New Labor Reform Bill of India: Nature and Expectations
New Labor Reform Bill of India: Nature and Expectations.
Dr. Raju Ghanshyam Shriram
Head ,
Department of Degree & Post Graduate Degree of Economics,
Jeevan Vikas Mahavidyalaya, Devgram
Mobile: 9049940221
smitarajan76@gmail.com
Abstract
The decision comes at a time when the country’s unemployment rate is at an all-time high. A 60-day strike notice has been issued under the Industrial Relations Code against workers who go on strike in manufacturing units. A strike cannot be called for 60 days after the end of the proceedings. This has also been newly implemented. This law has been applied to all industries. Currently, strike notices can change between 2 and 6 weeks. While flash strikes are not currently illegal, they are frustrated under the Industrial Relations Code. These improvements are more beneficial to fixed-term employees than regular workers. Now there is a lot of concern about contract workers even when considering the professional code. According to the code, there will be a single license for companies wishing to hire contract workers. However, it is stipulated that all employees will have to be given a letter of appointment when they are hired. Which is believed to be able to help interstate migrant workers employed by the firm on a contractual basis. It is hoped that this will definitely help the state and the center in creating information on migrant workers. Also, the amendment bill states that there will be no gender discrimination in any field of work. Although social security reform is very important, universal social security is provided to about 90% of the workers in India. Approximately 50 crore workers from the unorganized sector will benefit from this. In other words, according to the provisions of the new Labor Reforms Code, if an employee has worked for less than 5 years, his gratuity will not be lost. According to the new Labor Reforms Bill, millions of workers will now be able to get the minimum wage. The NDA Government has drafted the Wages Code 2019 and added some new provisions by incorporating all the features of the four old labor laws. In 2019, for the first time, the bill has been given the green signal by the central government. Needless to say, this is being described as a major step taken by the Indian government towards labor reform. This is because after its implementation, it will be a legal offense to pay less than the minimum wage to all workers in the country. Not only that, but now it will be necessary to pay equal pay instead of equal work. This new law will now replace the old labor laws. It is worth noting. Union Labor Minister Santosh Gangwar had introduced the Code on Wages Bill in the Lok Sabha on July 23, 2019. After that it was approved by Lok Sabha on 27th July and Rajya Sabha on 2nd August. After that, on August 8, 2019, the President had approved it. It came into force across the country after the government issued a notification last month. It is said that the purpose of this law is to amend the labor laws as well as to raise the living standards of all the workers in the country.
Introduction
According to the provisions of the new Labor Reforms Code, if an employee has worked for less than 5 years, his gratuity will not be lost. According to the new Labor Reforms Bill, millions of workers will now be able to get the minimum wage. For the first time in 2019, the bill has been given the green signal by the central government. Since then, a notification has been issued in the pay code with a view to providing equal pay to about 300 million workers in the country. The Government of India has complied with the labor reforms in the new Labor Reform Code Bill, which was introduced after the Pay Code Code Bill last year. The Center has integrated 44 labor reforms under four codes. Last year’s Wage Code Bill was passed. Now 3 new bill amendments have been notified. All these new worker’s reforms will benefit the working class. These new labor reforms will make it easier for employers as well as contract workers to get licenses from the board. Workers are now required to give 60 days notice to agitate or stop work in all industries as compared to 4-6 weeks ago in connection with the previous strike or strike process. The government has taken swift action in this regard. These amendments are aimed at consolidating the existing 44 labor laws under 4 codes of government between workers and employers. Occupational Safety days Code of Conduct on Health and Working Conditions etc. The major implications of these 3 Acts are as follows. This labor reform has made it easier for workers to give tips to companies. With this comes a much easier process to do business. Now it has become more difficult for workers to go on strike. It extends the social security network to all classes of workers. The Government of India has made radical changes in not only agricultural laws but also labor laws. These changes were passed in the Lok Sabha of the Parliament of India on September 21, 2020 and in the Rajya Sabha on September 23, the three codes of Labor-related Industrial Relations Agreement Code 2020, Social Security Agreement Code 2020, and Industrial Security, Health and Conditions of Service Agreement Code 2020. Some of the provisions of the Industrial Relations Contract Code 2020 were opposed. The central government allowed the closure of up to 300 factories. The news that permanent workers were allowed to do contracts caught the attention of the country. Two bills on farmers relations, which were recently passed by the Parliament the laws that came into force immediately after the controversy were passed have stirred up the atmosphere in the country, so it is necessary to consider whether the three codes passed by the government are anti-labor.
Trade Union Objections
At present the Industrial Disputes Act, 1947 is applicable in the country. According to the law, factories with more than 100 workers or more are required to obtain government permission for lay-offs, labor cuts and closures. Factories with less than 100 workers do not need government permission. There is an arrangement to apply to the government 90 days in advance and close the factory if the government gives permission after the hearing. The government has increased the limit to 300 under the new law. Also, by increasing the limit of 100 to 300, the number of workers who need the permission of the government will be only 10 to 20 per cent. As 80 per cent of the factories are within this limit, they will be allowed to close or reduce their work at any time. Now, will every factory worker be counted in 300 numbers? So the answer is no and only permanent workers will be counted, who are now left with only medicine. About 70 to 80 per cent of the factory workers are contract workers and they will not be included. Earlier, apprentice workers came under this definition. However, they have also been committed. This number of contract workers should also be counted, this is not the real demand of the trade unions. Moreover, the legal sanction for fixed term employment has created fears among the workers that permanent workers will be reflected in fixed term employment i.e. in contracts. Therefore, the fears created among the workers are justified considering the experience of the entrepreneurs and manufacturers so far.
Background about Changes of Labor Law
Some of the labor laws in our country will be 100 years old now, while the majority of labor laws will be passed by the country’s first labor minister after independence. Five major laws have been enacted during the time of Babasaheb Ambedkar. Out of 44 laws of the Central Government, except for one or two laws, the rest are not less than 40 years. The provisions in these laws were outdated. Therefore, workers and industrialists unions have from time to time demanded changes in the existing law. Today, 90 per cent of the workers in the country are working in the unorganized sector and there is no law for them. In the year 2000, the government of the then Prime Minister Atal Bihari Taxpayer set up the second Labor Commission in the country under the chairmanship of former Union Labor Minister Ravindraji Verma. The commission traveled across the country for two years and submitted its 800-page report in June 2002 in consultation with workers and employers associations in the industrial sector. In its report, the commission made key recommendations for the effective implementation of the 44 existing labor laws into four groups and the enactment of a unified law providing social security for unorganized workers. In 2010, under Prime Minister Manmohan Singh, when Oscar Fernandes was Labor Minister, the process of drafting the Labor Code began on the recommendation of the Second Labor Commission. The government initiated discussions with all central trade unions and employers unions. After the change of government in 2014, a government was formed under the leadership of Prime Minister Narendra Modi and since 2015, this issue has gained momentum. The Wage Code 2019 (Wage Code), an important bill drafted after several rounds of discussions, was passed in August 2019. The process of making rules on it is underway. July 2019 Industrial Safety Health and Terms of Service Agreement (Code) The Industrial Relations Agreement (Code) in November 2019 and the Social Security Agreement (Code) on December 11, 2019 were introduced in the Lok Sabha. It was discussed in the Lok Sabha and the three bills were referred to the Parliamentary Standing Committee on Labor. The chairman of this standing committee is Biju Janata Dal MP Bhratru Hari. The committee has about 30 MPs from all parties. The BJP Congress in Maharashtra, Shiv Sena and NCP MPs are also members. The code was discussed in detail in this committee. Workers and employers unions presented their views. The Standing Committee submitted its recommendations to the Government. On that basis, the three bills were introduced in Parliament on September 21, 2020 and passed.
Industrial Relations Contract 2020
The Act is a combination of the Industrial Disputes Act, 1947, the Industrial Standing Order, 1947 and
the Trade Union Act, 1926. Many good changes have been made by the government through this law. The definition of labor also includes working journalists, newspaper employees, sales promotion employees, etc., which were not covered earlier. It will be easier for these workers to get justice. To resolve disputes at the local level, provision has been made for setting up of Works Committees in factories having 100 or more workers, with equal representation of management and workers, and in factories with 20 or more workers, setting up grievance redressal committees in industries. These issues
will help resolve disputes at the local level. The authorities had no authority. So there was no fear of the law. The labor office was fading. Under the new amendment, conciliation officers are empowered by the civil court to issue summons, order evidence and so on. Therefore, there is no reason to expect that many disputes will be resolved in the reconciliation process itself. Formerly laid off workers or various industrialists in employers and unions Could not go directly to court for dispute. For this, the failure of the reconciliation process was a long journey of reporting the government permission and then referring the dispute to the court. It would easily take a year or two. It also took at least four to six months for the parties concerned to get a copy of the decision after the decision was taken in the court. All this process was unnecessary and time-consuming. This process has now been streamlined. If the conciliation process fails, the parties can go directly to court with a failed report. Also, the court decisions will be reciprocated by the parties immediately. The main thing is that the new law merges both the Industrial Court and the Labor Court and gives the courts the power to issue interim orders which were not there before, so that the workers will be greatly facilitated. The provision for local civil courts to enforce court decisions is welcome. The workers already had the right to strike. The new change seeks to impose some restrictions on it. 60 before the strike. Provision has been made for giving days notice. Which was 21 days ago. A new provision has been made to give recognition to trade unions by amending the trade union registration law. According to the provisions, if there are more than 51 per cent workers in industries or factories, the union should be recognized as a negotiating union. Where there is no such union, the 20 per cent member organizations will be represented on the negotiating council. The authority of a recognized union shall be for a minimum of three years and a maximum of five years. This will be followed by a new recognition process. The previous law did not provide for recognition. Therefore, there are two laws in Maharashtra, BIR Act and MRTU Act. These provisions have caused huge losses to the workers. The same goes for validation in the new code Disputes have arisen over the provisions. The bill introduced in November 2019 provided for a 51 per cent limit of 75 per cent to prevent the union from becoming a monopoly. The unions have expressed displeasure over the reduction in the new bill to 51 per cent. Recognition of trade unions includes recognition of central trade unions and recognition of state level unions. These new provisions are certainly welcome. Earlier, the government had to seek the consent of the concerned parties to go to court in case of disputes between the unions. Disputes within the organization will now go directly to court. Despite the Standing Committees recommendation that there should be a 60-day limit for trade union registration, it was omitted in the law, which has angered trade unions. In many states, trade union registration applications have not been processed for years. Even after the new law, that situation will not change. Workers in all places while deadlines are being fixed The question is why no such time limit has been set for the registration of associations. According to trade unions, the government is trying to stifle the labor movement. Industrial Standing Orders which previously applied to establishments with 100 or more workers. Not only this, in Maharashtra it was applicable to factories having 50 or more workers, but now it will be applicable only to factories having 300 or more workers. This change is going to have serious consequences on the workers. Also, this issue was never discussed. Moreover, the change, which was not recommended by the Standing Committee, is in violation of Convention 144 of the International Trade Organization. Therefore, the Indian Trade Unions are also opposed to this. A Labor Re-Skills Development Fund has been set up for the depleted workers. The employer has to pay 15 days salary to each deducted worker in this fund Compensation for labor deduction or closure is 15 days. However, the state government has been given the power to pay more than that. So the state government can give extra benefits to the workers in our state. There is a provision to increase the amount of penalty for violation of this law and imprisonment along with the fine. Making it clear that no civil court will hear labor cases in any court other than the Industrial Court will avoid unnecessary lawsuits. Despite the overall reforms, the government has made generous changes in the provision of labor cut-off lay-offs and factory bans, which are necessary for the safety of the workers. That is why the government needs to reverse these changes and allay the fears of the workers. Under the new code, officers of the rank of joint secretary will work in the industrial court along with judges. Their eligibility has not been determined. The government also reserves the right to impose various exemptions or exemptions from various provisions of the Code. It was clear that the bureaucracy would be strengthened through that. Such changes are also opposed by Indian trade unions.
Social Security Contract 2020
Existing Labor Compensation Act 1923, Workers State Insurance 1948, Provident Fund Act 1952, Employment Exchange 1959, Maternity Benefit Act 1961, Payment Gratuity 1972, Cinema workers The Welfare Fund Act 1981, the Building and Other Construction Workers Welfare Cess Act 1996, the Unorganized Workers Social Security Act 2008 and the Social Security Agreement 2020 have been drafted. The country’s social security laws were only for seven to eight percent of workers. About 90 per cent of the workers were not covered by the Social Security Act. The feature of this law is that the historic attempt to bring all these workers under the protection of social security has been made through this agreement. The government has made major changes in the Gratuity Act. Workers in fixed term employment with less than five years of service will get gratuity even if they have one year of service. Implementing workers state insurance scheme across the country. Also, industries with less than ten workers are allowed to participate in the scheme voluntarily. No special changes have been made in the provisions of the Maternity Benefit Act, the Workers Compensation Act, the Provident Fund. Social security for construction workers will continue as before. Unorganized workers are workers in industries with less than ten workers, self-employed workers, migrant workers, small workers but not employed (gig workers), platform workers, domestic workers, taxi-rickshaw drivers, etc. Are given. The scheme will provide assistance for disability, old age, education, health, childbirth etc. as well as benefits like provident fund, accident, planetary development, skill development, death assistance etc. The scheme will be jointly implemented by both the Central and State Governments. The fund has been created under section 141 of the Act. Penalties for violating the provisions of this Code in various cases will go to this fund. If this law is implemented effectively, every worker in the country will be able to avail social security through this scheme. If this plan is successful, there will be a big social revolution. There will never be another large social security scheme in the world.
Industrial Safety Health and Terms of Service Contract Code-2020
The said Code Factory Act 1, 9, 48, plantesana Act 1 9 51, Mines Act 1, 9, 52, Working Journalist and
Newspaper Employees Act 1, 9, 55, Working Journalist Fixation of Wages Act 1, 9, 58, Motor Transport
Workers Act, 1 9, 61, beedi and cigarette Workers Act 1, 9, 66, contract Labor Act 1 9 70 Sales Promotion Employees Act 1976, Interstate Migrants Workers Act 1979, Cinema workers and Cinema Theaters Act 1981, Dock Workers Setty Health and Welfare Act 1986. The law seeks to address the issue
of corona in the country. Through this Act, it will be possible to register for a variety of jobs through a
single application. E.g. Factory registration, contract worker’;s license. Establishments employing ten or more workers will all come under this Act. Registration has been made compulsory for all. Safety, health and worker welfare provisions in the factory will be regulated through this. Factories are defined as industries where 20 or more workers work and production is done with the help of electricity, while industries where 40 or more workers work, but production takes place without the help of electricity. Maharashtra currently has a limit of 50 workers. According to the new code, contract It will be mandatory to have a canteen in a factory with 100 or more workers. On completion of 180 working days in the previous year, the concerned workers will be eligible for paid leave. Women are allowed to work night shifts. However, the original owner will be responsible for providing the necessary facilities. Establishments employing ten or more foreign workers will apply to migrant workers. They will be required to register such workers. Migrant workers will be registered by the state and central governments. Major changes to contract workers The entire responsibility for the provident fund and workers state insurance scheme applicable to them in the factory or industry where the contract workers work will be borne by the original employer and not the contractor. This is a very important decision taken by the government in this code. The agreement defines core activities and non-core activities for hiring contract workers. Work related to the main objective of the industry will be considered as core activity while supporting work will be considered as non-core activity. This provision did not exist before. Security, canteen, catering, loading and unloading, hospital, education, training center, guest house, club, etc. The company will have supportive activities as well as courier, civil maintenance housekeeping, laundry, transport, ambulance and other services. It will be allowed to hire contract workers. The provision for contract workers will apply to factories with 50 or more workers. In all these changes, the appropriate government will have the power to decide on core non- core activities. However, no provision has been made even today to retain the concerned worker if it is proved that he is working in the core activity. Therefore, this code has caused great frustration in the case of contract workers. The issue of workers' courage to make decisions without worrying about the consequences has always been controversial. All governments wanted changes in labor laws. However, due to the resentment created after the decision, considering the arithmetic of the vote bank, this decision was avoided for many years. These decisions have not been made even with a communist- backed government. Last year’s pay code bill was passed. Now 3 new bill amendments have been notified. All these new workers reforms will benefit the working class. These new labor reforms will make it easier for employers as well as contract workers to get licenses from the board. Workers are now required to give 60 days notice to strike or strike in all industries as compared to 4-6 weeks ago in connection with the previous lockout or strike process. The government has taken swift action in this regard. These amendments are aimed at consolidating the existing 44 labor laws under 4 codes of government between workers and employers. Occupational Safety day’s Code of Conduct on Health and Working Conditions etc. The major implications of these 3 Acts are as follows. This labor reform has made it easier for workers to give tips to companies. With this comes a much easier process to do business. Now it has become more difficult for workers to go on strike. It extends the social security network to all classes of workers. Of particular importance is the fact that three of these laws allow states to adopt labor reforms as they see fit. Not kept. Companies are exempted from this process. Earlier, the law was applicable only to companies with 100 or fewer employees. Now, the law has been changed, and company owners are given a slight exemption. It is now easier for large companies with more than 300 employees in a manufacturing unit or a closed or non-performing unit to shut down.
Concluding
The bill eliminates gender discrimination and provides for punishment. Under the new bill, employees can be paid in coins, currency notes, checks, bank account transfers or electronically. However, the duration of this monthly payment will be decided by the owner of the industry or company. Since the working class will be paid in this way, there will be transparency. Which will also be published daily, weekly, fortnightly or monthly. The bill also ensures that employees who receive their monthly salary will be paid by the 7th of next month. In addition, those who work part-time are guaranteed to be paid on the last day of the week or on the same day. The new Labor Act provides for further deduction of salaries for the following reasons on the basis of penalty, non-discharge of duty, accommodation provided by the employer or advance paid to the employee. However, this reduction can never be more than 50 per cent of the total salary of the employees. The law will not discriminate on the basis of gender in terms of salaries and allowances, but will be based on gender for the same work or on the same principle. However, women will now be paid the same as men for the same work. The new law provides for penalties and penalties for owners who violate the rules. Accordingly, a fine of Rs 50,000 will be levied for paying wages below the minimum wage or for violating any other provision of the law. If he repeats the same act during these five years, he can be sentenced to at least 3 months imprisonment and a fine of up to Rs 1 lakh or both. With this Labor Reform Bill-2020, the Central Government now hopes that this Reform Bill will bring great relief to the workers and improve the living standards of the workers.
Conclusion
The Government of India had referred the Bill to the Standing Committee of Parliament on 21 August
2017. The committee then presented its report to the Parliament on 18 December 2018. However, due
to the dissolution of the 16th Lok Sabha, the bill could not be passed. The main purpose of the Code of
Wages Bill is to fix the salaries of workers in all sectors, regardless of industry, trade, construction or any
other sector. With this new law, the government has replaced the Wage Pay Act, 1936, Minimum Wage
Act, 1948, Bonus Payment Act, 1965 and Equal Pay Act, 1976. The bill would cover employees working
in all types of sectors, private, government, organized and unorganized. It should be clarified here that under this Bill, where the Central Government will take decisions regarding the salaries of employees in
the railway, mining and oil sectors, the State Government will take decisions in respect of other employees. Salary will now include salaries, allowances and all other factors mentioned as currency. However, it will not include bonuses or any travel allowance to employees. This will include a minimum
wage limit. Salary increments will be reviewed every 5 years. Under the Act, the central government will be able to improve the living standards of workers by removing difficulties in fixing the minimum wage across the country. It will also be the same for different regions. A tripartite committee comprising trade unions, employers and state government representatives will be set up to fix the minimum wage, which will determine the minimum wage for employees across the country. At the same time, under the new law, employers cannot pay their employees less than the minimum wage. At the same time, the minimum wage will be decided on the basis of area and skills. It will all depend on how many hours the working class worked or how many items they made. Under the Act, every five years or less, the minimum wage will be reviewed and re-evaluated by a tripartite committee of the Central or State Government. Not only this, in deciding this, the efficiency of the employees and the difficulties of the work will also be taken into consideration. In addition, the Central or State Government may also fix working hours for normal working hours. If an employee is working overtime on a normal working day, he or she will be entitled to overtime pay. It has also been clarified here that the rate of wages he gets for extra work will be at least double the normal rate.
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