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Short Brief about Labour Code
Labour Code is the ultimate results of Labour Law reform in India which yet to implement all over the country.
India is a country that falls under concurrent list where state Government and Central Government both has the right to form Labour Laws. As we know in India, there are more than 40 Central Labour Laws and more than 100 state specific Labour Laws.
It becomes difficult and create complexity in maintaining compliance under all the Labour Laws and Acts and the ease of doing business is mostly disrupted.
For creating a sound ease of doing business, the Second Labour Commission which was establish in 1999 proposed and submitted labour law reform report to the Government in 2002.
After so many years of analysis Government of India has finally decided to form 4 Labour Code that covers all the Labour Laws and Acts exist in the country.
- Code on Wages.
- Code on the Occupational Safety, Health and Working Condition.
- Code on Industrial Relation.
- Code on Social Security.
Code on Wages
The Code on Wages has been formed from the existing 4 Acts. Those are:
- Payment of wages Act, 1936.
- Minimum Wages Act, 1948.
- Payment of Bonus Act, 1965.
- Equal Remuneration Act, 1976.
Code on the Occupational Safety, Health and Working Condition
The Code on the Occupational Safety, Health and Working Condition has been formed from existing 13 Act. Those are:
- Factories Act, 1948.
- Mines Act, 1952.
- Dock Workers (safety , health and welfare) Act, 1986.
- Building and other Construction workers (Regulation of Employment and Condition of Service) Act, 1996.
- Inter-State Migrant Workmen (Regulation of Employment and Condition of Service) Act, 1970.
- Cine Theatre and Cinema Theatre Workers Act, 1981.
- Motor Transport Workers Act, 1961.
- Sales Promotion Employees (Condition of Service) Act, 1976.
- Beedi and Cigar Workers (Condition of Employment) Act, 1966.
- There are 4 more in the list.
Code on Industrial Relation
The Code on Industrial Relation has been form merging 3 existing Act. Those are:
- The Trade Union Act, 1926.
- The Industrial Employment (Standing Order Act), 1946.
- The Industrial Dispute Act, 1947.
Code on Social Security
The Code on Social Security may subsume the following Act but has not been fixed yet as per the latest information:
- Employees Provident Fund and Miscellaneous Provisions Act, 1952.
- Maternity Benefit Act, 1961.
- Payment of Gratuity Act, 1972.
- Unorganized Worker’s Social Security Act, 2008.
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Recent update on New Labour Code regarding working days
According to a senior government official on Labour Code, 4 days work in a week likely to be implemented that results in 3 days off in a week as per the PTI news agency.
But the weekly working hour remains constant as 48 hours. It means the employee need to work at least 12 hour for 4 days to complete the 48 hour weekly quota.
Expected Benefits of 4 days work in a week
The following benefit can be seen if the 4 days work in a week culture implemented:
- Employee will get more time for leisure.
- Employees productivity may increase,.
- Employees will get time to peruse new skills.
Expected Disadvantages of 4 days work in a week
- Employees may feel work overloaded as they need to work 12 hour a days for 4 days.
- Employment opportunities may reduce as companies will run 12 hours 2 shift where as now 3 shift work of 8 hour each is going on in most of the companies.
- Employees in hand salary would be affected by the new rules.
- Work life balance may be impacted according to some Labour Economist.
Summary on the Implementation of new Labour Code
The new Labour Code likely to be implemented in the financial year 2022-23. Central Government already finalized the rules under the 4 Labour Codes but the most of the state yet to frame the rules and regulation in this regards.
As per the latest information, only 24 states has published draft rule on Code of on Wages, the 13 state has published draft rules on the Code Occupational Safety, Health and Working Conditions, 20 state has published draft rule on Code on Industrial Relation and 18 state has published draft rule on Code of Social Security.
You may visit the official site for time to time update on Labour Code and other relevant information.
If you have any query regarding this article please do comment below.