In a significant shift to labour norms, the government has merged 29 laws into four labour codes on Friday, November 21, with the aim of promoting ease of business while protecting workers’ rights. These include the Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety Code.
Several key provisions have been introduced under the latest labour codes, which are likely to impact more than 400 million workers across both the formal and informal sectors.
With provisions such as equality for women in workplaces, gratuity for fixed-term employees after one year, free annual health check-ups, double wages for overtime, and more, here are key highlights from the newly launched labour codes —
Code 1: The Code of Wages, 2019
Code 1, or the Code on Wages, 2019, aims to simplify and consolidate four laws, including Payment of Wages Act, 1936; the Minimum Wages Act, 1948; Payment of Bonus Act, 1965; and Equal Remuneration Act, 1976. It seeks to strengthen the rights of the workers and promote uniformity in wage-related concerns.
Code 2: The Industrial Relations Code, 2020
The Industrial Relations Code (IR Code) has been prepared by combining relevant provisions of the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947.
The code aims to simplify laws related to trade unions, employment conditions, and the investigation and resolution of industrial disputes.
Code 3: The Code on Social Security, 2020
The Code on Social Security incorporates the existing nine Social Security Acts, catering to all workers- including unorganised, gig, and platform workers-covering life, health, maternity, and provident fund benefits.
Code 4: The Occupational Safety, Health and Working Conditions Code 2020
The Code has been drafted after the amalgamation and simplification of the relevant provisions of the 13 Central Labour Acts. It aims to balance between the twin objectives of safeguarding worker rights and ensuring safe working conditions, while also fostering a business-friendly regulatory environment.