By Priyanka Sambhav
Labour Law has got a facelift- existing 29 labour laws have been amalgamated into four codes. The three new codes which have been passed by Lok Sabha on 22nd September ‘20 are – Industrial relation code -2020, the Occupational Safety, Health & Working Condition code- 2020 and Code on Social Security. The fourth code on wages was passed last year. Labour Minister Santosh Gangwar termed the bill historic and resonated that once this is applied the much-needed reform in industry and labour will follow.
Key Highlights of the New Labour code
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Any establishment with less than 300 workers now don’t have to seek any government permission or approval for hiring and firing. Earlier the threshold was 100 workers.
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Employers have to define the conditions of employment only if he has more than 300 workers. This threshold also as per the old law was 100 workers. Beyond 100 employees establishment had to earlier ensure the terms and condition of employment to workers but now no more.
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This bill allows the state government to exempt new industrial establishment from the code on Occupational Safety, Health & Working Condition. This code specifies the working hour, leaves, adequate working condition like light and ventilation, health and safety norms.
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Gives equal employment opportunity to women and allows their entry into all the operations with adequate safeguards.
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The gig worker and the platform workers- those engaging in short term contracts will be covered under social security scheme, including insurance, maternity benefits and provident fund.
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The new labour code prohibits the employment of contract workers in core activity and specifically allows employment. Can’t hire more than 50 contract workers for core activities. In the old law, the threshold was 20 contract workers could be hired which has now been increased.
Economic activity and employment generation is at the heart of this law but safety and social security can’t be ignored. This new law will bring down the compliance burden on smaller and new enterprises but let us hope its not at the cost of labour exploitation.
