Industrial Labour code

What is industrial laour law?

labour law (otherwise called labour law or business law) intercedes the connection between laborers, utilizing elements, worker's guilds and the public authority. Aggregate work law identifies with the three sided connection between worker, manager and association. Singular labour law concerns representatives' privileges busy working likewise through the agreement for work. Business principles are normal practices (now and again likewise specialized guidelines) for the base socially satisfactory conditions under which representatives or project workers are permitted to work. Government offices (like the previous US Employment Standards Administration) uphold work law (assembly, administrative, or legal).

Three types of industrial labour code:-

 Industrial Relations Code Bill 2020

●The code, among its important provisions, makes it easier for companies tohire and fire workers.

○Companies employing upto300 workers will not be required to frame rules of conduct for workmen employed in industrial establishments. Presently, it is compulsory for firms employing upto100 workers.

●It proposes that workers in factories will have to give a noticeat least 14 days in advanceto employers if they want to go on strike.

○Presently, only workers in public utility services are required to give notices to hold strikes.

●Besides, every industrial establishmentemploying 20 or more workerswill have one or moreGrievance RedressalCommitteesfor resolution of disputes arising out of employees’ grievances.

●The code also proposes setting up of areskilling fundto help skill retrenched workers.

 

 

Occupational Safety, Health and Working Conditions Code Bill, 2020

●It spells out duties of employers and employees, andenvisages safety standardsfor different sectors, focusing on the health and working condition of workers, hours of work, leaves, etc.

●The code also recognisestheright of contractual workers.

●The code provides employers the flexibility to employ workers on a fixed-term basis, on the basis of requirement and without restriction in any sector.

○More importantly, it also provides forstatutory benefitslike social security and wages to fixed-term employees at par with their permanent counterparts.

●It also mandates that no worker will be allowed to work in any establishment formore than 8 hours a dayor more than6 days in a week.

○In case of an overtime, an employee should bepaid twice the rate of his/her wage.It will be applicable to evensmall establishments,which have upto10 workers.

 

The code also brings ingender equalityand empowers the women workforce. Women will be entitled to be employed in all establishments for all types of work and, withconsent can work before 6 am and beyond 7 pmsubject to such conditions relating to safety, holidays and working hours.

○For the first time, the labourcode alsorecognisesthe rights of transgenders.It makes it mandatory for industrial establishments to provide washrooms, bathing places and locker rooms for male, female and transgender employees

 Code on Social Security Bill, 2020

●This willreplace nine social security laws,including Maternity Benefit Act, Employees’ Provident Fund Act, Employees’ Pension Scheme, Employees’ Compensation Act, among others.

●The codeuniversalizes social security coverageto those working in the unorganisedsector, such as migrant workers, gig workers and platform workers.

●For the first time, provisions of social security will also beextended to agricultural workers also.

●The code alsoreduces the time limit for receiving gratuity paymentfrom the continuous service of five years to one year for all kinds of employees, including fixed-term employees, contract labour, daily and monthly wage workers.

 Benefits of LabourCodes

●Consolidation and simplification of the Complex laws:The three Codes simplify labourlaws bysubsuming 25 central labourlawsthat have been on the table for at least 17 years.

○It will provide a big boost to industry & employment and will reduce multiplicity of definition and multiplicity of authority for businesses.

●Single Licensing Mechanism:The codes provide for a single licensing mechanism. It will give fillip to industries by ushering in substantive reform in the licensing mechanism. Currently, industries have to apply for their licenceunder different laws.

●Easier Dispute resolution:The codes also simplify archaic laws dealing with industrial disputes and revamp the adjudication process, which will pave the way for early resolution of disputes.

●Ease of Doing Business:According to the industry and some economists such reform shall boost investment andimprove ease of doing business.It drastically reduces complexity and internal contradictions, increases flexibility & modernizes regulations on safety/working conditions

●Other benefits for Labour:The three codes will promote fixed term employment, reduce influence of trade unions and expand the social security net for informal sector workers.

 Concerns with the Labourcodes

●Against the Interests of Employees:The codes provide the liberty to industrial establishments tohire and fire their employees at will.

○This move might enable companies to introduce arbitrary service conditions for workers.

●Free Hand to States:The central government has also attracted criticism that states have been given afree hand to exempt laws in violation of labourrights.However, the Union LabourMinister has said the labourissue is in theConcurrent listof the Constitution and therefore states have been given the flexibility to make changes as they wish.

●Affect Industrial Peace:Industrial Relation Code proposes that workers in factories will have to give anotice at least 14 daysin advance to employers if they want to go on strike.

○However, earlier theStanding Committee on Labourhad recommended against the expansion of the required notice period for strike beyond thepublic utilityservices like water, electricity, natural gas, telephone and other essential services.

○Further, BharatiyaMazdoorSanghhas also opposed the Code, describing it as a clear attempt to diminish the role of trade unions.

 Current  Concern On  industrial labour code