The Indian government has consolidated 29 central labour laws into four streamlined labour codes, aiming to modernize regulations, enhance worker rights, and ease employer compliance. These codes—Code on Wages (2019), Industrial Relations Code (2020), Occupational Safety & Health Code (2020), and Social Security Code (2020)—bring sweeping changes to wages, job security, working conditions, and benefits.
Here’s a breakdown of the key highlights:
1. Code on Wages: Universal Minimum Wage & Equal Pay
- National Floor Wage: A mandatory minimum wage applies nationwide, with states free to set higher rates.
- Equal Pay for Equal Work: Gender or employment type (contractual/permanent) can no longer justify wage disparities.
- Strict Payment Deadlines: Wages must be paid by the 7th of the next month; delays incur penalties.
2. Industrial Relations Code: Flexible Hiring with Worker Safeguards
- Fixed-Term Employment: Employers can hire workers on fixed contracts with full benefits (gratuity, wages, etc.).
- Relaxed Retrenchment Rules: Firms with ≤300 employees no longer need government approval for layoffs but must give 1 month’s notice or pay.
- Strike Notice Period: Unions must notify employers 60 days before striking, reducing sudden disruptions.
3. Occupational Safety Code: Improved Workplace Conditions
- Single Registration: Employers need only one license for all labour compliance, cutting red tape.
- Women in Night Shifts: Permitted with safety measures like transport.
- More Earned Leave: Workers now get 1 leave day per 20 days worked (previously 15).
4. Social Security Code: Gig Workers & Gratuity Reforms
- Gratuity for Short-Term Workers: Fixed-term employees qualify after 1 year (vs. 5 years earlier).
- Gig Worker Benefits: Platform workers (e.g., Swiggy, Uber) now covered under pension, insurance schemes.
- EPF/ESIC Expansion: Broader coverage for small establishments.
Impact on Employees
✔ Job flexibility without losing benefits.
✔ Fairer wages via universal minimum pay.
✔ Social security for gig & informal workers.
Impact on Employers
✔ Simplified compliance with single registrations.
✔ Fixed-term hiring reduces long-term liabilities.
✔ Stricter accountability on wages and safety.
Challenges & Concerns
- Implementation hurdles: States must align rules, enforcement needs strengthening.
- Union opposition: Relaxed retrenchment norms may reduce job security.
Conclusion
These codes represent a major overhaul, balancing employer needs with worker protections. Success hinges on effective rollout and stakeholder cooperation. Stay informed to adapt smoothly.
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