equitable
labour market.
THE LABOUR CODES:
The four labour codes are as follows:
The Code on Wages: This code seeks to consolidate and simplify the provisions related to
wages, bonus, and other monetary benefits for workers. It also aims to ensure timely payment
of wages and address issues related to wage-related disputes and compliance (Government of
India, 2020a).
The Industrial Relations Code: This code combines laws relating to trade unions, industrial
disputes, and the resolution of such disputes. It aims to promote harmonious industrial relations,
provide a clear mechanism for dispute resolution, and protect the rights of workers and
employers (Government of India, 2020b).
The Code on Social Security: This code aims to extend social security benefits to a broader
section of the workforce, including gig workers and unorganised sector workers. It covers
provisions related to employees' provident fund, employees' state insurance, gratuity, maternity
benefits, and more (Government of India, 2020c).
The Occupational Safety, Health and Working Conditions Code: This code is designed to
consolidate laws related to occupational safety, health, and welfare of workers. It focuses on
ensuring safe working conditions, welfare facilities, and protective measures for employees
across various sectors (Government of India, 2020d).
These labour codes represent a significant reform effort by the Indian government to streamline
and simplify labour laws, enhance compliance, and improve the overall working conditions and
welfare of the workforce.
THE CODE ON WAGES:
The Code on Wages, introduced in India in 2020, consolidates and simplifies the laws related to
wages, bonuses, and other monetary benefits for workers. One of the significant advantages of
this code is that it brings uniformity and clarity to the wage-related provisions, making it easier
for both employers and employees to understand their rights and obligations (Government of
India, 2020a). The Code on Wages also aims to ensure timely payment of wages to workers,
which is a crucial aspect in protecting the interests of employees and promoting fair labour
practices.
Another benefit of the Code on Wages is that it establishes a framework for addressing wage-
related disputes. It sets up a mechanism for the speedy resolution of disputes, reducing the
burden on the legal system and providing an efficient way to resolve conflicts between
employers and employees. This, in turn, promotes better industrial relations and a more
harmonious work environment (Government of India, 2020a).
However, the Code on Wages does face certain challenges and drawbacks. One of the major
concerns raised by labour rights advocates is that the code does not explicitly guarantee a living
wage for workers. While it lays down the rules for determining wages, it may not adequately
address the issue of ensuring that the wages are sufficient to meet the basic needs of workers
and their families (Varghese, 2020).
Furthermore, some critics argue that the Code on Wages lacks specific provisions to protect
vulnerable workers, such as those in the informal sector and gig economy. The code may not
adequately address the unique challenges faced by these workers, potentially leaving them
without adequate protection and social security benefits (Varghese, 2020).
In conclusion, the Code on Wages in India has several benefits, such as bringing clarity to
wage-related provisions, ensuring timely payment of wages, and providing a mechanism for
dispute resolution. However, it may still need to address concerns related to guaranteeing a
living wage and offering sufficient protection to vulnerable workers in the informal sector and gig
economy.
THE INDUSTRIAL RELATIONS CODE:
The Industrial Relations Code, introduced in India in 2020, consolidates and rationalises laws
related to trade unions, industrial disputes, and the resolution of such disputes. One of the
significant advantages of this code is that it simplifies and harmonises the legal framework for
industrial relations, making it easier for both employers and employees to navigate the
complexities of labour-related laws (Government of India, 2020b). The code aims to promote
better industrial relations by providing a clear mechanism for dispute resolution. By streamlining
the process of resolving conflicts between employers and employees, the code seeks to reduce
the time and resources spent on legal battles, thus contributing to a more conducive and
productive work environment.
Another benefit of the Industrial Relations Code is that it introduces provisions for the
recognition of trade unions and facilitates collective bargaining. By giving workers the right to
unionise and bargain collectively, the code empowers employees to negotiate for better wages,
working conditions, and benefits, enhancing their overall welfare (Government of India, 2020b).
This provision is seen as a positive step towards ensuring fair labour practices and safeguarding
workers' interests.
However, the Industrial Relations Code also faces certain criticisms and challenges. One of the
concerns raised by labour rights advocates is the threshold for the formation of trade unions.
The code stipulates that a trade union must have the support of at least 51% of workers to be
recognized by the employer. Critics argue that this threshold is quite high and may deter the
formation of unions in some cases, limiting workers' collective bargaining power (Jain & Singh,
2021).
Furthermore, some labour unions have expressed reservations about the code's provision for
the introduction of fixed-term employment. Critics argue that this provision may lead to job
insecurity and exploitation of workers, as employers could prefer hiring workers on fixed-term
contracts to avoid providing long-term benefits and job security (Jain & Singh, 2021).
In conclusion, the Industrial Relations Code in India has several advantages, such as simplifying
the legal framework for industrial relations, promoting dispute resolution, and empowering
workers through collective bargaining. However, it may need to address concerns related to the
threshold for trade union formation and the introduction of fixed-term employment to ensure
balanced and fair labour practices.
THE CODE ON SOCIAL SECURITY
The Code on Social Security, introduced in India in 2020, is a comprehensive legislation that
aims to extend social security benefits to a broader section of the workforce, including gig
workers and those in the unorganised sector. One of the significant advantages of this code is
that it seeks to provide a safety net for workers by ensuring access to various social security
benefits such as employees' provident fund, employees' state insurance, gratuity, and maternity
benefits (Government of India, 2020c). By expanding the coverage of social security, the code
aims to enhance the overall well-being and financial security of workers and their families.
Another positive aspect of the Code on Social Security is that it introduces provisions for the
establishment of a Social Security Fund. This fund is intended to finance various social security
schemes and welfare programs, ensuring that workers can avail of benefits without undue
delays or funding constraints (Government of India, 2020c). The creation of a dedicated fund is
seen as a step towards strengthening the social security infrastructure in the country.
However, the Code on Social Security also faces certain criticisms and challenges. One of the
concerns raised by labour rights advocates is the exclusion of certain categories of workers,
such as agricultural labourers and domestic workers, from the ambit of the code. Critics argue
that this exclusion may leave a significant section of the workforce without adequate social
security coverage, perpetuating inequalities (Varghese, 2020).
Additionally, some experts have pointed out that the code's provisions for the gig economy
workers may need further clarification and implementation guidelines. The gig economy
operates on a unique model, and ensuring appropriate social security coverage for these
workers while preserving their flexible work arrangements presents a complex challenge
(Varghese, 2020).
In conclusion, the Code on Social Security in India has several merits, such as expanding social
security coverage and establishing a dedicated fund for welfare programs. However, addressing
concerns related to the exclusion of certain categories of workers and providing clarity on the
implementation of social security for gig economy workers will be crucial in making the code
more effective and inclusive.
THE OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS CODE
The Occupational Safety, Health and Working Conditions Code, enacted in India in 2020, is a
comprehensive legislation that aims to consolidate and streamline laws related to workplace
safety, health, and welfare of workers. One of the significant advantages of this code is that it
provides a unified and standardised approach to ensuring safe and healthy working conditions
across various industries (Government of India, 2020d). By consolidating the regulations, the
code simplifies compliance for employers and enhances the protection of workers' rights and
well-being.
The code also introduces the concept of a single registration for establishments, streamlining
the process of obtaining licences and approvals related to occupational safety and health. This
measure is expected to reduce bureaucratic hurdles and administrative burdens for businesses
while ensuring that they meet the necessary safety standards (Government of India, 2020d).
Moreover, the Occupational Safety, Health and Working Conditions Code includes provisions
for the welfare of gig economy workers, recognizing their unique work arrangements and
extending appropriate safeguards for their occupational safety and health (Government of India,
2020d). This step towards inclusivity is vital in addressing the challenges faced by the growing
gig workforce.
However, the code also faces certain criticisms and challenges. One concern raised is that the
code allows establishments with up to 300 workers to retrench or lay off employees without
government approval, which may lead to job insecurity and exploitation of workers (Varghese,
2020). Critics argue that this provision may weaken job protection and undermine workers'
rights.
Additionally, some experts have pointed out that the code should have provided more specific
provisions for hazardous industries and hazardous occupations. While the code outlines general
principles for ensuring occupational safety and health, more detailed guidelines may be required
to address the unique risks and hazards faced by workers in certain industries (Varghese,
2020).
In conclusion, the Occupational Safety, Health and Working Conditions Code in India offers
several advantages, such as consolidating regulations, streamlining processes, and extending
protections to gig economy workers. However, addressing concerns related to job security and
providing more specific guidelines for hazardous industries will be essential in making the code
more effective in ensuring workplace safety and workers' welfare.
CONCLUSION:
In conclusion, labour codes are crucial legal frameworks that play a significant role in
safeguarding the rights and interests of workers while guiding employers in their employment
practices. Understanding labour codes requires consulting authoritative legal texts, primary legal
sources, and scholarly articles that provide comprehensive insights into their origins, provisions,
and broader impacts.
REFERENCES:
Gupta, R. K., & Gupta, H. K. (2019). The Labour Code of India: Consolidation and Codification.
Eastern Book Company.
Government of India. (2020c). Code on Social Security, 2020. Gazette of India, Extraordinary,
Part II, Section 1.
Government of India. (2020a). Code on Wages, 2020. Gazette of India, Extraordinary, Part II,
Section 1.
Government of India. (2020b). Industrial Relations Code, 2020. Gazette of India, Extraordinary,
Part II, Section 1.
Government of India. (2020a). Industrial Relations Code, 2020. Gazette of India, Extraordinary,
Part II, Section 1.
Government of India. (2020b). Occupational Safety, Health and Working Conditions Code,
2020. Gazette of India, Extraordinary, Part II, Section 1.
Jain, D., & Singh, S. (2021). Labor Codes in India: A Comprehensive Review. Journal of
Employment and Labor Law, 23(2), 145-172.
Varghese, J. (2020). Code on Wages 2019: A Critical Analysis. Indian Journal of Labour
Economics, 63(3), 599-604. doi:10.1007/s41027-020-00260-1.
