New Delhi: The Lok Sabha approved three major labor codes on Tuesday that will cheer up industries and allow flexibility in hiring and downsizing, make industrial strikes more difficult, facilitate business activity and help expand the social safety net for informal workers.
Labor Minister Santosh Gangwar said that the changes to the Labor Codes have been made taking into account the transformation that India has undergone in recent decades in terms of technology, work methodologies, work sphere facilities and nature. of the works. He said changes in labor law are planned to recognize changes in the global scenario and to meet future labor requirements.
At the beginning of the discussion on the three bills: Code of Industrial Relations, Social Security and Occupational Health and Safety (SST), the Minister of Labor said that industries and workers are two sides of the same coin and that the three bills of law have tried to balance their rights.
“The labor codes have been introduced with a view to balancing the interests, rights and obligations of employees and employers in the country,” Gangwar said, adding that multiple licensing and paperwork problems for companies will be significantly reduced.
Opposition political parties, including Congress, who had opposed the bills last week when they were introduced, left the lower house and did not participate in the discussion.
In the Industrial Relations Code, the government has allowed companies with up to 300 workers to lay off people or close units without prior government approval. And companies that have more than 300 workers must apply for approval, but if the authorities don’t respond to their request, it will be considered approved.
In addition, the RI Code introduces more conditions that restrict workers’ rights to strike. According to the code, 60 days notice of strike and during the processing of the process before a National Labor Court or Tribunal, 60 days after the conclusion of said process, workers cannot declare a legal strike. The strike condition has been applied to all industries. It is currently between two and six weeks. It also discourages sudden attacks.
The three codes will also allow states to implement labor reforms and empower them to exempt any company or companies from complying with one or more labor laws. A move that industries believe will boost investment.
“The labor codes are aimed at spurring new industrial investment, including foreign investment, and providing a competitive advantage to India in the global economy. The three codes have taken into account the interests of migrant workers, workers in the gig economy and workers in the unorganized sector and have also guaranteed the operational freedom of manufacturers. Lowering the compliance burden would facilitate the expansion of establishments, helping to create large-scale jobs in all sectors, “argued Chandrajit Banerjee, CEO of the Confederation of Indian Industry.
But some experts and labor economists said that blanket exemptions to industries through various provisions will generate social and economic unrest and eliminate both job security and wage security.
“The codes provide exemplary flexibility to industries. Together, it will eliminate job and wage security and promote unhindered fixed-term employment. Their right to strike and bargain has been restricted and they will now be at the mercy of the employers and if their employers’ expectations are not met, their job loss will be faster, “said KR Shyam Sundar, labor economist, adding that Fixed-term employment, as defined in the codes, will make co-updating of work a normal activity.
Gangwar, however, said that fixed-term workers and regular workers will enjoy the same benefits. He said that the Social Security Code speaks of universalizing social security by incorporating informal workers, concert workers and platforms under its scope. He said companies that have fewer than 20 workers can voluntarily join EPFO for social security benefits and internal workers will be free to voluntarily join the state employee insurance scheme for health benefits. The code also talks about platform companies that employ gig and provide one to two percent of their earnings for the social security needs of their workers.
Gangwar reiterated that all employees will now have an offer letter and states and both the center and the state will create a database on migrant workers and offer them various benefits, including portability of the public distribution system and severance benefits from construction. Arguing in favor of leaving too many clauses of the codes to the standard-making process, the Labor Ministry said it will help change the finer nuances of labor laws according to the time requirement.
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