Labour Codes notified: Govt to form panel to fix national floor wage, frame rules in next 45 days

Labour Codes notified: Govt to form panel to fix national floor wage, frame rules in next 45 days

Post the implementation of the four labour codes by the Ministry of Labour and Employment (MoLE) on November 21, the government will now form a committee to fix national level floor wage, sources tell Moneycontrol.

Also, all the rules of the four labour codes will be notified in the next 45-days, the sources say.

Earlier today, the provisions on Code on Wages, 2019; Occupational Safety Health and Working Conditions Code (OSHWC), 2020; Industrial Relations Code, 2020; and Code on Social Security, 2020, were notified today on eGazette.

But, all the provisions are not yet notified, and will be, in the next 45-days. "The rules pertaining to the four codes, and other clauses will be notified in the next one-and-a-half month," the person said.

In line with the wide-ranging consultations carried out during the drafting of the labour codes, the government will likewise engage the public and stakeholders in the framing of the corresponding rules, regulations, schemes, et cetera under the Codes, an official release said.

"During transition, the relevant provisions of the existing labour Acts and their respective rules, regulations, notifications, standards, schemes, etc. will continue to remain in force," it said.

Tripartite committee to decide national floor wage

Under the Code on Wages, 2019, all workers will now receive a statutory right to ‘minimum wage payment’, as it will guarantee timely payment of minimum wages to workers, and ensure financial security.

The government has to yet ascertain what the minimum wage will be. The ‘national floor level minimum wage’, will be fixed by the Centre, under the Code of Wages, and will act as benchmark for states' minimum wages.

According to SP Tiwari, President, Trade Union Co-ordination Centre (TUCC), a tripartite committee—involving central government, employers (government and private), and labour ministry—is likely to be formed, which will fix the national floor level minimum wage.

At present, the Central Government fixes minimum wages for employments under its jurisdiction, such as, in railways, mines, oil fields etc. While, the state governments fix minimum wages for all other scheduled employments within their state's jurisdiction.

The new codes have capped working hours at 8 -12 hours per day, and 48 hours per week. Overtime Work beyond prescribed hours, to be consent based and the pay has to at least be doubled the normal wage rate.

Workers now will be eligible for bonus after completing 30 days of work in a year.

New codes to strengthen worker protection

The four codes ensure gender-neutral pay and job opportunities, explicitly prohibiting discrimination—including against transgender persons.

It brings in inspector-cum-facilitator system, shifting enforcement towards guidance, awareness and compliance support rather than punitive action.

For faster and predictable dispute resolution, two-member Industrial Tribunals will be established.

Hazardous industries employing even one person will have to provide universal health coverage, and there will be defined operational safety standards for hazardous industries now.

Dock workers will get employer funded annual health check-ups now, and by 7th of every month salary should be credited, as prescribed by the Code on Wages.

From now, single registration, single licence and single return across safety and working-conditions requirements, will replace multiple overlapping filings.

Further, the plantation workers are now brought under the OSHWC Code and the Social Security Code. The labour codes will apply to plantations with more than 10 workers or 5 or more hectares. It is mandatory to provide safety training on handling, storing, and using chemicals.

Also, protective equipment mandatory to prevent accidents and chemical exposure, and workers and their families will get full ESI medical facilities.