Economics Prelims cum Mains

Govt eyes reforms, to club 44 labour laws into 4 codes

The  News:

  • In an effort to reform labour laws, the government is planning to introduce a new legislation in Parliament that will club 44 labour laws into 4 codes on wages, social security, industrial safety and welfare, and industrial relations.
  • All major labour unions in the country have been consulted by the government on the new labour codes.

Need of Labour reforms:

  • There is a need take a relook at labour laws that are proving a hindrance to growth as well as job creation.
  • Reforms are needed to make the labour laws more effective, flexible and in sync with emerging economic and industrial scenario.
  • It will make it easier for companies to do business in India

 

Background

  • The Second National Commission on Labour has recommended that the existing Labour Laws should be broadly grouped into four or five Labour Codes on functional basis.
  • Based on the recommendations, four Labour Codes has been drafted by the Ministry of Labour and Employment.
  • Four labour codes (by amalgamating, simplifying and rationalising the relevant provisions of the existing 44 central labour laws) includes:
    • Social security and welfare
    • Occupational safety, health and working conditions
    • Wages
    • Industrial relations

 

About Labour Codes:

  • Social Security code:
    • It will amalgamate nearly a dozen laws related to social security including the Employees’ Provident Fund and Miscellaneous Provisions Act, Employees’ State Insurance Corporation Act, Maternity Benefits Act, Building and Other Construction Workers Act and the Employees’ Compensation Act.
  • Industrial Safety and Welfare Code:
    • It will merge several industrial safety and welfare laws such as the Factories Act, the Mines Act and the Dock Workers (Safety, Health and Welfare) Act.
  • Wage Code:
    • The Minimum Wages Act, the Payment of Wages Act, the Payment of Bonus Act, the Equal Remuneration Act and a few others are being merged to create a “single legislation called Wage Code Act”.
  • Labour code on Industrial relations:
    • The Labour Code on Industrial Relations, will combine Industrial Disputes Act, 1947, the Trade Unions Act, 1926, and the Industrial Employment (Standing Orders) Act, 1946.

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