Updated September 24th, 2020 at 17:01 IST

Rahul Gandhi slams Modi govt's 3 labour codes; terms them as 'exploitation of poor'

As the Parliament passed the three labour codes with Opposition MPs boycotting the session, Wayanad MP Rahul Gandhi, on Thursday, took to Twitter to slam them

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As the Parliament passed the three labour codes with Opposition MPs boycotting the session, Wayanad MP Rahul Gandhi, on Thursday, took to Twitter to slam the codes - terming them anti-labour. Alleging that 'Exploitation of the poor, while nurturing his own friends' was the policy of the Modi government, the former Congress said that labourers had been struck after farmers - refering to the three Farm Bills. Gandhi himself missed most of the monsoon session as he accompanied his mother to the US for a medical check-up. The duo returned to India on Tuesday, but refrained from attending Parliament on the last day.

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3 Labour codes passed

Three of the four labour code bills, that comprise the government's labour reforms - condensing the existing 44 labour codes were passed by both Houses on Tuesday, amid an Opposition boycott. The Occupational Safety, Health and Working Conditions Code, 2020, the Industrial Relations Code 2020  and The Code on Social Security, 2020 were passed while the Code on Wages Bill, 2019, has already been passed in the previous session. These three bills have faced severe Opposition from worker unions, Opposition parties and several activists - terming it anti-labour. All these codes have been through a parliamentary standing committee before being revised as per recommendations, introducing new versions.

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Key Highlights of the three codes (as per PRS)

The Industrial Relations Code, 2020: 

  • Standing orders on matters related to workers' classification, holidays, paydays, and wage rates,  termination of employment and grievance redressal mechanisms is mandated to establishments with at least 300 workers, instead of 100 workers.
  • Prior permission of the government before closure, lay-off, or retrenchment mandated to establishments with at least 300 workers, instead of 100 workers.
  • The threshold for negotiating council of trade unions have been reduced from 75% workers as members to 51% of workers
  • Workers may apply to the Industrial Tribunal in case of dispute - 45 days after the application 

Code on Social Security, 2020:

  • Social security funds for unorganised workers, gig workers and platform workers, with state governments setting up separate social security funds for unorganised workers. Any aggregator may set aside funds between 1-2% of the annual turnover as decided by govt for such social security funds - not exceeding 5%
  • Definition of employees expanded to include more workers like - inter-state migrant workers, platform worker, film industry workers and construction workers.
  • Gratuity period for working journalists reduced from five to three years.
  • Penalty for unlawfully deducting the employer’s contribution from the employee’s wages is only Rs 50,000 fine with no imprisonment.
  • Central government may defer or reduce the employer’s or employee’s contributions (under PF and ESI) for a period of up to three months in the case of a pandemic, endemic, or national disaster. Representation of central government officials in the National Social Security Board for unorganised workers increased to 10 members.

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Code on Occupational Safety, Health and Working Conditions, 2020:

  • Factory definition expanded to  20 workers for premises where the process uses power and 40 workers where the process uses no power. 
  • Manpower limit on hazardous conditions removed and mandates applying Code on contractors employing 50 or more workers instead of 20.
  • Daily work hour limit fixed at maximum of 8 hours per day
  • women will be entitled to be employed in all establishments for all types of work and employer required to provide adequate safeguards in hazardous conditions.
  • Workers earning a maximum of Rs 18,000 per month, or such higher amount deemed as inter-state migrant workers and will be allowed to avail benefits like Public distribution system (PDS), building cess, insurance and provident fund.
  • Central and state governments to maintain or record the details of inter-state migrant workers in a portal.
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Published September 24th, 2020 at 17:01 IST