Executive Summary:
This document responds to questions raised in the Lok Sabha regarding the implementation status of the four Labour Codes. It outlines the government's progress in formulating and publishing these codes, including draft rules, and clarifies the extent of worker protections and social security benefits. The document also highlights consultations with stakeholders and confirms that there are no current plans to amend the Labour Codes.
Key Points / Main Content:
* **Labour Code Formulation and Publication:**
* The Government has formulated and published four Labour Codes: the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions Code, 2020.
* **Implementation Status:**
* The Central Government has pre-published draft rules as a step towards implementation.
* 34, 33, 33, and 33 States/Union Territories have pre-published draft rules for the Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety, Health and Working Conditions Code, respectively.
* **Worker Protections and Benefits:**
* The Labour Codes aim to strengthen protections for all workers, including those in the unorganized sector.
* The Code on Wages, 2019, universalizes the right to minimum wages and timely payment.
* The Occupational Safety, Health and Working Conditions Code, 2020, includes provisions for building workers and contract labor to ensure safety, health, and working conditions.
* The Code on Social Security, 2020, aims to extend social security benefits to workers in both organized and unorganized sectors.
* **Social Security Enhancements:**
* Expansion of Employees' State Insurance Corporation (ESIC) coverage pan-India and voluntary ESIC coverage for establishments with fewer than 10 employees.
* Establishment of a Social Security Fund for unorganized workers, gig workers, and platform workers.
* Empowerment of the Central Government to extend benefits to unorganized workers, gig workers, platform workers, and their families through ESIC or Employees Provident Fund Organization.
* **Stakeholder Consultation:**
* Three tripartite meetings were held with representatives from Central Trade Unions and Employers Associations to discuss draft rules under the Labour Codes.
* **Amendments:**
* There are no current proposals to amend the Labour Codes.
Impact Analysis:
**Central Government:**
* Impact: Responsible for formulating, publishing, and implementing the Labour Codes and draft rules.
* Action Required: Continue overseeing the implementation process and potentially extending benefits through ESIC or EPFO.
**State Governments/Union Territories:**
* Impact: Responsible for pre-publishing draft rules and implementing the Labour Codes within their jurisdictions.
* Action Required: Finalize and implement rules based on the Labour Codes.
**Workers (Organized and Unorganized):**
* Impact: Potential for enhanced protection, minimum wages, social security, and healthcare benefits.
* Action Required: Understand their rights and entitlements under the new Labour Codes.
**Employers:**
* Impact: Need to comply with the new Labour Codes, including provisions related to wages, working conditions, and social security.
* Action Required: Familiarize themselves with the new requirements and ensure compliance.
**Trade Unions and Employer Associations:**
* Impact: Consulted during the drafting of rules.
* Action Required: Monitor the implementation of the Labour Codes and provide feedback to the government as needed.
Key Entities Referenced
Code on Social Security, 2020: One of the four Labour Codes, focused on providing social security benefits to workers.
Ministry of Labour and Employment: The Indian government ministry responsible for labour policy and employment.
MS MAHUA MOITRA: A Member of Parliament who raised a question regarding the implementation of the Labour Codes.
Four Labour Codes: A set of four codes that consolidate 29 pre-existing labour laws in India.
Code on Wages, 2019: One of the four Labour Codes, specifically addressing wages and timely payment.
Industrial Relations Code, 2020: One of the four Labour Codes, addressing industrial relations matters.
Occupational Safety, Health and Working Conditions Code, 2020: One of the four Labour Codes, concerning the safety, health, and working conditions of employees.
Employees' State Insurance Corporation (ESIC): An Indian government organization providing social security and health insurance benefits to employees.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 4051
TO BE ANSWERED ON 18.08.2025
FOUR LABOUR CODES
4051. MS MAHUA MOITRA:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a)the status of implementation of the four Labour Codes across the
country, States/UT-wise;
(b)whether the Government acknowledges that despite merging 29 pre-
existing laws into four labour codes the Wages, Social Security,
Occupational Safety and Health along with Industrial Relations Codes,
the said reforms largely continue to exclude the vast majority of
Indian workers employed in informal sectors with only the Wages
Code and parts of the Social Security Code extending nominal
coverage to them and if so, the details thereof;
(c)whether it is a fact that critical sectors-such as construction,
agriculture, home-based work and contract labour-remain outside the
ambit of essential rights like safety, regulated working hours, freedom
to strike and guaranteed minimum wages under the new Codes;
(d)the steps taken/being taken by the Government to incorporate
feedback from Trade Unions, State Governments and informal sector
representatives prior to notifying rules; and
(e)whether the Government intends to revise or supplement these
Codes, either through amendments or new legislation to ensure
universal minimum wages, worker safety, enforceable rights to
collective bargaining and the right to strike for all informal and gig
economy workers comparable to protections in the formal sector and
if so, the details thereof?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a): The Government has formulated four Labour Codes, namely, the
Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on
Social Security, 2020 and the Occupational Safety, Health and Working
Conditions Code, 2020 and published these Codes in the Official Gazette
for general information. “Labour” as a subject is in the Concurrent List
of the Constitution of India and under the Labour Codes, the power to
make rules has been entrusted to Central Government as well as State
contd..2/-::2::
Governments. As a step towards implementation of the four Labour
Codes, the Central Government has pre-published the draft Rules. As per
available information, 34, 33, 33 and 33 States/Union Territories have
pre-published the draft Rules under the Code on Wages, 2019, the
Industrial Relations Code, 2020, the Code on Social Security, 2020 and
the Occupational Safety, Health and Working Conditions Code, 2020
respectively.
(b) & (c): The Labour Codes strengthen the protection available to
workers, including unorganized workers in terms of statutory minimum
wage, social security and healthcare of workers. The Code on Wages,
2019 has universalized statutory right for minimum wages and timely
payment of wages to all workers to support sustainable growth and
inclusive development. The Occupational Safety, Health and Working
Conditions Code, 2020 provides the provisions for building workers,
contract labours etc. to ensure safety, health and working conditions of
these workers. Besides, the Code on Social Security, 2020 aims to
extend social security benefits to all workers both in the organised and
unorganized sectors. The provisions introduced in the Code on Social
Security, 2020 to enhance coverage of social security are as follows :
i. The coverage of Employees' State Insurance Corporation (ESIC)
has been extended pan-India as against notified districts/areas. Further,
ESIC coverage on voluntary basis for establishments having less than 10
employees has been introduced. Further, benefits under ESIC can also
be made applicable to an establishment which carries on hazardous or
life threatening occupation as notified by the Central Government, in
which even a single employee is employed.
ii. The Code envisages a Social Security Fund for formulating
schemes for welfare of the unorganized workers, gig workers and
platform workers.
iii. The Central Government has been empowered to extend benefits
to unorganized workers, gig workers and platform workers and the
members of their families through ESIC or Employees’ Provident Fund
Organization.
(d): Three tripartite meetings; inviting representatives of all
Central Trade Unions and Employers’ Associations; were also
convened to discuss the draft Rules framed under the 4 Labour
Codes on 24th December, 2020, 12th January, 2021 and 20th
January, 2021 respectively.
(e): There is no proposal to amend the aforesaid Labour Codes.
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