Explanation -
The four Labour Codes enacted between 2019 and 2020 are —
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions (OSH) Code, 2020
Significance of the Labour Codes —
- Ease of Doing Business: Simplified compliance framework, reduction in multiplicity of laws, and digitisation of labour administration.
- Formalisation of employment: Improved documentation, electronic wage payment systems, and universalised social security architecture.
- Expansion of social security: Inclusion of gig workers, platform workers, and unorganised labour marks a major policy shift.
Together, they replace 29 existing labour laws.
Wage-Related Provisions -
National Floor Wage — The Centre will determine a national floor wage in consultation with the Central Advisory Board, and State governments. The floor wage will consider minimum living standards, food, clothing, housing, and other factors deemed appropriate.
Working hours — 8-hour normal working day, weekly cap fixed at 48 hours, and daily wage calculations (hourly wage is equal to daily wage divided by 8, while monthly wage is equal to daily wage multiply by 26).
Mandatory wage slips — Employers must issue wage slips electronically or physically.
Timely wage payments — The government has mandated strict timelines for wage payments —
- Daily workers (by end of shift)
- Weekly workers (before weekly holiday)
- Fortnightly workers (within 2 days)
- Monthly workers (within 7 days of next month)
Payments must be made through the bank transfer electronic mode.
Penalties for contractors — Contractors failing to pay workers on time may face debarment, blacklisting, and procurement restrictions.
Explanation -
The four Labour Codes enacted between 2019 and 2020 are —
- Code on Wages, 2019
- Industrial Relations Code, 2020
- Code on Social Security, 2020
- Occupational Safety, Health and Working Conditions (OSH) Code, 2020
Significance of the Labour Codes —
- Ease of Doing Business: Simplified compliance framework, reduction in multiplicity of laws, and digitisation of labour administration.
- Formalisation of employment: Improved documentation, electronic wage payment systems, and universalised social security architecture.
- Expansion of social security: Inclusion of gig workers, platform workers, and unorganised labour marks a major policy shift.
Together, they replace 29 existing labour laws.
Wage-Related Provisions -
National Floor Wage — The Centre will determine a national floor wage in consultation with the Central Advisory Board, and State governments. The floor wage will consider minimum living standards, food, clothing, housing, and other factors deemed appropriate.
Working hours — 8-hour normal working day, weekly cap fixed at 48 hours, and daily wage calculations (hourly wage is equal to daily wage divided by 8, while monthly wage is equal to daily wage multiply by 26).
Mandatory wage slips — Employers must issue wage slips electronically or physically.
Timely wage payments — The government has mandated strict timelines for wage payments —
- Daily workers (by end of shift)
- Weekly workers (before weekly holiday)
- Fortnightly workers (within 2 days)
- Monthly workers (within 7 days of next month)
Payments must be made through the bank transfer electronic mode.
Penalties for contractors — Contractors failing to pay workers on time may face debarment, blacklisting, and procurement restrictions.