INTRODUCTION
For India, the tale of labour is no new it is well connected with the country’s colonial background and journey toward independence. During that period conditions of labourers demanded more rights, fair salaries, and better working conditions at the workplace which eventually emerged as a firelight for the ongoing struggle for justice and dignity in the workplace.
Coming back to the present scenario today India stands 5th in the world’s GDP rankings in 2024[1]. Thus For consistent development and reformation of any country, Labour is an essential tool. However, the need for labor law reform in India has been a long-standing issue To address these challenges, the government enacted four new labor laws viz The Code on Wages, 2019, Industrial Relations Code, 2020, the Code on Social Security, 2020 and Occupational Safety, Health & Working Conditions Code, 2020. This blog delves into the main highlights of the New Labour Code, analyzing its impact on employment relations, industrial practices, and the overall socio-economic landscape.
THE CODE ON WAGES, 2019
This code was enacted in the year 2019 and was first introduced in the Lok Sabha by the Minister of Labour, Mr Santosh Gangwar on July 23, 2019. This bill seeks to consolidate four existing laws viz the Payment of Wages Act, the Minimum Wages Act, the Payment of Bonus Act, and the Equal Remuneration Act. The main objective of this bill is “ to amend and consolidate the laws relating to wages and bonus and matters connected therewith[2]” This act extends to the whole of India [3]and is not only applicable to the employees working in the organized sector but also to the employees working in the unorganized sector.
- The new definition of wages:
The Code on Wages,2019 provided the new definition of “wages” by consolidating all the previously given definitions. This code defines “wages” as “means all remuneration whether by way of salary, allowances or otherwise, expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment” which also includes basic pay renting allowances and dearness allowance[4].
- Gender equality :
The provision of this act ensures that there shall be no discrimination based on gender and also upholds the principle of equal pay for equal work. This code also prohibits recruitment based on gender description and promotes a gender-neutral environment in the workplace.[5]
- Payment of minimum wages:
This code casts power on the centre as well as on the state to revise and fix the wage based on various factors such as time, piece work, day, hour, and month. The minimum wage makes sure that at least a basic amount of monetary compensation must be given to an employee so that he should be able to afford a decent standard of living.[6]
- Establishment of central and state advisory boards:
This code provides the establishment of two boards viz state advisory board on the state level and central advisory board on the central level. The main objective of these boards is to aim and assist the government on various wage-related issues[7].
INDUSTRIAL RELATIONS CODE, 2020
The industrial relations code is entitled to protect the human rights of employers and workers by delivering stress-free labour improvements and enabling the comfort of doing business. The Industrial Relation Code,2020 was passed by the respective Lok Sabha and Rajya Sabha on September 22nd and 23rd this act extends to the whole of India the main aim of this act is to “An Act to consolidate and amend the laws relating to Trade Unions, conditions of employment in industrial establishment or undertaking, investigation and settlement of industrial disputes and for matters connected therewith.”[8]Below mentioned are some key provisions of this act.
- Recognition of the trade union
This code provides a higher degree of importance to the trade unions besides this code also makes alterations in the formation of trade unions making it easier for the employees to raise their voice. The main aim of the legislature behind this is to protect the interest of workers and facilitate collective bargaining [9]
- Establishment of a grievance redressal committee
This act provides a multi-layered redressal mechanism for effective dispute resolution. such committees consist of an equal number of employers as well as workers to maintain transparency. These committees tend to resolve the dispute amicably.[10]
- Application of standing order
The Code explains the requirement and importance of standing orders, which outline service conditions, manner of informing workers about work hours, holidays, paydays, and wage rates and grievance processes, in businesses with at least 300 employees. Implementation of the standing order not only reduces the compliance burden but also simplifies the business.[11]
THE CODE ON SOCIAL SECURITY, 2020
This act is a significant piece of legislation that aims to study and combine the laws relating to social safety, extending the coverage to comprehend all employees and workers across organized, unorganized, and other sectors.[12] It underscores the well-being of employees by safeguarding financial support during emergencies. The code indicates an inclusive method to protect the rights and well-being of employees irrespective of their sector. Following are some key highlights of the act.
- Wider coverage: –
This code is welfare legislation that provides coverage to the organized sector as well as the unorganized sector. This act defines social security as This code provides protection measures for employees, unorganized workers, gig workers, and platform workers, ensuring access to healthcare and income security, especially in cases of old age, unemployment, sickness, invalidity, work injury, maternity, or loss of breadwinner.[13]
- Establishment of funds [14]
This code provides the formation of funds for the welfare of the workers The Code establishes different social security funds, including the Employees’ Provident Fund, Employees’ State Insurance Fund, Gratuity Fund, and Maternity Benefit Fund, to administer and dispense social security benefits to eligible employees.
- Maternity benefits[15]
The Code provides maternity benefits for women during the period of delivery, miscarriage, or medical termination of pregnancy ensuring better financial support and protection for women. These benefits include paid leave, medical benefits, and maternity leave extensions, to enhance the health and well-being of mothers and children.
OCCUPATIONAL SAFETY, HEALTH & WORKING CONDITIONS CODE, 2020
The Occupational Safety, Health, and Working Conditions Code, 2020 stands as significant legislation in India. This code was first introduced in the Lok Sabha on September 19, 2020, by the Ministry of Labour and Employment, to “consolidate and amend the laws regulating the occupational safety, health and working conditions of the persons employed in an establishment and for matters connected therewith”[16] Through this consolidation, the Occupational Safety, Health, and Working Conditions Code, 2020 aims to elevate standards for occupational safety, health, and overall working conditions for the labour force in India.
Following are some key highlights of the code.
- Establishment of National Occupational Safety and Health Advisory Board.
The main function of this board is to look at whether the rules laid down by this code are being followed under the provision laid down by this act. Besides this board also advises the government on various health and safety-related problems and the issues of policy and programmes relating to occupational safety and health[17]
- Appointment of Safety Officers
This act makes safety officers mandatory for certain establishments that are responsible for ensuring compliance with safety and health rules as well as coordinating safety actions.[18]
- Welfare provisions [19]
The Health & working Conditions Code, 2020 also makes special welfare provisions for the well-being of the workers. Welfare provisions include bathing places and locker rooms for male, female, and transgender employees, sitting arrangements for all employees obliged to work in a standing position, canteen facilities, adequate first-aid boxes, and any other welfare measures.
CONCLUSION
There is no doubt that these new labour laws have a huge potential to modernize the current labour culture of India. With the enactment of such laws, India is bound to make progress in labour market efficacy, social justice, and lastly economy. Additionally, social dignity is the backbone of any reforms By establishing express rules for salaries, benefits, and working conditions, the laws aim to eliminate exploitation and guarantee that all workers are treated with dignity and respect. However, the effectiveness of these new labour rules is largely dependent on collaboration and cooperation among the government, corporations, and workers. Moreover, these enactments have opened the way for India’s workforce to be strong, adaptable, and socially equitable.
Author(s) Name: Ashay Anil Gote (Shankarrao Chavan Law College , Pune)
Reference(s):
[1] Gote Ashay, ‘The Top 10 Largest Economies In The World In 2024’ (Forbesindia, Apr 10, 2024) < Https://Www.Forbesindia.Com/Article/Explainers/Top-10-Largest-Economies-In-The-World/86159/1 > Accessed 20 April 2024.
[2] Gote Ashay, ‘The Code On Wages, 2019’ (Labourgov, Dec 2019) < Https://Labour.Gov.In/Sites/Default/Files/The_Code_On_Wages_As_Introduced.Pdf > Accessed 20 April 2024
[3] The Code On Wages, 2019 2019 Cl 1(2)
[4] The Code On Wages, 2019 2019 Cl 2(y)
[5] The Code On Wages, 2019 2019 Cl 3
[6] The Code On Wages, 2019 2019 Cl 5 & 6
[7] The Code On Wages, 2019 2019 Cl (Chapter V)
[8] Gote Ashay, ‘Industrial Relations Code, 2020’ (Egazette, 28th September, 2020) < Https://Labour.Gov.In/Sites/Default/Files/Ir_Gazette_Of_India.Pdf> Accessed 20 April 2024
[9] Industrial Relations Code, 2020 2020 Cl 5
[10] Industrial Relations Code, 2020 2020 Cl 4
[11] Industrial Relations Code, 2020 2020 Cl 28
[12] Gote Ashay, ‘The Code On Social Security, 2020’ (Egazette, 28th September, 2020) < Https://Labour.Gov.In/Sites/Default/Files/Ss_Code_Gazette.Pdf> Accessed 20 April 202
[13] The Code On Social Security, 2020 2020 Cl 2(78)
[14] The Code On Social Security, 2020 2020 Cl 16
[15]The Code on Social Security, 2020 2020 cl 59
[16] Gote Ashay, ‘The occupational safety, health & working conditions code, 2020’ (EGazette, 28th September, 2020) <https://labour.gov.in/sites/default/files/osh_gazette.pdf > accessed 20 April 2024
[17] The occupational safety, health & Working Conditions Code, 2020 2020 cl 16
[18] The occupational safety, health & Working Conditions Code, 2020 2020 cl 22(d)
[19] The Occupational Safety, Health & Working Conditions Code, 2020 2020 cl (Chapter VI)
