Kiran Mini Project12
Kiran Mini Project12
On
Submitted by
Kiran Ramdas Dhumal
Roll No.711051
MBA I semester
Batch - 2020-2022
I also thank Prof. Rupesh Rebba (HOD) and Dr. Ulhas Shiurkar
mini Project.
Kiran R.Dhumal
Roll no.711051
MBA I semester
Batch 2020-2022
Certificate
1 CHAPTER I:
2 CHAPTER II:
3 CHAPTER III:
3.2 FINDINGS 22
3.3 CONCLUSION 23
3.4 BIBILIOGRAPHY 24
4 CHAPTER IV:
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1. INTRODUCTION
The Indian government had decided to condense 44 existing labour laws into four
Codes, In june 2019. The codes involved social security, occupational safety, health
And working conditions and industrial relation, of which , the code on wages Bill,
2019, has already been passed in the past year.
The Rajya Sabha on September 23, approved the remaining three labour codes
Subsuming 25 central laws, effecting a major reform that has been on the table
For at least 17 years. Government has now merged 29 central laws into four codes
Reducing compliance hassles, and streamlining laws –which have been the demand
From the industries and business houses for decades. The key motive here is to
Perpetuate compliance ease for attracting heavy foreign investments.
The three codes on – social security, industrial relations and occupational safety
Will now offer industries flexibility in doing business, hiring and firing, make
Industrial strikes difficult while promoting fixed term employment, reducing
Influence of trade unions and expanding social security net for informal sector
Workers by modernizing the regulations around the safety and conditions of
Employees. This is being viewed as a landmark move balancing the interests
Of the employers and the workers alike, while restricting the powers of the
Labour unions. The codes are aimed at minimizing the complexity and
Contradictions borne out of multiple interpretations of the laws in different
Jurisdictions. This is in sync with the prime minister, Shri Narendra Modi
Resolve for a universal social security code.
Critics have been swift in pointing out several anomalies including excessive
Hiring and firing provisions during rule and how the new codes have ignored
Important recommendations of the standing committee on labour.
Largely, the industry and the economist fraternity have hailed the move,
Viewing this as a great reform that will give an impetus to investment
And hugely improve ease of doing business in india by reducing multicity
Of authority for business. However, there is per chance, a patient wait, till
The rules are made on how much compliance burden will reduce.
There is still scope for further rationalization with the focus shifting
To state labour reforms.
The codes have the president`s assent. Different dates may be appointed
For different provisions of this code and reference in any such provisions
To the commencement of this code shall be construed as a reference to
The coming into force at that provision.
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Labour Codes Bills Passed :-
Parliament of India passed four labour codes in 2019 and 2020 sessions.
These four codes will replace 44 existing labour laws.
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History :-
Workers who sought better conditions, and trade unions who campaigned
through strike action were frequently, and violently suppressed. After
independence was won in 1947, the Constitution of India of 1950
embedded a series of fundamental labour rights in the constitution,
particularly the right to join and take action in a trade union, the principle of
equality at work, and the aspiration of creating a living wage with decent
working conditions.
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2. Objectives of the study :-
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3. Scope of the study
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4. LIMITATIONS OF THE STUDY
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5. LABOUR REFORMS BY GOVERNMENT
1. The Industrial Relations Code 2020 amends the laws regulating the Trade Unions,
conditions of employment in industrial establishment or undertaking, investigation and
settlement of industrial disputes and for matters connected thereto or incidental thereto.
2. Every industrial establishment in which one hundred (100) or more workers are
employed should constitute a works committee consisting of representatives of employer
and workers engaged in the establishment.
3. Every industrial establishment employing 20 or more workers shall have one or more
Grievance Redresses Committees for resolution of disputes.
5. Employees should give 60 days’ notice to the employer before going on strike.
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7. One month’s notice to be given to employees before their retrenchment.
8. Provisions of Lay Off, Retrenchment and Closure will not be applicable for industrial
establishments having less than 50 workers.
9. Prior permission of the government before closure, lay-off and retrenchment mandatory
for establishments having 300 or more employees instead of existing limit of 100
employees.
10. The threshold for negotiating council of trade unions have been reduced from 75%
workers as members to 51% of workers.
11. Workers may apply to the Industrial Tribunal in case of dispute – 45 days after the
application.
The Industrial Relations Code 2020 subsumes the following existing acts,
1. The Industrial Disputes Act 1947
2. The Trade Unions Act 1926
3. The Industrial Employment (Standing Orders) Act 1946
1. The Code on Social Security amends and consolidates the existing labour laws with
the goal to extend the social security to all employees and workers either in the organized
or unorganized or any other sectors and for matters connected or incidental thereto.
2. The biggest highlight of the Social Security Code is that it has expanded the benefits
of social security to unorganized workers, Fixed term employees, Inter-state migrant
workers, Film Industry workers, Construction workers, Gig workers and Platform workers.
3. Constitution of State Unorganized Workers Board and Building Workers Board to
frame, monitor and review the welfare schemes for unorganized and building workers and
to advise central government on matters arising out of administration of this code and
incidental thereto.
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4. The definition of Contract Labour includes Inter-state migrant worker. The inter-state
migrant workers mean the person recruited directly or indirectly and will include the
person recruited in one state for employment in such establishment situated in another
state or the person has come from one state and obtained employment in another state.
5. The applicability of Employees State Insurance Act expanded to cover every
establishment in which ten or more persons are employed other than a seasonal factory.
Also, the act will be applicable to establishments carrying hazardous or life-threatening
occupation as notified by the Central Government in which even a single employee is
employed.
6. Voluntary ESIC coverage made available to establishments having less than 10
employees.
7. Gratuity period for workers journalists as defined under Working Journalists and Other
Newspaper Employees (Condition of Service) and Miscellaneous Provision Act 1955
reduced from FIVE years to THREE years. For fixed term employees the period will be
ONE year.
8. A minimum of 1% and maximum of 2% cess shall be levied and collected for the
purpose of social security and welfare of building workers.
9. Corporate Social Responsibility Fund within the meaning of The Companies Act
2013 to be utilised for social security of unorganised workers, gig workers and platform
workers.
10. The Government will set up a helpline facilitation center for unorganised workers, gig
workers and platform workers.
11. Every unorganised worker, gig worker and platform worker who have completed the
age of sixteen years shall be required to be registered with the Government and such
worker will be assigned a distinguishable number.
12. A 1% – 2% cess or maximum of 5% of amount payable to unorganised worker shall
be levied and collected for the purpose of social security and welfare of unorganised
workers, gig workers and platform workers.
13. The Government will appoint Inspector cum Facilitators who shall discharge duties in
accordance with the inspection scheme. This means the present government officials
assigned as inspectors will now also undertake the role of facilitators and guide and assist
the stakeholders to manage their compliances. This is a welcome step to eliminate
Inspector Raj.
14. The Government under its digitalisation programme will allow stakeholders to
maintain electronic records and may provide for web-based inspections
under Employees Provident Fund Act (EPF) and Employees State Insurance Act
(ESIC).
15. The Central Government may defer or reduce the employer’s or employee’s
contribution payable under EPF and ESIC for a period up to three months at a time
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for whole of India or part thereof in the event of pandemic, endemic or national
disaster.
16. The Government will set up CAREER CENTRES in which the employer of any class
of establishment shall report or cause to report about the vacancies in the establishment,
however the employer will not be under obligation to recruit any person through the career
centre.
17. Huge penalty of Rs. 3,00,000/- and imprisonment of three years for repeat offenders.
The Code on Social Security 2020 subsumes the following existing acts,
1. The Employees Provident Fund and Miscellaneous Provisions Act 1952
2. The Employees State Insurance Act 1948
3. The Payment of Gratuity Act 1972
4. The Maternity Benefit Act 1961
5. The Workmen’s Compensation Act 1923
6. The Building and Other Construction Act 1996
7. The Cine Workers Welfare Fund Act 1981
8. The Unorganised Workers Social Security Act 2008
9. The Employees Exchange (Compulsory Notification of Vacancies) Act 1959
1.The Occupational Safety, Health and Working Conditions Code 2020 amends the
laws regulating the occupational safety, health and working conditions of the persons
employed in an establishment and for matters connected thereto or incidental thereto.
2. The code applies to establishment employing minimum 10 workers and to all mines
and docks. All eligible establishments should get registered under the code within 60 days
from the date of applicability of the code. The employer at the time of registration should
provide the information of inter-state migrant workers.
The existing registered establishments will be deemed to be registered under the code.
3. Definition of Contract labour widen to include inter-state migrant workers.
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4. The Central Government will constitute the National Occupational Safety and Health
Advisory Board which will advise the Government on matters related to policies, schemes,
provisions, rules and regulations under the Code.
5. The State Government will constitute the State advisory Board to advise the State
Government on matters related to administration of the Code.
6. The Central Government will maintain an electronic database of inter-state migrant
workers. The inter-state migrant workers may register themselves with the Government.
The workers who have migrated from one sate to any other state and are self employed
in that other state may also register themselves.
7. Maximum working hours fixed to 8 hours a day. Prior consent of workers is required
for overtime work. Workers should get one day leave for every 20 days of work per year.
8. The Code is made applicable to establishments engaged in hazardous activities having
less than 10 employees.
9. Applicability of Contract Labour Act for Central revised to 50 employees. Contractors
may obtain license for 5 years.
10. Journey allowance for to and fro journey to native place to inter-state workers every
year.
11. Inter-state migrant worker can avail benefits of public distribution system either in his
native place or in destination state where he is employed.
12. Women shall be entitled to be employed in all establishments for all types of work
under this code and they may also be employed with their consent before 06.00 AM and
beyond 07.00 PM subject to conditions relating to safety, holidays and working hours to
be observed by the employer.
13. The Code includes three schedules containing lists of: (i) 29 diseases that the
employer is required to notify the authorities of, in case a worker contracts them, (ii) 78
safety matters that the government may regulate, and (iii) 29 industries involving
hazardous processes. The lists may be amended by the central government.
The Occupational Safety, Health and Working Conditions Code 2020 subsumes the
following existing acts,
1. The Contract Labour (regulation and Abolition) Act 1970
2. The Factories Act 1948
3. The Mines Act 1952
4. The Dock Workers (Safety, Health and Welfare) Act 1986
5. The Inter State Migrant Workmen Act 1979
6. The Motor Transport Workers Act 1961
7. The Plantations Labour Act 1951
8. The beedi and Cigar Workers (Condition of Employment) Act 1966
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9. The Working Journalists and Other Newspaper Employees (Condition of Service) and
Miscellaneous Provision Act 1955
The Code on Wages, 2019, also known as the Wage Code, is an Act of
the Parliament of India that consolidates the provisions of four labour
laws concerning wage and bonus payments and makes universal the
provisions for minimum wages and timely payment of wages for all workers
in India. The Code repeals and replaces the Payment of Wages Act, 1936,
the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, and the
Equal Remuneration Act, 1976.
Legislative history:-
The Code on Wages Bill was introduced in the Lok Sabha on 10 August
2017 by the Minister of State for Labour and Employment (Independent
Charge), Santosh Gangwar. The bill was referred to a Parliamentary
Standing Committee on 21 August 2017. The Committee submitted its
report on 18 December 2018. The committee made 24 recommendations,
of which 17 were incorporated into the bill. The bill lapsed following the
dissolution of the 16th Lok Sabha ahead of the 2019 general elections. The
Code on Wages Bill, 2019 was re-introduced in the House on 23 July 2019.
Moving the bill for consideration, Gangwar stated that the government had
held consultations with trade unions, employers and State governments,
and held tripartite consultations on 10 March 2015 and 13 April 2015. He
also stated that a draft of the bill was made available on the Ministry of
Labour and Employment's website and suggestions from the general public
were taken into account.Gangwar added that existing labour laws only
governed payment of wages for about 40% of the labour force and the
Code on Wages would extend coverage to the entire labour force
irrespective of sector or wage ceiling. He noted that provisions on timely
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payment of wages would bring relief to workers in the unorganized sector
of the economy.The bill was passed by the Lok Sabha on 30 July 2019.
The bill was passed by the Rajya Sabha on 2 August 2019. The bill
received assent from President Ram Nath Kovind on 8 August, and was
notified in The Gazette of India on the same date.
The Union Ministry of Labour issued draft rules under section 67 of the Act
on 7 July 2020 in the Gazette. The draft rules remained open for public
feedback for 45 days and are expected to come into force soon. Some
provisions of the Act have come into force on 18 December 2020. The bill
has received the presidential assent on 8 August 2019, but the date of
coming into force of the remaining provisions is yet to be notified in the
official gazette.
In the Constitution of India from 1950, articles 14-16, 19(1)(c), 23-24, 38,
and 41-43A directly concern labour rights. Article 14 states everyone
should be equal before the law, article 15 specifically says the state should
not discriminate against citizens, and article 16 extends a right of "equality
of opportunity" for employment or appointment under the state. Article
19(1)(c) gives everyone a specific right "to form associations or unions".
Article 23 prohibits all trafficking and forced labour, while article 24
prohibits child labour under 14 years old in a factory, mine or "any other
hazardous employment".
Articles 38-39, and 41-43A, however, like all rights listed in Part IV of the
Constitution are not enforceable by courts, rather than creating an
aspirational "duty of the State to apply these principles in making laws".The
original justification for leaving such principles unenforceable by the courts
was that democratically accountable institutions ought to be left with
discretion, given the demands they could create on the state for funding
from general taxation, although such views have since become
controversial. Article 38(1) says that in general the state should "strive to
promote the welfare of the people" with a "social order in which justice,
social, economic and political, shall inform all the institutions of national life.
In article 38(2) it goes on to say the state should "minimise the inequalities
in income" and based on all other statuses. Article 41 creates a "right to
work", which the National Rural Employment Guarantee Act 2005 attempts
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to put into practice. Article 42 requires the state to "make provision for
securing just and human conditions of work and for maternity relief". Article
43 says workers should have the right to a living wage and "conditions of
work ensuring a decent standard of life". Article 43A, inserted by the Forty-
second Amendment of the Constitution of India in 1976, creates a
constitutional right to codetermination by requiring the state to legislate to
"secure the participation of workers in the management of undertakings".
Scope of protection
Indian labour law makes a distinction between people who work in
"organised" sectors and people working in "unorganised sectors". The laws
list the ditors to which various labour rights apply. People who do not fall
within these sectors, the ordinary law of contract applies.
India's labour laws underwent a major update in the Industrial Disputes Act
of 1947. Since then, an additional 45 national laws expand or intersect with
the 1948 act, and another 200 state laws control the relationships between
the worker and the company. These laws mandate all aspects of employer-
employee interaction, such as companies must keep 6 attendance logs, 10
different accounts for overtime wages, and file 5 types of annual returns.
The scope of labour laws extend from regulating the height of urinals in
workers' washrooms to how often a work space must be lime-
washed.Inspectors can examine working space anytime and declare fines
for violation of any labour laws and regulations.
Employment contracts
Among the employment contracts that are regulated in India, the regulation
involves significant government involvement which is rare in developed
countries. The Industrial Employment (Standing Orders) Act 1946 requires
that employers have terms including working hours, leave, productivity
goals, dismissal procedures or worker classifications, approved by a
government body.
The Contract Labour (Regulation and Abolition) Act 1970 aims at regulating
employment of contract labour so as to place it at par with labour employed
directly. Women are now permitted to work night shifts too (10 pm to 6 am).
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The Latin phrase 'dies non' is being widely used by disciplinary authorities
in government and industries for denoting the 'unauthorised absence' to the
delinquent employees. According to Shri R. P. Saxena, chief engineer,
Indian Railways, dies-non is a period which neither counted in service nor
considered as break in service. A person can be marked dies-non, if
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The Payment of Wages Act 1936 requires that employees receive wages,
on time, and without any unauthorised deductions. Section 6 requires that
people are paid in money rather than in kind. The law also provides the tax
withholdings the employer must deduct and pay to the central or state
government before distributing the wages.
The Minimum Wages Act 1948 sets wages for the different economic
sectors that it states it will cover. It leaves a large number of workers
unregulated. Central and state governments have discretion to set wages
according to kind of work and location, and they range between as much
as ₹ 143 to 1120 per day for work in the so-called central sphere. State
governments have their own minimum wage schedules
The Payment of Gratuity Act 1972 applies to establishments with 10 or
more workers. Gratuity is payable to the employee if he or she resigns or
retires. The Indian government mandates that this payment be at the rate
of 15 days salary of the employee for each completed year of service
subject to a maximum of ₹ 2000000.
The Payment of Bonus Act 1965, which applies only to enterprises with
over 20 people, requires bonuses are paid out of profits based on
productivity. The minimum bonus is currently 8.33 per cent of salary.
Weekly Holidays Act 1942 Beedi and Cigar Workers Act 1966
Health and safety
The Workmen's Compensation Act 1923 requires that compensation is
paid if workers are injured in the course of employment for injuries, or
benefits to dependants. The rates are low.
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for the organised workforce sector. For those workers, it creates Provident
Fund to which employees and employers contribute equally, and the
minimum contributions are 10-12 per cent of wages. On retirement,
employees may draw their pension.
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Equality:-
Article 14 states everyone should be equal before the law, article 15 specifically
says the state should not discriminate against citizens, and article 16 extends a
right of "equality of opportunity" for employment or appointment under the state.
Article 23 prohibits all trafficking and forced labour, while article 24 prohibits child
labour under 14 years old in a factory, mine or "any other hazardous
employment".
Gender discrimination
Article 39(d) of the Constitution provides that men and women should receive equal pay
for equal work. In the Equal Remuneration Act 1976 implemented this principle in
legislation.
Randhir Singh v Union of India Supreme Court of India held that the principle of
equal pay for equal work is a constitutional goal and therefore capable of
enforcement through constitutional remedies under Article 32 of Constitution
State of AP v G Sreenivasa Rao, equal pay for equal work does not mean that all
the members of the same cadre must receive the same pay packet irrespective of
their seniority, source of recruitment, educational qualifications and various other
incidents of service.
State of MP v Pramod Baratiya, comparisons should focus on similarity of skill, effort
and responsibility when performed under similar conditions
Mackinnon Mackenzie & Co v Adurey D'Costa, a broad approach is to be taken to
decide whether duties to be performed are similar
Sexual Orientation and Gender Identity
The Transgender Persons (Protection of Rights) Act, 2019 bans discrimination on the
basis of gender identity in employment. Furthermore, the following judicial orders ban
discrimination on the basis of sexual orientation in employment.
Navtej Singh Johar v. Union of India, Sexual orientation is protected under the right
to privacy and LGBT rights are protected by the Indian constitution under Article 15.
Pramod Kumar Sharma v. State of Uttar Pradesh, prohibits discrimination and firing
from employment on the grounds of sexual orientation.
Caste Discrimination
The Scheduled Caste and Scheduled Tribe (Prevention of Atrocities) Act, 1989 bans
discrimination on the basis of caste including in employment and pursuance of
profession or trade. The legislation has often been called the "world's most powerful
anti-discrimination law".
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Migrant workers
Interstate Migrant Workmen Act 1979, It is now replaced by the Occupational
Safety, Health and Working Conditions Code, 2020
Vulnerable groups
Bonded Labour System (Abolition) Act 1976, abolishes bonded labour, but estimates
suggest that between 2 million and 5 million workers still remain in debt bondage in
India.[31]
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6.RESEARCH METHODOLOGY
Availed from the secondary data sources. Based on the secondary data
Report, journal and newspaper , article from eminent writers have been
Review.
Secondary data
Secondary data are those, which have already been collected by someone
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7.Findings and conclusion
1. Universal rights to minimum wages and timely payment of wages to all workers
including unorganized workers – presently minimum wages applicable to only 30% of
workers.
2. Statutory concept of National Floor Wage introduced to reduce regional disparity in
minimum wages.
3. Less number of rates of minimum wages.
4. Better compliance.
5. Issuing appointment letters made mandatory to promote formalisation.
6. Annual Health check-up for employees.
7. Occupational Safety & Health Code made applicable to establishments engaged in
hazardous activities having less than 10 employees.
8. Welfare benefits to migrant workers.
9. Extension of ESIC coverage to all districts and all establishments employing 10 or more
employees.
10. Voluntary ESIC coverage made available to establishments having less than 10
employees.
11. ESIC act applicable to establishments carrying hazardous or life-threatening
occupation as notified by the Central Government in which even a single employee is
employed.
12. Social Security Scheme extended to Gig workers, Unorganized workers and Platform
workers.
13. Re-skilling fund introduced for retrenched employees.
14. All occupations opened for workers and permitted to work at night with safeguards.
15. Gratuity period for workers journalists as defined under Working Journalists and Other
Newspaper Employees (Condition of Service) and Miscellaneous Provision Act 1955
reduced from FIVE years to THREE years. For fixed term employees the period will be
ONE year.
16. Definition of Inter-state migrant workers expanded to include migrant workers
employed directly or indirectly through contractor and also workers directly coming to
destination state on their own.
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8. Conclusions:-
The emphasis has been made to uplift and improve the standard of living
Of the small, poor and unorganized laborers of the country which forms
The majority part of the total working class population by giving them
Every new beginning has some pitfalls and there be some loopholes in
The new labour codes as well which may arise when they get implemented
Regional disparity.
2020 looks promising however its success will depend upon the employers
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9.BIBLIOGRAPHY
Websites :-
www.wikipedia.com
www.taxguru.com
www.slideshare.net
www.indianexpress.com
www.studyIQ.com
www.prsindia.org
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10.AXXENURE
Table 3: Details of Acts which are being subsumed by the four labour codes
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Labour Codes Acts being subsumed
Thank you……..
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