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Labor Law Reforms in India


          As important as creating new jobs is, ensuring those who are already employed are taken care of adequately is another goal of the government. The new laws mandate a national minimum wage of 176 rupees ($2.50) per hour.
Companies will not require multiple registrations, the government has proposed one license, one registration, and one return for establishments. This is a part of a major labour law reform proposed in Parliament recently.
The (OSHW) Occupational Safety, Health and Working Conditions code, introduced by Labor and Employment Minister has proposed one registration for an establishment.
Importantly, “OSHW” will bring all establishments hiring at least 10 workers, including those in services sector, thereby bringing the information technology sector within its ambit.
The code covers the ambit of provisions of safety, health, welfare and working conditions from existing about 9 major sectors to all establishments having 10 or more employees,” an official statement issued by the ministry of labor law compliance in India said.
While codifying labor laws in India, labor interests shouldn’t be overlooked
The compression of multiple labor laws into 4 ‘codes’ or broad categories — wages, social security, industrial relations and occupational health and safety — forms a main aspect of the Centre’s labor reforms push since 2015. As part of the process, the Cabinet recently passed the tabling of the Code on Occupational Safety, Health and Working Conditions Bill in Parliament, which encapsulates 13 laws. The Wage Code Bill will be introduced in Parliament soon.
Former chairman of Niti Aayog Mr. Arvind Panagariya captured the complexities of India's labor rules in these words, "The labor conditions situation is incredibly complex: when you go from six workers to seven number in a firm, the Trade Unions Act kicks in. When you go up from nine to ten, the Factories Act kicks in. And when you climb from 19 to 20, something else comes in picture, and it continues. The biggest concern is the Industrial Disputes Act, which says that if you into a manufacturing firm with 100 workers or more, you cannot terminate any of them under any situation unless you get prior approval from the government.
Labor laws rules in the concurrent list and more than 40 central and 100 state laws govern the subject. The central government is keen to consolidate the laws into four codes - wages, industrial relations, social security and welfare and occupational safety, health and working conditions - and bring about reforms to ensure ease of business.

The government was into trouble during the last Lok Sabha because of the opposition from trade unions due to a large number of reforms proposed in the four codes.

The key contentious reforms are as follows:-


Membership and composition of trade unions: The Industrial reforms Code of 2017 provided that a minimum of 10% of workers or 100 workers employed in an establishment or industry would be needed to register a trade union. It also restricted outsiders to an establishment/industry from becoming a member of office bearer.
Hire and fire: The reforms code 2017 increased the limit for prior permission of the government for lay-off, retrenchment and closure to 300 workers. This is the most controversial condition.
Ban on strikes: The reform also restricted strike by a requiring a notice of 14 days and striking within two months of a notice (now prior notice is required only for essential services), (b) but banning strikes during the pendency of the conciliation process which starts from the day of the notice and (c) increasing fine up to Rs 50,000 in addition to one month's imprisonment for violations.
Redefining factories: The reform proposes many amendments in the Factories Act of 1948 to ensure enough safety measures and to promote health and welfare of the workers. One of these relates to redefining factories numbers from a minimum of ten workers in an establishment (if power is used) to twenty and from twenty (if power is not used) to fourty workers.

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