Ministry of Labour & Employment

New Labour Code

Posted On: 12 DEC 2022 5:53PM by PIB Delhi

The Government has formulated four Labour Codes, namely, the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 and published these Codes in the Official Gazette for general information. As a step towards implementation of the four Labour Codes, the Central and a number of State Governments have pre-published the draft Rules, inviting comments of all stakeholders.

The four Labour Codes envisage strengthening the protection available to workers, including unorganized workers in terms of statutory minimum wage, social security and healthcare of workers.  Some of the important provisions are as follows:-

  • A statutory right for minimum wages and timely payment of wages has been made available to all workers to support sustainable growth and inclusive development.
  • To avoid multiple interpretations and litigations, uniform definition of ‘wages’ across all the four Labour Codes has been provided that is simple, coherent and easy to enforce.
  • Provision for annual health check-up and medical facilities has also been made which enhances labour productivity and increases life expectancy.
  • Statutory provision has been made for the first time to issue appointment letter to every employee of the establishment which leads to formalized contract of employment that increases job security and enables a worker to claim statutory benefits such as minimum wages, social security etc .
  • Provision of Re-skilling Fund for skill development of workers.
  • The gig worker and the platform worker have been defined for the purpose of formulating schemes to provide social security benefits. Social security schemes can be formulated from the contribution of aggregators and the other sources can include funds from the Central and State Governments.
  • The Central Government may extend benefits to unorganised workers, gig workers and platform workers and the members of their families through Employees’ State Insurance Corporation or Employees’ Provident Fund Organization.
  • A worker engaged under Fixed Term Employment (FTE) is entitled for all the benefits which are available to permanent employees and has also been made eligible for gratuity if he renders service for a period of one year.
  • Every worker is entitled to annual leave with wages after working for 180 days in comparison to 240 days at present. Provision for encashment of leave on demand by a worker while in service at the end of calendar year.
  • Applicability of Employees' Provident Fund has been extended to all industries as against scheduled industries at present.

 

This information was given by the Minister of State for Labour & Employment, Shri Rameswar Teli in a written reply in Lok Sabha today.

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