Four Labour Codes are most progressive reforms for workers since Independence: PM Modi  

New Delhi, Nov 21 (IANS) Prime Minister Narendra Modi on Friday said the government has given effect to the Four Labour Codes, which are one of the most comprehensive and progressive labour-oriented reforms since Independence.

“It greatly empowers our workers. It also significantly simplifies compliance and promotes Ease of Doing Business,” the Prime Minister remarked.

He said that these Codes will serve as a strong foundation for universal social security, minimum and timely payment of wages, safe workplaces and remunerative opportunities for our people, especially ‘Nari Shakti and Yuva Shakti’.

“It will build a future-ready ecosystem that protects the rights of workers and strengthens India’s economic growth. These reforms will boost job creation, drive productivity and accelerate our journey towards a Viksit Bharat,” he added.

The four labour codes include the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020, with effect from November 21, rationalising 29 existing labour laws.

With the implementation of the Labour Codes, it has now become mandatory for employers to issue appointment letters to all workers, which provides written proof to ensure transparency, job security, and fixed employment. Earlier, no mandatory appointment letters were required.

Under Code on Social Security, 2020, all workers, including gig and platform workers, will get social security coverage. All workers will get PF, ESIC, insurance, and other social security benefits. Earlier, there was only limited security coverage.

Under the Code on Wages, 2019, all workers will receive a statutory right minimum wage payment which wages and timely payment will ensure financial security. Earlier, minimum wages applied only to scheduled industries or employments; large sections of workers remained uncovered.

The Labour codes also ensure that employers must provide all workers above the age of 40 years with a free annual health check-up and promote a timely preventive healthcare culture. Earlier, there was no legal requirement for employers to provide free annual health check-ups to workers.

The codes also make it mandatory for employers to provide timely wages, to ensure financial stability, reducing work stress and boosting the overall morale of the workers. Earlier, there was no mandatory compliance for employers’ payment of wages.

The new law permits women to work at night and in all types of work across all establishments, subject to their consent and required safety measures. Women will also get equal opportunities to earn higher incomes in high-paying job roles. Earlier, women’s employment in night shifts and certain occupations was restricted.

The new codes also extend ESIC coverage and benefits pan-India – voluntary for establishments with fewer than 10 employees, and mandatory for establishments with even one employee engaged in hazardous processes.

Social protection coverage will be expanded to all workers. Earlier, ESIC coverage was limited to notified areas and specific industries; establishments with fewer than 10 employees were generally excluded, and hazardous-process units did not have uniform mandatory ESIC coverage across India.

The codes also ease the compliance burden for workers by providing for single registration, a PAN-India single license and a single return. Earlier, multiple registrations, licenses and returns across various labour laws were required.

–IANS

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