
Because the Indian Constitution classifies labour concerns as part of its concurrent list, the central and regional governments can introduce encompassing and streamlined labour laws and have done so over the years.
Since 2019, the Indian Parliament has introduced four labour codes which have enhanced over forty extant labour laws. The Code on Wages, the first of the new codes, emerged in 2019. The Industrial Relations Code, the Occupational Safety, Health and Working Conditions Code and the Code on Social Security followed in 2020.
The 2019 Code on Wages is centred on employee concerns about wage payment and related issues across all sectors. Featuring nine chapters and 69 sections, the Code on Wages substitutes the 1936 Payment of Wages Act, the 1948 Minimum Wages Act, the 1965 Payment of Bonus Act, and the 1976 Equal Remuneration Act. The minimum wages of Indian workers are a key concern of the Code on Wages. To this effect, the Code proposed the central government’s stipulation of a floor wage based on the living conditions of employees.
Furthermore, the 2019 Code of Wages empowers the central government to define the time bounds of a standard working day and to mandate employers’ payment of overtime wages to employees when applicable. The Code also bars employees from discriminating between employees based on gender with wage payments.
The Industrial Relations Code, 2020 is a modification of the 1926 Trade Unions Act, the 1946 Industrial Employment Act, and the 1947 Industrial Disputes Act. Primarily, the Industrial Relations Code is geared toward fostering improved relations between labour unions and employers, as well as the orderly resolution of industrial disputes. The Industrial Relations Code redefines the term ‘worker’ to include sales promotion employees, journalists, and employees in a supervisory role with a monthly wage of 18,000 rupees or lower.
Employers have an obligation under the Industrial Relations Code to contribute to a special government fund for redundant workers. The contribution for one redundant worker comprises half of the worker’s monthly wages, coupled with additional bonuses as are applicable. In addition, the Code enables employers and workers alike to seek redress for industrial disputes through arbitration.
Thirdly, the Occupational Safety, Health and Working Conditions Code introduces cohesive safety standards across various industries and reduces impediments to seamless administration. The Code draws on 13 labour laws, notably the 1948 Factories Act, the 1952 Mines Act, and the 1970 Contract Labour Act. Establishments are the core focus of the Code, with the latter primarily defining an establishment as a place where a minimum of ten workers are in employment to carry on a business.
The Occupational Safety, Health and Working Conditions Code stipulates an eight-hour daily work limit and relieves employees of the obligation to pay for their safety and health at work. The Code equally guarantees the right of women to work in all establishments, including night shifts.
Further, the Code on Social Security harmonises nine labour laws, including the 1923 Employees’ Compensation Act and the 1972 Payment of Gratuity Act. Under the Code, the government has an obligation to establish a social welfare programme for platform workers, gig workers and unauthorised workers. The Code on Social Security also mandates employers to pay the average daily wage of women on maternity leave. Employers are obligated to pay maternity benefits for a maximum of 26 weeks.
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