Labour Law Reforms Bills – UPSC GS3

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What are the 3 bills?

The 3 bills which were passed are
  1. Industrial Relations Code, 2020
  2. Code on Occupational Safety, Health & Working Conditions Code, 2020 &
  3. Social Security Code, 2020
All the labour laws (29 in number) being amalgamated into 4 labour codes are :

Name of the Code

Amalgamated laws
Wage Code
4 laws –
  1. The Payment of Wages Act, 1936
  2. The Minimum Wages Act, 1948
  3. The Payment of Bonus Act, 1965
  4. The Equal Remuneration Act, 1976
IR Code
3 laws –
  1. The Trade Unions Act, 1926
  2. The Industrial Employment (Standing orders) Act, 1946
  3. The Industrial Disputes Act, 1947
OSH Code
13 laws –
  1. The Factories Act, 1948
  2. The Plantations Labour Act, 1951
  3. The Mines Act, 1952
  4. The Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955
  5. The Working Journalists (Fixation of Rates of Wages) Act, 1958
  6. The Motor Transport Workers Act, 1961
  7. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
  8. The Contract Labour (Regulation and Abolition) Act, 1970
  9. The Sales Promotion Employees (Conditions of Service) Act, 1976
  10. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
  11. The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981
  12. The Dock Workers (Safety, Health and Welfare) Act, 1986
  13. The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
Social Security  Code
9 laws –
  1. The Employees’ Compensation Act, 1923
  2. The Employees’ State Insurance Act, 1948
  3. The Employees Provident Fund and Miscellaneous Provisions Act, 1952
  4. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
  5. The Maternity Benefit Act, 1961
  6. The Payment of Gratuity Act, 1972
  7. The Cine Workers Welfare Fund Act, 1981
  8. The Building and Other Construction Workers Welfare Cess Act, 1996
  9. The Unorganised Workers’ Social Security Act, 2008

Here are the key features of these bills:

 (A) Social Security Code, 2020
  • The facility of ESIC would now be provided in all 740 districts. At present, this facility is being given in 566 districts only.
  • EPFO’s coverage would be applicable on all establishments having 20 workers. At present, it was applicable only on establishments included in the Schedule.
  • Provision has been made to formulate various schemes for providing comprehensive social security to workers in the unorganised sector.
  • A “Social Security Fund” will be created on the financial side in order to implement these schemes.
  • Work to bring newer forms of employment created with the changing technology like “platform worker or gig worker” into the ambit of social security has been done in the Social Security Code.
  • Provision for Gratuity has been made for Fixed Term Employee and there would not be any condition for minimum service period for this.
  • With the aim of making a national database for unorganised sector workers, registration of all these workers would be done on an online portal and this registration would be done on the basis of Self Certification through a simple procedure.
 (B) Occupational Safety, Health & Working Conditions Code, 2020
  • Free health checkup once a year by the employer for workers which are more than a certain age.
  • A legal right for getting Appointment Letter given to workers for the first time.
  • Cine Workers have been designated as Audio Visual Worker so that more and more workers get covered under the OSH code. Earlier, this security was being given to artists working in films only.
(C)  Industrial Relations Code, 2020
Efforts made by the Government for quickly resolving disputes of the workers include:
  • Compulsory facility for Helpline for redressal of problems of migrant workers.
  • Making a national database of migrant workers.
  • Provision for the accumulation of one day leave for every 20 days worked when work has been done for 180 days instead of 240 days.
  • Equality for women in every sphere: Women have to be permitted to work in every sector at night, but it has to be ensured that provision for their security is made by the employer and consent of women is taken before they work at night.
  • In the event of the death of a worker or injury to a worker due to an accident at his workplace, atleast 50 % share of the penalty would be given. This amount would be in addition to Employees Compensation.
  • Provision of “Social Security Fund” for 40 Crore unorganized workers alongwith GIG and platform workers and will help Universal Social Security coverage
  • Occupational Safety & Health Code to also can now over cover workers from IT and Service Sector.
  • 14 days notice for Strike so that in this period amicable solution comes out.
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