Parliament passes three labour law bills.

The Lok Sabha on 22nd September 2020 has introduced three labour legislation including the Code on Industrial Relations, the Social Security Code and the Code on Occupational Safety, Health and Working Condition which shall bring all workers under some form of social security, provide much-needed flexibility to the employers to hire and downsize the workforce.

Key Highlights from the bill.

The code on occupational safety, health and working conditions (OSH&WC Code) and the industrial relations code (IR Code) will give autonomy to states to amend labour laws to suit their industrial needs and attract investments through labour reforms without seeking Centre’s permission.

The Code on Industrial Relations seeks to consolidate and amend laws relating to trade unions, conditions of employment in industrial establishments or undertaking, investigation and settlement of industrial disputes. The Industrial Relations Code has raised the threshold for the requirement of a standing order — rules of conduct for workmen employed in industrial establishments — to over 300 workers.

The Code on Social Security, 2020, will amend and consolidate laws relating to social security with the goal to extend social security to all employees and workers either in the organised sector or the unorganised sector. EPFO’s coverage would be applicable on all establishments having 20 workers. At present, it was applicable only on establishments included in the Schedule.

Provision has been made to formulate various schemes for providing comprehensive social security to workers in the unorganised sector. A “Social Security Fund” will be created on the financial side in order to implement these schemes.

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