New Labour codes

 

Three New Labour codes have been passed by the Indian parliament last week. Central Govt without wasting the crisis has pushed through these Industrial labour reforms. Industrial Relations Code Bill,2020; Code on Social Security Bill,2020 and Occupational Safety, Health and Working conditions Code Bill,2020. These three codes will have to be taken together with the Wages code passed in 2019 making together a grand four labour codes merging 29 Central Labour Acts. Some of these Acts like Payment of Wages Act ,Workers Compensation Act etc. belong to British times and finally, these vestiges of colonial legacy have been buried in the 21st century. This leads us to the question "Are we fully liberated from British rule?!!"

In the first bill Industrial Relations Code Bill, the Central Govt. has proposed to introduce more conditions restricting the rights of the workers to strike work, and also to increase the threshold relating to layoffs and retrenchment in any industrial establishment to 350 nos. from 100 workers at present. These are measures aimed at providing flexibility to employers in hiring and firing depending upon the business conditions without govt poking its nose into the employer's domain. It has also raised the threshold for making Industrial standing orders mandatory to 300 workers which according to detractors may result in arbitrary service conditions to employees. The most important reform is with reference to the incorporation of the number of workers in the Act itself, instead of through an executive order which has been the norm so far. This has been done after a Parliamentary Standing Committee on labour reforms scoffed at the bureaucracy wielding the power when the earlier Act used to mention that such numbers will be decided by "Appropriate Authority".

Employers are definitely the gainers in this grand bargain but this has been done without trampling on the rights of workers. The process of negotiation and reconciliation have been given prime of place in the place of intimidations and threats. Enabling fixed-term employment, reducing the influence of trade unions and the extension of social security net to gig, informal sector and platform employees also are all big positives for the employment scenario on the whole.

The labour ministry will have to come out with the set of rules for the Acts to become functional on the ground. Even though some labour rights activists are saying that the rights of workers are slowly and surely being seized from them , fair-minded employers of the 21st century will get the ease of doing business with these forward-looking and long-pending reforms.

All these amendments have been recommended by many parliament committees over the years. Now many well-meaning labor economists say that these Acts have brought the right balance between the rights and duties of employees and the employers.