Labour law reforms. An overview

The Modi government of India has decided to replace the existing 29 labour laws with 4 Codes in order to simplify and modernise the labour-related regulations.

The Parliament has already passed all the four Codes and it has also received the President’s approval. The government is aiming to implement all the four Codes in a single go from the Financial Year 2021-22 though the exact date of implementation is not known due to the diversion of energy and time towards the Covid related temporary stalemate situation. 

The new set of Labour law regulations consolidates 44 labour laws under 4 categories of Codes namely, Wage Code, Social Security Code, Occupational Safety and Health & Working Conditions Code and the Industrial Relations Code.

Wage Code: The is the process of universalising the wages of the labour by fixing it

Industrial Relations code: This code is created for the recognition of Labour unions in order to identify the true and registered unions and to streamline the industry from opportunistic unions in disguise. 

Also unlike previously only those establishments which has 300 or more labours need to obtain permission from the government department for closure of the unit or for layoff or for retrenchments which previously was 100. (This is a relaxation for the employers).

Industrial Relations Code also introduces a new form of short-term labour – fixed-term employment which could replace the present contract-based system.

 

Social Security Code: This simplifies the labour laws to a large extent and creates enabling provisions to notify schemes platform workers but the government has not given complete clarify on the same. It also covers the most important aspects like Social security schemes, health and safety standards etc.

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Occupational Safety and Health & working conditions code: This code help to address the distinct Compliances burden on firms that were not effectively addressed previously due to poor enforcement and inadequate penalties.

Sudesh DJV

Indore MP India

3rd June 2021

11:00 am

Sudesh DJV writes on contemporary subjects in the form of Articles and poems which is in the interest of the Nation in particular and for Mankind in general.