BACKGROUND OF LABOUR REFORMS
● In June, 2019 the present Modi government started deliberating to concise the existing 44 labour laws into four broad Labour Codes based on –
ii. Social Security
iii. Industrial Safety & welfare
iv. Industrial relations
● The main objective of streamlining the various labour laws is to provide standard definitions to the various terms provided in these laws which would ultimately lead to reduction of labour disputes.
RECENT ACTIONS TO ACCELERATE REFORMATION
● On 8th September, 2020 the Union Cabinet approved the three labour codes based on social security, occupational safety, health and working conditions and industrial relations.
● The codes are now set to be placed before the Parliament in the monsoon session commencing from 14 September, 2020.
● All the codes were first introduced in Lok Sabha last year and subsequently sent for scrutiny to the Parliamentary Standing Committee on Labour.
● The labour law reforms will help the states to easily introduce changes in their labour laws.
FOUR LABOUR CODES
1. THE CODE ON WAGES, 2019
● This code aims to regulate wages of all kinds of employees in all types of industries and business; covering every sector.
● It will replace the following four laws –
Payment of Wages Act, 1936
Minimum Wages Act, 1948,
Payment of Bonus Act, 1965, and
Equal Remuneration Act, 1976.
● The code was passed in Rajya Sabha on August 2, 2019. Lok Sabha passed the bill on July 30, 2019. The draft rules on the code were circulated for feedback. As soon as the Central Government does the same, the code will come into force.
2. THE CODE ON SOCIAL SECURITY,2019
● This code governs various areas of social security of employees including provident fund, insurance, maternity benefits etc. On coming into force, it would repeal the following enactments-
i. The Employees' Compensation Act, 1923;
ii. The Employees' State Insurance Act, 1948;
iii. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952
iv. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959;
v. The Maternity Benefit Act, 1961;
vi. The Payment of Gratuity Act, 1972;
vii. he Cine-Workers Welfare Fund Act, 1981;
viii. The Building and Other Construction Workers’ Welfare Cess Act, 1996;
ix. The Unorganised Workers Social Security Act, 2008.
3. THE OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS CODE, 2019
● This code aims to combine the laws relating to occupational safety, health and working conditions of the persons employed in an establishment and the matters connected with it.
● It would repeal 13 labour laws including The Factories Act, 1948, The Mines Act, 1952, etc.
4. THE INDUSTRIAL RELATIONS CODE, 2019
● It combines laws on industrial disputes, trade unions and prohibits unfair labour practices.
● It will replace three labour laws namely:
Industrial Disputes Act, 1947
Trade Unions Act, 1926,
Industrial Employment (Standing Orders) Act, 1946
News Snippet - Sept 10, 2020
Credits - Parul Dhingra