Big-Bang Labour Reforms
29 labour laws streamlined into 4 comprehensive Labour Codes.
1. Code of wages
* Establishes a statutory right to minimum wages for all, including those in unorganised sector.
* Review of minimum wages every 5 years.
* Equal remuneration to male and female workers.
2. Code on social security
* Benefit of pension scheme to all workers of organised, unorganised and self-employed sectors.
* Employees engaged on fixed term (contract) to get same social security benefit as permanent
employees.
* Social security fund for the unorganised sector.
3. Code on occupational safety, health and working conditions
* Creating safe working conditions in business-friendly environment.
* Mandatory, free annual health check-up of workers.
* Database of migrant workers.
4. Code of Industrial Relations
* Allows direct, time-bound contracts with full parity in wages, benefits; gratuity eligibility
after one year.
* Re-skilling fund to train retrenched employees; amount equal to 15 days' wages for every
worker retrenched.
My take
* While the government claims the move will go a long way in ease of doing business, it will also
increase operating costs for companies due to higher wages and greater accountability on
safety and working conditions.
* Meanwhile, a joint platform of 10 central trade unions called for a nation-wide protest on 26 Nov
demanding the withdrawal of the codes, terming them "anti-worker" and "pro-employer". Some
trade unions welcomed the reforms.
* The next step is framing the rules. As labour is a concurrent subject, the centre and states have to
frame laws and rules.
Tailpiece.
A quiet Saturday. The maid was on leave.
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