Centre seeks comments from stakeholders on Labour codes to bring flexibility in working conditions

The government is keen on implementing the four labour codes which include the IR Code, the Code on Social Security and the Code on Occupational Safety, Health and Working Conditions from 1 April 2021 aiming to bring flexibility to both retrench workers and employers. In pursuance of the labour reforms, the centre has sought comments from stakeholders within 30 days before finalising the rules.

Rules make it mandatory for the industries with 300 or more workers to seek government approval, 15 days prior to any action related to lay-offs, earlier limit was 100 employees in such matters. The rules provide a legal framework for any action against fixed-term employment and contract workers. Proposing a re-skilling fund for retrenched workers. Employers would have to electronically transfer an amount equal to 15 days of the last drawn wages of the retrenched workers or worker into an account maintained by the government within 10 days of the retrenchment.

“The fund received shall be transferred by the Central Government to each worker or workers‘ account electronically within 45 days of receipt of funds from the employer and the worker shall utilize such amount for his re-skilling,” the draft read.

Furthermore, the Code forbids the workers to go on strike once the conciliation process has already been started, irrespective of the time taken in the process of arbitration to reach an agreeable decision. To check the overbearing powers of trade unions and making it difficult for the union to go for collective bargaining, the Code also prescribed subscription charges for trade unions as well as tweaked the norms for registration of the unions.