The labor laws in force in this country have become archaic and unfortunately have not changed with the rapidly changing environment in the industry, as Judiciary N Anand Venkatesh found in 2019 when hearing a case before the Madras Supreme Court.
For the first time since independence, there is a change in labor laws and workers are finally getting the security they deserve in terms of wages, benefits and job security. The government of the Union recently codified 29 key regulations in four labor codes, namely the Code of Industrial Relations (2020), the Code of Occupational Safety, Health and Working Conditions (2020), the Code of Social Security (2020) and the Code of Wages (2019 There was an urgent need to breathe life into labor laws, especially after the 1990s when the country’s economy changed radically, transforming manufacturing activity and ensuring rapid growth in the service, IT and related industries.
The government recently passed three labor law bills in parliament. This comes a year after 44 existing labor laws were merged into four codesRead caption
The government recently passed three labor law bills in parliament. This comes a year after 44 existing labor laws were merged into four codes
While industry is entitled to make a decent return on investment, workers are equally entitled to decent wages and good and safe working conditions. It is a difficult task to make and codify rules that satisfy both parties and the middle ground. Taking into account the interests of both should be the aim of all labor legislation. To this end, the four labor laws have rightly been grouped together.
At a glance
Parliament recently passed three labor law bills.
* Labor Relations Code: Labor Law
* Social Security Code: social security benefits for all types of workers, including direct, indirect, informal and disorganized occupational safety
* Code for health and working conditions: Safe working conditions for workers, including their social and accident benefits
The Industrial Relations Code, which brought together three pieces of legislation, rightly adopted the definition of industry proposed by the Supreme Court in 1978. The introduction of fixed-term employment that provides short-term workers with benefits equivalent to permanent workers would allow the industry to have a flexible workforce. Strikes and lockouts were prohibited while the mediation process was still pending and during the trial before the tribunal. The limit on government permission to lay off workers and close a unit has been raised from 100 to 300 workers to allow smaller industries to manage their manpower needs without a permit. The criteria for the recognition of trade unions, which have evaded since 1926, were established for workers. The days without a union are over. Workers can now easily turn to a tribunal to resolve disputes should they fail to reach an agreement.
Since the failure to transpose the 1979 Intergovernmental Migrant Workers Act during the ongoing pandemic, the Code of Occupational Health and Safety and Working Conditions has been disclosed, which brings together 13 previous regulations from the 1979 Act. The intergovernmental worker has been adapted to contract work in terms of statutory benefits, while retaining the existing benefits. Workers have been given the right to receive information on health and safety from the employer. At least 50% of the fine payable by management for bodily harm or death of an employee could be granted.
According to the draft law on industrial relations, no industrial worker can go on strike without a period of 60 daysRead caption
According to the draft law on industrial relations, no industrial worker can go on strike without a period of 60 days
The provisions of the Contract Labor Act have been tightened by banning contract workers from engaging in core activities. For the first time, the duties of employees according to this code were defined. An employee can be required to work overtime only with his consent. The mandatory minimum number of days required for vacation earned has been reduced from 240 days to 180 days. Women workers are entitled to all types of work. The setting of minimum wages was reviewed long overdue as part of the 2019 Wage Code. Workers cannot be discriminated against based on gender in relation to wages.
A large number of informal workers, namely gig, platform or disorganized workers and their family members, have been brought under the Social Security Code, which brings together nine regulations. The government of the Union sets up a separate fund and social system for these workers in relation to life and disability, accident insurance, health and maternity, old age and crèche. Employers must face negative consequences in the event of unsanitary working conditions and if they do not pay the ESI contribution to the employee concerned.
Despite the progress, the drafting of labor laws is also a case of missed opportunities. The compensation payable to the employee at the time of his departure was not increased. The tribunals should have been empowered to issue an interim injunction in appropriate cases without bringing the litigants to court on account of such an interim injunction. The department for tribunals should have been set up as a court of appeal against the award of the labor court, as it is well known that the court-like powers conferred on the authorities did not function satisfactorily.
However, labor laws did not impose any compensation on employees at the time of leaving the serviceRead caption
However, labor laws did not impose any compensation on employees at the time of leaving the service
Excessive authority has been given to the executive branch regarding the applicability of various provisions such as Article 127 of the Code of Occupational Safety, Health and Working Conditions of 2020, which allows the government not to apply the provisions of the above code in relation to an entity. Similarly, Clause 55 of the Labor Relations Act allows the government to reject or amend the Labor Tribunal’s award, which may not be constitutionally valid, as a similar power conferred on the government under Section 17A of the Labor Disputes Act of 1947 was respected in unconstitutional in a 2014 case by the Bank Division of Madras High Court.
While the labor laws could be called “historic” because they are in place after nearly a century, the Union government’s exuberance to call them “milestone” and “game changer” is exaggerated. Laws have adapted to prevailing industrial and economic activity, but there is still a long way to go to strike a balance in the interests of workers and industry.
WHAT HAS CHANGED OR NOT CHANGED?
How will the new labor laws affect workers?
It gives the industry flexibility in hiring and cutting back. It will expand the social security net for the formal and informal sectors and make industrial strikes more difficult
What are the changes in the rules for hiring employees?
Companies can now shut down plants with up to 300 employees without prior approval. Previous labor laws required 30 to 90 days’ notice before workers were fired.
How does it affect workers’ right to strike?
Now unions have to give 60 days notice before they go on strike. Lightning strikes are now prohibited.
What are the safety rules in the workplace?
Maximum daily work limit of eight hours per day. Women can now be employed in all facilities for all types of work.
Social security network
Universal social security was guaranteed for organized and informal workers. The government may from time to time notify appropriate welfare schemes for workers.
The writer is a senior attorney on Madras High Court
Comments are closed.