The three bills, the Code of Safety, Health and Labor Conditions, the Code of Labor Relations and the Code of Social Security, were approved in the Upper House by oral vote amid the boycott of the opposition for the suspension of eight members.
In response to the debate on the three labor reforms in the House, Labor Minister Santosh Gangwar said:
“The purpose of the labor reforms is to provide a transparent system that adapts to the changing business environment.”
The minister informed the chamber that up to 16 states had already raised the threshold for closing, firing and downsizing in companies with up to 300 workers without government permission.
“States have been given flexibility to modify labor laws according to their needs,” he said.
He argued that it is not good for job creation to keep the threshold low at 100 because it discourages employers from hiring more workers and deliberately keeps the strength of their workers below it.
“Investors will be encouraged to set up large factories and employ more and more workers,” Minister Gangwar said, explaining the rationale behind this provision.
He said that these bills would safeguard the interest of workers and provide universal social security to workers by expanding the scope of the Employees Provident Fund Organization and the State Employees Corporation of India.
He also said that there would be a social security fund to cover around Rs 40 million from workers in the unorganized sector. Commenting on the Social Security Code, the minister said, the benefits of the Organization of the Provident Fund for Employees can now be used by all companies with 20 or more employees, as the existing Program defining establishments has been eliminated. .
“In addition, employees with companies with less than 20 workers will be able to join EPF while the government will also extend the benefits of EPFO to the self-employed,” said the minister.
The minister tried to dispel apprehension that the workers’ right to strike had been withdrawn under the new Code.
“The provision of a 14-day notice prior to the strike is intended to allow employees and employers to reconcile during this period,” he added.
The industry has welcomed the codes. “Comprehensive reforms promise to restore the entire regulatory framework to benefit millions of workers and provide companies with flexibility, transparency and clarity,” said Chandrajit Banerjee, CEO of the Confederation of Indian Industry.
According to the Indian Staffing Federation, the greatest impact of these legislations will be easier, faster and more compatible management of the workforce in India in the coming years. “The direct advantage of the ease of doing business will make India an even greater magnet for foreign investment in goods and transportation, logistics, agribusiness, manufacturing and supply chains, as well as increasing the formalization of the workforce.” , Lohit Bhatia, chairman of the Indian Personnel Federation said.
However, all unions, including RSS affiliate Bhartiya Mazdoor Sangh, have opposed the broad powers given under the Codes to bureaucrats to make changes, while opposing certain provisions of the Labor Relations Code.
Noting the new provision in the International Relations Code on union bargaining, BMS said it is an open attempt to monopolize a single union and eliminate all other unions. “The upcoming BMS National Conference to be held between October 2-4, 2020 will decide the future course of action on anti-worker provisions in the Labor Codes,” said BMS Secretary General Vrijesh Upadhyaya.
The Ministry of Labor had developed four codes to consolidate 29 central laws. The wage code has already been enacted, but has yet to be implemented. The three codes approved by Parliament will now go to the President for approval.
The Safety, Health and Working Conditions Code, 2020, will consolidate and modify the laws that regulate the safety, health and working conditions of people employed in an establishment and related matters. The government, under the code, has allowed a single license for staffing companies to hire contract workers at different locations instead of the multiple licenses needed before. The contractor employee threshold limit has been increased from 20 to 50 under the OSH Code, while opening up the hiring of contract workers in all areas will facilitate compliance for employers.
The Labor Relations Code, 2020, seeks to consolidate and modify laws related to unions, employment conditions in industrial establishments or companies, investigation and resolution of labor disputes. The government has raised the threshold on the number of employees needed in an organization for downsizing and closing establishments without government approval to 300 out of 100, significantly improving the ease of firing for employers.
The 2020 Social Security Code will modify and consolidate the laws relating to social security. It is intended to provide universal social security to all workers, including unorganized workers and concert and platform workers. These together represent more than 90% of the total workforce of India estimated at 50 crore rupees.
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