(MENAFN- Live Mint) In a significant shift to labour norms, the government has merged 29 laws into four labour codes on Friday, November 21, with the aim of promoting ease of business while protecting workers' rights. These include the Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety Code.

Several key provisions have been introduced under the latest labour codes, which are likely to impact more than 400 million workers across both the formal and informal sectors.

With provisions such as equality for women in workplaces, gratuity for fixed-term employees after one year, free annual health check-ups, double wages for overtime, and more, here are key highlights from the newly launched labour codes -

Code 1: The Code of Wages, 2019

Code 1, or the Code on Wages, 2019, aims to simplify and consolidate four laws, including The Payment of Wages Act, 1936; The Minimum Wages Act, 1948; The Payment of Bonus Act, 1965; and The Equal Remuneration Act, 1976. It seeks to strengthen the rights of the workers and promote uniformity in wage-related concerns.

• Universal Minimum Wages: Minimum wages for all employees in organised and unorganised sectors have become a statutory right. Previously, the Minimum Wages Act only covered ~30% of workers in scheduled employment.
• Floor Wage: The Government will fix a floor wage based on minimum living standards. No state can fix minimum wages below this level.
• Wage criteria: Wages will be determined based on minimum wages, considering workers' skill levels, geographic areas, and job conditions.
• Gender equality: Employers must not discriminate based on gender, including transgender identity, in recruitment, wages, or employment conditions for similar work.
• Universal coverage: All employees, irrespective of wage limits, will receive timely payment and unauthorised deductions will be prevented.
• Overtime compensation: Employers must pay employees twice the standard rate for any overtime work.
• Wage payment responsibility: Employers must pay employees; failure makes the entity liable for unpaid wages.
• Compounding of offences: First-time, non-imprisonable offences can be compounded by paying a penalty, but repeated offences within five years cannot.
• Decriminalisation of offences: Imprisonment for certain first-time offences will be replaced with monetary fines up to 50% of the maximum fine.

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The Industrial Relations Code (IR Code) has been prepared by combining relevant provisions of the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947.

The code aims to simplify laws related to trade unions, employment conditions, and the investigation and resolution of industrial disputes.

• Fixed Term Employment: The code allows for time-bound contracts with equal wages and benefits, with gratuity eligibility after one year.
• Re-skilling fund: A fund has been set up to train retrenched employees from the contribution to be made by an industrial establishment for an amount equal to 15 days' wages for every worker retrenched.
• Trade Union Recognition: Unions with 51% membership are recognised as Negotiating Unions; otherwise, a Negotiating Council forms from unions with at least 20% membership.
• New definition for workers: The latest definition of worker includes sales promotion staff, journalists, and supervisory employees earning up to ₹18,000/month.
• Expanded industry definition: Industry consists of all systematic employer-employee activities, regardless of profit or capital.
• Higher threshold for layoffs: Approval limit increased from 100 to 300 workers; states can raise it further.
• Equal representation: Proportional representation of women in grievance committees for gender-sensitive redressal.
• Work-from-Home Provision: Remote work is permitted in service sectors by mutual consent.
• Industrial Tribunals: Two-member tribunals consisting of a judicial and an administrative member for quicker dispute resolution.
• Notice for strikes: Mandatory 14-day notice for all establishments to encourage dialogue and reduce disruptions.
• Definition of strike: It includes "mass casual leave also within its ambit” to prevent flash strikes.
• Decriminalisation: Minor offences are now compoundable with monetary penalties.

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The Code on Social Security incorporates the existing nine Social Security Acts, catering to all workers- including unorganised, gig, and platform workers-covering life, health, maternity, and provident fund benefits.

• Expanded ESIC (Employees' State Insurance) Coverage: ESIC now applies pan-India, eliminating the criteria of“notified areas.”
• EPF (Employees' Provident Fund) inquiries limit: A five-year limit has been established for initiating EPF inquiries and recovery proceedings, to be concluded within two years, extendable by one.
• Reduced EPF appeal deposit: Employers appealing EPFO orders now only need to deposit 25% of the assessed amount, down from 40–70%.
• Inclusion of gig and platform workers: Aggregators, gig workers and platform workers will be included in social security coverage.
• Social Security Fund: A fund has been proposed to finance schemes for unorganised, gig, and platform workers, covering life, disability, health, and old-age benefits.
• Definition of wages: It includes basic pay, dearness allowance, and retaining allowance.
• Definition of dependents: Coverage is extended to maternal grandparents, and in the case of female employees, it also includes dependent parents-in-law.
• Coverage of accidents: Accidents that occur during travel between home and workplace are now considered employment-related, qualifying for compensation.
• Early gratuity for fixed-term employees: Fixed-term employees become eligible for gratuity after one year of continuous service.

Also Read | India gets new labour codes: PM Modi hails 'progressive' reforms | What changed? Code 4: The Occupational Safety, Health and Working Conditions Code 2020

The Code has been drafted after the amalgamation and simplification of the relevant provisions of the 13 Central Labour Acts. It aims to balance between the twin objectives of safeguarding worker rights and ensuring safe working conditions, while also fostering a business-friendly regulatory environment.

• Women employment: Women can work in all establishments and night hours (before 6 am, beyond 7 pm) with consent and safety measures.
• Health care: Free annual health check-ups for employees.
• Working hours and overtime: Normal working hours are 8 hours/day and 48 hours/week. Overtime requires worker consent and is paid double.
• Wider definition of migrant workers: The definition of inter-state migrant workers now covers workers employed directly, through contractors, or who migrate on their own.
• National database for unorganised workers: A national database will be developed for unorganised workers, including migrants, to assist them in securing jobs and other benefits.
• Appointment letters: A letter of appointment specifying job details, wages, and social security will be provided to workers to enhance transparency and accountability
• Victim Compensation: Courts can direct at least 50% of fines to victims or their heirs in case of injury or death.
• Safety committees: Establishments with 500 or more workers will set safety committees comprising employer and worker representatives.

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