Parliament Clears Three Labour Bills: Know Salient Features, Key Changes And Impact Of These Legislations On Employers And Workers

Monsoon Session 2020: Parliament has passed three Labour Code Bills - Industrial Relations Code, 2020; Occupational Safety, Health & Working Conditions Code, 2020; Social Security Code, 2020.

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The Parliament has present its nod for three historic and path breaking Labour Code Bills - Industrial Relations Code, 2020; Occupational Safety, Health & Working Conditions Code, 2020; Social Security Code, 2020. As per the protocol, the three bills now needs to be presented before the President of India Ram Nath Kovind to get his assent over the bills. In a statement, the government said that these bills are part of Government’s earnest desire to bring much needed labour welfare reforms in the country which has not been done for the last 73 years.

What Are The key Changes Proposed Under Three Labour Bills?

The Minister of State for Labour and Employment Santosh Gangwar told the Lok Sabha that 29 labour laws are being subsumed in the simplified, easy to understand transparent 4 labour codes. Out of the 4 labour codes, Code on Wages has already been passed by Parliament and have become the law of the land. In a written reply to the queries raised by the Lok Sabha members, Gangwar stated that the Bills takes into account the holistic development of the country by keeping the labour interest uppermost in the mind. Following are the provision made under the three Labour Code Bills: Industrial Relations Code, 2020: As mentioned in an official statement, the bill have the provision for two members instead of one member in the Industrial Tribunal. In case of absence of one member, work can still be undertaken smoothly. Moreover, there is Provision for taking the matter straight to the Tribunal in case the dispute is not resolved at conciliation stage. At present, the case is referred to the Tribunal by the appropriate Government. Occupational Safety, Health & Working Conditions Code, 2020: Under this bill, there will be a provision of Free health checkup once a year by the employer for workers which are more than a certain age. Legal right for getting Appointment Letter given to workers for the first time has also been proposed in the bill. In addition to this, it also suggests that Cine Workers have been designated as Audio Visual Worker, so that more and more workers get covered under the OSH code. Earlier, this security was being given to artists working in films only. Social Security Code, 2020: Effort have been made to provide right to health security under ESIC to maximum possible workers. The facility of ESIC would now be provided in all 740 districts. At present, this facility is being given in 566 districts only. EPFO’s coverage would be applicable on all establishments having 20 workers. At present, it was applicable only on establishments included in the Schedule. Work to bring newer forms of employment created with the changing technology like “platform worker or gig worker” into the ambit of social security has been done in the Social Security Code. India is one of the few countries where this unprecedented step to bring workers in this category under social security has been taken.

Salient Features And Impact Of These Legislations On Employers And Workers

Elaborating the key features of the three codes which were passed by the Lok Sabha, the state minister said that the new legislations will prove to be a game changer in the labour welfare reforms covering more than 50 crores organised and unorganised workers in the country. This also includes gig, platform and also opens up the doors for social security to those in the self-employment sector. The minister elaborated following benefits of the Labour Codes:

• Compulsory facility for Helpline for redressal of problems of migrant workers.
• Making a national database of migrant workers.
• Provision for accumulation of one day leave for every 20 days worked, when work has been done for 180 days instead of 240 days.
• Women have to be permitted to work in every sector at night, but it has to be ensured that provision for their security is made by the employer and consent of women is taken before they work at night.
• In the event of death of a worker or injury to a worker due to an accident at his workplace, at least 50 % share of the penalty would be given. This amount would be in addition to Employees Compensation.
• Provision of “Social Security Fund” for 40 Crore unorganized workers along with GIG and platform workers and will help Universal Social Security coverage
• Pay parity to women workers as compared to their male counterparts.
• Occupational Safety & Health Code to also can now over cover workers from IT and Service Sector.
• 14 days notice for Strike so that in this period amicable solution comes out.
• Vibrant mechanism proposed for speedier disposal by Labour Tribunals as “Justice delayed is Justice denied”.
• The Codes to Promote Harmonious Industrial Relations for higher productivity and more employment generation.
• Labour Codes to stablish transparent, answerable and simple mechanism reducing registration requirement to just one from eight; need of licence also to just one from three four under different laws earlier.
• Inspector to be now made as Inspector – cum- Facilitator and introduction of Random, Web Based Inspection System to remove to Inspector Raj.
• Penalties increase manifold; to act as deterrent.