Cabinet approves 3 labour code changes, will move to Parliament in monsoon session

The Centre is working to consolidate 44 central labour laws in four broad codes

The Union Cabinet has, on September 8, approved proposed changes to labour codes, which will be moved in the upcoming monsoon session in Parliament. Amendments are to the labour codes on industrial relations (IR), social security and occupational safety and health (OSH).

The proposed changes include medical and pension for informal workers; removes ‘employees’ and ‘workers’ distinction and defines areas and conditions for fixed-term employment, layoffs and retrenchment policies (firms employing 100 or more workers) under IR; clear definition of ‘appropriate authority’ and strengthening of health facilities at factory premises under OSH, a government official told The Economic Times.

These code amendments will allow states such as Uttar Pradesh, Madhya Pradesh and Gujarat to push through their planned labour reforms, the report said.

The Centre is working to consolidate 44 central labour laws in four broad codes – IR, OSH, social security and wages. These were introduced in Lok Sabha in 2019 and sent to the Parliamentary Standing Committee on Labour for scrutiny.

On July 21, the Ministry of Labour & Employment finalised two labour codes, which offer state governments the flexibility while hiring, retrenching and fixing working hours in factories and establishments while imposing curbs on workers to form unions.

Source: Money Control