India’s New Labour Codes – Changing Landscape of Employment Litigation
Background For an empowered, affluent, and Aatmanirbhar India, workers must have more influence. Even after 73 years of independence, 90% of employees are still employed in the unorganized sector, where they are not eligible for all social security benefits. Over 50 crores of people are employed in both the formal and unorganized sectors combined. For the first time, a government is taking care of employees and their families in both the organized and unorganized sectors. India, a country where employment is not at will, has seen its fair share of job-related lawsuits, many of which involved allegations of unfair labour practices and wrongful termination. Although mainly restricted to the industrial sectors, labour unions have continued to be active throughout the nation. The new labour laws in India have not yet gone into force. 29 federal labour statutes are replaced by the four labour codes. Once put into effect, it will significantly alter our labour law system. Defining Labour Laws in India Labour law, often known as employment law, is the set of laws, administrative judgements, and precedents that address the legal rights and constraints of workers and their organizations. As a result, it mediates a number of relationship-related issues between trade unions, both employers and workers. In other words, labour law outlines the duties and responsibilities of employees, union members, and employers. In general, labour law addresses: Industrial relations include union certification, labour-management interactions, collective bargaining, and unfair labour practices. Occupational health and safety; Employment requirements, such as severance compensation, minimum salary, layoff processes, general holidays, yearly leave, and working hours. In the past, the Indian government at the federal and state levels strove to guarantee that employees had a high level of protection, but in reality, this has changed because of the structure of government and since labour is a topic on the concurrent list of the Indian Constitution. The Minimum Wages Act of 1948 mandates that businesses pay the government-set minimum wage and cap workweeks at 40 hours (9 hours a day including an hour of break). Since the reward for overtime is 100% of the overall salary, it is strongly discouraged. The Payment of Wages Act of 1936 requires that wages be paid promptly by bank transfer or postal service on the last working day of each month. The Payment of Wages Act of 1936 requires that wages be paid promptly by bank transfer or postal service on the last working day of each month. Each employee is required to take 15 working days of fully paid vacation time each year, in addition to an extra 7 completely paid sick days, under the Factories Act of 1948 and the Shops and Establishments Act of 1960. Every company’s female employees are now entitled to 6 months of fully compensated maternity leave thanks to the Maternity Benefit (Amendment) Act of 2017. Additionally, it offers 6 weeks of paid time off in the event of a miscarriage or medical termination of pregnancy. Workers can access the essential social security for retirement benefits, medical care, and unemployment benefits through the Employees’ Provident Fund Organization and the Employees’ State Insurance, all of which are controlled by statutes. Employees who qualify for Employees’ State Insurance coverage (those making less than Rs. 21000/month) are also eligible for 90 days of paid medical leave. It is always possible to include more rights in an employment contract than the bare minimum required by law. Four labour regulations were adopted by the Indian parliament in the 2019 and 2020 sessions. The Industrial Relations Code 2020, The Code on Social Security 2020, The Occupational Safety, Health and Working Conditions Code 2020, and The Code on Wages 2019 will combine 44 current labour laws. History of Labour laws The need for improved working conditions, the right to organize, and employer demands to limit employee rights in numerous groups and keep labour costs down led to the development of labour law. Therefore, the situation of labour legislation at any one moment is both a result of and an element of conflicts between various interests in society. One of the earliest organizations to address labour concerns was the International Labour Organization (ILO). Following the signing of the Treaty of Versailles, which brought an end to World War I, the League of Nations formed the ILO as an agency. During and soon after the war, several countries focused on post-war rebuilding and the preservation of labour unions. Workers who wanted improved working conditions, as well as trade unions that objected by going on strike, were routinely and violently suppressed. Following the achievement of independence in 1947, a number of fundamental labour rights—including the ability to join and participate in unions, the idea of workplace equality, and the desire to establish a living wage and respectable working conditions—were incorporated into the Indian Constitution of 1950. Constitutional Provisions under Labour laws Articles 14–16, 19(1)(c), 23–24, 38, and 41–43A of the 1950 Indian Constitution specifically address labour rights. Everyone shall be treated equally under the law, according to article 14, and discrimination against citizens is prohibited under article 15. Article 16 also grants the right to “equality of opportunity” for employment or other state-related appointments. Everyone has the special right “to organize groups or unions,” according to Article 19(1)(c). Articles 23 and 24 forbid child labour under the age of 14 in factories, mines, or “any other dangerous occupation,” respectively. Article 23 also outlaws all forms of trafficking and forced labour. According to the Indian Constitution, labour is a concurrent topic, meaning that both the Union and the state governments have the authority to enact and enforce labour laws. The majority of significant pieces of legislation have been passed by the Parliament. The following categories apply to the laws: 1) Central Government-enacted labour legislation, whose exclusive enforcement rests with the Central Government. 2) Central government-enacted labour rules that are upheld by both the federal and state governments. 3) State governments implement federal labour rules that the federal government enacts. 4) The different State GovernmentsRead More