Government points out ‘delay’ in framing labour codes

Recently, Government said that only a few States have not yet framed the rules. According to a recent report, 24 States have so far published draft rules for all four codes.

Reasons behind the delay

• The government says the delay in implementing the four labour codes is due to the delay in framing rules by the States.

• The States are publishing draft rules and inviting comments from stakeholders on those draft rules.
• The Centre had also published draft rules for certain sections of the four codes.

• All Passed bills but have not been implemented yet by the government:
  • The Code on Wages (August 2019)
  • The Industrial Relations Code
  • The Code on Social Security
  • The Code of Occupational Safety
  • Health and Working Conditions

Background (Labour Codes)

• There are more than 50 crore workers in the organized and unorganized sectors of the country.
• A majority of these workers i.e. around 90 percent are in the unorganized sector.
• Through these four Labour Codes, it has been ensured that all these workers will get the benefit of Labour Laws.
• Now all workers of the organized and unorganized sectors will get the minimum wages and a large section of workers in the unorganized sector would also get social security.

New 4 Labour Codes are beneficial for all

1. Wage Code 2019: All workers have got the Right to Minimum Wages.
2. Social Security Code 2020: To ensure security for all workers, the Central Government has amalgamated 9 Labour Laws into the Social Security Code in order to secure the right of workers for insurance, pension, gratuity, maternity benefit, etc.
3. OSH Code (Occupational, Safety, Health, and Working Conditions Code) 2020: For providing a better and safe environment along with occupational health and safety to workers at the workplace.
4. Industrial Relations (IR) Code, 2020: The Central Government has taken steps for safeguarding the interests of Trade Unions as well as the workers. In this Code, all possible steps have been taken for industrial units and workers so that disputes do not arise in the future.

Benefits of Codification:

• Single Registration
• Single License
• Single Statement
• Minimum Forms
• Common definitions
• Reduction of Committees
• Web-based surprise inspection
• Use of technology – Electronic registration and licensing.
• Reduction of compliance cost disputes

Concern:

• The employers’ associations like the Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (FICCI) had expressed reservation on the proposal for increasing the minimum wages and expanding the social security network by involving the employers too.
• The employers are worried that a further increase in the salary bill will hamper their profits in a recession-hit economy.

The empowerment of workers is necessary for an empowered, prosperous, and Aatmanirbhar India.