Salient features on all labour codes ppt [compatibility mode]
5 likes1,439 views
The document outlines the salient features of India's new labour legislation that consolidates 44 existing laws into four main codes: wages, social security, industrial safety and welfare, and industrial relations. It details the changes in compliance requirements, definitions of wages, salary structures, and the introduction of digital payments and safety measures for workers, while also simplifying the registration and licensing processes for employers. Significant amendments aim to enhance workers' rights and streamline regulations to foster investment and economic growth.
Salient features on all labour codes ppt [compatibility mode]
- 1. Salient Features on All LABOUR CODES Compiled by Dr. P.B.S. KUMAR B,Sc, MA(PM), MA (Ind.Eco.) ,MBA(HR),BGL,DLL,PGDIR&PM ,P.hd (in HR) Principal Director KAKINADA HR CONSULTANCY SERVICES KAKINADA A.P
- 2. The Concept Aimed at helping investors and accelerating growth, the Government is planning a new labour legislation that would merge 44 labour laws under four categories -- wages, social security, industrial safety & welfare, and industrial relations. 2Dr. PBS KUMAR
- 3. Summary of Central Labour Laws • Number of Central Labour Laws which were dealt by the Ministry- 44 • Number of Central Laws Repealed – 12 • Subsumed in 4 Codes- 29 3Dr. PBS KUMAR
- 4. Rationalization of Sections in Labour Codes Name of the Code Number of Acts subsumed Sections in the existing Acts Sections in proposed Code Code on Wages 4 125 69 Occupational Safety, Health and Working Conditions Code 13 622 134 Industrial Relations Code 3 135 104 Code on Social Security 9 350 163 TOTAL 29 1232 470 4Dr. PBS KUMAR
- 5. Status of 4 Labour Codes • The Code on Wages notified on 08.08.2019. Draft Rules have been placed on website on 01.11.2019 for public consultations. • OSH Code Bill, 2019- Introduced in Lok Sabha on 23.07.2019. Referred to Standing Committee on 7.10.2019. • Industrial Relations Code Bill, 2019- Introduced in Lok Sabha on 28.11.2019. • Social Security Code Bill, 2019- Introduced in Lok Sabha on 11.12.2019. 5Dr. PBS KUMAR
- 6. Advantages of Codification • One Registration; One Licence ; One Return; Minimum Forms • Uniform definitions • Reduction in committees • Web based, Jurisdiction free Inspection Introduction of technology • Reduction in compliance costs • Reduction in Litigation 6Dr. PBS KUMAR
- 7. Salient Features of the Code on Wages, 2019 • Subsumes- The Minimum Wages Act, 1948; The Payment of Wages Act, 1936; The Payment of Bonus Act, 1965 and The Equal Remuneration Act, 1976. • Definition of wage simplified. If payments made by the employer to the employee, exceeds 50% of the all wages (basic pay, DA, retaining allowance) the excess shall added to the wages. (Section 2(y) • In case of plantation worker, value of remuneration in kind cannot exceed 15% of the total wages. • Minimum wages and timely payment of wages extended to all including unorganized sector (Section 5) 7Dr. PBS KUMAR
- 8. • Central Government to notify Floor Wages based on minimum living conditions. No state to fix minimum wages below the floor wage. (Section 9) • Currently, floor wages are fixed by Central Government through advisory. Since 2017, applicable floor wages are Rs. 176/- per day. • Revision of minimum wages ordinarily at an interval of 5 years. • Reduction of number of minimum wages. Either or both of the following factors would determine minimum wage fixation (Section 6) – Skills – unskilled, semi-skilled, skilled and highly skilled – Geographical region Salient Features of the Code on Wages, 2019 8Dr. PBS KUMAR
- 9. Salient features of the Code on Wages, 2019 • Enables payment of wages through cheque or digital or electronic mode (Section 15) • Tripartite Advisory Boards at Central and State level to advise Government on matters of wage (Section 42) • Transparent web based inspection; provision for jurisdiction free inspection; calling of information electronically (Section 50 & 51) 9Dr. PBS KUMAR
- 10. Way Forward for Central and State Governments • Formulation of Rules - The Central Government has prepared draft rules under the Code on Wages. All State Governments are also requested to take steps to formulate rules. • Payment of wages by digital mode - All State Governments may notify payment of wages through digital means. • Fixation of minimum wages - Spadework for fixation of minimum wages may be commenced. Ideally there should be only four rates of minimum wage based on skill - (unskilled, semi-skilled, skilled and highly skilled). For geographical area, the unit can be entire State as in case of MP and Bihar. 10Dr. PBS KUMAR
- 11. Occupational Safety Health and Working Conditions Code • Subsumes 13 Labour Acts relating to : – 7 Sectors: Factories , Mines, Dock, Construction Workers, Plantation, Motor Transport & Beedi and Cigar – 2 types of workers: Contract Labour & Inter- State Migrant Workers • Code envisages: – Occupational Safety standards for different sectors – Health and Working Conditions : ventilation, drinking water, etc. – Hours of Work , Overtime hours, Leave, Holiday, etc. – Welfare provisions : canteen, crèche, rest rooms, first aid, etc. – Duties of employers, employees, manufacturers, etc. – Registration of establishments including deemed registration, – Licence for contract worker, Factories, Beedi & Cigar 11Dr. PBS KUMAR
- 12. Change in Applicability Threshold S.NO Sector Existing No of workers Proposed No of workers 1 Mines 01 01 2 Dock 01 01 3 Plantation 15 10 4 BOCW 10 10 5 Motor Transport 05 10 6 ISMW 05 10 7 Contract Labour 20 10 8 Factory 10 10 12Dr. PBS KUMAR
- 13. Salient Features of the Code: Workers • Applicable to all establishments employing 10 or more workers except for mine and dock (even on 1 worker) (section 2(u)). • Appointment letters to every employee- promotes formalization (section 6 (1)(f)). • Employer to provide free of cost annual health check-up for employees above prescribed age, tests, employees and class of establishments by appropriate Government (section 6 (1) (c)). • Constitution of a bi-partite Safety Committee (workers and employers) in establishment by appropriate Government (section 22 (1)). 13Dr. PBS KUMAR
- 14. Salient Features of the Code: Workers Contd…. • Definition of audio visual worker and working journalist modified to cover digital/audio-visual workers and journalists working in electronic media (sec. 2(e) and 2(zzf). • Definition of inter-state migrant worker modified to include migrant workers employed directly by the employer besides the migrant workers employed through a contractor (section 2(zd)(i)). • Definition of a family extended to include dependent grand-parents of the worker (section 2(x)(iii)). • A part of the penalty imposed by the court on death or serious bodily injury to be given to the victim or the legal heirs of the victim (section 96 (1)(b)(proviso). 14Dr. PBS KUMAR
- 15. Salient Features of the Code: Employers • Easy Compliance – One Registration in place of 6 – One License in place of 4 – One Return in place of 21 • Enabling provision permitting Women to work at night on fulfilling conditions relating to safety, working hours, holidays, transport, consent of worker, etc (section 43) • Limit on Overtime hours to be prescribed by the appropriate government in place of existing 50 hours in a quarter (section 25, 27 & 86) 15Dr. PBS KUMAR
- 16. Salient Features of the Code: Employers Contd.. •Welfare facilities in Plantation either through resources of owner or through any scheme of the Central / State Govt. (section 24(4)). • A single all India license with 5 years validity for hiring contract worker introduced, de-linking from the present system of obtaining license for each “work order” A risk- based, randomly allocated inspection through centralised computer to bring transparency (section 48 (3)). •Third party audit introduced (section 37) 16Dr. PBS KUMAR
- 17. Industrial Relations Code, 2019 • Subsumes 3 Central Labour Acts • Number of sections reduced from 135 to 104 The Industrial Disputes Act, 1947 – Provides for mechanism & machinery for settlement of disputes through conciliation, Industrial Tribunals; provisions relating to strike, compensation/ notice & permission before retrenchment, closure and layoff. The Trade Unions Act, 1926 – Deals with registration of trade unions, their rights and obligations. The Industrial Employment (Standing Orders) Act, 1946 – Model standing order for establishments having 100 employees 17Dr. PBS KUMAR
- 18. Salient features of IR Code Retrenchment/Layoff / Closure Related • Present: Threshold of 100 workers for seeking permission from appropriate Government before lay off, retrenchment and closure (factory, plantation & Mines) – 9 State Governments have enhanced threshold from 100 to 300 by amending Industrial Dispute Act. • Proposed: Threshold of 100 workers or any number notified by the appropriate government • Enhancement of threshold from 100 to 300 as already done by State Governments is protected by a Proviso in the Code. 18Dr. PBS KUMAR
- 19. Legislative Reforms that can be undertaken by the States pending approval of IR Code Reform States that have Implemented How other States can now enhance threshold Position after IR Code /overall codification 1 Increase in threshold for seeking permission for retrenchment, layoff and closure (100 to 300) – Promotes easy exit and reduces financial burden Andhra Pradesh, Haryana, MP, Assam, Maharashtr a (only for closure), Rajasthan, UP, Jharkhand and Uttrakhand Requires change in ID Act. The concerned State Govt. to formulate a Bill and get it passed by its Assembly. Thereafter, seek Presidential Assent. After coming into force of IR Code, there would be no requirement of amendment in the IR Code for increasing or decreasing the threshold for the purpose of retrenchment, lay off and closure of Company. The willing appropriate Government can increase or decrease the threshold which is at present 100 employees to any other higher or lower number through a notification only.19 Dr. PBS KUMAR
- 20. Salient Features of the IR Code, 2019- Fixed Term Employment • Present: Fixed Term Employment in the Schedule of Industrial Employment Standing Orders Act. – Applicable for establishments with 100 or more workers – Applicability is by notification by appropriate Government (Central Govt. and 7 State Govt. have notified) • Proposed: Fixed Term Employment defined in the main Code itself ― Universal Applicability for all establishments ― No requirement of separate notification by Appropriate Government 20Dr. PBS KUMAR
- 21. Salient features of IR Code • Present: Retrenchment compensation is 15 days wage per completed year of service • Proposed: Retrenchment compensation of 15 days wage per completed year or any number of days as notified by the Appropriate Government 21Dr. PBS KUMAR
- 22. • New Provision • To be maintained by appropriate Government • One time Contribution of 15 days’ wages for each retrenched employee to be credited by employer to the Fund. • Thereafter, the amount to be paid from the Fund to retrenched employee within 45 days. Salient Features of the IR Code, 2019 Re-Skilling Fund 22Dr. PBS KUMAR
- 23. Salient Features of the IR Code, 2019 (Related to Trade Union) • New Provision • Provision of negotiation with management at unit level by Recognition of Negotiating Union/ Council: ― Negotiating Union if one trade union has 75% members, otherwise; ― Negotiating Council (representatives of trade unions): One member in the Council for each trade union for every 10% Members • Advantage: A forum for systematic negotiation at establishment level. Presently all registered trade unions can negotiate with management 23Dr. PBS KUMAR
- 24. Salient Features of the IR Code, 2019 (Related to Strike) • Present: 14 days prior notice before going on strike/ lockout for public utility services only • Proposed: Notice period of 14 days before going on strikes/ lockouts extended to all establishments. • Definition of strike modified to include concerted mass casual leave by 50% or more workers on a day: mass casual leave would now be treated as strike. • Advantage • Flash strikes would be averted • More time for conciliation • Avoidance of loss of production 24Dr. PBS KUMAR
- 25. Salient Features of the IR Code, 2019 • Definition of Industry expanded in conformity with SC Judgment • Present: ‘Industry’ includes any business, trade, manufacture, employment, handicrafts or industrial occupation of workmen • Proposed: New Definition – Any systematic activity carried on by cooperation between an employer and worker but excludes – • institutions owned or managed by organisations wholly or substantially engaged in any charitable, social or philanthropic service; • domestic service, • sovereign functions and • any other activity as may be notified by the Central Government. 25Dr. PBS KUMAR
- 26. Salient Features of the IR Code, 2019 Definition of Worker modified • Present: ‘Worker’ includes person in supervisory capacity getting salary up to Rs. 10000/ • Proposed: ‘Worker’ includes person in supervisory capacity getting salary up to Rs. 15000/ or an amount as notified by the Central Government 26Dr. PBS KUMAR
- 27. Social Security Code, 2019 Subsumes 9 Central Labour Acts : The Employees’ Compensation Act, 1923 The Employees’ State Insurance Act, 1948 The Employees Provident Fund & Misc. Provisions Act, 1952 The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959 The Maternity Benefit Act, 1961 The Payment of Gratuity Act, 1972 The Cine Workers Welfare Fund Act, 1981 The Building and Other Construction Workers Welfare Cess Act, 1996 The Unorganised Workers’ Social Security Act, 2008 27Dr. PBS KUMAR
- 28. Salient features of Social Security Code Preliminary/Definition • Present: Definition of wage is different in ESIC and EPFO. • Proposed: Definition of wage to include all remuneration including basic pay, dearness allowance, and retaining allowance, if any. Cap of 50% all remuneration provided for allowances. If allowances exceed 50% or such percent as may be notified, then it will be added back to the wages. • Impact: Simplification of definition of Wages. 28Dr. PBS KUMAR
- 29. Salient features of Social Security Code Preliminary/Definition New Provision: • Definition of aggregator (digital intermediary), gig worker and platform worker included. • The definitions of employer, employee, establishment, factory etc. are uniform. Entrustment of additional functions - Enabling provision made for administration of an Act (PF Act, 1925), Scheme (PM-SYM), programme by EPFO and ESIC provided Central Government bears the expenditure. 29Dr. PBS KUMAR
- 30. Salient Features of the Social Security Code, 2019 Employees Provident Fund Present: EPF&MP Schedule -1 to the EPF&MP Act, 1952 includes 197 industries, on which this Act applies. Proposed: Schedule has been removed. Now, it applies on all establishments having more than 20 employees. Impact: Reduction in litigation as applicability issue resolved. 30Dr. PBS KUMAR
- 31. Salient Features of the Social Security Code, 2019 Employees Provident Fund Present: No limitation period exists in commencing inquiry to decide on applicability of the Act and to recover amount due towards EPF, EPS and Employees Deposit Linked Insurance (EDLI) . Proposed: Limitation of 5 years introduced. No case which is older than 5 years can be opened. Impact: ESIC also has limitation period of 5 years Predictable policy regime. 31Dr. PBS KUMAR
- 32. Salient Features of the Social Security Code, 2019 Employees Provident Fund New provision Enabling provision introduced to specify differential rates of employees’ contribution for class of employees as the Central Government may notify Impact Increase in take home salary of employees and boost consumption. New Provision Aadhar seeding made mandatory to register and avail benefits under social security Code. 32Dr. PBS KUMAR
- 33. Salient Feature of the Social Security Code, 2019 Gratuity New provisions Proportionate gratuity to be paid to a fixed term employee. Option to obtain a compulsory insurance for employer’s liability for payment towards gratuity from any insurance company regulated by Insurance Regulatory and Development Authority (IRDA) as against at present LIC only. 33Dr. PBS KUMAR
- 34. Building and Other Construction Workers Welfare Cess Present: Assessment of cess on the basis of cost of construction of building and other construction work by authorised officer of the State Government on case to case basis. Proposed: Self-assessment of cess on the basis of cost of construction of building etc., filing of return. 34Dr. PBS KUMAR
- 35. Present: Registration of unorganized worker shall be through an application to be made to district administration. Mandatory issuance of identity card. Proposed: • A person shall submit self declaration electronically or otherwise in the form, and to the authority prescribed by the appropriate Govt. • Every registered unorganized worker will be assigned a unique number based on Aadhar. Unorganised Workers’ Social Security 35Dr. PBS KUMAR
- 36. Advantage to the Workers • Inclusion of new form of workers (gig workers, platform worker), audio-visual worker. • Enabling provision for setting up of a social security fund for formulation of schemes for unorganised sector workers. • Accidents while commuting (travelling) included under Employees Compensation Act. 36Dr. PBS KUMAR
- 37. Advantage to the Workers New Provisions • Extension of coverage of ESIC – ESIC coverage extended to entire India subject to threshold of 10 employees (contribution to be collected after arrangements for services are made by ESIC) – Voluntary membership introduced in ESIC if employer and employee agrees where threshold is less than 10. – No minimum threshold for workers engaged in hazardous or life threatening occupations. 37Dr. PBS KUMAR