Newsletter
Oct - Dec 2023

Code on Social Security, 2020

The Social Security Code, 2020 codifies various Social Security laws and has extended the scope of applicability to gig and platform workers. The Social Security code provides security for labourers in areas such as Provident Fund, Gratuity, Maternity benefit and such related laws. This code aims at institutionalising a process for the contributions received from the employer and the worker and the Government is given an option to fund the contribution for the workers from the disadvantaged sector. The Code aims at expanding the ESI hospitals at district level and the ESI provision will be applicable even if a single worker is engaged in hazardous activity in an establishment. The amendments to the earlier codified laws include creating a Social Security Fund which is to be used for providing comprehensive security to Unorganised sector, benefit of pension scheme extended to organised, Unorganised and self-employed workers and the minimum service requirement for fixed term employees has been removed.  

Industrial Relations Code, 2020

This code is a consolidation of the laws relating to formation of the Trade Union, conditions of employment and the regulations for solving industrial disputes. The Code provides for simplified rules for formation of the trade union and emphasises for fixed-term employment. Under Atal Bimit Vyakti Kalyan Yojna, the workers of the organised sector will receive financial support from the government during the term of unemployment who are covered under the ESI scheme. At the time of retrenchment, 15 days wages will be credited to the bank account of the workers for re-skilling and the code in addition provides for fast justice to the workers through the tribunals where the workers disputes in any case should be resolved within one year in the tribunal.

Code on Wages, 2019

This code is a consolidation of the four existing laws relating to wages. This code provides for uniform minimum wages for employees and has simplified the calculation of the minimum wages. The Code provides for timely payment of Minimum Wages which will be revised once in 5 years. The minimum wages according to the code will be paid equally for both male and female employees in turn extending the applicability to employees of unorganised sector of the society. In order to remove regional disparity in Minimum wages, the provision of floor wages has been introduced.

Occupational Safety, Health and Working Conditions Code, 2020

This code is the amalgamation and amendment to the safety, health and working conditions followed in an establishment or industry. It provides for the regulation relating to working hours, leave and other welfare facilities of the workers. Under the New Code, the Inter-state migrants can register themselves under the portal which will provide a legal status which earlier only workers appointed through contractors were considered as Inter-state migrant workers and enforces “One Nation – One Ration” concept where the migrant workers can avail the ration benefits in the state where he is working and on the other hand, his family can avail the ration benefits in the state where they are located. The Code has made it mandatory for provision of appointment letters, conducting free annual medical check-up and constitution of helpline in every state for grievance redressal of the migrant workers.  The Code in addition also provides for the empowerment of women workers in all the sectors and has enhanced the maternity benefits available.

In conclusion, the New Labour Code promotes the labour benefits to all sectors of employment and enhances the ease of doing business by codification of laws into one single set. This eradicates the multiplicity of laws and provides for reduction of compliance cost and number of disputes. One of the significant features of the Code is the Single Registration; Single License and Single return for all codes which minimises the scope of disputes. The New Labour Code also promotes the use of technology for registration and licensing.