Highlights of 3 labour code bills passed in the Lok Sabha on 22nd Sep 20

Highlights of 3 labour code bills passed in the Lok Sabha on 22nd Sep 20

3 labour code bills were passed in the Lok Sabha on 22nd Sep 20

(i)   Industrial Relations Code, 2020

(ii)  Code on Occupational Safety, Health & Working Conditions Code, 2020 &

(iii)  Social Security Code, 2020.Late or incorrect processing of payroll

Minister of State (I/C) for Labour & Employment, Shri Santosh Gangwar, stated these Bills will prove to be a Game Changer in the labour welfare reforms covering more than 50 crores organized and unorganized workers in the country. This also includes gig, platform and also opens up the doors for social-security to those in the unorganized & self-employment sector.

Setting up of “Social-Security Fund” for 40 Crore unorganized workers alongwith GIG and platform workers and will help in widening Universal Social-Security coverage

He further said that 29 labour laws are being subsumed in the 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.Poor record keeping and data entry

He Elaborated the salient features of the 3 Codes as under:-

  • The facility of ESIC would be provided in all 740 districts. At present, this facility is being given in 566 districts only.
  • Establishments working in hazardous sectors would mandatorily be linked with ESIC, even if there is only one worker working in it.
  • Provision for making scheme for linking unorganised sector and Gig workers with ESIC.
  • Option to link workers working in Plantations is being given to Plantation owners.
  • Option for becoming member of ESIC is also being given to establishments with less than 10 workers.
  • EPFO’s coverage would be applicable on all establishments having 20 workers. At present, it was applicable only on establishments included in the Schedule.
  • Option to join EPFO is also being given to establishments having less than 20 workers.
  • Schemes would be formulated for bringing workers coming under the category of ‘Self- employed’ or falling under any other category (including unorganised sector worker, platform worker or gig worker) under the aegis of EPFO.
  • Provision for Gratuity has been made for Fixed Term Employee and there would not be any condition for minimum service period for this.
  • it has been made mandatory for all establishments with 20 or more workers to report the vacancy position in their establishments. This information would be given on online portal.
  • a national database for unorganised sector workers, would be made on an online portal.
  • 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.
  • 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.
  • The definition of migrant workers would include workers moving from one state to another on their own and the workers who have been appointed by the employer from a different state. 
  • Compulsory facility for Helpline for redressal of problems of migrant workers. 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 employer has to be ensured that provision for their security and consent of women is taken before they work at night. Pay parity to women workers as compared to their male counterparts.
  • In the event of death of a worker or injury to a worker due to an accident at his workplace, atleast 50 % share of the penalty would be given. This amount would be in addition to Employees Compensation.
  • 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.
  • 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.
  • Provision for taking the matter straight to the Tribunal in case the dispute is not resolved at conciliation stage. At present, the case is refered to the Tribunal by the appropriate Government.
  • Implementation of award in 30 days after Tribunal award.
  • Fixed Term Employee would get benefits of hours of work, salary, social-security and other welfare benefits like a Regular Employee.
  • For effective participation of Trade Unions, a provision for “Negotiating Union” and “Negotiating Council” has been made for undertaking negotiation on any dispute. Trade Unions would be able to contribute more affirmatively and more effectively at the Central and State level.
  • Provision for RE-Skilling fund has been made in the law for the first time. Workers would be given 15 days salary for re-Skilling within a period of 45 days if they are fired from their jobs.
  • 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–Facilitator and introduction of Random, Web Based Inspection System to remove the Inspector Raj.
  • Penalties increase manifold; to act as deterrent.
Shri Gangwar also stressed that the changes and reforms are meeting current requirements alongwith futuristic approach so that country marches on faster growth trajectory. These codes will lead to growth of industry, employment, income, balanced regional development.
“India will become favourite investment destination in the world” he added.