Labour Laws Have A Long History Of Reforms In India But The Biggest Of Those Reforms Was Introduced In The Year 2019 Which Proposed To Consolidate The Laws And Make Them Uniform, Before Diving Further Into The Reforms And The Previous Laws Let Us Understand What Labour Laws And Their Purpose Are. Labour Laws Are In Simple Terms The Laws Governing The Employees And Are Related To The Various Rights Of The Employees, And Daily Wage Labourers Including Ease Of Doing Business, On-Time Wages Payment, Fair Wages Etc.
Labour Laws: Before 2019 – 20 reforms
There Were Over 100 State And 40 Centre-Made Laws Regulating Various Aspects Such As The Resolution Of Disputes, Employment Conditions, Social Security, Wages Etc. Before The 29 Laws Were Consolidated Into Four Codes. Every aspect of protecting employees’ rights, including the payment of wages, bonuses, and compensation, was covered by a different set of laws. Laws Concerning Benefits for Maternity, etc. There were separate acts for different types of workers, such as the Beedi and Cigar Workers (Conditions of Employment) Act of 1976, the Dock Workers (Safety, Health, and Welfare) Act of 1986, or the Cine Workers and Cinema Theatre Workers Act of 1981. Was Solely For The Purpose Of Regulating The Dock Workers.
The Earlier Laws Were Very Scattered, And The Employees Could Not Avail All The Benefits Provided Under Those As The Level Of Awareness Among The Concerned People Was Poor And Improper Implementation, Around 90% Of The Workers From The Unorganized Sector Till Now Do Not Have Any Social Security And On The Other Hand There Were Limitless Compliances For The Firms Which Were Very Hectic, Which Eventually Led The Government To The Conclusion That The Labour Laws Need Some Effective And Functional Reforms.
Labour Laws: After 2019 – 20 reforms
The New Labour Codes Were Passed By The Parliament Of India In The Year 2019 And Released The Working Class From The Entanglement Of The Multiple Labour Legislations And Made Four Labour Codes On The Recommendations Of The Second National Commission On Labour (The NCL), 2022. The NCL Had Found The Earlier Legislations Knotty With Obsolete Provisions And Erratic Definitions And To Improve The Ease Of Workers Had Recommended Consolidating The Laws Into Major Categories; Industrial Relations, Wages, Social Security, Safety, Welfare And Working Conditions The Four Codes Are Largely Based On These Recommendations These Are:
- The Code On Wages, 2019
- The Occupational Safety, Health, And Working Conditions Code, 2020
- The Code On Social Security, 2020
- The Industrial Relations Code, 2020
The Code on Wages, 2019
The Payment of Wages Act (1936), the Minimum Wages Act (1948), the Payment of Bonus Act (1965), and the Equal Remuneration Act (1976) were the four earlier acts that were consolidated and transformed into the 2019 Code on Wages. This code will apply to all members of the working class, regardless of their affiliation or background. As Per The Present Code, The Central Government Will Possess The Power Of Deciding Wages Or Employment For Railways, Mines And Oil Fields And All Other Sectors Will Be Taken Care Of By The State Governments As The Labour Laws Are A Subject Under The Concurrent List.
The right to a minimum wage for all workers is one of the code’s main features. Another is that governments are required to review wages every five years in order to ensure that workers are not being exploited. These reviews are based on factors including skill level and geographic location. The Code also ensures that workers will receive their wages on schedule, that there will be no discrimination against male or female employees, and that both genders will receive equal compensation.
In order to guarantee that there are no regional variations in the minimum wages paid to workers, a new floor wage concept has been added to the code. Additionally, the ceiling on wages has been raised from Rs. 18000 to Rs. 24000.
The Occupational Safety, Health, and Working Conditions Code, 2020
This Code Has Incorporated Into Three Major Categories As Recommended By The NCL: Safety, Welfare, And Working Conditions. This Code Will Ease The Conditions For The Inter-State Migrant Workers And These Workers Can Be Aatmanirbhar Through Registering On The National Portal Formulated For The Inter-State Migrant Workers And Will Then Get The Benefits Of All Social Security Schemes.
Providing Appointment Letters To The Workers Has Been Made Mandatory Under This Code Along With The Mandatory, Free, And Annual Health Check-Ups Of The Workers. A Helpline Facility In Every State Will Also Be Started For The Resolution Of Grievances.
The employer is required to make adequate arrangements to ensure the safety of the female employees. The female employees will have the right to work in all types of establishments and will be granted the option to work at night with their consent.
The Code on Social Security, 2020
This Code Has Been Formulated After Incorporating 9 Labour Laws Which Were In Force Earlier In Order To Ensure That Every Worker From Either Of The Sectors Receives Social Security In The Form Of Rights Of The Workers For Insurance, Pension, Gratuity, Maternity Leaves, Benefits And So On. The Code Provides For Free Medical Treatment In Hospitals And The Dispensaries Of ESIC And After The Implementation Of This Code, The Benefits Of ESIC Will Be Available To The Workers From The Unorganized Sector As Well.
The ESIC Has Been Expanded And Has Reached The District Level And Will Reach All 740 Districts Moreover Now Even A Single Person If Engaged In Hazardous Activities Will Be Entitled To Get The Benefits. The Plantation Workers Will Also Be Included In Other Eligible Workers To Avail Facilities At ESIC And The Institutions Which Are Primarily Engaged In The Hazardous Areas Will Be Obligated To Register With ESIC.
All Employees in Organized, Unorganized, and Even Self-Employed Sectors Will Be Covered By The EPFO Pension Scheme. A database containing all unorganized sector workers will be prepared, and a Social Security Fund will be established to provide pensions to these workers. Gratuity benefits will be paid to fixed-term employees without requiring them to meet a minimum service requirement.
The Industrial Relations Code, 2020
The process of compliance is made simpler by the Code of Industrial Relations. Three laws have been incorporated into it: the Trade Unions Act of 1926, the Industrial Disputes Act of 1947, and the Industrial Employment (Standing Orders) Act of 1946. The Terms “Employee” and “Fixed-Term Employment” Are Defined In This Code, And “Worker” Has Replaced “Workmen” In The Current Version. The term “strike” is now defined as “mass casual leave taken by more than 50% of workers on a given day.”
Bringing Up Any Grievances With The Grievance Redressal Committee; The Investigation’s Inquiry Will End After Ninety Days, Beginning With The Worker’s Suspension. The Code Also Provides For The Workers To Secure Employment After Being Laid Off, And It Incorporates A Sole Negotiation Unit In Establishments With Multiple Trade Unions. The creation of one or more industrial tribunals as well as a national industrial tribunal will settle the industrial disputes.
The Implementation of Labour Codes
- As of right now, 25 states and 6 Union territory have adopted the 2019 Wage Code.
- 21 states and 3 union territories have adopted the Occupational Safety Health And Working Conditions Code 2020.
- 20 states and 5 union territories currently operate under the 2020 Social Security Code.
- In 22 states and 4 union territories, the 2020 Industrial Relations Code is in effect.
The Concurrent List, which is the Third List of the Indian Constitution, covers labor law. As a result, in order to enforce the labor code rules in their respective jurisdictions, the federal government and state governments must publish notice of the rules in the official gazette.
The rules have currently been finalized by the center, and they will be uniformly implemented across the nation once they have been approved by every state. The draft rules for the four labor codes have been prepublished by a number of UTs and States; nevertheless, the codes won’t go into effect until the Union and the states have released their notifications.
Resolving Labour Disputes through Alternative Dispute Resolution and How can WeVaad help?
Labour Disputes Can Be Easily Resolved Through The Various Mechanisms Of Alternative Dispute Resolutions (ADR) Namely Arbitration, Mediation And Conciliation Which Will Significantly Reduce The Time And Cost Of Dispute Resolution. This Will Benefit The Employee And The Employer Both.
WeVaad Is An Online Dispute Resolution Platform, Providing Services Of Alternative Dispute Resolution Through Online Means Which Further Reduces The Cost And The Time Of Dispute Resolution And Makes It Even More Efficient. We Have Services Like Online Arbitration, Mediation And Conciliation And The Whole Process Is Tracked In Order To Ensure Effective Resolution. We Have A Panel Of Experts Who Act As Arbitrators/ Mediators/ Conciliators And Have Expertise In Resolving All Kinds Of Disputes.