The Union Cabinet on Wednesday approved three labour codes, and they will be taken up for discussion during the upcoming monsoon session. The central government has been working to concise 44 central labour laws into four broad codes on wages, industrial relations, social security and occupational health & safety. The industrial relations, social security and occupational health & safety were approved on Wednesday.
The three codes apart from the one on wages were introduced in the Lok Sabha last year and then sent for scrutiny of the Parliamentary Standing Committee on Labour.
Under the social security code, the Business Standard reported on Thursday companies that have gig workers will have to contribute to a social security fund set up for the workers, which will be a part of the social security code. The report added that in addition to the fund, there will be provisions through which these gig workers can contribute voluntarily towards Employees Provident Fund schemes.
“There will not be worker-based contribution, but some monetary contribution towards funds meant for social security cover of gig workers,” an official told the business daily.
Gig workers are presently not covered under social security measures, and companies are not legally obliged to provide them that.
According to the Times of India, the parliamentary standing committee had disagreed on parts of the social security code pertaining to entitlements, contributions and benefits, as the government had reportedly tried to delegate large portions of it to itself.
The code on occupational health and safety code involves industrial safety and welfare laws.
The Economic Times reported that as part of the Industrial Relations code, it will define who an ‘appropriate authority’ is in terms of occupational safety, and will remove the distinction between term employees and officials. The report further adds that as per the current draft, there are provisions for laying off and retrenchment of employees in establishments which employ over 100 people (this number could depend on the notification of each government). It also seeks to improve health facilities for workers on factory premises.
The Code on Wages was approved by the Parliament last year. The draft rules on the code were circulated for feedback. Once those are notified, it would become law.
Labour Minister Santosh Gangwar said during a FICCI conference that they have circulated draft rules of the Code on Wages, which would be finalised soon.
While the draft Labour Code on Industrial Relations subsumes three labour acts, including The Trade Union Act, 1926, and The Industrial Employment Act 1946, the draft Code on Social Security subsumes nine including The Employees' Compensation Act, 1923, The Maternity Benefit Act, 1961, and The Payment of Gratuity Act, 1972.