Labour is in concurrent list

Minimum wage	Lowest wage necessary to maintain a worker & his family at minimum level of subsistence such as Food, Shelter, Clothing These are declared at the national, state, sectoral and skill/occupational levels. Revision of minimum wage rates is based on a 'cost of living index Now declared under Labour Code on Wages, 2019
Living wage	Wage necessary or basic subsistence and certain basic amenities such as education, health etc
Fair wage	More than the minimum wage and keeping in mind industry's capacity to pay

Lock-out and Strike

As per Industrial Disputes Act 1947,

Lock-out is defined as

temporary closing of place of employment OR
Suspension of work OR
Refusal by employer to continue to employ any number of persons employed by him

Strike is defined as

cessation of work by body of persons employed in any industry acting in combination OR
concerted refusal or a refusal under a common understanding, of any number of persons who are or have been so employed to continue to work or to accept employment’.

Labour Law reforms

Labour laws are primarily divided into four categories - work conditions; wages and renumeration; social security; employment security and industrial relations

2nd National Commission on Labour recommended simplifying the labour laws
Accordingly, Ministry of Labour working to simplify, amalgamate and rationalise the provisions of existing central labour laws into 4 codes

Labour Code on Wages

Code on Wages, 2019 passed that subsumes 4 labour laws viz. the Minimum Wages Act, 1948; the Payment of Wages Act, 1936; the Payment of Bonus Act, 1965; and the Equal Remuneration Act, 1976

Labour Code on Industrial Relations

Draft code introduced in LS
Subsumes The Trade Union Act, 1926; The Industrial Employment (Standing Orders) Act, 1946; The Industrial Disputes Act, 1947
Key features

Fixed term employment allowed

Fixed term workers will get all statutory benefits
Termination after fixed term will not be retrenchment (cutting down)
Re-skilling fund will be setup to train retrenched employees

Trade Union

Trade Unions with support of more than 75% of workers is recognized
In the absence of 75% support, negotiating council will be formed
14 day notice before lock out or strike (not only strike but also lock out)
Mass Casual leave will be under the ambit of strike
Disputes of the registered trade unions have been included within the jurisdiction of Industrial Tribunal
A Trade Union or federation of Trade Unions may be recognised as Central or State Trade Unions by the respective Govts

Industrial Tribunal

Only Industrial Tribunals work as adjudicating bodies to appeals instead of multiple bodies

Labour Code on Social Security & Welfare

Draft code introduced in LS
Subsumes 09 Labour Acts like: The Emplo yees Compensation Act, 1923, The Maternity Benefit Act, 1961, The Payment of Gratuity Act, 1972, The Unorganized Workers’ Social Security Act, 2008 etc.
Labour Code on Occupational Safety, Health & Working Conditions

The Occupational Safety, Health and Working Conditions Code, 2019 draft code
subsumes the 13 Labour Acts like: The Factories Act, 1948, The Plantation Labour Act, 1951, The Mines Act, 1952, The Building and Other Constructions Workers’ (Regulation of Employment and Conditions of Service) Ac , 1996 etc.

Significance

Simplify, amalgamate and rationalise, transparency, accountability
Codification will remove multiplicity of definitions, bring transparency, simplification
Will promote setting up of more enterprises thus creating more employment opportunities

Public Utility Services PUS Status

Defined and safeguarded against the strikes and lockout under the Industrial Disputes Act, 1947.
PUS are listed as facilities required to serve the necessity of public at large

Ex: Transport

The period for the declaration of PUS on any service/industry shall not exceed six months in the first instance. However, it may be extended from time to time, by any period not exceeding six months.
If any service is listed under the PUS then a six week notice have to serve by the Employee and Employer to each other in case of strike and lock-out respectively
Nov 2017, Ministry of Labor and Employment had extended the Public Utility Services (PUS) status of the Manufacturing of Alumina and Aluminium’ and ‘Mining of Bauxite’ for a period of six month.
In the light of COVID-19, Banking industry has been notified as Public Utility Service by Min of Labour & Employment

Essential Service Maintenance Act 1968, ESMA

Complete ban on strikes and lockout can be imposed on listed essential services.

Governance

Payment of Wages Act, 1936,

Minimum Wages Act, 1948,

Payment of Bonus Act, 1965,

Equal Remuneration Act, 1976

Industrial Employment (Standing Order) Act 1946

The Contract Labour (Regulation and Abolition) Act, 1970

Unorganised Workers’ Social Security Act, 2008< p>

National Commission on Labour

So far two commissions constituted

Payment of Wages Act 1936

The law states that all payment o f wages should be in cash, with a provision asking employers to obtain written permission of the worker to pay either by cheque, or by crediting the wages to his or her bank account.

Payment of Wages(Amendment) Act 2017

The Bill amends the 1936 Act to permit the employer to pay an employee’s wages: (i) in coin or currency notes; or (ii) by cheque; or (iii) by crediting them into his bank account.
The Bill removes the requirement of obtaining written authorization for payment of wages by cheque or through a bank account
Also, the relevant central/state govt may specify certain industrial or other establishments where the employer should pay his employees only by: (i) cheque; or (ii) crediting the wages in his bank account.

Payment of Gratuity Act, 1972

It makes every establishment employing 10 or more persons liable to pay gratuity
Includes factory employees, workmen in mines, oilfields, plantations, ports, railway companies and shops
important social security legislation for the multitude of wage-earners in industries, factories and establishments
gratuity for a worker is no longer a gift but a right

Payment of Gratuity (Amendment) Act, 2018

Under Payment of Gratuity Act, 1972, the maximum amount of gratuity payable to an employee cannot exceed Rs 10 lakh.
The Bill removes the existing ceiling and states that the ceiling may be notified by the central government.
The gratuity will be completely tax free

Minimum Wages Act 1948

sets the minimum wages that must be paid to skilled and unskilled labor.
Under the law, wage rates differ across states, sectors, skills, regions and occupations owing to difference in costs of living, regional industries' capacity to pay, consumption patterns, etc
Hence, there is no single uniform minimum wage rate across the country and the structure has become overly complex.

Model Shops and Establishment Act 2016

Model Shops and Establishment (Regulation of Employment and Conditions of Service) Act, 2016.
Objectives ·

Provides for more Worker Welfare Measures
Creating many more job opportunities for women and
Providing favorable environment for doing business.

Features

The law only covers Shops and Establishments Employing Ten or more Workers Except Manufacturing Units.
The law provides freedom to operate 365 days a year and opening/closing time of establishment
The law tries to boost the Employment Generation in general, especially for Women, as they will be permitted to work night shifts, with adequate safety and security provisions.
It calls for better working conditions for employees such as drinking water, canteen, first-aid, lavatory and crèche facilities.
The law also provides exemption to highly-skilled workers like those in IT and biotechnology from daily working hours (9 hours) and weekly working hours (48 hours).

Code on Wages, 2019

Act of Parliament
By Ministry of Labour and Employment
The Code replaces the following four laws: (i) the Payment of Wages Act, 1936, (ii) the Minimum Wages Act, 1948, (iii) the Payment of Bonus Act, 1965, and (iv) the Equal Remuneration Act, 1976. [NOTE: Not Payment of Gratuity Act, 1972 [NOTE: Not Payment of Gratuity Act]
The Code will apply to any industry, trade, business, manufacturing or occupation including government establishments.
Floor wage

The central government will fix a floor wage, taking into account living standards of workers.
It may set different floor wages for different geographical areas.

Minimum Wage

Statutory
Code prohibits employers from paying wages less than the minimum wages and the minimum wage must be higher than the floor wage
This will be based on time, or number of pieces produced.
Minimum wages will be notified by the central or state governments.
State Government shall not fix the minimum wage below the National Minimum Wages for that particular area as notified by the Central Government
The minimum wages will be revised and reviewed by the central or state at an interval of not more than five years
In case the existing minimum wages fixed by the central or state governments are higher than the floor wage, they cannot reduce the minimum wages.

Wages include salary, allowance, or any other component expressed in monetary terms. This does not include bonus payable to employees or any travelling allowance, among others.
Payment of wages: Wages will be paid in (i) coins, (ii) currency notes, (iii) by cheque, (iv) by crediting to the bank account, or (v) through electronic mode.

The wage period will be fixed by the employer as either: (i) daily, (ii) weekly, (iii) fortnightly, or (iv) monthly.

Gender discrimination: The Code prohibits gender discrimination in matters related to wages and recruitment of employees for the same work or work of similar nature
Advisory boards: The central and state governments will constitute advisory boards.
The bill specifies penalties for offences committed by an employer, such as paying less than the due wages, or for contravening any provision of the Code
Deduction of wages

An employee’s wage may be deducted on certain grounds including: (i) fines, (ii) absence from duty, (iii) accommodation given by the employer, or (iv) recovery of advances given to the employee, among others.
These deductions should not exceed 50% of the employee’s total wage.

The Occupational Safety, Health and Working Conditions Code, 2019

Status: Draft code, pending in LS
Applicability

Applicable to business entities where 10 or more workers are employed
Applicable to mines and docks industrial entities irrespective of no. of workers
Does not applicable to Apprentices

Intend to repeal and replace 13 existing labour laws related to health, safety and working conditions that include Factories Act 1948, Mines Act 1952, Contract Labour (Regulation and Abolition) Act 1970, The Plantation Labour Act, 1951, The Mines Act, 1952, The Building and Other Constructions Workers (Regulation of Employment and Conditions of Service) Act, 1996 etc.
Regulatory authorities

Registering officers
Inspector-cum-facilitators

Advisory Bodies: The central and state governments will set up Occupational Safety and Health Advisory Boards at the national and state level, respectively.
Duties of the employers

providing a workplace that is free from hazards that may cause injury or diseases,
providing free annual health examinations to employees, as prescribed.

In case of an accident at the workplace that leads to death or serious bodily injury of an employee, the employer must inform the relevant authorities

Rights and Duties of employees

(i) taking care of their own health and safety,
(ii) complying with the specified safety and health standards,
(iii) reporting unsafe situations to the inspector.
Every employee will have the right to obtain from the employer information related to safety and health standards

Working conditions

Central and state governments will provide rules for working hours for different classes, overtime work and provisions for female workers
No employee may work for more than six days a week. However, exceptions may be provided for motor transport workers

Offences and Penalties

An offence that leads to the death of an employee will be punishable with imprisonment of up to two years, or a fine up to five lakh rupees, or both.

Wage Indices In India

CPI - Industrial Workers

Computed by Labour Bureau under Ministry of Labour

CPI- Agricultural Labourers (CPI-AL):

Computed by Labour Bureau under Ministry of Labour

CPI-Rural Labourers (CPI-RL):

Computed by Labour Bureau under Ministry of Labour.

CPI-Rural (CPI-R):

Computed by CSO under Ministry of Statistics and Programme Implementation.

Fixed Term Employment

FTE is a contract in which a company hires an employee for a specific period of time and their payment is fixed in advance which will not be altered till the term expires
The employee is not on the payroll of the company
Such contracts are given out for temporary jobs and not for routine jobs. It cannot be used to replace existing employees who are on a long leave
Such workers are entitled to all statutory benefits (work hours, wages etc.) available to a permanent worker in the same establishment. However, other benefits such as Provident Fund is not available to them
Benefits

Fixed wages and work conditions
Accountability
Forecast labour costs
Commercial Competitiveness

As per the Industrial Employment (Standing Order) Act 1946, Fixed-term employment was initially made available only to apparel manufacturing sector in 2016 and then to Footwear manufacturing sector in 2017 through amendments
Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018 allowed all industries to hire workers on contract with a fixed tenure
As Labour is in concurrent list and without a Parliamentary ratification, States are not really obliged to follow these orders. In order to plug this gap, the Central Government has asked the states to issue separate notifications for the same.

Indian Labour Conference ILC

ILC is the apex level tripartite forum in the Labour Ministry which includes representatives from trade unions, employers and state Govts.
Objective:

It advises the Government on the issues concerning working class of the country.

Members

Only Trade Union Organisations, which have, a membership of more than five lakhs spread over four States and four industries are given representation in the ILC.
All the 12 Central Trade Union Organisations, Central Organisations of employers, all State Governments and Union Territories and Central Ministries/Departments concerned with the agenda items, are the members of the ILC.

Labour Welfare