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LABOUR CODE 2020 - KEY HIGHLIGHTS.

Courtesy/By: A. SIVABAGYAM | 2020-10-23 11:13     Views : 295

The Indian Parliament passed three labor codes on 23rd September 2020, namely:

  • Industrial Relations Code, 2020.

  • Occupational Safety, Health, and Working Conditions Code Bill, 2020.

  • Code on Social Security Bill, 2020.

Twenty-nine central labor laws have been amalgamated into these three codes along with the Code on Wages which was passed in August 2019 subsuming,

  • The Equal Remuneration Act, 1976.

  • The Minimum Wages Act, 1948.

  • The Payment of Wages Act, 1936.

  • The Payment of Bonus Act, 1965.

 

THE INDUSTRIAL RELATIONS CODE,2020.

This code systematizes laws related to industrial disputes and trade unions. The definition of the term “industry” has been replaced under this new code. Conditions for the legal strike have been amended wherein, no person employed in an industrial establishment can go on strike or an employer of an industrial establishment lock-out any workers without giving notice within sixty days before the strike/lock-out to the other person/party, within fourteen days of giving notice and during the pendency of any proceedings or operation of settlement or award. Previously in the Industrial Disputes Act, this was only applicable to public utility services. This code has made provisions related to strike and lock-out applicable to all industrial establishments. The IR code includes a new term acknowledging the engagement of a worker working for a fixed period based on a written contract and provides that such workers are entitled to the same benefits available to permanent workers. The threshold of workers has been increased to three hundred, for the purpose of obtaining consent from the appropriate government in case of lay off, retrenchment, or closure of the establishment. No permission from the appropriate government is needed if the number of workers is lesser than the threshold. The wage ceiling of a worker under the IR Code has been increased to Rs.18,000. This code also provides for setting up of a worker re-skilling fund under which the employer must contribute an amount equal to fifteen days of wages earned by the worker before retrenchment. Recognition to Negotiating Unions under this code, wherein if there is one trade union in an industrial establishment then such union would be recognized as the negotiating union and in the case wherein there is more than one trade union, the union having fifty-one percentage or more employees workers on the muster roll of the establishment shall be recognized as the negotiating union.

 

CODE ON SOCIAL SECURITY BILL, 2020.

The Social Security code provides better benefits to workers such as provident fund, insurance, and gratuity. It empowers the central government to notify various schemes such as the Employees Provident Fund Scheme, Employees Pension Scheme, and Employees Deposit Linked Insurance Scheme. It is stated under this code that the central government will set up social security funds for unorganized workers, gig workers, and platform workers. The National Security Board shall recommend to the central government suitable schemes for different sections of workers and also act as the board of welfare of these workers. It also provides for registration of the categories of workers mentioned above. The various schemes formulated under the code shall be funded by contributions from both employers and employees. This code also enshrines new clauses that would apply in case of an epidemic.

 

OCCUPATIONAL SAFETY, HEALTH, AND WORKING CONDITIONS CODE BILL, 2020.

As the name suggests, this code regulates the occupational safety, health, and working conditions of workers employed in establishments. Working hours under this code have been limited to a maximum of eight hours. Women will be entitled to be employed for all types of work in all establishments. Previously, the appropriate government was allowed to prohibit employing women from undertaking dangerous and hazardous operations, under the new code the government shall require employers to maintain and provide adequate safety standards while employing women for such operations. The code has widened its applicability to various categories such as audio-visual employees, inter-state migrant workers, etc. Inter-state migrant workers are included in the definition of workers under the act and have been provided with various benefits.

 

This article does not intend to hurt the sentiments of any individual, community, sect, or religion, etcetera. This article is based purely on the author’s personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1)(A) and other related laws being enforced in India for the time being.

Courtesy/By: A. SIVABAGYAM | 2020-10-23 11:13