Ministry of Labour & Employment
Lok Sabha passes 3 Historic and path breaking Labour Codes
Shri Gangwar elaborates several ‘Game Changer’ labour welfare provisions in the Labour Codes
New Labour Codes to envisage covering over 50 crore workers from organized, unorganized and self employed for minimum wages, social security
Social Security net of ESIC and EPFO to Widen opening up for all workers and self-employed
Setting up of “Social Security Fund” for 40 Crore unorganized workers alongwith GIG and platform workers and will help in widening Universal Social Security coverage
Pay parity to women workers as compared to their male counterparts
Fixed Term Employee to get same service condition, gratuity, leave and Social Security as that of Regular Employee
50 % of the penalty in case of accident to go to the workers alongwith other dues
“National Occupational Safety and Health Board” to be set up for providing international level safety environment
Working journalists definition to include Digital and Electronic Media
Plantation workers to also get ESIC benefits along with GIG and platform workers
All migrant Workers Labour now to be covered instead of only those brought by contactors earlier
Data base on Migrant Workers through Law to help better targeting, skill mapping and utilization of Governments Schemes by workers
Migrant Workers to get journey allowance from Employer, to visit home town once a year
Helpline to redress grievances of Migrant Workers
The Codes to Promote Harmonious Industrial Relations for higher productivity and more employment generation
Labour Codes will Establish transparent, answerable and simple mechanism reducing to one registration, one license and one return for all codes
Inspector to be now made as Inspector – cum- Facilitator and introduction of Random, Web Based Inspection System to remove Inspector Raj
Posted On: 22 SEP 2020
Minister of State (I/C) for Labour & Employment, Shri Santosh Gangwar, while responding to the debate in the Lok Sabha, has stated today that the three Bills introduced in the House for historic labour reforms in the country, will prove to be a Game Changer in the labour welfare reforms covering more than 50 crores organized and unorganized workers in the country. This also includes gig, platform and also opens up the doors for social security to those in the self-employment sector.
The 3 bills which were passed in the Lok Sabha today are (i) Industrial Relations Code, 2020 (ii) Code on Occupational Safety, Health & Working Conditions Code, 2020 & (iii) Social Security Code, 2020. These bills are part of Government’s earnest desire to bring much needed labour welfare reforms in the country which has not been done for the last 73 years. In the last 6 years, many multi-stakeholders consultations were held with all stakeholders i.e. Trade unions, Employers, State Governments and experts of labour sector. This also includes holding 9 tripartite consultations, four Sub Committee meetings and 10 Regional Conferences, 10 inter-ministerial consultations and views of citizens.
Shri Gangwar said that under the dynamic leadership of visionary Prime Minister Shri Narendra Modi, this Government has taken number of steps to fulfill the dreams of Baba Saheb Ambedkar from 2014 onwards and gave equal importance to ‘Shramev Jayate’ and ‘Satyamev Jayate’. Government is ceased with the problems faced by workers and for the last 6 years, My Ministry has been working tirelessly to provide social security and other welfare measures to both organised and unorganised workers including during this Covid-19 epidemic. He added that unprecedented steps were taken by Governnment under the leadership of our visionary Prime Minister, Shri Narendra Modi and launched many welfare measures such as increasing the maternity leave for our sisters from 12 weeks to 26 weeks, women were allowed to work in mines under Pradhan Mantri Protsahan Rozgar Yojana. Formal employment was increased portability in EPFO and welfare schemes and and expansion of ESIC facilities to our fellow citizens.
The Minister, while replying to the issues raised by the Members of Lok Sabha, said that the Bills takes into account the holistic development of the country by keeping the labour interest uppermost in the mind. He said these are the people who have suffered mostly by having multiple laws on labour which involved procedural complexities thereby hindering implementation of various welfare and safeguard provisions. He further said that 29 labour laws are being subsumed in the simplified, easy to understand transparent 4 labour codes. Out of the 4 labour codes, Code on Wages has already been passed by Parliament and have become the law of the land. All the labour laws (29 in number) being amalgamated into 4 labour codes are :
|Name of the Code||Number & name of amalgamated laws|
|Wage Code||4 laws –
|IR Code||3 laws –
|OSH Code||13 laws –
|Social Security Code||9 laws –
Elaborating the benefits of the new labour codes, Shri Gangwar informed the House that the entire work force of the country will now be entitled for obtaining benefits under different codes.
(A) Social Security Code, 2020
Extending the reach of ESIC: Effort have been made to provide right to health security under ESIC to maximum possible workers:-
(a) The facility of ESIC would now be provided in all 740 districts. At present, this facility is being given in 566 districts only.
(b) Establishments working in hazardous sectors would mandatorily be linked with ESIC, even if there is only one worker working in it.
(c) Provision for making scheme for linking unorganised sector and Gig workers with ESIC.
(d) Option to link workers working in Plantations is being given to Plantation owners.
(e) Option for becoming member of ESIC is also being given to establishments with less than 10 workers.
Extending the reach of EPFO :
(a) EPFO’s coverage would be applicable on all establishments having 20 workers. At present, it was applicable only on establishments included in the Schedule.
(b) Option to join EPFO is also being given to establishments having less than 20 workers.
(c) Schemes would be formulated for bringing workers coming under the category of ‘Self-employed’ or falling under any other category under the aegis of EPFO.
(B) Occupational Safety, Health & Working Conditions Code, 2020
(C) Industrial Relations Code, 2020
Efforts made by the Government for quickly resolving disputes of the workers :
(a) Provision for two members instead of one member in the Industrial Tribunal. In case of absence of one member, work can still be undertaken smoothly.
(b) Provision for taking the matter straight to the Tribunal in case the dispute is not resolved at conciliation stage. At present, the case is refered to the Tribunal by the appropriate Government.
(c) Implementation of award in 30 days after Tribunal award.
(d) After recognition of Fixed Term Employment, workers will get the option of Fixed Term Employment instead of contract labour. Under this, they would get benefits of hours of work, salary, social security and other welfare benefits like a Regular Employee.
(e) With the objective of better and effective participation of Trade Unions, a provision for “Negotiating Union” and “Negotiating Council” has been made for undertaking negotiation on any dispute. With conferring of this recognition, resolving disputes through dialogue would be facilitated and workers would be better able to get their rights.
(f) Arrangement for going to the Tribunal has been made for resolving disputes arising between Trade Unions. Less time would be required for resolving their disputes.
(g) Provision has been made for giving recognition to Trade Unions at Central and State level. This recognition has been given in the labour laws for the first time and after this recognition, Trade Unions would be able to contribute more affirmatively and more effectively at the Central and State level.
(h) Provision for RE-Skilling fund has been made in the law for the first time. Its aim would be to re-skill those workers who have been fired from their jobs, so that they are easily able to get employment again. For this, workers would be given 15 days salary within a period of 45 days.
Shri Gangwar said we have extended the definition of migrant workers, so that migrant workers moving from one state to another on their own and migrant workers who have been appointed by the employer from a different state can also be brought under the ambit of OSH code. At present, only migrant workers who had been brought through the contractor were benefiting from these provisions. The Minister also elaborated following benefits of the Labour Codes :
Shri Gangwar also stressed that the changes and reforms in the labour laws have been conceptualized keeping in mind the changing scenario over the years and also making them futuristic so that country marches on faster growth trajectory. With these the peaceful and harmonious industrial relations will be promoted in the country which in turn will lead to growth of industry, employment, income, balanced regional development and will bring more disposal income in the hands of workers. Shri Gangwar further pointed out these path breaking reforms in the country will help our country to attract the Foreign Direct Investment and also domestic investment from the entrepreneurs and will end ‘inspector raj’ in the country and will bring total transparency in the system. “India will become favourite investment destination in the world” he added.
Ministry of Labour & Employment
Government had endeavoured to balance the rights and obligations of employees and the employers in the Labour Codes : Shri Gangwar
Shri Santosh Gangwar Initiates discussion on 3 Labour Codes in the Lok Sabha describing them as Game-Changer Mile-stone
Posted On: 22 SEP 2020
The Minister of State (I/C) for Labour and Employment, while initiating the discussion on the 3 labour codes in the Lok Sabha today has said that these labour Codes have been brought with a view to balance the interests, rights and obligations of employees and the employers in the country. He stressed that these Labour codes will prove to be a Game-Changer mile stone in ensuring the welfare of labour. The three labour Codes include ; (1) OSH code, (2) IR Code and (3) Social Security Code.
Referring to several provisions made for the first time in 73 years, he informed that these include right of letter appointment which will encourage formal employment, He also said the definition of migrant labour has been expanded to also include those who move to other states for work without routing through the contractors. This will help them secure entitlement of and better targeting of welfare schemes in the country.
Similarly, Shri Gangwar informed that mechanism has been proposed for re-skilling of those workers who are removed from the work. He asserted that one of the most important provisions include bringing unorganised sector workers, GIG and Platform workers within the social security net. Shri Gangwar added that recognising importance of the Trade Unions, a tri-stage process of conciliation has been proposed at Enterprise level, State level, and the National level for speedier resolutions of labour issues.
The Minister emphasised that the changes in the labour Codes have been made keeping in mind the unprecedented transformation that India has undergone during 73 years of independence in terms of technology, work methodologies, work-sphere facilities and the nature of works. Nobody could have imagined 70 years ago that one could Work from Home. Therefore, the changes in labour laws have been envisaged by duly recognising the changes global scenario and for meeting future work requirements. As such work was initiated on historical 4 labour Codes with these objectives in mind.
Shri Gangwar futher elaborated how the Labour Codes were widely discussed at various for a including 4 sub-Committees, 10 Inter- Ministerial discussions, Trade Unions, Employers’ Associations, State Govts, Experts, International Bodies and also invited public suggestions/comment by placing them in public domain for 2-3 months
He appealed to the Members of the Lok Sabha to discuss and pass the Codes unanimously.