::DRAFT LABOUR CODE::
There are various labour laws for regulating employment and
conditions of service of workers. These laws also provide for maintaining
registers and furnishing returns to the concerned enforcement authorities. The
labour laws of independent India derive their origin, inspiration and strength
partly from the views expressed by important nationalist leaders during the days
of national freedom struggle, partly from the debates of the Constituent
Assembly and partly from the provisions of the Constitution and the
International Conventions and Recommendations. The relevance of the dignity of
human labour and the need for protecting and safeguarding the interest of labour
as human beings has been enshrined in Chapter-III (Articles 16, 19, 23 & 24) and
Chapter IV (Articles 39, 41, 42, 43, 43A & 54) of the Constitution of India
keeping in line with Fundamental Rights and Directive Principles of State
Policy. But according to some analysts labour laws has become a hinderace in the
growth of industries in the country. Under the Constitution of India, Labour is
a subject in the concurrent list where both the Central and State Governments
are competent to enact legislations. There are 45 different national- and
state-level labour legislation in India. Important among those are-
The Industrial Disputes Act, 1947.
The Child Labour (Prohibition and Regulation) Act, 1986.
The Factories Act, 1948
TheTrade Unions Act, 1926
The Apprentices Act, 1961
It was framed pursuant to the recommendations of the 2nd
National Commission on Labour. It was done with a view to simplify, rationalize,
consolidate, and amend the laws relating to social security of workforce.
Currently there are total fifteen Labour Laws including Employees' Provident
Fund Act, Employees' State Insurance Act, Maternity Benefit Act etc. Ministry
had proposed to replace these Labour laws with the four codes.
Four codes to replace all the existing laws are codeof
wages, code of Industrial relations, Code on Social Security & Welfare and
Code on Occupational Safety, Health & Working Conditions
Employer means the employer of any entity that employs an
employee oremployees, either directly or through contractors.
It is applicable to any person who is employed for wages by
the entity, International workers and Indian workers outside who wants to
become a member under this code.
Draft Code is not applicable to such class of workers that
has been specified in Part - II of the First Schedule
Draft code covers the workers from Organised as well as
Unorganized Sectors of Employment.
It proposes to constitute a National Social Security Council
of India for reviewing and monitoring the implementation of the Draft Code
and also to advise the govt.
It proposes to invite claims and objections for the
unclaimed amount of the preceding financial year within a period of minimum
It proposes to provide a unique Aadhar-based registration
service for registration of workers to be named as Vishwakarma Karmik
Suraksha Khata (VIKAS)
The Draft Code proposes allowing the benefits even when the
Employer fails or neglects to pay any contribution
The total contribution to be made by employers towards
Employees' Provident Fund and Employees' State Insurance Scheme is proposed
to be capped at 30% of the workers' income.
For the first time, cover to agricultural workers is being
provided along with selfemployed people. The target is to provide social
security benefits to 45 crore workers.
A National Social Security Council, chaired by the PM, has
been proposed to streamline and make policy on social security schemes
related to all the Ministries.
Despite being a very well intentioned and well thoughtout plan,
draft labour code still has some problems which needs to be looked upon for the
better results. Some of the problems of the draft code are given below:
It does not recognise that social security systems for old
age are structurally different from those designed for poverty.
It tries to consolidate existing 15 labour laws which will
be very difficult to do.
It tries to combine elements of Universal Basic Income,
Direct Benefits Transfer, Provident Fund, Health Insurance, Maternity
Benefit, etc. which will have huge financial implications.
A single account for voluntary contribution, mandatory
contributions, mandatory subsidised scheme, and social assistance programme
for poor which is an accounting and actuarial impossibility.