Law Labour Compliance Library

The 4 new labour codes are:

• The Code on Wages, 2019.
• The Code on Social Security, 2020.
• The Code on Occupational Safety, Health and Working Conditions, 2020.
• The Code on Industrial Relations, 2020.

1. The Code on Wages, 20194 labour laws are amalgamated into the Minimum Wages Code. All workers will have the right to minimum wages through this code. 50 crore workers of organised and unorganised sectors will get the benefit of minimum wages. Every 5 years, there will be a review on the minimum wages and this new code will guarantee timely payment.
According to the Wage Code, there will be equal remuneration to male and female workers. The floor wage has also been introduced to remove regional disparity in wages. The wage ceiling is increased from Rs. 18000 to Rs. 24000 according to the Payment of Wages Act.

2. The Code on Social Security, 2020The Central Government has merged 9 labour laws into the Social Security Code to secure the right of workers for insurance, pension, gratuity, maternity benefits, etc. Through a small contribution, every worker can avail the benefits of ESIC at hospitals and dispensaries. The government plans to expand ESIC hospitals from 566 districts to 740 districts in the country.

This labour code will also provide the benefit of a pension scheme (EPFO) to the workers of organised, unorganised and self-employed sectors. A social security fund will be created for the unorganised sector and even the employees on fixed-term will get the same benefits as the permanent employees.

3. The Occupational Safety, Health and Working Conditions Code, 2020With this labour code, 13 existing labour laws are subsumed into one to provide a better and safe working environment to all the workers. This code ensures the safety and interests of workers employed in factories, mines, plantations, motor transport sector, bidi and cigar factories and contract and migrant workers.
According to this code, inter-state migrant workers will get various benefits such as social security schemes, annual travel allowance, appointment letters, free health check-ups, ration and helpline facilities. Women are also given the right to work in all types of establishments. They can work at night too, with their consent and proper security protocols from the employers.

4. The Industrial Relations Code, 2020To safeguard the interests of Trade Unions and workers, the Central Government has amalgamated 3 Labour Laws into The Industrial Relations Code. The government intends to prevent conflicts between unions and companies so that there is a win-win working environment for everyone.
It will also give faster justice to workers through the Tribunal. A Trade Union having 51% votes shall be recognised as the sole negotiating union which can make agreements with employers. In industrial establishments in which no trade union gets 51% votes, a negotiating council of trade unions shall be constituted for making agreements with the employer.
The Central Government has crafted 4 labour codes to merge multiple Labour Laws so that there is no confusion and workers get various benefits faster. These labour codes will impart empowerment to all the workers across India and it will create a productive environment for employees as well as employers.
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