Labour codes: What changes for workers and employers, Pg9

Key Highlights:

• The four new Labour Codes consolidating 29 central labour laws came into effect on November 21.
• The codes include the Code on Wages, Code on Social Security, Industrial Relations Code, and Occupational Safety, Health and Working Conditions (OSH) Code.
• These codes aim to ease regulatory compliance for employers and ensure uniformity in wage structure and social security for workers.
• Trade unions have expressed concerns over changes related to hiring/firing, retrenchment, fixed-term employment, and the right to strike.

Detailed Insights:

• The Code on Wages expands the definition of wage and sets a National Floor Wage to be followed by all states, ensuring minimum wage coverage for all employees.
• The Code on Social Security legally defines gig and platform workers for the first time, mandating national registration and a social security fund for them.
• The Industrial Relations Code increases the threshold for government approval for layoff, retrenchment, and closure to establishments with 300 workers, potentially easing hiring and firing processes.
• The OSH Code raises the threshold for obtaining a factory license and allows women to work night shifts with their consent and safety provisions, promoting flexibility and inclusion.
• The codes introduce the concept of a 'negotiating union or council', potentially limiting the powers of smaller unions in industrial establishments.
• Fixed-term employees are now at par with permanent workers and are eligible for gratuity after 1 year of continuous service.

Key Concepts Involved:

• Gig Workers: Individuals who perform work or participate in a work arrangement and earn from such activities outside of a traditional employer-employee relationship.
• Retrenchment: The termination of employment of workers due to reasons of surplus labor.
• Layoff: Temporary suspension or permanent termination of employment.
• National Floor Wage: A baseline wage level set by the central government, below which no state can fix its minimum wage.