LABOUR LAW REFORMS

<<–2/”>a >p class=”cs40314EBF”>Definition:

• Industrial legalizations are the laws enacted by the Government to provide economic and social Justice to the workers in industries. Generally these laws provide guidelines to the employers/industrialists in dealing with the matters of wages, wage incentives, facilitates for workers and the working conditions of labour.

Necessity:

• Improves industrial relation i.e. employee-employer relations and minimizes industrial disputes.
• Prospects workers form exploitation by the employers or management
• Helps workers in getting fair wages
• Minimizes labour unrest
• Reduces conflicts and strikes etc.
• Ensures job security for workers
• Promotes welcome Environment conditions in the industrial system
• Fixes rest pauses and work hours etc.
• Provides compensation to workers, who are victims of accidents.

Principles of Industrial Legislation:

• Social justice:
• The first step in establishing social justice is to protect those who can’t protect themselves. Industrial laws provide social justice to the workers by ensuring suitable distribution of profits and benefits among the employer and employees. It also provides better working conditions in Industry.

Social Equality/welfare:

• Another objective of labour law is to ensure social welfare of workers. These laws help the employees to improve their social status i.e. material and morale of the workers by providing adequate wages and safety measures, ensuring appropriate working hours and Health facilities.

National economy:

• National economy is another guiding principle of labour legislation. It ensures normal Growth of industry for the development of nation. It increases the efficiency of workers and satisfies their needs. Thus efficient industry finally contributes a lot to improve national economy.

International uniformity:

• In attaining international uniformity International Labour Organization (I.L.O.) has played an important part. It aims at securing minimum standard on uniform basis in respect of all labour matters. Uniformity of standards can be maintained only by enforcing various industrial laws.

What has been the government doing in this regard:

• India’s labour law regime has always been at loggerheads with industrial development and the Ease of Doing Business. Since its inception, the government has attempted to reconcile this by amending the Apprentice Act (1961), making it more responsive to industry and youth, and substituting complex inspection regimes with technology friendly portals.

• ShramSuvidha, a unified labour portal scheme, has been launched to provide timely redress of grievances and facilitate self-certification by industry. This also encourages a more transparent labour inspection regime, with inspection reports uploaded within 72 hours.
• A focus on cutting down red tape, by amending nearly 40 Central and 150 State labour laws, has been launched, with significant consequences on hiring and firing.
• Proposals for exempting small-scale industries, employing up to 40 workers, from 14 basic laws, including the Factories Act, the Industrial Disputes Act and the Maternity Benefits Act, are being considered

• Labour is a concurrent list subject, thus there is multiplicity of laws at Centre and the State levels. Amidst this, the focus of labour reforms should be twin-fold: to promote creation of formal sector jobs, and to not stifle employers by over-protection of workers.

• In the organized sector, entrepreneurs choose to stay away from labour-intensive industries and opt for highly capital- or skilled-labour-intensive technologies in the industries that they enter. In order to incentivize entrepreneurs to accelerate the creation of regular salaried jobs, greater flexibility in labour laws is required.

• Agenda for Labour Reforms : Consolidation and SIMPLIFICATION of numerous States’ and Centre labour laws • Introduction of fixed term EMPLOYMENT, to curb tendency for employing (socially insecure) contract labour • Definition of start-ups, to ease burden of compliance.

• Labour Codes in the Making: The 2nd National Commission of labour had recommended simplification, amalgamation and rationalisation of Central Labour Laws and following 4 Labour Codes are being drafted on the same lines: • Labour Code on Wages Bill, 2017, • Labour Code on Industrial Relations Bill 2015, • Labour Code on Social Security & Welfare, 2017 and • Labour Code on Occupational Safety, Health & Working Conditions, 2018

LABOUR CODE ON INDUSTRIAL RELATIONS BILL 2015:

• This proposed code would replace three laws i.e. Trade Unions Act, 1926; Industrial Employment (Standing Orders) Act, 1946 and the Industrial Disputes Act, 1947. It aims to create greater labour market flexibility and discipline in labour – to improve upon ease of doing business and also to encourage entrepreneurs to engage in labour-intensive sectors. Key Provisions of the Draft Bill are as follows:

• It increases the employee limit from 100 to 300 above which, the government approval is needed for layoff/retrenchment/closure – this provision has been criticized sharply by the labour groups and trade unions
• It provides that 10% of workers shall apply (be applicant) for registering a trade union – this has also invited opposition from various worker groups and trade unions
• It prohibits a person from holding office in more than 10 unions
• Registration of a trade union may be cancelled if it fails to hold bi-annual Elections and fails to submit annual returns
• For employers employing < 50 employees, the requirement to provide a minimum of 1 months’ notice and retrenchment compensation (severance) is to be removed
• It raises the retrenchment/closure compensation payable to workers from 15 days wages to 45 days wages for every completed year of service.

• With the Centre’s plans to amend the Industrial Disputes Act 1947 taking time due to protest from the trade unions, States are going ahead with their own labour law changes to ease retrenchment norms in a bid to attract business locally. Till date, Assam, Madhya Pradesh, Haryana, Rajasthan, Andhra Pradesh, Uttarakhand and Jharkhand have allowed larger firms to retrench workers without seeking its permission by bringing their own amendments to the Industrial Disputes Act.

LABOUR CODE ON SOCIAL SECURITY & WELFARE, 2017:

• The need for this Code arises from the fact that almost 90% of the current workers are not covered under any social security and current thresholds for wage and number of workers employed for a labour law to be applicable creates tenacious incentives for the employers to avoid joining the system which results in exclusions and distortions in the labour market. The Labour Code derives its understanding of Social Security from the fundamental ILO Convention on Social Security (C102).some provisions include:

• Definition of employee and categorization of workers covers all kinds of employment including part-time workers, casual workers, fixed term workers, piece rate/ commission rated workers, informal workers, home-based workers, domestic workers and seasonal workers
• Funding of social security will be a combination of o employer / employee funded and
• It requires all workers (who are currently active) to get registered under the (Aadhaar based) Universal Registration system envisaged in the Code for universal applicability and portability of registration
• It defines separately the terms – Entity, Establishments, Enterprise and Business, to distinguish between the enterprises which engage workers for any economic activity and households who engage workers for domestic requirements
• It prescribes a detailed grievance redressal mechanism, in order to make social security a right of each and every worker
• Wage Ceiling and Income Threshold: The term ‘wage ceiling’ is for the purpose of determining a maximum limit on contribution payable; whereas the term ‘income threshold’ is for the purpose of enabling the government to provide for two different kind of schemes (for same purpose) for two different class of workers
• Borrowing form western jurisdictions, it provides for Community Service Order i.e. to undertake unpaid work as directed by the court, in an offence with regard to social security legislation
• Contribution Augmentation Funds would be established through which governments could contribute to the social security in respect of workers who are unable to pay contribution
• National Stabilization Fund will be used for harmonizing the Scheme Funds across the country and will be managed by the Central Boards
• It prohibits unauthorized access, download, stealing, tampering or destroying of the data of any Social Security Organization (SSO) and strive to protect privacy of personal data Once put into effect, this Labour Code will replace nearly 15 social security legislations.

DRAFT LABOUR CODE ON OCCUPATIONAL SAFETY, HEALTH AND WORKING CONDITIONS, 2018:

• The proposed code is the first single legislation prescribing standards for working conditions, health and safety of workers and it will apply on factories with at least 10 workers. It will amalgamate 13 labour laws including the Factories Act, 1948; the Mines Act, 1952; the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996; the Contract Labour (Regulation and Abolition) Act, 1970 etc. Highlights include the following:

• Centre has been empowered to prescribe standards on occupational safety and health.  Annual health check to be made mandatory in factories and its charge will be borne by the employers

• Appointment letters for all workers (including those employed before this code), underlying their rights to statutory benefits.  At least 50% of penalty levied on employers could go towards providing some relief to families of workers who die or are seriously injured while working

• Employers will need to register under one law, instead of going for separate registrations under labour laws for construction, contracts, plantations etc.  National Occupational Safety and Health Advisory Board has been proposed to recommend standards on related matters. Similar body such as State Occupational Safety and Health Advisory Board at the state level as well as safety committee and safety officer in certain factories and establishments is also proposed

• Appointment of facilitators with prescribed jurisdiction for inspection, survey, measurement, examination or inquiry has been proposed.  Mandatory license for every contractor who provides or intends to provide contract labour. Also, license is needed for industrial premises as well .
• Various allowances such as journey allowance and displacement allowance have been proposed for interstate migrant workers

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Labour law reforms are a set of changes to the laws that govern the relationship between employers and employees. These reforms can be aimed at improving working conditions, increasing wages, or protecting workers’ rights.

There are many reasons why labour law reforms may be necessary. In some cases, the existing laws may be outdated or inadequate. For example, the minimum wage may not be high enough to support a family, or the laws may not protect workers from discrimination or harassment. In other cases, the laws may be poorly enforced, allowing employers to violate workers’ rights with impunity.

Labour law reforms can have a significant impact on the lives of workers. By improving working conditions and increasing wages, they can help to reduce POVERTY and inequality. They can also help to protect workers from exploitation and abuse.

However, labour law reforms can also be controversial. Some employers may argue that the reforms will increase their costs and make it more difficult to compete. Others may argue that the reforms will give too much power to unions and make it difficult to manage their businesses.

Despite the challenges, labour law reforms are often necessary to improve the lives of workers. When done carefully and with input from all stakeholders, they can be a powerful tool for social and economic progress.

Here are some examples of labour law reforms that have been implemented in different countries:

• In the United States, the Fair Labor Standards Act of 1938 established a minimum wage, overtime pay, and child labor laws.
• In the United Kingdom, the Employment Rights Act 1996 provides workers with rights to redundancy pay, paid holiday, and maternity and paternity leave.
• In India, the Factories Act 1948 sets minimum standards for working conditions in factories, including limits on working hours and exposure to hazardous substances.
• In China, the Labour Contract Law 2008 requires employers to provide written contracts to all employees and prohibits the use of Child Labour.

These are just a few examples of the many labour law reforms that have been implemented around the world. Labour law reforms can take many different forms, but they all share the common goal of improving the lives of workers.

The following are some of the key challenges that can arise in implementing labour law reforms:

• Opposition from employers: Employers may oppose labour law reforms that they believe will increase their costs or make it more difficult to manage their businesses.
• Lack of enforcement: Labour laws may be poorly enforced, allowing employers to violate workers’ rights with impunity.
• Political instability: Labour law reforms may be difficult to implement in countries with high levels of political instability.
• Cultural barriers: Labour law reforms may be difficult to implement in countries with strong cultural traditions that conflict with the values underlying the reforms.

Despite these challenges, labour law reforms can be a powerful tool for social and economic progress. When done carefully and with input from all stakeholders, they can help to improve the lives of workers and promote Economic Development.

What are the benefits of labour law reforms?

Labour law reforms can benefit both employers and employees. For employers, they can lead to increased productivity, as employees are more likely to be motivated and engaged in their work when they feel that they are treated fairly. They can also help to attract and retain top talent, as employees are more likely to want to work for companies that have a reputation for good labour practices. For employees, labour law reforms can lead to improved working conditions, such as higher wages, better benefits, and safer workplaces. They can also help to protect employees from discrimination and harassment.

What are the challenges of labour law reforms?

One of the biggest challenges of labour law reforms is that they can be difficult to implement. This is because they often require changes to existing laws and regulations, which can be a complex and time-consuming process. Additionally, labour law reforms can be met with resistance from employers, who may be concerned about the costs associated with compliance. Finally, labour law reforms can also be met with resistance from employees, who may be concerned about the potential loss of jobs or benefits.

What are some examples of labour law reforms that have been implemented in other countries?

There are many examples of labour law reforms that have been implemented in other countries. One example is the Fair Work Act 2009 in Australia. This act introduced a number of reforms, including a new minimum wage, improved working conditions, and stronger protections for workers. Another example is the Labour Relations Act 1995 in South Africa. This act introduced a number of reforms, including the right to strike, the right to collective bargaining, and the right to form trade unions.

What are some of the key issues that need to be considered when implementing labour law reforms?

There are a number of key issues that need to be considered when implementing labour law reforms. These include the following:

• The need to balance the interests of employers and employees.
• The need to ensure that reforms are implemented in a way that does not lead to job losses or a decrease in productivity.
• The need to ensure that reforms are implemented in a way that is fair and equitable.
• The need to ensure that reforms are implemented in a way that is consistent with international labour standards.

What are the potential impacts of labour law reforms on the economy?

The potential impacts of labour law reforms on the economy are complex and vary depending on the specific reforms that are implemented. However, some potential impacts include the following:

• Increased productivity, as employees are more likely to be motivated and engaged in their work when they feel that they are treated fairly.
• Increased Investment, as businesses are more likely to invest in countries with strong labour laws.
• Increased innovation, as businesses are more likely to invest in research and development when they have access to a skilled and motivated workforce.
• Reduced poverty, as labour law reforms can lead to higher wages and better working conditions for workers.

What are the potential impacts of labour law reforms on Society?

The potential impacts of labour law reforms on society are also complex and vary depending on the specific reforms that are implemented. However, some potential impacts include the following:

• Reduced inequality, as labour law reforms can lead to higher wages and better working conditions for low-income workers.
• Increased social cohesion, as labour law reforms can help to create a more just and equitable society.
• Reduced crime, as labour law reforms can help to reduce poverty and inequality, which are two factors that are associated with crime.
• Improved health, as labour law reforms can lead to better working conditions, which can reduce Stress and improve physical and mental health.

Here are some multiple choice questions about labour law reforms:

1. Which of the following is not a goal of labour law reforms?
   (A) To improve working conditions
   (B) To increase worker productivity
   (C) To reduce the cost of labour
   (D) To protect workers’ rights

2. Which of the following is a type of labour law reform?
   (A) Increasing the minimum wage
   (B) Reducing the number of working hours
   (C) Providing paid sick leave
   (D) All of the above

3. Which of the following is a potential benefit of labour law reforms?
   (A) Increased worker productivity
   (B) Reduced turnover
   (C) Improved morale
   (D) All of the above

4. Which of the following is a potential cost of labour law reforms?
   (A) Increased costs for businesses
   (B) Reduced flexibility for businesses
   (C) Increased government regulation
   (D) All of the above

5. Overall, do you think labour law reforms are a good thing?
   (A) Yes
   (B) No
   (C) I don’t know

6. What do you think is the most important goal of labour law reforms?
   (A) To improve working conditions
   (B) To increase worker productivity
   (C) To reduce the cost of labour
   (D) To protect workers’ rights

7. What do you think is the biggest challenge facing labour law reforms?
   (A) Opposition from businesses
   (B) Opposition from unions
   (C) Lack of public support
   (D) All of the above

8. What do you think is the most important thing to consider when implementing labour law reforms?
   (A) The impact on businesses
   (B) The impact on workers
   (C) The impact on the economy
   (D) All of the above

9. What do you think is the best way to implement labour law reforms?
   (A) Through legislation
   (B) Through collective bargaining
   (C) Through a combination of legislation and collective bargaining
   (D) Through other means

10. What do you think is the future of labour law reforms?
    (A) They will continue to be implemented in the future
    (B) They will be rolled back in the future
    (C) They will remain unchanged in the future
    (D) It is impossible to say