Newsflash - Overview of the New Labour Codes

The long awaited three Labour Codes were introduced in the Parliament during the monsoon session as anticipated. The Lok Sabha and the Rajya Sabha cleared three Labour Law Codes- Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020 and Occupational Safety, Health and Working Conditions Code Bill, 2020 on September 22, 2020 and September 23, 2020, respectively. However, the same are yet to receive the assent of the President of India.

It may be noted that the fourth Code, i.e. the Code On Wages 2019 was already cleared by both the houses of parliament in July 2019 and received Presidents assent  on 8th August 2019. However, many provisions of the Code of Wages 2019 are still not implemented and are yet to be made effective`

The major challenge in bringing about any labour reforms is to facilitate employment growth while protecting workers' rights. Further, with the passage of time, labour laws needed an overhaul to ensure simplification and updation, along with provisions which can capture the needs of emerging forms of labour (e.g., migrant workers, contract workers, gig workers etc.).

This newsflash discusses these new proposed modification and the approaches taken by these Codes.

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