NEW LABOUR CODES
Why in News?
- The Government has brought in new Labour Codes.
- These codes bring better wages, safer working conditions, social security, and more rights for bidi and cigar workers across India.
The new laws include:
- Code on Wages (2019)
- Occupational Safety, Health & Working Conditions Code (2020)
- Social Security Code (2020)
- Industrial Relations Code (2020)
Together, they upgrade protection for lakhs of workers in this traditionally informal sector.
WHAT HAS CHANGED?
Old law (1966 Act):
- Working day could go up to 9 hours.
- Annual leave only after 240 days of work.
- No medical check-ups.
- Limited protections.
New Labour Codes:
- 8-hour working day (weekly limit still 48 hours).
- Overtime must be paid at double rate.
- Annual leave available after 180 days, not 240.
- Free annual health check-up for every worker.
- Much stronger safety and welfare rules.
KEY IMPROVEMENTS FOR WORKERS
WAGE PROTECTION
1. Minimum Wages for All
- No employer can pay below government-notified minimum wage.
- Earlier, minimum wage applied only to “scheduled jobs”.
- Now, it covers all employees, including bidi and cigar workers.
2. Floor Wages
- Central government will set a floor wage based on cost of living.
- States cannot go below this floor wage.
- This helps reduce migration caused by wage differences across states.
3. Overtime Pay
- Any work beyond normal hours must be paid 2 times the normal wage.
TIME BOUND PAYMENT OF WAGES
Also, rules on wage deductions now apply to all employees, not only those earning below ₹24,000.
EMPLOYER’S RESPONSIBILITY
If the employer fails to pay, the owner/proprietor/company is fully responsible for unpaid wages.
WAGE SLIPS
Every worker must get wage slips, either digital or paper.
BETTER WORKING HOURS RULES
- Normal working hours can be structured as:
- 8 hours/day with 1 weekly holiday
- 9.5 hours/day with 2 weekly holidays
- 12 hours/day with 3 weekly holidays
- Total weekly hours remain 48.
- Overtime requires worker’s consent.
SOCIAL SECURITY IMPROVEMENTS
A. ESIC Coverage Expanded
- ESIC now covers all of India, ending the old “notified area” system.
- Even establishments with less than 10 workers can join voluntarily.
B. Larger Time Window for Claims
- Workers now get 3 years to file claims (earlier 6 months to 2 years).
C. Improved Bonus Rules
- Workers earning within the government-set limit get a bonus.
- Bonus must be minimum 8.33% of yearly wages, and can go up to 20%.
- Worker must have worked at least 30 days in the year.
D. Appointment Letters for All
- Every worker will get a formal appointment letter with details of wages, social security, job role, etc.
E. Wider Definition of “Family” for Women
- For female workers, parents-in-law are now included in the “family” definition if they fit the income limits.
SAFER & HEALTHIER WORKPLACES
A. Accident Coverage
- Includes accidents during travel to and from work.
B. Free Annual Health Check-ups
- Every worker is entitled to a free yearly health test.
C. Better Leave Rules
- Paid leave after 180 working days, instead of 240.
D. Welfare Facilities
Government will set standards for:
- Cleanliness
- Drinking water
- Toilets
- Rest rooms
- Canteens
- Occupational safety rules for bidi/cigar units
E. No Gender Discrimination
- Employers cannot discriminate in hiring, wages, or working conditions.
- Same work = same pay, regardless of gender.
CONCLUSION
The new Labour Codes bring big improvements for bidi and cigar workers. They ensure better wages, safer workplaces, social security, regular health check-ups, formalization, and gender equality. These reforms give workers more dignity, stability, and protection, helping them lead safer and more secure lives.
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