New Labour Reforms, Latest Changes With The Labour Laws

There are numerous labour laws in India – more than 40. As part of labour reform initiatives, the labour ministry has decided to amalgamate 44 labour laws into four labour codes — on wages, industrial relations, social security and safety, health and working conditions.These are a slew of legislation aimed at reforming and simplifying the labour law regime in the country. According to the government, all major labour unions were consulted in the process.

The plan is to replace 44 labour laws that dealt with different issues with four comprehensive bills. With this, we will have just four simplified laws in place of these laws.

The new 4 codes will deal with wages, social security, industrial safety and welfare, and industrial relations.

Code on wages will subsume legislations like The Minimum Wages Act, the Payment of Wages Act, the Payment of Bonus Act, the Equal Remuneration Act. It aims to provide a national floor for minimum wage. It also has provisions to consider regional variations like geography, economy etc.

Code on Industrial safety and welfare will replace legislations like the Factories Act, the Mines Act and the Dock Workers (Safety, Health and Welfare) Act. This will put in place a uniform regime across the nation to ensure industrial safety.

The Labour Code on Industrial Relations will combine the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947. The focus here is to set the stage for the way labour unions can protect labour interests. It also seeks to abolish deadlocks and promote worker welfare while promoting investment.

Code on social security will merge important legislations like Employees’ Provident Fund and Miscellaneous Provisions Act, Employees’ State Insurance Corporation Act, Maternity Benefits Act, Building and Other Construction Workers Act and the Employees’ Compensation Act

IMPORTANT NOTE: The Labour Code on Wages was approved by Parliament in August while the Labour Code on Occupational Safety, Health and Working Conditions have been referred to the standing committee on labour.

SO, there's no wrong in the fact that a vibrant and responsible trade union environment is the requisite for inclusive growth to any economy. It checks growing inequality and falling living conditions of the working class.Recent years has seen an erosion of powers of most labour unions. Though labour reforms are the need of the hour, every reform should strike a perfect balance between labour welfare and investment-led development.