The Government of India has repealed the old 29 labour laws and replaced them with 4 new Labour Codes. These codes have now been implemented in most states (some states have also framed their own rules in line with the new laws).
SNPNEWS.IN News Business (Gurmail Kamboj): The Government of India has replaced the country’s old 29 labour laws — which were enacted between 1923 and 1976 (during British rule and independent India) — with four new labour codes, because the old laws no longer met the needs of the current economy. These new codes have been designed according to modern working conditions.
A major reform in India’s labour laws has now come into effect, which experts are calling the “biggest redesign” of the country’s employment structure. The central government has replaced nearly nine-decade-old labour laws with 4 new labour codes. According to the government, this step will not only provide unmatched social security to workers across the country but also create a simple, transparent, and competitive environment for industries. It is being seen as the next big step towards a self-reliant India.
Read It: (UT) Chandigarh to Come Directly Under Centre’s Control; UT to Get LG
Under the new system, it will be mandatory to provide an appointment letter to every employee. In addition, minimum wages across the country are being brought under a uniform structure. Timely payment of wages will now be strictly regulated, which will increase transparency in employment conditions and payment systems.
Names of the 4 New Labour Codes and the Old Laws They Replace:
● Code on Wages 2019 (Wage Code): This code replaces 4 old laws (Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, Equal Remuneration Act, etc.). Its objective is to uniformly fix minimum wages, bonus, and overtime for everyone.
● Industrial Relations Code 2020: This replaces 3 old laws (Trade Unions Act, Industrial Disputes Act, Industrial Employment (Standing Orders) Act). Under this, new rules have been made regarding strikes; it has become easier for establishments/companies with more than 300 employees to close down, and the rights of contract workers have been protected.
● Code on Social Security 2020: This will replace 9 different laws (EPF, ESI, Gratuity, Maternity Benefit, etc.). Under this law, every worker will get the benefit of PF, pension, and gratuity. This decision is considered a big benefit especially for gig workers (Zomato, Uber, etc.).
● Occupational Safety, Health and Working Conditions Code 2020 (OSH & Working Conditions Code): This replaces 13 laws (Factories Act, Mines Act, etc.). Under this, factories/mines will have to provide safety to workers and fix working hours. Women will be fully allowed to work night shifts with proper safety arrangements.
All 4 codes have been passed in Parliament. Most states (Punjab, Haryana, Uttar Pradesh, Gujarat, Maharashtra, etc.) have framed their rules and implemented them. In some states, one or two codes are not yet fully implemented.
The Biggest Changes That Will Directly Affect Workers’ Jobs After These Laws Come Into Force:
● As per the new law, the salary structure has changed — now basic salary must be at least 50% of total salary, due to which PF contribution will increase, and take-home salary may decrease by 10–25%.
● Workers will now get gratuity even after 3 years of service (earlier it was 5 years).
● If a company has less than 300 employees, it no longer needs government permission to close down or lay off workers — job insecurity has increased.
● Under the new laws, delivery partners/delivery boys and drivers of Ola, Uber, Swiggy, Zomato etc. will now also be able to avail PF and insurance. Improvements in leave, working hours, and safety.
● Contract workers and gig workers have received major rights. Even if the contractor changes, the old workers’ jobs will remain secure. They will get PF and insurance facilities.
● Women can now fully work in night shifts with safety arrangements.”Hire and fire” has become easier for companies with more than 300 employees.
● All 4 codes have been passed in Parliament. Most states (Punjab, Haryana, Uttar Pradesh, Gujarat, Maharashtra, etc.) have made their rules and implemented them. In some states (West Bengal, Kerala, Tamil Nadu), the codes are not yet fully implemented.