What are the major issues towards labour reforms in India? Discuss while elucidating the proposed "four labour codes" as a part of the labour law reforms?
Published: September 7, 2017
As per the seventh schedule, labour and labour welfare are the part of the concurrent list. Government as a part of labour reforms has framed 4 labour codes after rationalisation of the 38 Labour Acts. These labour codes include Code on Wages, Code on Industrial Relations, Code on Social Security and Code on occupational safety, health and working conditions.
The Code on Wages Bill 2017 subsumes 4 existing Laws (Minimum Wages Act, the Payment of Wages Act, the Payment of Bonus Act, the Equal Remuneration Act ). Such Codification of the Labour laws will resolve the issue of the multiplicity of definitions and authorities leading to increased complexity. Also presently, the applicability of the Minimum Wages Act & Payment of Wages Act is limited to the Scheduled Establishments.
However, the new code will be applicable to all in every sector. Depending on the geographical locations, a concept of statutory National Minimum Wage has been introduced to ensure that States do not fix the minimum wage below the National Minimum wage. The national minimum wage depending on geography will provide the much-needed flexibility in labour reforms.
The proposed wage payment through digital mode or cheque would have twin benefits. It will promote digitization as well as it will extend social security to the worker. Along with these provisions, the codes also deals with grievance redressal mechanisms as well as the penalties for violations has been rationalized.
Labour reforms are key for not only economic growth but are also essential for the welfare of large labour force. Along with labour reforms, the focus should be on skill component so that the benefits of demographic dividend can be reaped.
Model Questions Category: 075 - Changes in Industrial Policy and Their Effects On Industrial Growth