corporate law
The Labour Codes (Repeal) Bill, 2021, introduced in the Rajya Sabha on February 4, 2022, aims to repeal various enactments pertaining to the labor sector. This legislation concerns critical labor laws that have been perceived to dilute workers' rights and protections, ultimately benefiting employers over employees.
The following legislations are repealed as specified in the Schedule below:
| Year | No. | Short Title | Extent of Repeal |
|---|---|---|---|
| 2019 | 29 | The Code on Wages, 2019 | The whole |
| 2020 | 35 | The Industrial Relations Code, 2020 | The whole |
| 2020 | 36 | The Code on Social Security, 2020 | The whole |
| 2020 | 37 | The Occupational Safety, Health and Working Conditions Code, 2020 | The whole |
The Code on Wages, 2019: This enactment was designed to replace the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965, and the Equal Remuneration Act, 1976. However, it primarily serves employer interests, diminishing worker rights and protections. Notably, the Code fails to incorporate a definitive minimum wage formula based on the longstanding consensus of the Indian Labor Conference, instead granting governments wide latitude in wage fixation, effectively undermining enforcement mechanisms and the rights of unions.
The Industrial Relations Code, 2020: This Code repeals several historic labor laws, including the Industrial Disputes Act, 1947, and the Trade Unions Act, 1926. It systematically advantages employers, facilitates a "hire and fire" culture, and complicates union formation through numerous restrictive conditions, while also seeking to restrict collective actions such as strikes.
The Code on Social Security, 2020: This legislation repeals eight essential labor laws and aims to extend limited social security to the unorganized sector at the expense of existing benefits for organized sector workers. It centralizes power over social security funds, previously managed by tripartite committees, and fails to establish rigorous schemes for universal workers' social security.
The Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020: This Code seeks to repeal thirteen existing laws, diluting crucial worker protections and failing to mandate basic working conditions, such as the eight-hour workday. Additionally, it undermines the role of tripartite boards designed for workplace safety and shifts significant responsibilities to employers, exacerbating the precarious conditions of contract laborers—who make up a substantial portion of the workforce.
In conclusion, the cumulative effect of these Codes presents a significant threat to labor rights, necessitating their repeal to safeguard the interests of workers within the labor sector.
To protect worker rights and promote fair labor practices, the repeal of these enactments is essential. The Labour Codes (Repeal) Bill, 2021, represents a crucial step towards addressing the imbalances created by previous legislation that favored employer interests at the cost of worker protections.