india, coolie, labor

Labour Code Bill

The Union Cabinet formalized the Industrial Relations Code Bill, 2019, that proposes to amalgamate The Trade Unions Act, 1926, the economic Employment (Standing Orders) Act, 1946, and also the Industrial Disputes Act, 1947.

Last year, the govt. had floated a draft Note for the cupboard along side The Labour Code on Industrial Relations Bill, for inter-ministerial consultations.

Its the third Code in the government’s proposed codification of central labour laws out of the four Codes.
Parliament has already formalized The Code on Wages, 2019. The activity Safety, Health and dealing Conditions Code was introduced in Lok Sabha in July.

Highlights of the Bill

  • The Code provides for the popularity of trade unions, notice periods for strikes and lock-outs, standing orders, and determination of commercial disputes. It subsumes and replaces 3 labour laws: the economic Disputes Act, 1947; the Trade Unions Act, 1926; and also the Industrial Employment (Standing Orders) Act, 1946.
  • Trade unions that have a membership of a minimum of 100% of the employees or one hundred employees are going to be registered. The union with seventy fifth of employees in an institution are going to be the only real negotiating union. Otherwise, a negotiating council of unions are going to be shaped.
  • An worker cannot press on strike unless he provides notice for a strike at intervals six weeks before putting, and at intervals fourteen days of giving such notice. Similar provisions exist for lock-out of employees.
  • Industrial institutions with one hundred employees should prepare standing orders on matters listed during a Schedule and have them certified.
  • Factories, mines or plantations during which one hundred or additional employees are utilized are needed to require previous permission of the central or government before peeling off or retrenching their employees.
  • The Code provides for the constitution of commercial Tribunals for the settlement of commercial disputes. Every Industrial court can contains a Judicial member associate degreed an body member.

Importance of the Bill

Apart from providing some extent of flexibility on government permissions for retrenchment, the foremost necessary side of the Bill is that it presents the legal framework for launching the construct of ‘fixed-term employment’ through contract employees on a pan-India basis.
Currently, corporations rent contract employees through contractors. With the introduction of fixed-term employment, they’ll be able to rent employees directly underneath a fixed-term contract, with the flexibleness to tweak the length of the contract supported the seasonality of trade. These employees are treated on a par with regular employees throughout the tenure of the contract.
The move to incorporate it in a very central law can facilitate in wider reach, and states square measure expected to follow similar relevance. the govt. had tried a move last year to use fixed-term employment across “central sphere institutions” (which square measure establishments underneath the authority of the central government, Railways, mines, oilfields, major ports, or the other central public sector undertaking) altogether sectors, however it didn’t elicit the specified results as states failed to give notice similar provisions for it. The Bill currently ensures a pan-India impact of this move.

Changes in the Bill

The threshold needed for presidency permission for retrenchment has been unbroken unchanged at one hundred staff, as against the proposal for three hundred staff in Associate in Nursing earlier draft of the Bill, that was opposed by trade unions.
Instead, the govt has currently provided flexibility for ever-changing the edge through notification. The rigidity of labour laws regarding scraping labour has usually been cited by trade because the main reason limiting measurability and employment generation. At present, any company having one hundred employees or additional needs to request government approval for retrenchment.
The provision of fixed-term employment, that helps within the flow of Social Security edges to all or any employees in conjunction with creating it easier for firms to rent and hearth, within the Industrial Relations Code Bill.
Last year, the govt had enclosed the class of ‘Fixed Term Employment Workman’ for all sectors within the Industrial Employment (Standing Orders) Act, 1946. This was solely applicable to ‘central sphere’ institutions, and therefore the states didn’t imitate. minister Nirmala Sitharaman aforesaid weekday that employees below a fixed-term contract would be obsessed relying upon the seasonality of the trade, however would be treated on a par with regular employees.

Policies for Unorganized Workers

Social security is necessary for the welfare of unorganized workers. There was no specific legislation on social security for unorganized workers. The unorganized workers are covered under various policies formulated by the government.

National Policy on Skill Development

The National Policy on ability Development empowers people to enhance skills, knowledge, across the nation and internationally acknowledge qualifications to achieve higher job opportunities. The aim of this policy is to reinforce individual’s employability and talent to adapt to dynamic technologies.
It aims to enhance productivity and commonplace of living for staff. the target of the policy is to form opportunities to staff together with girls and youth United Nations agency ar arch within the work they are doing. It additionally aims to develop a prime quality hands associated with current and rising market wants. It helps to draw in investment in ability development and strengthen fight within the country.

National Policy on Safety, Health and Environment at Work Place

Safety and health of the unorganized staff have a positive impact on productivity, economic and social development. The goals of this policy is to enhance safety, health and surroundings at workplaces.
The objectives are to scale back work connected accidents, harmful diseases and canopy the money needs for the folks affected. It additionally aims in spreading awareness concerning safety, health and surroundings connected problems. It establishes appropriate schemes for unorganized staff concerning subsidies. It enforces all rules and rules concerning safety, health and surroundings at work. It ensures that every one the staff and employers have rights and responsibilities in achieving safe and healthy operating conditions.

Delegated Legislation 

Under the Constitution, the general assembly has the facility to form laws and therefore the government is answerable for implementing them. Often, the general assembly enacts a law covering the overall principles and policies, and delegates careful rule-making to the govt. to permit for vantage and suppleness. However, bound functions and powers shouldn’t be delegated to the govt.. These embrace framing the legislative policy to see the principles of the law. Any Rule ought to additionally stay at intervals the scope of the relegating Act. The question is that matters ought to be preserved by the general assembly and that of those can be delegated to the govt..
The labour Codes delegate numerous essential aspects of the laws to the govt. through rule-making. These include: (i) increasing the brink for lay-offs, retrenchment, and closure, (ii) setting thresholds for relevance of various Social Security schemes to institutions, (iii) specifying safety standards and dealing conditions to be provided and maintained by institutions, and (iii) deciding the norms for fixation of minimum wages.


In the wise of Analysts, the rise within the threshold for standing orders can curb down the labour rights for employees in tiny institutions having but three hundred employees. “The increase within the threshold for standing orders from the present one hundred to three hundred is uncalled for and shows the govt. is extremely keen to present tremendous amounts of flexibility to the employers in terms of hiring and firing…dismissal for alleged misconduct and retrenchment for economic reasons are going to be fully potential for all the economic institutions using but three hundred employees. this can be complete demolition of employment security,” XLRI academic and labour social scientist KR Shyam Sundar aforesaid.

The new conditions area unit introduced by the economic Relations Code for effecting a legal strike. The time interval for arbitration proceedings has been enclosed within the conditions for employees before occurring a legal strike against solely the time for conciliation nowadays.
Just for Associate in Nursing instance, the IR Code proposes that nobody utilized in any industrial institution shall maintain strike while not a 60-day notice and through the pendency of proceedings before a court or a National Industrial court and sixty days once the conclusion of such proceedings. Therefore, elongating the lawfully permissible timeframe before the employees will maintain a legal strike, creating a legal strike nigh not possible.

The Industrial Relations Code has extended to hide all industrial institutions for the specified notice amount and alternative conditions for a legal strike. The committee on Labour had counseled against the enlargement of the specified notice amount for strike on the far side the general public utility services like water, electricity, fossil fuel, phonephone and alternative essential services.
Currently, an individual utilized in an exceedingly public-service corporation service cannot maintain strike while not giving notice for a strike at intervals six weeks before occurring strike or at intervals fourteen days of giving such notice, that the IR Code currently proposes to use for all the economic institutions.


While most of the new versions of the labour Codes have retained their original structure, the incremental changes brought in affect their scope and application. Most of the changes brought in are reflections of the State Amendments that were brought in following COVID-19 to promote economic recovery and facilitate ease of doing business. There are incidental consequences created by these changes that need to be addressed, either in the Rules to supplement the Codes or by way of delegated legislation/notification by the appropriate Government.
In the country like India, where social justice is becoming a distant dream, a total dilution of rights of workers is nothing more than an authoritarian rule which is completely opposed to the democratic principles that the Constitution espouses. Labour reforms were indeed needed in India.

Therefore, the government fulfilled its duty by introducing the three Labour Bills, 2020, which ensure greater operational flexibility to the employers. The central government has come up with three codes which reform various action plans and give steps to increase the efficiency. It has also made checklist for the state governments to ensure that they follow the norms diligently. India required an overhaul of reform from the ground level therefore these labour codes on Operational safety, Health and Working conditions, the Industrial code and the Social Security Code will bring a new revolution for the labours in India.


Banasthali University.