NEW LABOUR CODES - ICSI

1 NEW LABOUR CODESB ackground The Second National Commission on LABOUR , which submitted its report in June 2002, had recommended that the existing set of Labourlaws should be broadly amalgamated into the following groups, namely: (a) industrial relations;(b) wages;(c) social security;(d) safety; and(e) welfare and working conditions ThreestakeholdersnamelyEmployer,Employee /theirUnionandGovernmentdecidedtoreformt heexistingLabourlaws inpastfocuswasonMillworkerandnowthefocus ofITandITES sectorandUnorganizedsector-morethan90%Pr eliminary FollowingbillswerepassedintheLokSabhaon2 3rdSeptember2020(i)IndustrialRelationsCo de,2020(ii)CodeonOccupationalSafety,Heal th&WorkingConditionsCode,2020(iii)Social SecurityCode,2020(iv)CodeonWages,2019(al readyreceivedPresidentassenton8thAugust2 019) Thesebillsareoutcomeofthepolicy ShramevJayate and SatyamevJayate.

2 [Journeyfrom2002to2020] Keyfocusisoninterestofemployee toavoidproceduralcomplexitiesinimplement ationofvariouswelfareandsafeguardprovisi ons. Aimistoprovidecommondefinitions,flexibil itytoEmployer,ensureindustrialpeaceandpr ovidesocialsecurityandwelfarefacilitytoa lltheemployeesConsolidation of LABOUR lawsName of the CodeNumber & name of amalgamated laws1. Code on Wages,20194 laws Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act, Equal Remuneration Act, Industrial Relations CODES ,20203 laws Trade Unions Act, Industrial Employment (Standing orders) Act, Industrial Disputes Act, 1947sConsolidation of LABOUR lawsName of the CodeNumber & name of amalgamated lawsThe OSH and working conditions Code, 202013 laws Factories Act, Plantations LABOUR Act, Mines Act, (ConditionsofService)andMiscellaneousPro visionsAct, (FixationofRatesofWages)Act, , r k e r s( C o n d i t i o n sofEmployment)Act, (RegulationandAbolition)Act, (ConditionsofService)Act, Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service)

3 Act, Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, Dock Workers (Safety, Health and Welfare) Act, k e rs(RegulationofEmploymentandConditionsof Service)Act,1996 Consolidation of LABOUR lawsName of the CodeNumber & name of amalgamated lawsThe Social Security Code, 20209 laws Employees Compensation Act, Employees State Insurance Act, Employees Provident Fund and Miscellaneous Provisions Act, Employment Exchanges (Compulsory Notification of Vacancies) Act, Maternity Benefit Act, Payment of Gratuity Act, Cine Workers Welfare Fund Act, Building and Other Construction Workers Welfare CessAct, UnorganisedWorkers Social Security Act, 2008 The Industrial Relations Code,2020 Object: to achieve industrial peace and harmony Key Changes IR CODE -1 Toprovideforfixedtermemploymentwiththeob jectivethattheemployeegetsallthebenefits likethatofapermanentworker(includinggrat uity),exceptfornoticeperiodafterconclusi onofafixedperiod, ; Torevisethedefinitionof industry thatanysystematicactivitycarriedonbyco-o perationbetweentheemployerandworkersfort heproduction,supplyordistributionofgoods orserviceswithaviewtosatisfyhumanwantsor wishes(notbeingwantsorwisheswhicharemere lyspiritualorreligiousinnature)withcerta inexceptionslikecharitablesocialandphila nthropicservices;sovereignfunctionsanddo mesticservicesetc[ ] Tobringconcertedcasualleave[by50%ormoree mployeeongivenday]withintheambitofthedef initionofstrike.

4 Key Changes IR CODE -2 Definitionof AppropriateGovernment hasbeenmodifiedincludingtheestablishment softhecontractors,thusContractorappropri ategovernmentshallbeoftheestablishmentwh erethecontractlabourhasbeendeployed. DefinitionofIndustrialDisputehasbeenmodi fiedtoincludethedisputearisingoutofdisch arge,dismissal,retrenchmentortermination ofsuchworker. Metrorailwayhasbeenincludedinthedefiniti onofrailways. Todefine workers ,000/-permonthoranamountasmaybenotifiedb ytheCentralGovernmentfromtimetotime;Key Changes IR CODE-3 ; Asregardsnegotiatingcouncil,aTradeUnionh avingsupportofevery20%ofworkerswillgeton eseatinthenegotiatingcouncilandthefracti onabove20%shallbedisregarded;Key Changes IR CODE-4 Toprovideforappealagainstnon-registratio norcancellationofregistrationofTradeUnio nbeforetheIndustrialTribunal; ToempowertheCentralGovernmentandtheState GovernmentstorecognizeaTradeUnionorafede rationofTradeUnionsastheCentralTradeUnio norStateTradeUnions,respectively; Toprovideforapplicabilityofthresholdofth reehundredormoreworkersforanindustriales tablishmenttoobtaincertificationofstandi ngorders,ifthestandingorderdifferfromthe modelstandingordermadebytheCentralGovern ment.

5 Toprovidethatiftheemployerpreparesandado ptsmodelstandingorderoftheCentralGovernm entwithrespecttothemattersrelevanttothee mployer sindustrialestablishment, ,theindustrialestablishmentmayseekcertif icationofonlythoseclauseswhicharediffere ntfromthemodelstandingorders; TosetupIndustrialTribunalconsistingofaJu dicialMemberandanAdministrativeMember, ,thematterswillbedecidedbythetwo-memberT ribunalandtheremainingshallbedecidedbysi ngle-memberTribunalasmaybeprovidedforint herules;Key Changes IR CODE-5 TosetupIndustrialTribunalsintheplaceofex istingmultipleadjudicatingbodiesliketheC ourtofInquiry,BoardofConciliationandLabo urCourts; Toremovethereferencesystemforadjudicatio nofIndustrialDisputes,exceptthereference totheNationalIndustrialTribunalforadjudi cation; Toprovidethatthecommencementofconciliati onproceedingsshallbedeemedtohavecommence donthedateofthefirstmeetingheldbytheconc iliationofficerinanindustrialdisputeafte rthereceiptofthenoticeofstrikeorlock-out bytheconciliationofficer; Toprohibitstrikesandlock-outsinallindust rialestablishmentswithoutgivingnoticeof1 4days; Toprovidefortheobligationonthepartofindu strialestablishmentspertainingtomine,fac toriesandplantationhavingthreehundredorm oreworkerstotakepriorpermissionoftheappr opriateGovernmentbeforelay-off,retrenchm entandclosurewithflexibilitytotheappropr iateGovernmenttoincreasethethresholdtohi ghernumbers,bynotification.

6 Changes IR CODE-6 ,interalia,consistofthecontributionofthe employerofanamountequaltofifteendayswage slastdrawnbytheworkerimmediatelybeforeth eretrenchmentorsuchothernumberofdays,asm aybenotifiedbytheCentralGovernment, ,withinforty-fivedaysoftheretrenchmentas maybeprovidedbyrules; ToprovideforcompoundingofoffencesbyaGaze ttedOfficer,astheappropriateGovernmentma y,bynotification,specify,forasumoffiftyp ercentofthemaximumfineprovidedforsuchoff encepunishablewithfineonlyandforasumofse venty-fivepercentprovidedforsuchoffencep unishablewithimprisonmentforatermwhichis notmorethanoneyear,orwithfine; Toprovideforpenaltiesfordifferenttypesof violationstorationalizewithsuchoffencesa ndcommensuratewiththegravityoftheviolati ons; Changes IR CODE-7 TheworkermayapproachtheIndustrialTribuna lforadjudicationofthedisputerelatedtodis missal, EmployeecanIndustrialraisedisputewiththe employerwithinthetimelimitofonly2yearsin steadof3years.

7 Codeisapplicableto universalworkforce . UseofHireandfirepolicybytheEmployerandin terimrelieftoworkerwhendisputeispending. FixedtermemployeeisnewandwelcomestepObse rvations on IR CODE-8 LackofinjunctionpowertoIndustrialTribuna l Workerstobetreatedatparwiththeregularwor kers Provisionsseekingpermissiontolayoff,retr ench,closureisoutdated-nopermissionisgra ntedbytheGovernment-Hiringandfiringnorms eased Lay-offdefinitionisoutdated-itshallbeall owedforbusinessreasons EasyapproachtoTribunalregardinguniondisp uteswouldleadtomoreindustriallitigation- Recognitionoftradeunionsmayensureindustr ialpeace-recognitionisvalidfor3to5years Fixedtermhiringlegalized, Security Code, 2020 Object: widening scope of benefits and ease of compliance Key Changes SSC CODE-1 Socialsecurity:meansthemeasuresofprotect ionaffordedtoemployees,unorganizedworker s,gigworkersandplatformworkerstoensureac cesstohealthcareandtoprovideincomesecuri ty,particularlyincaseofoldage,unemployme nt,sickness,invalidity,workinjury,matern ityorlossofabreadwinnerbymeansofrightsco nferredonthemandschemeframedunderthiscod e.

8 The Central Government shall formulate and notify, from time to time, suitable welfare scheme for unorganized/gig/platform workers on matters relating to- Life and disability cover; Health and maternity benefit; Old age protection; Education; cr che; etcKey Changes SSC CODE-2 The stare Government shall formulate and notify, from time to time, suitable welfare scheme unorganized, including schemes relating to: Provident fund; Employment injury benefit; Housing Educational scheme for children; Skill upgradation of workers; Funeral assistance; Old age homes;Key Changes SS CODE-3 ToextendthecoverageofEmployees (evenwithoneemployee); ToextendtheEmployees ProvidentFund,Employees PensionSchemeandEmployeesDepositLinkedIn suranceSchemetoallindustriesorestablishm entsemployingtwentyormoreemployeesandthe rebyexpandstheexistingcoverage;-schedule removed Tomakeprovisionforspecifyingdifferential ratesofemployees contributionforclassofemployeesforemploy ees providentfundastheCentralGovernmentmayno tifyforaspecifiedperiod; Toprovidethatthemoneyduesshallbethecharg eontheassetsoftheemployerandshallbepaido nprioritybasisinaccordancewiththeInsolve ncyandBankruptcyCode,2016.

9 Key Changes SS CODE-4 Toprovidethatincaseofemployer sfailuretoregistertheemployeewithEmploye es StateInsuranceCorporationorfailuretopayc ontributionandtheEmployees StateInsuranceCorporationreleasingtheben efitstotheworkers,then,suchbenefitsshall berecoveredfromtheemployer; toempowertheCentralGovernmenttoframesche mesforprovidingsocialsecurity,tothegigwo rkersandplatformworkerswhodonotfallunder traditionalemployer-employeerelation; toempowertheCentralGovernment,bynotifica tion,toconstituteaSocialSecurityFundorfu ndsforprovisionofsocialsecurityfortheuno rganisedworkers,platformworkersorgigwork ersoranysuchclassofworkers; toprovideforpaymentofgratuityincaseofFix edTermEmploymentonpro-ratabasisevenifthe periodoffixedtermcontractislessthanfivey ears; toprovideformaternitybenefittothewomanem ployee; toprovideforcompensationtotheemployeesin caseoftheaccidentswhilecommutingfromresi dencetoplaceofworkandviceversa;Key Changes SS CODE-5 Toprovideforlevyingandcollectingthecessf orthepurposesofsocialsecurityandwelfareo fbuildingworkers; Toprovideforlimitationperiodoffiveyearsf orinstitutionofproceedingsinrespectofass essmentanddeterminationofmoneyduesfromem ployer; toexpandthesourcesofthefundforschemestoi ncludefundsfromcorporatesocialresponsibi lityoranyothersourceasmaybespecifiedinth eschemeandalsocontainsenablingprovisionf orconstitutingthespecialpurposevehiclefo rthepurposeofimplementationofschemesforu norganisedworkers.

10 ToprovideforrenamingthedesignationofInsp ectorasInspector-cum-Facilitatorandtoenh ancehispowertosupplyinformationandgivead vicetoemployersandworkersconcerningthemo steffectivemeansofcomplyingwiththeprovis ionsoftheproposedCode;Key Changes SS CODE-6 Toprovideforfilingofasinglereturnelectro nicallyorotherwisebytheemployer; Toprovidethattheinterestschargedondelaye dpaymentsundertheprovisionsoftheproposed Codebespecifiedintherules; Toprovidepenaltyforthedifferenttypesofvi olationscommensuratewiththegravityofthev iolations; TomakeAadhaarmandatoryforseedingatthetim eofregistrationofmemberorbeneficiaryoran yotherpersontoregisterorforreceivingbene fit; on SS Code-7 Codeissilentoninternationalworker ConceptofGigandplatformworkersareusefulf ortheindustry Freelanceworkers willtakebenefitofthecode EmployerarenotwillingforESI conceptofprivateinsuranceismissing MoredebatesonGarrulitypaymentduetointerp retationonthe continuousservice Employeesarefacingproblemforlinkingofaad harcard Employeemaynotlooseongratuitydeposit-5ye arsworkcriterianolongerholdforeveryoneTh e