The Government has formulated four Labour Codes, namely, the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020, and published these Codes in the Official Gazette for general information.
As a step towards implementation of the four Labour Codes, the Central and several State Governments have pre-published the draft Rules, inviting comments from all stakeholders.
The four Labour Codes envisage strengthening the protection available to workers, including unorganized workers in terms of statutory minimum wage, social security, and healthcare of workers. Some of the important provisions are as follows:-
- A statutory right for minimum wages and timely payment of wages has been made available to all workers to support sustainable growth and inclusive development.
- To avoid multiple interpretations and litigations, a uniform definition of ‘wages’ across all four Labour Codes has been provided that is simple, coherent, and easy to enforce.
- Provision for annual health check-ups and medical facilities has also been made which enhances labour productivity and increases life expectancy.
- Statutory provision has been made for the first time to issue appointment letters to every employee of the establishment which leads to the formalized contract of employment that increases job security and enables a worker to claim statutory benefits such as minimum wages, social security, etc.
- Provision of a Re-skilling Fund for the skill development of workers.
- The gig worker and the platform worker have been defined to formulate schemes to provide social security benefits. Social security schemes can be formulated from the contribution of aggregators and the other sources can include funds from the Central and State Governments.
- The Central Government may extend benefits to unorganized workers, gig workers, platform workers, and the members of their families through the Employees’ State Insurance Corporation or Employees’ Provident Fund Organization.
- A worker engaged under Fixed Term Employment (FTE) is entitled to all the benefits which are available to permanent employees and has also been made eligible for gratuity if he renders service for a period of one year.
- Every worker is entitled to annual leave with wages after working for 180 days in comparison to 240 days at present. Provision for encashment of leave on demand by a worker while in service at the end of the calendar year.
- Applicability of the Employees’ Provident Fund has been extended to all industries as against scheduled industries at present.
Rameshwar Teli the minister of state for labour and employment presented the draft Rules in front of the Parliament on December 12.