Lok Sabha Question No. 22 (UNSTARRED), answered on 2022-07-18
Subject: Implementation of Labour Codes
Ministry: LABOUR AND EMPLOYMENT
Asked by: Manoj Kumar Tiwari, Ravi Kishan Shukla, Ravindra Kushawaha, Subrata Pathak, Bidyut Baran Mahato, Sanjay Sadashivrao Mandlik, Vijayakumar (alias) Vijay Vasanth, Prataprao  Jadhav, Raju Bista, Sangamlal Kadedin Gupta, Sambhajirao Mane Dhairyasheel, Sangeeta Kumari Singh Deo, Manickam Tagore B, Hasmukhbhai Somabhai Patel, Jayanta Kumar Roy, Shrirang Appa Barne, Sudheer Gupta

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

## UNSTARRED QUESTION NO. 22

## TO BE ANSWERED ON 18.07.2022

## IMPLEMENTATION OF LABOUR CODES

## 22. SHRI MANOJ TIWARI:

SHRI RAVI KISHAN:

SHRI RAVINDRA KUSHWAHA:

SHRI SUBRAT PATHAK:

SHRI BIDYUT BARAN MAHATO:

SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI VIJAYAKUMAR (ALIAS) VIJAY VASANTH:

SHRI PRATAPRAO JADHAV:

SHRI RAJU BISTA:

SHRI SANGAM LAL GUPTA:

SHRI DHAIRYASHEEL SAMBHAJIRAO MANE:

SHRIMATI SANGEETA KUMARI SINGH DEO:

SHRI MANICKAM TAGORE B.:

SHRI PATEL HASMUKHBHAI SOMABHAI:

DR. JAYANTA KUMAR ROY:

SHRI SHRIRANG APPA BARNE:

SHRI SUDHEER GUPTA:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)whether  the  Government  has  implemented  the  new  four  labour codes, subsuming existing 29 central labour regulations to rationalise  and  simplify  the  complex  labour  legislations  and  if  so, the details thereof;
- (b)whether the said codes have been notified by the Government and if so, the details thereof including the States which have drafted their own rules for implementation of Code on Wages, Industrial Relations Code etc. under the said codes during the last one year, State-wise;

- (c)the  details  of  likely  impact  of  new  four  labour  codes  on  the labourers as retrial benefits of employees are expected to rise upon the  implementation  of  these  Codes,  particularly  on  unorganised sector and the manner in which the said Codes are beneficial to the labourers with regard to their working hours, salary, PF, leave, etc., particularly for women and children; and
- (d)whether the new Codes could have significant financial impact on organisations, especially in respect of gratuity and if so, the details thereof and the response of organisations in this regard; and
- (e)whether  the  Government  to  merge  all  existing  social  security schemes  under  the  social  security  code  and  if  so,  the  details  of Occupational Safety, Health and working conditions?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT

## (SHRI RAMESWAR TELI)

- (a) & (b): The  Government  has  enacted  the  four Labour  Codes, namely, the Code on Wages, 2019; the Industrial Relations Code, 2020 (IR  Code);  the  Code  on  Social  Security,  2020  (SS  Code)  and  the Occupational Safety, Heath and Working Conditions Code, 2020 (OSH Code).

'Labour'  as  a  subject  is  in  the  Concurrent  List  of  the Constitution  of  India  and  under  the  Codes,  the  power  to  make  rules has been entrusted to Central Government as well as State Governments.  As  a  step  towards  implementation  of  the  four  Labour Codes,  the  Central  Government  has  pre-published  the  draft  Rules, inviting comments of all stakeholders. The details of the State/Union Territories(UTs)  which  have  pre-published  the  draft  Rules,  inviting comments of all stakeholders, are  as under:-

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| Name of Code                                                     | Name of State/UT                                                                                                                                                                                                                                                                                                                                                                             |
|------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| The Code on Wages, 2019                                          | Andhara Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Mizoram, Odisha, Punjab, Rajasthan, Sikkim, Tamil Nadu, Telangana, Tripura, Uttarakhand, Uttar Pradesh, UTs of Andaman & Nicobar Islands, Chandigarh, Jammu & Kashmir, Ladakh, NCT of Delhi and Puducherry (31) |
| The Industrial Relations Code, 2020                              | Andhara Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Odisha, Punjab, Tamil Nadu, Telangana, Tripura, Uttarakhand, Uttar Pradesh, UTs of Chandigarh, Jammu & Kashmir, Ladakh and Puducherry (26)                                                                      |
| The Code on Social Security, 2020                                | Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Odisha, Punjab, Telangana, Tripura, Uttarakhand, Uttar Pradesh, UTs of Andaman & Nicobar Islands, Chandigarh, Jammu & Kashmir, Ladakh and Puducherry (25)                                                                        |
| The Occupational Safety Health and working Conditions Code, 2020 | Andhara Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Manipur, Odisha, Punjab, Tamil Nadu, Telangana, Tripura, Uttarakhand, Uttar Pradesh, UTs of Chandigarh, Jammu & Kashmir and Ladakh (24)                                                                                               |

- (c): The  Labour  Codes  strengthen the  protection  available  to workers, including unorganized workers, in terms of statutory minimum wage, social security, working hours, healthcare, etc. The SS Code,  2020,  provides  for  social  security  benefits  for  all  workers including in unorganized sectors as well as gig and platform workers. Some of the new provisions envisaged in the Codes are as under:

Contd..4/-

- (i)  Setting  up  of  Social  Security  Fund  for  formulating  schemes  for welfare of the unorganised workers, gig workers and platform workers.
- (ii) Extension of coverage under Employees' State Insurance Corporation (ESIC) to pan-India, i.e., in all districts in the country.
- (iii)  ESIC  coverage  on  voluntary  basis  for  establishments  having  less than 10 employees has been introduced.
- (iv)    Benefits  under  ESIC  can  also  be  made  applicable  through notification  to  an  establishment  which  carries  on  hazardous  or  life threatening occupation in which even a single employee is employed.
- (v)  Extension  of  benefits  to  unorganised  workers,  gig  workers  and platform  workers  and  the  members  of  their  families  through  ESIC  or Employees' Provident Fund Organization (EPFO).
- (vi)  For  the  persons  engaged  in  Fixed  Term  Employment  (FTE),  the proportionate benefit of service has been extended without requirement of minimum service of 5 years for gratuity.  The  person having  a  contract  for  one  year  under  FTE  will  also  be  eligible  for gratuity.
- (d): In line with the Payment of Gratuity Act, 1972, the SS Code, 2020 also provides for payment of gratuity to workers on the rate of wages last drawn.  Further, as provided under the Payment of Gratuity Act, 1972, the SS Code, 2020 also provides that the amount of gratuity payable  to  an  employee  shall  not  exceed  such  amount  as  may  be notified  by  the  Central  Government.  However,  the  said  Code has not come into effect so far.
- (e): In order to maintain continuity, the SS Code, 2020 envisages  administration  of  social  security  schemes  under  the  Code by the respective social security organisations.

Further, the OSH Code, 2020 consolidates and amends the laws regulating the occupational safety, health and working conditions of the persons employed in an establishment. It inter alia provides for free  annual  health  check-up  of  employees  and  provision  for  formal appointment letter.  Women have been empowered for employment in all  establishments  covering  all  types  of  works.   Women  are  now entitled to work in the night, subject to their consent, with provisions of safety.

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