Union Cabinet has approved amendment to 3 Labor Codes

Defines areas & conditions under which fixed-term employment shall be allowed

• Union Cabinet formally approved amendments to Three Labour Codes. These 3 labour codes were proposed in Industrial Relations Code, 2019
• The 3 codes include Occupational safety and health, social security and industrial relations
• Easing labour laws will help to promote setting up of enterprises and catalyze creation of employment opportunities

Key highlights of the amendment

•  The amendments are to the labour codes on social security, industrial relations, and occupational safety and health (OSH), which could include pension and medical benefits to gig workers.
• It will allow states to introduce significant changes to their labour laws framework
• The Industrial Codes will define areas and conditions under which fixed-term employment shall be allowed
• It recognizes trade unions and the Industrial Relations Code, 2019 also seeks to provide pension and medical benefit to gig workers

The Code will mainly replace three existing laws

•  Trade Unions Act, 1926
• Industrial Disputes Act, 1947
• Industrial Employment (Standing Orders) Act, 1946

Codes that are proposed to be amended

•  The social security code – involving provident fund, insurance, maternity benefits
• The industrial relations code – it will combine laws on industrial disputes, trade unions and others
• The occupational health and safety code – involving industrial safety and welfare laws

 The changes that are proposed

•  Medical and pension for informal workers.
• Removes ‘employees’ and ‘workers’ distinction and defines areas and conditions for fixed-term employment, layoffs and retrenchment policies under industrial relations (IR).
• Clear definition of ‘appropriate authority’ and strengthening of health facilities at factory premises under occupational safety and health (OSH).

 Salient features of the Code

•  Seven or more members of trade union shall apply to register it
• The trade unions with at least 10% of workers or 100 workers are to be registered
• The lesser count is taken for registration
• A Negotiation Union shall be formed to negotiate with the employers
• In case of multiple trade unions, the union with at least 75% of workers are to be recognized
• The strikes by union needs prior notices
• It allows Government to modify or reject awards that are passed by National Industrial Tribunal and Industrial Tribunal

What is “Industrial Relations Code, 2019”?

•  This is the third bill in a series of four bills that aim to amalgamate and rationalize more than 40 laws related to labors
• The other two bills are Occupational Safety, Health and Working Conditions code, 2019 and Code on Wages, 2019
• It will help to promote setting up of enterprises and catalyze creation of employment opportunities

 Pic courtesy : competitiveindia.com