Labour Laws in India

Labour Laws in India

Legal rights and limitations on working people and their organisations is known as labour law, also referred to as employment law. These laws apply to a number of disputes involving trade unions, employers, and employees. It establishes the duties and entitlements of employees, union members, and employers in the workplace.

Labour laws in India

Following India’s independence, the country’s labour laws changed. A partnership between capital and labour was demanded, and it was decided that workers should have fair pay and working conditions, and that capitalists should continue to receive labourers’ high productivity and efficiency.

The first piece of post-independence legislation, the Industrial Dispute Act of 1947, was created with provisions for strikes and lockouts. This Act allowed for conditions to be modified based on societal needs, and it has since been superseded by the Industrial Relations Code of 2020.

Labour is covered by the Constitution’s Concurrent List. Thus, legislation governing labour can be passed by both the federal government and state legislatures.

The labour laws were revamped and have been consolidated as below:-

The Code on Wages, 2019

The Industrial Relations Code, 2020

The Code on Social Security, 2020

The Occupational Safety, Health and Working Conditions Code, 2020

Other than these, there are laws that are specific to each state and that were passed and implemented by the state governments.

Labour Codes of India

The Code on Wages 2019

The Code regulates wages and bonuses for all employees in India

The Code replaces the following four laws: (i) the Payment of Wages Act, 1936, (ii) the Minimum Wages Act, 1948, (iii) the Payment of Bonus Act, 1965, and (iv) the Equal Remuneration Act, 1976.

Coverage: Applies to all employees, with central and state governments setting wage rules for different sectors.

Wages: Defined as salary, allowances and monetary benefits (excluding bonuses and travel allowances).

• Minimum wage: Central government sets a national floor wage, with states able to set higher minimum wages in their areas. Minimum wages are reviewed every five years.

• Overtime: Employees get paid at least double their normal wage for working extra hours. Method of payments are given.

• Equal pay: Gender discrimination in wages and recruitment for similar work is prohibited.

• Advisory boards: Central and state governments will have advisory boards with employer, employee, and independent member representatives. These boards will advise on wage issues and increasing women’s employment opportunities.

• Penalty provided for employers who underpay is three months imprisonment and a fine of up to one lakh rupees.

The Industrial Relations Code, 2020

• It combines the features of 3 major laws- the Industrial Disputes Act, 1947, the Trade Unions Act, 1926 and the Industrial Employment (Standing Orders) Act, 1946.

• Forming Unions: At least 7 workers can apply to register a union. Unions with 10% of workers or at least

100 workers (whichever is lower) get registered. The union with majority worker support becomes the sole negotiating body.

• Unfair Practices: Certain actions by employers, workers, and unions are banned, like stopping workers from forming unions or damaging employer property. Penalties are in place for violations.

• Standing Orders: Establishments with 300 or more workers must have written rules (standing orders) on worker classification, wages, leaves, and grievance procedures.

• Voluntary Arbitration: Employers and workers can agree to settle disputes through arbitration.

• Government Mediation: Conciliation officers appointed by the government can try to mediate and settle disputes.

• Industrial Tribunals: If conciliation fails, disputes can be referred to special tribunals for a final decision.

• Exemptions from the Code: It provides that the central or state government may exempt any new establishment or a class of new establishment from all or any provisions of the Code in public interest.

The Occupational Safety, Health and Working Conditions Code, 2020

The Code consolidates 13 existing Acts regulating health, safety, and working conditions. These include the Factories Act, 1948, the Mines Act, 1952, and the Contract Labour (Regulation and Abolition) Act, 1970 etc.

Coverage: Most workplaces with at least 10 workers are covered by the Code.

Exemptions: Exemptions can be made for emergencies or disasters.

Employer Duties: Employers must provide a safe workplace, annual health checks (in certain cases), and report accidents.

Work Hours: Standard workday is 8 hours, overtime gets double pay. Workers can’t work more than 6 days a week and must get leave.

Working Conditions: The government will set specific rules on hygiene, drinking water, toilets, ventilation, and lighting.

Welfare Facilities: Canteens, first-aid, and crèches are some facilities that may be required.

Inspections: Government inspectors can visit workplaces and take action if they find safety hazards.

The code on Social Security, 2020

It replaces nine laws related to social security, including the Employees’ Provident Fund Act, 1952, the Maternity Benefit Act, 1961, and the Unorganised Workers’ Social Security Act, 2008.

Social security refers to measures to ensure access to health care and provision of income security to workers.

Social security schemes

Employee Protection Schemes Notified by central government include an provident fund, insurance, gratuity, maternity benefits, leaves, pension, death and accident benefits and also welfare of building and construction workers.

Gig Worker Protections: Such as life and disability cover along with social security funds them. Following are protected: -

Gig workers refer to workers outside of the traditional employer-employee relationship (e.g., freelancers).

Platform workers are workers who access other organizations or individuals using online platforms and earn money by providing them with specific services.

Unorganized workers include home-based and self- employed workers.

Coverage and registration: The Code specifies different applicability thresholds for schemes based on number of employees and these can be amended by the central government.

Financing: The schemes will be financed through a combination of contributions from the employer, the government, platform aggregators and employees.

Social security organisations: The Code provides for the establishment of several bodies to administer the social security schemes. These include:

A Central Board of Trustees, headed by the Central Provident Fund Commissioner

Employees State Insurance Corporation

National and State Social Security Boards, headed by the central and state Ministers for Labour and Employment

State-level Building Workers’ Welfare Boards

Inspections and appeals: The appropriate government may appoint Inspector-cum-facilitators to inspect establishments covered by the Code, and advise employers and employees on compliance with the Code.

MIGRANT LABOUR IN INDIA

Determinants of Migration

The problems of migrant workers have become very important in many developing countries of the world.

Migration of labour started in India during the period of British colonial rule. It was aimed at meeting the requirements of capitalist’s development both in India and abroad.

The labour was moved from the hinterland to the sites of mining, plantation and manufactories. It was recruited from the rural areas and regulated in such a manner that women and children remained in the villages while males migrated to urban areas.

Generally, there are two basic factors of migration: i) Distance

ii) Duration.

From a distance point of view, migration can be classified under four categories: i) Rural to Rural ii) Rural to Urban iii) Urban to Rural iv) Urban to Urban.

Besides, migration can be divided into following categories:

i) Intra-district, ii) Inter-district iii) Intra-state iv) Inter-state

• National and International.

From the duration point of view migration can be studied under three categories: i) Casual-temporary ii) Periodic- seasonal iii) Permanent.

The motives of migration are classified as push factors (which emphasize on the situation at the origin, that is, place from which migration started) and pull factors (which emphasize on the situation at the destination).

Unemployment, flood, earthquake, drought, (i.e., natural calamities) etc, are the push factors. Pull factors that determine migration such as attraction of city life, for education, health, development of backward community, job opportunities and. training facilities and so on.

Migration of labour in India

Census 2011 says there were 450 million internal migrants in India at that time. The Economic Survey of 2017 says that there are 60 million inter-state migrants, with an average national flow of only 9 million.

Movement of workers happens from impoverished rural regions to the more affluent urban and industrial pockets. The historically established list of out-migration regions such as UP, Bihar and Jharkhand have expanded to include states such Rajasthan, Odisha, Madhya Pradesh.

Even within the more prosperous states there is considerable intra-state movement of workers. While mega cities and industrial clusters have always been the major magnets of migrant workers, states such as Kerala have become significant employers of long-distance migrants.

Condition of Migrant workers in India

• Challenges like struggling with low wages, physical and sexual exploitation with safety and security are problems faced by migrant workers and more

specifically the unorganized sector in India.

• They are forced to work more hours without extra wages and even get less wages than directed by the government.

• They often get caught in exploitative labour arrangements that forces them to work in low-end, low-value, hazardous work. Lack of identity and legal protection accentuates this problem.

• Migrants can also become easy victims of identity politics and parochialism.

• The lockdown during the pandemic nearly affected 40 million migrant labourers.

Government initiatives for Migrant Labourers

The National Database of Unorganised Workers (NDUW), which would be seeded with Aadhaar and be a comprehensive database of Unorganised Workers including building and other Construction Workers and Migrant Workers, is being developed by the Ministry of Labour and Employment.

Various schemes like Garib Kalyan Rojgar Abhiyan, Pradhan Mantri SVANIDHI Scheme, Aatmanirbhar Bharat, Pradhan Mantri Garib Kalyan Yojana, One Nation One Ration Card, financial assistance to building and other construction workers etc. were launched.

The Labour Bureau, an attached office of the Ministry of Labour & Employment, has been entrusted with the task of conducting the All-India Survey on Migrant Workers.

'Sarva Shiksha Abhiyan (SSA)' is a universal education programme by Government of India, to provide free and compulsory education to the children of 6-14 years age group under Right to Education, which is accessible to the children of inter-state migrant workers as well.

In addition, the Ministry of Minority Affairs, Department of Empowerment of Persons with Disabilities, Ministry of Labour & Employment, Ministry of Tribal Affairs, Department of School Education & Literacy and some other Ministries provide scholarships to different target groups of students including children of Migrant workers.

Occupational Safety, Health and Working Conditions Code,

2020 provides for decent working conditions, minimum wages, grievances redressal mechanisms, protection from abuse and exploitation, enhancement of the skills and social security to all categories of organized and unorganized workers including Migrant workers.