Government points out ‘delay’ in framing labour codes

Published: 22nd Jul, 2022

Context

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.

About

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.

Labour Code:

A labour code is a codification of labour laws in legislative form.
One of the first labour codes was first introduced in 1918 in the Russian Soviet Federative Socialist Republic, as a legal framework underlying the requirement to ensure the right to work declared in the first Soviet Constitution.

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.

Recommendation:

The Second National Commission of Labour submitted its report in 2002 which said that there was a multiplicity of Labour Laws in India and therefore, recommended that at the Central level multiple Labour Laws should be codified in 4 or 5 Labour Codes.

New 4 Labour Codes are beneficial for all

Wage Code 2019: All workers have got the Right to Minimum Wages.
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.
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.
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.

Conclusion

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

CURRENT AFFAIRS FOR UPSC IAS

Government points out ‘delay’ in framing labour codes