“Explore the impact of the COVID-19 pandemic on Indian labour laws and the crucial changes needed in the post-COVID era. Learn about proposed amendments for flexible working hours, social security schemes, protection for gig workers, health and safety regulations, and more. Understand the recent major labour reforms through the Occupational Safety, Health, and Working Conditions Code, Industrial Relations Code, and Code on Social Security. Stay informed about the evolving landscape of labour laws in India.”
The COVID-19 outbreak has had a significant influence on the world economy, and India is no exception. The pandemic has shown a number of loopholes in the Indian labour market, emphasizing the necessity for changes to the current labour laws. We will talk about the key adjustments that can be made to the Indian Labour Law Act and the portions that could be changed following COVID-19 in this blog article.
The pandemic has brought attention to the true living and working conditions of the workers. One is forced to pause and consider how most Indian workers are still in this condition 75 years after independence.
It is true that the situation has changed since 1947. Better educational and medical facilities are available. Life expectancy has grown while child mortality has decreased. The majority of the poor wear chappals and own cell phones. Many villages now have access to electricity and clean water. But given that the GDP has increased by 32.2 times and the per capita income by 8.2 times since 1950 in the economy, this is to be expected as some of the benefits of prosperity trickle down to some of the disadvantaged.
What is lacking, however, is the right to a life of dignity, which every person in a democracy should have. The ruling class in democratic countries often ignores the right to a dignified life for every citizen and focuses only on marginal improvements in workers’ material conditions. They expect workers to be grateful for this and do not prioritize equity. The ruling elites benefit from poor working and living conditions of labour, which results in workers being denied their rights, including minimum wage, social security, protective gear, security of employment, timely payment of wages, entitlement to leave, and access to basic amenities. As a result, workers are forced to live in squalid conditions with limited access to clean water, toilets, and civic amenities. Children of these workers are often deprived of education and recreational facilities.
With the pandemic’s spread, industries have seen an unprecedented slowdown in the economy, which has compelled businesses and organizations to adopt extreme measures like slashing employee salaries and laying off workers. According to recent research, the country is losing 40 million jobs, largely in the unorganized industries, according to some economists (MRD report). Due to the shifting environment, enterprises are currently dealing with new compliance difficulties.
The Indian labour laws were not prepared to handle such a crisis, and there was a need to revisit the existing framework. We will now discuss what problems were evident during the period of the pandemic and what changes can be brought in Indian labour laws after COVID-19.
- Flexible Working Hours: COVID-19 has made it clear that employees can work from home and still be productive. The labour laws can be amended to allow employees to work flexible hours, including working from home, so that they can balance their personal and professional lives.
- Social Security Schemes: The pandemic has highlighted the need for social security schemes for workers in the informal sector. The labour laws can be amended to provide better benefits to workers in the informal sector, such as health insurance, disability benefits, and retirement benefits.
- Gig Workers: The gig economy has grown significantly in recent years, and the pandemic has shown that gig workers are vulnerable to economic shocks. The labour laws can be amended to provide better protection to gig workers, such as minimum wage laws, social security benefits, and the right to form unions.
- Health and Safety: The pandemic has highlighted the importance of health and safety in the workplace. The labour laws can be amended to make it mandatory for employers to provide a safe and healthy working environment, including the provision of personal protective equipment, regular sanitization of the workplace, and temperature checks.
- Contractual Workers: Contractual workers are often exploited by employers, and the pandemic has made their situation worse. The labour laws can be amended to provide better protection to contractual workers, such as a minimum wage law, social security benefits, and the right to form unions.
- Unemployment Benefits: The pandemic has caused widespread job losses, and many workers are struggling to make ends meet. The labour laws can be amended to provide unemployment benefits to workers who have lost their jobs due to the pandemic.
- Digitalization: The pandemic has accelerated the digitalization of the workplace, and the labour laws can be amended to take this into account. For example, the labour laws can be amended to provide protection to workers who work in the digital economy, such as freelancers and remote workers.
CHANGE IN LABOUR LAWS
In a major boost to labour reforms, three laws, namely Occupational Safety, Health, and Working Conditions Code, 2020; Industrial Relations Code, 2020; and Code on Social Security, 2020 were formed through a merger of 29 Central Labour Laws. This restructuring would promote economic progress while ensuring the welfare of hardworking employees. The universalization of minimum wages and prompt payment of wages are goals of the new labour laws, which also place a high focus on worker safety on the job. The three codes are:
1. The Occupational Safety, Health, and Working Conditions Code: This code consolidates and replaces 13 existing laws related to the safety, health, and working conditions of workers. It aims to provide a safe and healthy working environment for all workers, including those in the unorganized sector.
2. The Industrial Relations Code: This code consolidates and replaces three laws related to trade unions, industrial disputes, and collective bargaining. It aims to promote industrial harmony and facilitate the resolution of disputes between employers and workers.
3. The Code on Social Security: This code consolidates and replaces nine laws related to social security, including provisions for pensions, insurance, and maternity benefits. It aims to provide social security benefits to all workers, including those in the informal sector.
The new labour codes aim to simplify and modernize India’s labour regulations, provide greater flexibility for businesses, and balance the needs of workers and employers. The codes also introduce new provisions such as fixed-term employment, which allows employers to hire workers on a contractual basis for a fixed period.
However, the new codes have also faced criticism from labour unions and activists, who argue that they prioritize the interests of employers over those of workers and may weaken worker protections. The implementation of the new codes is ongoing, and it remains to be seen how they will affect workers and businesses in the long run.
CONCLUSION
Covid-19 has been a learning lesson for everybody including the industry. Due to this pandemic, the industry is now better equipped and more adaptable to future shifting circumstances. It has demonstrated that even extreme escalation and change can become the new normal.
Although businesses appear to be recovering from the recession, this pandemic episode has shown businesses that it is crucial to maintain a culture of compliance, adapt to sudden changes, and plan for new and emerging risks and challenges so that compliance teams can easily mitigate the risk and get through a crisis period without any problems.
In conclusion, the COVID-19 pandemic has shown that the Indian labour laws need to be updated to provide better protection to workers. The changes suggested above are just a starting point, and there is a need to have a broader discussion on how to reform labour laws to ensure that they are fair and equitable and provide better protection to workers.
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