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The new Labour Code 2020 : Explained

 The new Labour Code 2020,  Explained


The new Labour Code 2020. The Lower House has passed the new Labour Codes. There were a total of three bills passed by the Indian Senate namely

  1. Indian Relation Code Bill, 2020
  2. Code on Social Security Bill, 2020 and
  3. Occupational Safety, Health and Working Conditions Code Bill, 2020
The Government of India proposed to expand the social security by including the migrant workers and it will also provide the institutions to Hire and Fire workers without the permission of the Government.

The new Labour Code 2020 : Explained


Here are the Key proposals of the Labour Code 2020

1. Indian Relation Code Bill, 2020

The government has proposed to increase more conditions in the Industrial Relation Code Bill, 2020 in which restricting the right of the worker's to strike and making the employer to increase in the threshold relating to layoffs and retrenchment having 300 workers from 100 workers or more than at present. It will help the employer for hiring and firing workers without government intervention.

The Committee said in its report which was submitted earlier this year suggested that hiking the limit to 300 workers will help in the increase in employment and will decrease in retrenchment. 

 The Industrial Relation code will be applicable for every industrialist establishment where there are 300 or more than three hundred workers are employed or were employed on any day of the preceding 12 months.

According to code the "worker" is defined as the person who is employed in a skilled or unskilled, manual, technical or any capacity drawing monthly salary of up to  Rs. 18000.

2. Code on Social Security

Under the code on social security, the government has made few changes for other than organised sector such as home based worker, self employed. The government will setup a fund for these unorganised workers. The state government has also included in the same to make the security funds for the workers.

The Code clearrifies that the scheme for the workers will be funded through the combination of central government, state government and the aggregators. Apart from this, there are few changes have been made in the definition of few terms in the bill of 2020 which included,
  • Changing the definition of the word 'employees' to include the workers who employed through contracts
  • Given new definition to the mogrant workers to include the workers from other states.
  • Given new definition to the "platform workers" 


3. Code on Occupational Safety, Health and Working Conditions, 2020


According to the new Code on occupational safety, health and working conditions,2020 a new definition has given to the factory which is notifies as the place where the manufacturing process is happening which hires 20 workers which is carried out using power and fortee workers where the manufacturing is carried without power.

1. The new bill has the time limit of working hours i.e. eight hours.
2. The women cn work wherever they want to in all types of work like it can be dangerous or hazardous, for that, the government will provide adequate safety prior to their employment.

The new Labour Code 2020 : Explained


The Concerned raised on the New Labour Codes

Analyts says that it will reduce the rights of the labour in the small organisation in which there are less than 300 employees. It means that the government is providing the employer the liberty in terms of hire and fire. This will completely destroy the security of the employment. "said Professor and Economist K.R. Shyam of XLRI.

 The code Industrial Relation code also lays conditions on carrying out a legal strike. The condition has been laid in IR code  which means the employees have to provide the 60 days notice period to the employer. 

It means that the Industrial code proposes that no person can go on strike without giving a notice period of 60 days, who is employes in the industry. The government has made it legal, and no one can go on strike without the notice period.

The standing committee has recommended against the expansion of the required notice period for the strike ahead of the public utility services like natural gas, water, telephone, electricity and other essential services.

Presently, a person who is employed in the service of public utility service can't went onto strike until he gives a notice period for six weeks before going on the strike.