Three Labour Codes in Lok Sabha

  • Minister of State (I/C) for Labour and Employment, introduced three Labour Codes in the Lok Sabha heralding the path of game changing labour welfare reforms in the country.
  • These bills are

(i) Industrial Relations Code, 2020,

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

(iii) Social Security Code, 2020. 

  • The Code on Wages has already been approved by Parliament in the month of August, 2019 and has already become the law of the land.
  • Bills introduced will pave way for simplification of labour laws, its implementation and will bring immense labour welfare measures to the 50 crores workers in the country, both in the organised and unorganised sectors.
  • On the recommendation of the second National Commission on Labour that the existing Labour Laws to be merged into fewer Labour Codes.
  • 29 Central Labour Laws are proposed to be reduced to just 4 Labour Codes.
  • These reforms will protect the interest of workers and will provide them social security, protection, safe and working environment and effective conciliation, mechanism for their grievances, if any left.
  • A proper balance is maintained between the interest of workers and the employers because then only a labour welfare can take place in true sense.
  • A statutory right has been created for minimum wages and timely payment of wages to all workers whether in organized or unorganised sector.
  • It extends entitlement of minimum wages to all the workers in the country as against 30 per cent of the workforce, at present.
  • At present, minimum wages are fixed for employment covering mainly mines sector, plantation, dock workers, building and construction workers, watch and ward, sweeping and cleaning and on manufacturing sector etc.
  • Extension will take place to entire service sector (IT, hospitality, transportation etc.), domestic workers, unorganized workers, teachers.
  • Method of fixation of minimum wage rates simplified. Factors to be taken into account are skills and geographical location as against the present system of wage being fixed employment-wise.
  • Number of minimum wage rate would be around 200 in the entire country as against 10000, at present.
  • In central sphere, there would be only 12 minimum wage rates as against 542.
  • Revision of minimum wages every 5 years.
  • A statutory concept of ‘Floor Wage’ introduced.