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The Labour Code PPT Part 1
The Labour Code PPT Part 1
These labour reforms will also augment the ease of doing business in India as it enables employers to access permissions
online and the cancellations of certain previously mandatory requirements. The EPF (Employee’s Provident Fund, Employee’s
Pension Scheme (EPS) and coverage of all types of medical benefits under Employees Insurance will be made available to all
the workers in India.
Procedure the Central Government has adopted to amalgamate these laws
1. Review and Assessment: The government conducted a comprehensive review and assessment of the existing labor laws to identify areas that
needed reform and consolidation. This process involved consultations with stakeholders, including employers, employees, and labor organizations.
2. Drafting New Legislation: Based on the findings of the review, the government drafted new legislation to replace multiple existing laws. In the case
of labor codes, four major codes were drafted to cover different aspects of labor and employment.
3. Parliamentary Approval: The drafted legislation was introduced in the Parliament as Bills. Members of Parliament debated and discussed the
proposed laws, and the Bills went through the legislative process in both houses of Parliament — Lok Sabha (House of the People) and Rajya Sabha
(Council of States).
4.Committee Scrutiny: Parliamentary committees, such as standing committees or select committees, may have been involved in scrutinizing the
proposed legislation. These committees review the provisions of the Bills, gather expert opinions, and suggest modifications if needed.
5. Amendments and Approval: The Bills may undergo amendments during the parliamentary process based on discussions, feedback, and
recommendations. Once both houses of Parliament approve the Bills, they are sent to the President of India for assent.
6. Presidential Assent: The President's assent is the final step for a Bill to become law. Once the President gives assent, the Bills are officially enacted
as laws.
7. Notification and Implementation: The government issues official notifications to bring the new laws into effect. The codes are then implemented,
and relevant authorities are responsible for enforcing and administering the provisions.
The four labor codes mentioned earlier — Code on Wages, Code on Social Security, Occupational Safety, Health, and Working Conditions Code, and
Industrial Relations Code — were introduced as part of this amalgamation process.
Procedure the Central Government has adopted to amalgamate these laws
2. Advance notice before cost cutting measures:- Firms hiring 100 or more workers need government permissions for closure,
layoffs, ore retrenchments. Some say that it has created an exit barrier for firms. The new IR Code has raised this limit to 300.
3. Difficulty in Compliance of Laws:- Multiple laws means multiple compliances. Collecting fines for enforcement of multiple
labour laws is cumbersome for law enforcing officers. As there are lesser laws in the new labour code, compliance is sufficient.
4. Contract Labour:- Guaranteed wages are not available despite huge number of contract laborers available in the country.
Fluctuations in the economy, production trends, demand oscillations have always created a need labour rather than
permanent worker. The IR Code has introduced a new term labour called Fixed Term Employment (FTE) which takes care of
guaranteed wages for contract labour in the country.
5. Trade Union:- The IR Code creates provisions for recognition of trade unions which was absent so far to enable them to have
better bargaining power.
1. In the interval of 5 years, the State or the Central The State or Central Government shall not exceed a period of 5 years for
Government must revise the minimum wages revision of minimum wages
2. The definition of the term ‘employer’ includes any person The definition of ‘employers’ includes any person who directly or
who employs one or more persons at an establishment indirectly employs one or more persons at an establishment
3. The Code provides for a Central Advisory Board consisting The Code provides for a Central Advisory Board consisting of (i)
of (i) employers (ii)employees in equal number as employers (ii) employers in equal number as employers, (iii) independent
employers, and (iii) independent persons (not exceeding persons (not exceeding one third of the total members), and (iv) five
one third of the total members) representatives of State Government to be nominated by the Central
Government
4. The Payment of Wages Act was applicable only to There has been removal of such threshold limit for applicability under
employees under wages below Rs. 24,000/- per month Code on Wages. Hence, the Code shall be applicable to all the employees
irrespective of monthly wages
Code on Wages
Objectives and provisions
Understand the objectives and provisions of the Code on Wages, which aims to promote fair and
promote fair and transparent wage policies.
Learn about the revisions made to minimum wage regulations to ensure better livelihoods for
livelihoods for workers.
Explore the mechanisms put in place to ensure the timely payment of wages and effective
effective enforcement of wage-related regulations.
Code on Industrial Relations
1 Trade unions and collective bargaining
Discover the role of trade unions and the changes in collective bargaining processes,
empowering employees to negotiate better terms and conditions.
Learn about the revised regulations governing strikes and lockouts, ensuring a balanced
approach between the interests of the workforce and employers.
Code on Occupational Safety, Health, and
Working Conditions
Discover the measures Explore the regulations governing Understand the shared
implemented to guarantee a safe working conditions and the responsibility of employers and
and healthy working environment implementation of welfare employees to maintain a conducive
for all employees, enhancing measures to support employee work environment and prioritize
productivity and reducing well-being. safety and health.
accidents.
Code on Social Security
Coverage and benefits
Learn about the expanded coverage and benefits provided under the Code on Social Security to
promote financial security for all workers.
Explore the improved provident fund and pension schemes introduced to safeguard employees'
future financial stability.
Discover the enhanced maternity provisions and gratuity benefits aimed at providing support during
important life phases.
CENTRAL ADVISORY BOARD
SECTION 2 (b) :- Advisory Board:- Section 2 (b) of the Code on Wages, 2019 defines Advisory Board as the
Central Advisory Board or, as the case may be, the State Advisory Board, constituted under section 42
SECTION 42 (1) :- The Central Government shall constitute the Central Advisory Board which shall consist of
persons to be nominated by the Central Government—
(a) representing employers;
(b) representing employees which shall be equal in number of the members specified in clause
(a);
(c) independent persons, not exceeding one-third of the total members of the Board; and
(d) five representatives of such State Governments as may be nominated by the Central
Government
SECTION 42 (2) One-third of the members referred to in sub-section (1) shall be women and a
member specified in clause (c) of the said sub-section shall be appointed by the Central
Government as the Chairperson of the Board.
CENTRAL ADVISORY BOARD DUTIES
SECTION 42 (3) The Central Advisory Board constituted under sub-section (1) shall from time to time
advise the Central Government on reference of issues relating to––
(c) the extent to which women may be employed in such establishments or employments as the
Central Government may, by notification, specify in this behalf; and
(d) any other matter relating to this Code, and on such advice, the Central Government may issue
directions to the State Government as it deems fit in respect of matters relating to issues referred to the
Board.
STATE ADVISORY BOARD DUTIES
SECTION 42 (4):- Every State Government shall constitute a State Advisory Board for advising the State
Government—
(a) in fixation or revision of minimum wages and other connected matters;
(b) for the purpose of providing increasing employment opportunities for women;
(c) with regard to the extent to which women may be employed in such establishments or
employments as the State Government may, by notification, specify in this behalf; and
(d) in any other matter relating to this Code, which the State Government may refer from time to
time to the Board. Central Advisory Board and State Advisory Boards.
SECTION 42 (8) :- In tendering its advice in the matters specified in clause (b) or clause (c) of sub-section
(4), the State Advisory Board shall have regard to the number of women employed in the concerned
establishment, or employment, the nature of work, hours of work, suitability of women for employment, as
the case may be, the need for providing increasing employment opportunities for women, including part
time employment, and such other relevant factors as the Board may think fit.
SECTION 42 (10) :-The Central Advisory Board referred to in sub-section (1) and the State Advisory Board
referred to in sub-section (4) shall respectively regulate their own procedure including that of the
committees and sub-committees constituted by the State Advisory Board, in such manner as may be
prescribed.
STATE ADVISORY BOARD
SECTION 42 (5) :- The State Advisory Board may constitute one or more committees or sub-committees to look
into issues pertaining to matters specified in clauses (a) to (d) of sub-section (4).
SECTION 42 (6) :- The State Advisory Board and each of the committees and sub- committees thereof shall
consist of persons––
(a) representing employers;
(b) representing employees which shall be equal in number of the members specified in clause (a); and
(c) independent persons, not exceeding one-third of the total members of the Board or committee or
sub-committee, as the case may be.
SECTION 42 (7) :- One-third of the members referred to in sub-section (6) shall be women and one among the
members specified in clause (c) of the said sub-section shall be––
(a)appointed by the State Government as the Chairperson of the Board;
(b)appointed by the State Advisory Board as the Chairperson of the committee or sub-committee, as the case
may be.
APPROPRIATE GOVERNMENT
SECTION 2 (d) of the Wage Code, 2019 defines “appropriate Government” as
(i) in relation to, an establishment carried on by or under the authority of the Central Government or
- the establishment of railways, mines, oil field, major ports, air transport service, telecommunication,
banking and insurance company or
CONTRACT LABOUR
SECTION 2 (g) of the Wage Code, 2019 defines ‘contract labor’ as
"employee" means, any person (other than an apprentice engaged under the Apprentices Act, 1961),
- employed on wages by an establishment
- to do any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative,
technical or clerical work
- for hire or reward,
- whether the terms of employment be express or implied,
- and also includes a person declared to be an employee by the appropriate Government, but does not include
- any member of the Armed Forces of the Union;
EMPLOYER
SECTION 2 (l) of the Wage Code 2019 defines “employer” as :-
For calculating the wages under this clause, if payments made by the employer to the employee
(highlighted in yellow colour) under clauses (a) to (i) exceeds ½ or such other percent as may be
notified by the CG, of all the remuneration calculated under this clause, the amount which exceeds
such ½ or the per cent so notified, shall be deemed as remuneration and shall be accordingly added
as wages under this clause.
Provided further that for the purpose of equal wages to all genders and for the purpose of payment of
wages, the emoluments specified in clauses (d), (f), (g) and (h) shall be taken for computation of
wage.
Explanation.––Where an employee is given in lieu of the whole or part of the wages payable to him,
any remuneration in kind by his employer, the value of such remuneration in kind which does not
exceed fifteen per cent. of the total wages payable to him, shall be deemed to form part of the wages
of such employee
Worker
"worker" means
- any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961)
- employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or
supervisory work for hire or reward,
- whether the terms of employment be express or implied, and includes—
(i) working journalists as defined in clause (f ) of section 2 of the Working Journalists and other
Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955; and
(ii) sales promotion employees as defined in clause (d) of section 2 of the Sales Promotion
Employees (Conditions of Service) Act, 1976,
- and for the purposes of any proceeding under this Code in relation to an industrial dispute, includes
- any such person who has been dismissed, discharged or retrenched or otherwise terminated in connection
with, or
- as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute
Worker …… contd
(a) who is subject to the Air Force Act, 1950, or the Army Act, 1950, or the Navy Act, 1957; or
(b) who is employed in the police service or as an officer or other employee of a prison; or
(c) who is employed mainly in a managerial or administrative capacity; or
(d) who is employed in a supervisory capacity drawing wage of exceeding fifteen thousand rupees (> Rs.
50,000/-) per month or an amount as may be notified by the Central Government from time to time.
Prohibition of Discrimination on Ground of Gender
CAN AN EMPLOYER DISCRIMINATE ON THE BASIS OF GENDER, WHERE WAGES ARE CONCERNED?
Section 3 of the Wage Code, 2019 prohibits discrimination on ground of gender. It states:-
(1) There shall be no discrimination in an establishment or any unit thereof among employees on the ground of gender in matters relating
to wages by the same employer, in respect of the same work or work of a similar nature done by any employee.
Work of similar
By the same For the same
nature done by
employer work
any employee
(2) No employer shall,— (i) for the purposes of complying with the provisions of sub-section
Section 4 of the Wage Code, 2019 provides for decision as to disputes with regard to same or similar nature of work. It states:-
Where there is any dispute as to whether a work is of same or similar nature for the purposes of section 3, the dispute shall be decided by
such authority as may be notified by the appropriate Government.
Chapter II – MINIMUM WAGES
SECTION 5:- The appropriate government shall fix the minimum rate of wages payable to the employees.
No employer shall pay to any employee wages less than the minimum rate of wages notified by the appropriate
government.
(2) (a) For time work or (2) (b) For piece work
&
SECTION
7 (2)
SECTION 8:- PROCEDURE FOR FIXING AND REVISING MINIMUM WAGES
SECTION 9:- POWER OF CENTRAL GOVT. TO FIX FLOOR WAGE