22 Dec The four Labour Laws to be implemented in FY23 and Issues ahead (GS 3, Economics, The Hindu, Indian Express)
The four Labour Laws to be implemented in FY23 and Issues ahead- Today Current Affairs
News : The four Labour Laws on wages, industrial relation, occupational safety and social security are likely to be implemented by the next financial year 2022-23, as some states have already framed draft rules on these laws.
Context : Labour comes under the concurrent list of constitution. Thus both Parliament and state legislatures can make laws to regulate labour. There are over 100 states and over 40 central laws regulating various aspect of labour related to working conditions, industrial disputes, wages and social security. The National Commision on Labour (NCL) found these existing laws complex and inconsistent and thus recommended the consolidation of central labour laws into broader groups like industrial relations, wages, social security, safety, and welfare and working conditions.
In 2019, the Ministry of Labour and Employment introduced four Bills on labour codes to consolidate 29 central laws. These Codes regulate: (i) Wages, (ii) Industrial Relations, (iii) Social Security, and (iv) Occupational Safety, Health and Working Conditions.
Later, after the passage of the bills in parliament, the central government has notified four labour codes, namely, the Code on Wages, 2019, on August 8, 2019, and the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020 on September 29, 2020.
Key issues in Labour laws (that would still exists): The Hindu Analysis
-
Most labour laws apply to establishments over a certain size (typically 10 or over). In order to avoid to avoid compliance with labour regulations, the establishment may choose to remain small. This basically stops them to grow. And if the threshold size is increased, the labours in establishments with below threshold size wpold not be getting benefits of labour laws. Further, these laws only cover the organised sector (around 7% of the workforce as 93% workforces are unorganised).
-
As per the Industrial Disputes Act (IDA) 1947 mines, factories and plantations employing 100 or more workers require to obtain prior permission of the government before closing down, or laying off or retrenching workers. Critics say that requirement of prior permission would create an exit barrier for the firms and would also hinder their ability to adjust labour workforce according to the production demands. The Hindu Analysis.
-
Various labour laws have different compliance requirements for employing units which simply results in multiple inspections, returns and register
-
Some states are reported to have 423 labor related Acts, far more compliances and related filings. On the other hand, it has also been argued that machinery for the labour enforcement has not been that effective because of poor enforcement, inadequate charges and penalties and bribe seeking behaviour of inspectors. Further processes to the dispute resolution need reform to make them more effective.
-
The number of registered trade unions are like huge including several within establishments. Which union is really representing the laborers and can formally talk and negotiate with the management. Many times settlement made with unions are binding only to the participating members. This affects the collective bargaining powers of workers. Further the matter regarding permission of non employees to join trade unions has also been raised.
Way Forward : As we say, the devil lies in the details. The central government has issued draft rules under the codes and the state governments are yet to adopt them and may make changes in them. States have to look into conflicts of interest between opposing stakeholders and should not be overlooking it in making the enactment of laws rapid. The Hindu Analysis. To achieve a goal of 5 trillion economy, the centre and state government must go in harmony, roll out the codes by balancing the interest of stakeholders and introduce much needed labour reforms as soon as possible.
Here we mention all information about The four Labour Laws to be implemented in FY23 and Issues ahead Today Current Affairs.
Download Plutusias daily current affairs 22 December 2021
Plutus IAS Current Affairs Team Member
No Comments