FOUR LABOUR CODES – FULL IMPORTANT MATERIAL (Easy Notes)
( Code on Wages, 2019 • Industrial Relations Code, 2020 • Social Security Code, 2020 • OSHWC Code, 2020 )
1. CODE ON WAGES, 2019
Purpose
To ensure fair wages, equal pay, and timely payment to all workers.
Covers 4 old laws
• Payment of Wages Act, 1936
• Minimum Wages Act, 1948
• Payment of Bonus Act, 1965
• Equal Remuneration Act, 1976
Key Features
• National Floor Wage introduced (minimum wage below which no state can go).
• Uniform definition of “Wages” for all laws.
• Timely payment of wages to all types of employees.
• Mandatory appointment letter for every employee.
• Equal pay for equal work for both men and women.
• Wages to be credited monthly; digital mode encouraged.
• Bonus eligibility rules simplified.
Who Benefits
Unorganised workers, contract labourers, women workers, gig workers.
2. INDUSTRIAL RELATIONS (IR) CODE, 2020
Purpose
To reduce industrial disputes and promote ease of doing business.
Covers 3 old laws
• Trade Unions Act, 1926
• Industrial Employment (Standing Orders) Act, 1946
• Industrial Disputes Act, 1947
Key Features
• Single registration for trade unions.
• Negotiating Union: If one union has 51% members, it becomes the main negotiating union.
• Strike Rules: 14-day notice mandatory for strikes in all industries.
• Fixed-Term Employment:
o Fixed-term workers get same benefits as permanent workers, including gratuity after 1 year.
• Lay-off / Retrenchment / Closure rules:
o Factories with up to 300 workers can lay off without prior government permission (raised from 100).
• Dispute settlement improved—conciliation, arbitration, tribunals.
Who Benefits
Workers get more security; industries get flexibility.
3. SOCIAL SECURITY CODE, 2020
Purpose
To provide social protection to all workers, including gig, platform and unorganised workers.
Covers 9 old laws
Includes:
• EPF Act, 1952
• ESI Act, 1948
• Maternity Benefit Act
• Payment of Gratuity Act
• Unorganised Workers’ Social Security Act, etc.
Key Features
• Universal Social Security for all categories of workers.
• Gig and Platform Workers (Ola, Uber, Zomato, etc.) brought under social security for the first time.
• Employers + Aggregators contribute to gig workers’ welfare fund.
• Portability of benefits across states.
• ESI coverage expanded to more sectors.
• EPF compulsory for more establishments.
• Provision of social security fund for unorganised workers.
• Maternity benefits, disability benefits, and old-age pensions strengthened.
Who Benefits
Gig workers, platform workers, building & construction workers, migrant workers.
4. OCCUPATIONAL SAFETY, HEALTH & WORKING CONDITIONS (OSHWC) CODE, 2020
Purpose
To improve workplace safety, health conditions, and welfare of workers.
Covers 13 old laws
Includes:
• Factories Act, 1948
• Mines Act, 1952
• Contract Labour Act, 1970
• Inter-State Migrant Workers Act, 1979, etc.
Key Features
• Single registration, single licence and single return for all establishments.
• Daily working hours: 8–12 hours, but weekly limit 48 hours.
• Annual free health check-up for workers (especially 40+ age).
• Inspector–cum–Facilitator to promote compliance rather than punishment.
• Mandatory safety standards across all industries.
• Migrant workers can register on a central portal and get portability of benefits.
• Women allowed in all shifts with safety measures.
• Clean drinking water, canteens, first-aid, crèches — made compulsory where applicable.
Who Benefits
Factory workers, mines workers, construction workers, migrant labourers, women workers.
WHY THE FOUR CODES ARE IMPORTANT
1. Simplification
• 29 labour laws combined into 4 codes to remove confusion.
2. Ease of Doing Business
• Single registration, single return, single licence.
3. Worker Welfare
• Minimum wages, social security, safety norms all improved.
4. Formalisation of Workforce
• Gig workers, contract workers, unorganised sector brought under formal system.
5. Clarity & Transparency
• Common definitions of wages, employees, employers.
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