Explain how the Labour Codes on wages, industrial relations, social security and welfare, and occupational safety, health and working conditions pave the way for labour empowerment in the country.

CS Professional · Labour Laws & Practice · PYQS · June 2023
Explain how the Labour Codes on wages, industrial relations, social security and welfare, and occupational safety, health and working conditions pave the way for labour empowerment in the country.

Answer & Explanation:

With the objective of strengthening the safety, security, health, social security for every worker and to pave the way for labour empowerment in the country, the Government has amalgamated, simplified and rationalized the relevant provisions of the existing Central Labour Laws into four codes: The Code on Wages, 2019 The Occupational Safety, Health and Working Conditions Code, 2020 The Code on Social Security, 2020 The Industrial Relations Code, 2020 Salient features of the Code on Wages, 2019 It provides for all essential elements relating to wages, equal remuneration, its payment and bonus; The provisions relating to wages shall be applicable to all employments covering both organised as well as un-organised sectors; The power to fix minimum wages continues to be vested in the Central Government as well the State Government in their respective sphere; It enables the appropriate Government to determine the factors by which the minimum wages shall be fixed for different category of employees. The factors shall be determined taking into account the skills required, the arduousness of the work assigned, geographical location of the workplace and other aspects which the appropriate Government considers necessary; The provisions relating to timely payment of wages and authorised deductions from wages, which are presently applicable only in respect of employees drawing wages of twenty-four thousand rupees per month, shall be made applicable to all employees irrespective of wage ceiling. The appropriate Government may extend the coverage of such provisions to the Government establishments also; It provides that the wages to employees may also be paid by cheque or through digital or electronic mode or by crediting it in the bank account of the employee. However, the appropriate Government may specify the industrial or other establishment, where the wages are to be paid only by cheque or through digital or electronic mode or by crediting the wages in the bank account of the employee; It provides for floor wage for different geographical areas so as to ensure that no State Government fixes the minimum wage below the floor wage notified for that area by the Central Government; In order to remove the arbitrariness and malpractices in inspection, it empowers the appropriate Government to appoint Inspectors-cum-Facilitators in the place of Inspectors, who would supply information and advice the employers and workers; It empowers the appropriate Government to determine the ceiling of wage limit for the purpose of eligibility of bonus and calculation of bonus; In the place of number of authorities at multiple levels, it empowers the appropriate Government to appoint one or more authorities to hear and decide the claims under the proposed legislation; It enables the appropriate Government to establish an appellate authority to hear appeals for speedy, cheaper and efficient redressal of grievances and settlement of claims; It provides for graded penalty for different types of contraventions of the provisions of the proposed legislation; It provides that the Inspector-cum-Facilitator shall give an opportunity to the employer before initiation of prosecution proceedings in cases of contravention, so as to comply with the provisions of the proposed legislation. However, in case of repetition of the contravention within a period of five years such opportunity shall not be provided; It provides for the appointment of officers not below the rank of Under Secretary to the Government of India or an officer of equivalent level in the State Government to dispose of cases punishable only with fine up to fifty thousand rupees, so as to reduce the burden on subordinate judiciary; It provides for compounding of those offences which are not punishable with imprisonment; It provides that where a claim has been filed for non-payment of remuneration or bonus or less payment of wages or bonus or on account of making deduction not authorised by the proposed legislation, the burden shall be on the employer to prove that the said dues have been paid to the employee; It enables the appropriate Government to constitute Advisory Boards at Central and State level to advice the Central Government and the State Governments, respectively, on matters relating to wages, women employment etc. The period of limitation for filing of claims by a worker has been enhanced to three years, as against the existing time period varying from six months to two years, to provide a worker more time to settle his claims. Salient features of the Occupational Safety, Health and Working Conditions Code, 2020 To impart flexibility in adapting dynamic factors and technological changes, in the matters relating to health, safety, welfare and working conditions of workers; To apply the provisions of the proposed Code for all establishments having ten or more workers, other than the establishments relating to mines and docks; To expand - the ambit of the provisions relating to working conditions of cine and theatre workers to include them in the digital audio-visual workers encompassing all forms of electronic media; the scope of journalists to include them in electronic media such as in e-paper establishment or in radio or in other media; the scope of Inter-State migrant workers to include therein the workers recruited or engaged by an employer directly, from one State to another State for employment in his establishment; the definition of "family" to include therein the dependent grandparents in order to take care of them in old age; To provide the concept of "one registration" for all establishments having ten or more employees; To constitute "the National Occupational Safety and Health Advisory Board" to give recommendations to the Central Government on policy matters, relating to occupational safety, health and working conditions of workers; To constitute "the State Occupational Safety and Health Advisory Board" at the State level to advice the State Government on such matters arising out of the administration of the proposed Code; To make a provision for the constitution of "Safety Committee" by the appropriate Government in any establishment or class of establishments; To allow the women employees to work at night, that is, beyond 7 PM and before 6AM subject to the conditions relating to safety, holiday, working hours and their consent; To make a provision of "common license" for factory, contract labour and beedi and cigar establishments and to introduce the concept of a single all India license for five years for engaging the contract labour; To enable the courts to give a portion of monetary penalties upto fifty per cent. to the worker who is a victim of accident or to the legal heirs of such victim in the case of his death; and To make a provision for adjudging the penalties imposed under the Code. Salient features of the Code on Social Security, 2020 to extend the coverage of Employees' State Insurance to all establishments employing ten or more employees, and to the employees working in establishments with less than ten employees on voluntary basis and also to plantations on option basis. It further seeks to empower the Central Government to notify the applicability of the said coverage to establishments which carries on the hazardous or life-threatening occupation irrespective of the number of workers employed therein; to extend the Employees' Provident Fund, Employees' Pension Scheme and Employees Deposit Linked Insurance Scheme to all industries or establishments employing twenty or more; to make provision for specifying differential rates of employees' contribution for class of employees for employees' provident fund as the Central Government may notify for a specified period; to provide that the money dues shall be the charge on the assets of the employer and shall be paid on priority basis in accordance with the Insolvency and Bankruptcy Code, 2016; to provide that in case of employer's failure to register the employee with Employees' State Insurance Corporation or failure to pay contribution and the Employees' State Insurance Corporation releasing the benefits to the workers, then, such benefits shall be recovered from the employer; to empower the Central Government to frame schemes for providing social security, to the gig workers and platform workers who do not fall under traditional employer-employee relation; to empower the Central Government, by notification, to constitute a Social Security Fund or funds for provision of social security for the unorganised workers, platform workers or gig workers or any such class of workers; to provide for payment of gratuity in case of Fixed Term Employment on pro-rata basis even if the period of fixed term contract is less than five years; to provide for maternity benefit to the woman employee; to provide for compensation to the employees in case of the accidents while commuting from residence to place of work and vice versa; to provide for levying and collecting the cess for the purposes of social security and welfare of building workers; to provide for limit limitation period of five years for institution of proceedings in respect of assessment and determination of money dues from employer; to expand the sources of the fund for schemes to include funds from corporate social responsibility or any other source as may be specified in the scheme and also contains enabling provision for constituting the special purpose vehicle for the purpose of implementation of schemes for unorganised workers; to provide for renaming the designation of Inspector as Inspector-cum-Facilitator and to enhance his power to supply information and give advice to employers and workers concerning the most effective means of complying with the provisions of the proposed Code; to provide for filing of a single return electronically or otherwise by the employer; to provide that the interests charged on delayed payments under the provisions of the proposed Code be specified in the rules; to provide penalty for the different types of violations commensurate with the gravity of the violations; to make Aadhaar mandatory for seeding at the time of registration of member or beneficiary or any other person to register or for receiving benefit; to empower the appropriate Government to exempt certain establishments from all or any of the provisions of the proposed Code. Salient features of the Industrial Relations Code, 2020 to define the expression "fixed term employment" to mean engagement of a worker on the basis of a written contract of employment for a fixed period. The fixed term employee will get all statutory benefits like social security, wages, etc., at par with the regular employee who is doing work of same or similar nature; to define the term "industry" with certain exceptions; the definition of "strike" is proposed to be modified to include mass casual leave within its ambit; to define the term "worker" to include persons in supervisory capacity getting wages up to fifteen thousand rupees within its ambit. At present, under the Industrial Disputes Act, 1947, definition of 'worker' includes person in supervisory capacity getting salary up to ten thousand rupees per month; to provide for the obligation on the part of the industrial establishment pertaining to mines, factories and plantation having one hundred or more workers to take prior permission of the appropriate Government before lay-off, retrenchment or closure. However, the appropriate Government is proposed to be empowered to modify such threshold number of workers by notification; to set up a re-skilling fund for training of retrenched employees, to which the employers will pay a contribution of fifteen days wages or such other days as may be notified by the Central Government in case of retrenchment of workers; to provide for a sole negotiating union in an industrial establishment for negotiating with the employer of the industrial establishment, on such matters as may be provided by rules. In case of more than one Trade Union of workers, a Trade Union would be designated as a sole negotiating union if it has support of seventy-five per cent. or more of the workers on the muster roll in an establishment and if no Trade Union has such support strength on the muster roll of an establishment, then a negotiating council will be constituted for negotiation; to provide for Industrial Tribunal to be the adjudicating body to decide appeals against the decision of the conciliation officer in place of multiple adjudicating bodies like Court of Inquiry, Board of Conciliation and Labour Courts; the maximum number of members in the Grievance Redressal Committee has been increased from six to ten; provisions are being made to have two-member Industrial Tribunals, with second member being from administrative side, in place of single member Labour Court and Industrial Tribunal at present. Further, the Tribunal will be empowered to execute the award as a decree of a civil court, which will facilitate speedy disposal of disputes; to provide for continuation of services of Presiding Officers of the existing adjudicating authorities; to provide that reference by the Government will not be required for Industrial Tribunal, except the National Industrial Tribunal; to prohibit strikes and lockouts in any industrial establishment without giving notice of fourteen days and also during the pendency of conciliation proceedings; to provide for penalties for different types of violations to rationalise with such offences and commensurate with the gravity of the violations; to empower the appropriate Government to appoint officers for holding enquiry and impose penalty in certain contraventions punishable with fine up to fifty thousand rupees; to provide for compounding of offences which are not punishable with imprisonment.

Topics: Labour Codes

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