Author: Priyanshi Bansal and College Name: Meerut College
To the Point
Labor law is the legislation that covers the wider aspect of the economy. The jurisprudence of the labor laws legislate the socio- economic aspect of the Indian market. The measures of labor laws are framed to safeguards the rights of employees, and workers. The horizon of philosophy of labor law covers the working relations of the employees and employers. It is the code that thereby counterbalances the workplace relations, standards, and conditions. In recent times, Indian legislators have consolidated the 29 central legislations that were covered under the umbrella of Labor laws and made new legislation as Labor Code. This labor code is the compilation of 4 legislations under the name of Wage Code, Industrial Relations Code, Social Security Code and Occupational Safety and Health Code. These legislations are designed to resolve the persistent problems that were identified in the then existing labor laws. Secondly, the legislators also aimed to compile the fragmented legislations into a Code. Therefore, the Code focuses on the standards and working pattern of a dynamic world, which is developing day by day. It also tries to cover the rights and obligations in nexus to informal workers or freelancers because the market is witnessing a transitional shift from full- time workers to contract- based and independent workers. The success of the Code depends on the factors that ensure workers protection, maintenance of standards and stimulate economic development. However, beyond success there always exists a critical aspect of the Code because change is something which takes time to get accepted and so is with the Code.
Use of Legal Jargon
Code of Wages, 2019 regulates the rules and principles in nexus to the payment of salary or wages or any monetary benefits to the employees and workers. The code covers every structure that is engaged as being industry, business, manufacturing, and even trading. The code applies to all the workers and employees who are providing their services, according to the terms and conditions. The minimum wages will be fixed by the government and employers cannot appoint anyone below the minimum wages. Therefore, this code is the objective compilation of Payment of Bonus Act, 1965, Minimum Wages Act, 1948, Equal Remuneration Act, 1976, and Payment of Wages Act,1936,
Industrial Relations Code, 2020 is the law that deals with the industrial establishment and the working conditions of industries. The code deals with every activity held in any form of industry kike lay-off, strikes, retrenchment, training of workers, working conditions of the industry etc. Prior to the new code, the industry with more than 100 employees needed to define the conditions of employment. However, the new Code has augmented the need for a minimum number of workers to 300. Therefore, any industrial establishment will need to have rules and conditions on standing orders for every outlook of industry. Therefore, this code shrouds the industrial pursuits and schemes.
Code on Social Security, 2020 is one of the major legislation because it is a haven for people engaged in any sector of employment. The legislation discusses the ambit of social security to the independent workers. The labor industry is transforming to an unorganised and independent working style. The Code indeed widened the umbrella to cover migrant workers, freelancers, film industry workers, gig workers, platform workers and many more who work independently for a shorter period of time. Furthermore , for the welfare of these earners the code proposed the establishment of a Board that would frame the schemes for this section of workers. Therefore, this is progressive step in the labor industry.
Occupational Safety, Health and Working Conditions Code, 2020 is the compilation of almost 13 legislations that are related to regulation of health and working conditions. The Code is an enactment that binds the employers and management to take into account the measures and facilities in the workplace. Thus, this code is a facilitator to the employees who engage at any establishment.
The Proof
The legislative initiatives are enacted in line with the constitutional provisions of Indian Constitution. It is the Constitution of India that gives life to every provision of any enactment. So as with the labor code, signifying the moral and legal basis of the labor welfare. The labor code is ensured under Article 14, 19, 21 as the fundamental rights and providing the directing guidelines under Article 39, 41, 42, 43A for the effective and efficient labor legislation. The constitution of India has the wider implication that it holds the capacity to cover every transitional phase of the economy. The new labor code is indeed in line with constitutional provisions. The Code is justified in various aspects and one of the most important is the simplification and consolidation of the fragmented laws. The laws of 29 Acts are consolidated and codified under the 4 legislations in a more easier and simplified form. The four legislations aim to justify their own horizons in relation to industrial development.
However, the legislation, apart from taking into consideration the benefits that are to be provided, failed to bring uniformity in the states. Other than that the trade unions and their role of collective bargaining are highly affected by the advance form of legislation. The gig workers are yet to face the social and economic challenges with no clear status of employment. There are indeed few industries like agriculture and construction for whom the implementation of new code will be a challenge because of the informal nature of these sectors. Moreover, the new document needs more clarity and transparency in the implementation. Indeed, these are some of the challenges that made the Indian workers to protest against the execution of the pro- corporate Code. They also throw light on the shift of public employment to privatisation and lack of recruitment in the public sector. Therefore, it can be foreseen that despite the numerous benefits, the Code has to come across various challenges that may resolve the demands.
Abstract
The relationship of the people in the establishment plays a dominant role. The welfare of the employee and employer relationship is a vital part of socio- economic legislation. On that account the labor law legislation was drafted by the Indian Parliamentarians. The labor laws, prior to the labor code, were having the colonial roots and thereby adapted the dynamic evolution of the post- independence. Henceforth, with the technological advancement and social needs the labor laws also took a step forward and revolutionalised in the year 2020. The labor laws were amended and consolidated in the four legislations that exclusively inscribed the development of the gig economy and the security of the labor industry. The law also focused on working hours of the labor, rules related to hiring and firing of the employees, resolution of the industrial dispute matters and many more. However, the legislation still has some drawbacks that the legislators failed to address. The progressive nature of the labor code falls short to address the major aspects of the labor industry such as matters related to collective bargaining, safety issues of the employees, security of the gig workers and so on. Therefore, the study goes into the depth of effectiveness of the amended and consolidated legislation and attempts to examine the features of the Code that endeavour to stand with the global standards.
Case Laws
- Bandhua Mukti Morcha v UOI (1984)
The court determined that every person has the right to live with dignity under Article 21 of the Indian Constitution. The Hon’ble Supreme Court observed that everyone has the right to live with dignity and child labour and bonded labor are against the dignity of these workers and thereby the Labor Code protects such basic humanr rights.
- Delhi Transport Corporation v DTC Mazdoor Congress (1991)
The court held that the employment services should adhere to the principle of fairness and reasonableness. The court also examined the right of collective bargaining as the core right of the unions and workers associated with it.
- Regional Manager, SBI v Rakesh Kumar Tiwari (2006)
The judgment focused and discussed the significance of safeguards for the employees of the public sector bank especially in relation to the termination of the employees.
- Ola and Uber Drivers Union v NCT Delhi (2021)
This Delhi High Court discussed the exigency for the social security of the gig workers. The court penned down the changing role of appointment of employees and workers. Henceforth, the court shielded the security of the gig workers by way of proper legislation.
Conclusion
The labor laws in India have witnessed transitional phases i.e. from the post- independence period to the technological revolution of the 21st century where the method of working is also evolving. The legislation is slaying with the global trends of the labor industry. The legislators aimed to consolidate and amend the law of 40 legislations. The jurisprudential significance of the Code therefore, attempts to cover the diverse industries of India that engage the services of the employees and workers. The Code aligns with the global standards and proposes the benefits to the people involved, such benefits includes safeguards to the employees, promotion to the business competition, regulation of minimum wages, prohibition to gender inequality in the wages code etc. The provisions are drafted in such a way that every industry would not be able to develop at the same pace. Industries like Manufacturing units, IT sectors, startups and logistics seem to be more effective with the amendment. But others will need time to adapt to the changes. Henceforth, the study suggests that the legislators still need to take into consideration the shortcomings in the code and reform the demands of the labor market. The legislation needs more clarity and proper interpretation to resolve the issue of lack of awareness. Furthermore, the uniformity of the trade unions must not be affected because it would affect the social implication of the Labor code. The stringent application of the regulation needs to be eased down for the recognition of the trade unions and their role in collective bargaining. Hence, by taking into consideration the few major challenges, the new Code can improve transparency and minimise the scope of corruption that can indeed modernize the compliance processes.
FAQ
- What do you mean by the transitional phase of labor laws in India?
The transitional phase of labor laws means the reforms in labor laws with the changing needs of the working society. It signifies to take the changing steps through the legislation towards the increase of facilities, employment opportunities and working standards that can generate the economy as well as the interest of the workers and employers.
- What are the major challenges that plague the labor industry?
The jurisprudence of labor code is focused on the few major issues such as bonded labour, child labor, poor conditions of migrant workers, lack of facilities in the establishment, gender discrimination and many more. These are the issues that infringes the constitutional and human rights of the labor industry and thereby legislated by way of the labor code.
- What is the jurisprudential aspect of Occupational safety, Health and Working Conditions Code, 2020?
The jurisprudential aspect of Occupational safety, Health and Working Conditions Code, 2020 is about the protection of constitutional and human rights of labourers working in hazardous conditions of the establishment. The Code is concerned about the safety issues and working facilities to the workers and thereby creating an obligation on the managerial heads.
- What are the few measures that Occupational safety, Health and Working Conditions Code, 2020 covers?
The central government acknowledges the few measures through the codification of Code that are related to the basic facilities in the establishment like adequate lighting, separate cleaning and washing facilities for male and female employees, and maintenance of hygiene in the establishment. Moreover, the Code also directs the use of safety guards in the hazardous establishments, proper first- aid facilities to the workers.
- What do you mean by the term gig economy?
Gig Economy is the economy of the temporary labor market whereby the services are provided for the short- term period i.e. contractual basis. These jobs are flexible in nature which is more associated with the digital platform. Therefore, this is a modern labor market which overtakes the traditional form of labor economy.
