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Labour laws

Implementation of 4 Labour Codes Stalled

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 19-Sep-2023

Introduction

  • With the objective of streamlining the multitude of labour laws in the country, the Parliament of India passed one labour code bill in 2019 and three labour code bills in September 2020.
  • The Central Government of India has consolidated 29 complex labour laws into four codes, which include the Code on Wages Act, 2019, Industrial Relations Code Bill, 2020, Occupational Safety, Health and Working Conditions Code Bill, 2020, and Social Security Code Bill, 2020.
  • It was aimed by the government to bring the codes into effect by the financial year 2024, that is by April 2023.
  • They are a part of economic reforms prophesied by the Government.

Some Major Changes Brought by the Codes

  • It lays down new conditions on the right of workers to go on strike.
    • Flash strikes will be outlawed.
    • Unions will now have to give 60 days' notice before going on a strike.
    • If proceedings are pending before a labour tribunal or the National Industrial Tribunal, workers cannot go on a strike for 60 days after they are concluded.
  • The aforementioned conditions will be applicable to all industries.
  • Employment of women in all kinds of establishments and at night (between 7 PM and 6 AM) will be allowed depending upon the safety and consent of the woman.

Legal Provisions

  • Code on Wages Act, 2019:
    • The code was passed by the Parliament in 2019 and came into effect on 1st April 2020.
    • The laws replaced by the code are mentioned below: -
      • Minimum Wages Act, 1948
      • Payment of Wages Act, 1936
      • Payment of Bonus Act, 1965
      • Equal Remuneration Act, 1976
    • The code mentions that the government of India will affix a floor wage considering the living standards of workers.
    • The maximum punishment in the code is three-month imprisonment along with a fine of Rs. 1 lakh.
  • Industrial Relations Code Bill, 2020:
    • The abovementioned code received the assent of the President on the 28th of September 2020.
    • The minimum number of workers employed for an establishment to have standing orders has been raised from 100 to 300.
    • It prohibits workers from going on strike without giving a 60-day notice and during the pendency of proceedings before a Tribunal or a National Industrial Tribunal.
    • It also proposes to set up a re-skilling fund for training retrenched workers.
  • Social Security Code Bill, 2020:
    • The code was passed in the Rajya Sabha on 23 September 2020 and received presidential assent on 28 September 2023.
    • The inter-state migrant workers, construction workers, film industry workers and platform workers are included in the definition of employees.
    • The gratuity period for working journalists has been reduced from 5 years to 3 years.
    • A social security fund can be set up for unorganised workers, platform workers, and gig workers.
    • A proposal to establish a National Social Security Board is mentioned in the code.
  • Occupational Safety, Health and Working Conditions Code Bill, 2020:
    • The code was passed in the Rajya Sabha on 23 September 2020 and received presidential assent on 28 September 2023.
    • Applicability of the code is mentioned below: -
      • A place where any industry, trade, business, manufacturing, or occupation is carried on in which 10 or more workers are employed; or
      • A motor transport undertaking, newspaper establishment, audio-video production, building, and other construction work or plantation, in which 10 or more workers are employed; or
      • A factory in which 10 or more workers are employed; or
      • A mine or port or vicinity of the port where dock work is carried out.
    • Someone who has come on his/her own from one state and received employment in another state and earns up to Rs.18000 per month is defined to be an inter-state migrant worker.
    • Employment of women in all kinds of establishments and at night (between 7 PM and 6 AM) will depend upon safety and consent of the woman.

Benefits of New Labour Codes

  • It provides for the simplification of labour laws by consolidating 29 central laws.
  • It will reduce multiplicity of definition and authority for businesses.
  • It will provide for easier dispute resolution.
  • It will boost investment and make doing business easier.
  • It will enhance flexibility and safety standards and will promote Gender Parity.

Criticism Against New Labour Codes

  • Critics find these codes as anti-worker.
  • The changes will increase the number and type of companies that can fire workers without government approval.
  • It enforces new norms on how unions can call strikes.
  • It discards rules that bar women from working night shifts
  • It introduces a new social-security regime.
  • No specific provisions for social security of employees in small startups, Micro, Small and Medium Enterprises (MSME) has been provided.
  • No Recognition for Invisible Labour.
    • This type of work is unseen, unpaid and unregulated, such as managing a household.

Conclusion

As per economic experts, many times high Gross Domestic Product (GDP) does not give rise to higher incomes for the lowest strata of society. For providing better-quality livelihoods and better working conditions, the employment and labour policies must also shift. However, neither the codes came into effect, nor any tentative enforcement period is comprehendible.