The Centre has finally notified the four Labour Codes, offering protection to gig workers with universal social-security coverage. Gender pay parity is also being promised along with better safety for women employees, minimum wages and fixed-term job. For the first time in India, social-security benefits are being offered to unorganised, gig and platform workers under Sections 113 & 114 of the Code on Social Security, 2020.
What makes the Codes contemporary and empowering are: a countrywide floor wage, gender-neutral work policies, inspector-cum-facilitator model for supportive compliance, quick conflict resolution through two-member tribunals, and a National Occupational Safety, Health (OSH) Board to implement uniform safety standards.
The Occupational Safety, Health and Working Conditions Code (OSH) is aimed at safeguarding worker rights and safe working conditions, and creating a business-friendly regulatory environment spur economic growth and employment.
As per OSH, every employee will be given appointment letters in the prescribed format specifying the details of the employee, designation, category, details of the wages, details of social security and so on. The workers employed in an establishment are entitled for paid leave in a calendar year on working of 180 days or more in such calendar year, earlier workers had to work for 240 days for becoming eligible for paid leave. Reduction of eligibility from 240 to 180 days along with flexibility in working hours ensures enough rest and recovery, improving productivity and job satisfaction. No employee will work for more than 8 hours in a day and 48 hours in a week. Further, the “power to fix the time of interval and spread over time has been given to appropriate government” .
The Ministry of Labour & Employment is developing a national database to enrol unorganised workers including migrants. This will ensure that migrant workers get jobs, with their skills being mapped and provide them social security benefits. This will also ensure availability of data for ISMW and help in better policy formulation for unorganised sector workers.
The Code empowers the courts, upon conviction of an offender for contravention of any duties, to direct that at least 50 per cent of the fine imposed be paid as compensation to the victim in case of serious bodily injury or their legal heirs in case of death.
The term ‘audio- visual worker’ has been redefined to cover digital/audio-visual workers and dubbing artist, and stunt persons all of whom will also get the benefit of law. Dubbing artists and stunt workers are formally recognised and will be legally protected, ensuring safer and fairer working conditions.
The term ‘working journalist’ will now be more contemporary and cover electronic media or digital media journalists and those from TV, radio, online, etc.
Instead of six boards under different acts, now there is a single National Occupational Safety and Health Advisory Board which is of tripartite nature and has representation from trade unions, employer associations, and state governments to advise the Centre on standards and regulations for factory, mine, dock work, beedi and cigar, building or other construction work etc.
As per PIB, the Code on Social Security, 2020 seeks to simplify compliance, enhance efficiency, and expand access to benefits such as life and disability insurance, health and maternity care, provident fund, and gratuity. It also introduces digital systems and transparent facilitation mechanisms to strengthen implementation and support both employers and employees.
The government has brought down the eligibility for gratuity for Fixed Term Employees (FTEs) from five years to one year. In case where the employee completes one year of continuous service, gratuity shall be applicable on proportionate basis.
There is provision for establishment of a National Social Security Board to advise the Government for formulating and monitoring suitable schemes for different sections of workers in the unorganised , gig and platform sectors.
The Code expands the definition of “family” to include the mother-in-law and father-in-law of a woman employee (subject to an income limit). It also includes a minor unmarried and dependent brother or sister, if the parents are not alive.
Earlier, ESIC coverage was limited only to certain notified areas. Under the Code, ESIC coverage has now been extended across India by removing this restriction.
Additionally, voluntary ESIC membership is also allowed for establishments with fewer than 10 employees, if both the employer and employees agree to join.
The Codes have been called ‘progressive’ by Prime Minister Narendra Modi, while trade unions continue to label it as ‘pro-employer’
The four Labour Codes – Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020) and the Occupational Safety, Health and Working Conditions (OSHWC) Code (2020) – aim to not only formalise employment, but increase worker protections, simplify the labour laws and make them globally aligned.
Additionally, Aadhaar-linked Universal Account Number will make it easy to avail welfare benefits across States, irrespective of migration.
