What Are the Latest Trends in Labour Laws in India?

Bhoomi Kaushik
20/12/2024

What Are the Latest Trends in Labour Laws in India?

Labour laws in India have undergone a sea change in the recent past, reflecting the changing socio-economic landscape of the country. These changes have been aimed at simplifying the regulations, promoting ease of doing business, and taking care of the welfare of workers in a fast-changing economic environment. Here, we explore the latest trends in labour laws in India and their implications for employers and employees.

1. Consolidation of Labour Laws

The most significant Indian labour law is the consolidation of 29 existing laws into four labour codes:

The Code on Wages, 2019: Contains minimum wages, payment of wages, equal remuneration, and bonus payments.

The Industrial Relations Code, 2020: Focuses on trade unions, industrial disputes, and worker-employer relations.

Code on Social Security, 2020: Seeks to cover social security to unorganized workers, gig workers, and platform workers.

Occupational Safety, Health, and Working Conditions Code, 2020: Safeguarding work environments and conditions in general industries

The codes further ease compliance and aim at striking a balance between the rights of the worker and the promotion of industrial growth.

2. Emphasis on Gig and Platform Workers

The rise of the gig economy has also resulted in the inclusion of gig and platform workers under the ambit of social security in the Code on Social Security, 2020. Provisions include benefits such as life and disability cover, health insurance, and maternity benefits. This move recognizes the growing importance of gig workers and aims to provide them with fundamental rights and protections.

3. Increased Digitalization of Compliance

Digital platforms for labour law compliance: The government emphasizes this aspect to make compliance easy for businesses. Some of these are as follows:

Online portals for filing returns and obtaining registrations

Unified Labour Portal (Shram Suvidha Portal) to simplify reporting requirements

E-SHRAM, a national database for unorganized workers, has been introduced to help improve welfare measures.

4. Worker Welfare Provisions Improved

The new labour codes provide more significant benefits to workers' welfare:

Universal minimum wage, treating all categories of workers with equities

Health check-ups are compulsory in specific categories of employment.

Provisions for women to work night shifts safely with adequate safeguards

Including transgender persons in the definition of a worker to ensure the rights of equal treatment, just like others.

Incorporating these steps fits India's commitment to inclusive growth and well-being at work.

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5. Hire and Fire Flexibility

The Industrial Relations Code of 2020 has provisions that ease norms for hiring and firing employees for employers. For example,

Companies with 300 or fewer employees no longer require permission from the government to fire employees.

Provisions regarding fixed-term employment contracts provide flexibility for employers but with benefits that are equal to permanent employees.

These measures will provide a boost to industrial efficiency and competitiveness.

6. Better Safety and Health Standards

The Occupational Safety, Health, and Working Conditions Code highlights better workplace safety standards by focusing on the following:

Mandatory annual health check-ups

Clear guidelines on working hours and conditions for hazardous industries

Increased accountability for employers to ensure workplace safety

7. Gender Inclusivity

The labour codes have provisions for promoting gender inclusivity in the workforce by including:

Women can work in all sectors, including night shifts, with necessary safety measures.

The right remunerative benefits between men and women for similar work

Provision for Maternity and creche facilities

In this direction, more efforts are expected to be focused by the government on women participating at a larger scale in workplaces.

8. Focus on Skill Development

The governments are trying to consolidate labour laws with skill development initiatives to increase employability. Appropriate provisions about apprenticeships and on-the-job training in new codes will raise the employability of working forces at an industry demand level.

Implications of the Trends:-

For Employers:

Simplified compliance processes reduce administrative burdens.

Greater flexibility in workforce management

Increased accountability for worker safety and welfare

For Employees:

Enhanced social security and welfare measures

Greater inclusivity and opportunities for marginalized groups

Improved workplace safety and working conditions

Conclusion:

These are, after all, labour law reforms by a country that looks ahead at economic growth about the welfare of its workers. This means streamlining regulations, embracing digitalization, and paying heed to emerging workforces like gig workers to promote a more inclusive and efficient labour market. To be on the same side of these benefits, both employers and employees have to keep abreast and adjust with these changes.

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