Centre to bite the bullet on labour reforms, wage code Bill first priority

The National Democratic Alliance (NDA) government, led by Prime Minister Narendra Modi, will expedite the process of labour law reforms in its second innings, senior government officials said on Monday.

“We will hasten the process of labour laws codification. At least three out of the four labour codes will be taken up immediately and pushed for approval of the Union Cabinet,” said a labour ministry official.

After assuming power in 2014, the NDA government had planned major reforms in labour laws in the form of codes. It had planned four codes each for industrial relations, wages, social security and welfare, and occupational safety, health and working conditions. Over 40 central labour laws were supposed to be converted into four codes. However, none of the proposed code Bills could be converted into a law as the government took time in bringing trade unions and industry representatives on board in the five years of its governance.

A ministry official said priority will be to get the Code on Wages Bill passed in Parliament, adding that a meeting with trade unions and industry representatives will not be required to discuss it any longer. The Code on Wages Bill was tabled in Lok Sabha (LS) during the first tenure of the government and it was referred to the standing committee that had given its comments to the labour ministry, but the Bill lapsed after the dissolution of the 16th LS.

“Only interministerial comments on the Cabinet note for the Bill will be sought, following which a Cabinet approval will be taken and the Bill introduced in Parliament,” the official added.

It is likely that the Bharatiya Janata Party leader Santosh Gangwar will be retained as Minister of Labour and Employment in a bid to maintain continuity in the process of labour law reforms, another government official said.

Labour and Employment Secretary Heeralal Samariya is expected to take up a meeting of senior ministry bureaucrats on May 29 to discuss its plan for the first 100 days of the government, which will include the codification of labour laws. A meeting has already been held in the Prime Minister’s Office related to labour law reforms, sources informed.

The labour ministry officials will also discuss on Wednesday whether a single code clubbing all labour laws can be brought in instead of the four codes.

After The Code on Wages Bill, the government is expected to expedite Parliament nod on the Labour Code on Industrial Relations Bill.

In the works

Code on Wages Bill

Key proposal: National minimum wage for different geographies applicable to all employments, to ensure no state fixes minimum wage below defined figures

Code on Industrial Relations Bill

Key proposal: Factory workers to give employers strike notice of at least two weeks, with a view to curb flash strikes

Code on Social Security Bill

Key proposal: Phase-wise universal coverage of social security to all workers

Code on Occupational Safety, Health and Working Conditions Bill

Key proposal: First single legislation prescribing standards for safety of workers, including compulsory health checks by firms every year