Introduction To Labour Codes
Introduction To Labour Codes
Module 12
Introduction to Labour Codes
Lecture 1
Introduction, labour reforms undertaken
Annual minimum Bonus will be at least: (i) 8.33% of his wages, or (ii) Rs 100, whichever is higher
irrespective of allocable surplus.
In addition, employer will distribute a part of the gross profits amongst the employees. This will be
distributed in proportion to the annual wages of an employee.
An employee can receive a maximum bonus of 20% of his annual wages in an accounting year.
• It shall not apply to the offices of the Central Government, offices of the
State Government and any ship of war of any nationality. (but the Code
shall apply in case of contract labour employed through contractor in
these offices)
• The 2020 Bill includes all establishments where any hazardous activity
is carried out regardless of the number of workers.
• The code is applicable to establishments employing at least 10 workers.
• It applies to mines and docks even in case there is one worker.
• The Code fixes the daily work hour limit to a maximum of eight hours.
• The code does not apply to apprentices under the apprentices Act.
Source: The Gazette of India
Salient Features of OSH Code
• It defines an inter-state migrant worker as someone who has come on
his/her own from one state and received employment in another state
and earns up to Rs.18000 per month.
• It also empowers women to be employed in all kinds of establishments
and at night (between 7 PM and 6 AM) subject to their consent and
safety.
• The code removes the manpower limit on hazardous working
conditions and makes the application of the Code obligatory for
contractors recruiting 50 or more workers (earlier it was 20).
• Constitution of a National Occupational Safety and Health Advisory
Board (National Advisory Board) by the Central Government, which
shall be empowered to advise the Central Government.
Important Definitions
Employer – A person who employs, whether directly or through
any person, or on behalf of an establishment is called an
“Employer”. This person/authority has the ultimate control over
the establishment.
The employer shall inform the closing of establishment within 30 days to the
registering officer and certify payment of all dues
Further, some establishments such as factories and mines, and those hiring
workers such as beedi and cigar workers, may be required to obtain additional
licenses to operate.
Source: The Gazette of India
Other Provisions
• For inter-state migrant workers:
(i) option to avail the benefits of the public distribution system either in the
native state or the state of employment
(ii) availability of benefits available under the building and other
construction cess fund in the state of employment,
(iii) insurance and provident fund benefits available to other workers in the
same establishment.
• Database for inter-state migrant workers: The central and state
governments maintain or record the details of inter-state migrant
workers in a portal.
• An inter-state migrant worker can register himself on the portal with self-
declaration and Aadhaar.
• Social Security Fund for the welfare of unorganised workers.
Duties of Employer, Employees and Consultants
Duties of Employer and Employee
• Providing a workplace that is free from hazard
• Providing free annual health check up
• Issuing appointment letters to employees (prescribed format)
• Informing relevant authorities in case an accident at the workplace leads to death or serious
bodily injury of an employee
Duties of Employees
• Take care of their own health and safety, complying with safety and health standards and
reporting unsafe work incidents to the inspector.
Duties of Consultants
• Manufactures, importers, designers, suppliers must ensure, the article created or provided by
them in an establishment is safe and should provide information on its safe handling
• Architects, engineers and designers must ensure the safety of structures designed by them.
Rights of Employees
Right to ask the employer about the information related to the employee’s health and
safety and enquire about the provision for the protection of the employee’s safety or
health in connection with the work activity in the workplace
If the employer is not satisfied with the existence of any imminent danger as
apprehended by his/he employees, he/she can refer the matter to the inspector-cum-
facilitator whose decision shall be final
Source: The Gazette of India
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Labour Welfare and Industrial Relations
Module 12
Introduction to Labour Codes
Lecture 4
Industrial Relations Code, 2020
The
Industrial
The Employment
Industrial (Standing
The Trade Disputes Orders) Act,
U n i o n Act, Act, 1947 1946
1926
KEY DEFINITIONS
WORKERS
The d e f i n i t i o n of w o rk e r s ha s been e x p a n d e d
f u r t h e r t o i n clud e j o u r n a l i s t s , sales p r o m o t i o n
emp loy ees, a n d employees who are w o r k i n g as
s u p e rv i s o r s b u t are e a r n i n g less t h a n Rs.
18 , 000 per m o n t h .
TRADE UNION
A n y c o m b i n a t i o n , w h e t h e r t e m p o r a r y or p e r m a n e n t ,
f o r m e d p r i m a r i l y t o r e g u l a t e t he r e l a t i o n s b e t w e e n
w o r k e r s a nd e m p l o y e r s or b e t w e e n w o r k e r s a nd
work er s, or b e t w e e n e m p l o y e r s a n d e m p l o y e r s , or
for i m p o s i n g r e s t r i c t i v e c o n d i t i o n s on t he c o n d u c t
of a ny t r a d e or b u s i n e s s a nd i n c l u d e s any
f e d e r a t i o n of t w o or m o r e Tr a d e Unions.
KEY DEFINITIONS
INDUSTRIAL DISPUTE Any differences of o p i n i o n b e t we en employees a n d
emp l o y ers b e c ause of employee r e t r e n c h m e n t ,
d i smi ssal , o r t e r m i n a t i o n .
The w o r k e r c a n a p p e a l this with the g o v e rn i n g
b o d y ( also called the i n d u s t r i a l t r i b u n a l ) wi t h in 45
days f r o m the d a t e of r e t r e n c h m e n t o r t e r m i n a t i o n .
D o e s n o t include : RETRENCHMENT
i . v o l u n t a r y r e t i r e m e n t of t h e wo r ke r
i i . r e t i r e m e n t of t h e wo r ke r on r e a c h i n g t he age of
superannuation
i i i . t e r m i n a t i o n of t h e s e r v i c e of t he wo r ke r as a
r e s u l t of t he n o n - r e ne wal of t he c o n t r a c t of
e mplo yme nt between the employer.
SCOPE & APPLICABILITY
Registration, Cancellation & Alteration of Name of Trade Union
Constitution of Work Committee & Grievance Redressal
Committee
Incorporation of a Registered Trade Union
Recognition of Negotiating Union
Preparation of Standing Order
Register of Standing Order
Constitution of Industrial Tribunal
Illegal Strikes and Lock-outs
Procedure for Retrenchment and Re-employment of
Retrenched Worker
Compensation to Workers in case of Transfer of Establishment
Prohibition of Lay-off
Closure of an Industrial Establishment
REGISTRATIONOFTRADEUNION
Any seven or more members of a trade union by
subscribing to their names, apply for registration of the
Trade Union.
At least ten per cent of the workers or 100 workers,
whichever is less, must be members of the Trade Union on
the date of making an application for registration.
Registered Trade Union shall continue to have at least ten
per cent of the workers or one hundred workers, whichever
is less, wherein a minimum of seven members are engaged
or employed in an industrial establishment or industry with
which it is connected.
If the name of the Trade Union proposed to be registered is
identical to an existing registered Trade Union, alteration of
the name is required as asked by the Registrar of Trade
Union.
Registered Trade Union shall be a body incorporated by the
registered name, having a common seal and perpetual
succession with the power to hold property.
• The Employer shall either give three months' notice or pay the retrenched worker
instead of the notice period.
• Where any worker is retrenched and the employer proposes to take into his
employment any person within one year of such retrenchment, an opportunity will
be given to the retrenched workers who are citizens of India to offer themselves
for re-employment.
• give one month's notice or wages for the notice period to the retrenched worker
• non-seasonal industrial establishments with at least 300 workers are required to
take prior approval from central or state government before lay-off, retrenchment
or closure.
CLOSURE
Any Employer intending to close an Industrial Establishment is required to
serve 60 days’ advance notice to the Government.
Provision for compensation to those workers who are in a continuous period of
service not less than one year in case of Closure of Industrial Establishment.
Other
off so that they are able to secure
employment again
Act
The panel cannot be more than 10 people, and
should have equal and fair representation from
employers, employees, and women
employees.
Social Security and Cess in • Every establishment which falls under the
VIII respect of Building and Other building and other construction work.
Construction Workers