The author of this blog is Pushpanjali Patel, student of 4th year, MATS Law School, MATS University, Chattisgarh


The labour law is also known as employment law in which we deal with the laws which specifies the responsibilities and rights of the employer and employees. And its also deal with the imbalances between the employer and employees. The Parliament recently made a huge amendment where labour law has been consolidated into three laws which are the Industrial Relations Code, Social Security Code and the Occupational Safety, Health and Working Conditions Bill which have been discussed in detail in this article.

Concept of labour

“Labour”  is considered as a strong part or backbone of the economy or industry. Labour is definition by the work which is done by people with the use of their physical or mental strength for an income most likely in the form of money.

Issues related to the labour laws

Issue of social security:-  One of the important issues that raise is the issue of social security through which the stay of various labour laws, which gives social security measures to the workers, it will lead to a fall in growth of formalise all employees can be treated as informal workers because they will not get any social security benefits.

Impact on the demand :- One another way to take the economy which is said by the various economists is taking the demand through the action taken would lead to employment. The salary that they would earn would for there work is less than they used to do work in their employment. Due to the less earnings, it would lead in deduction in the demand which would harm the economy simultaneously.

The Exploitation of workers :-The government after the passage of this current ordinance it will lead to an environment of utilizes. The workers are forced to work in an harsh environment and would be receiving a low earing rate and there would be no wrong procedure to avoid this situation. It become very easy way for the employer to fire his workers.

Spur on economic growth :- This effort is taken by the government to decrease in the rate of  unemployment bullet before various states have tried to use this technique to attract foreign investment but they failed very badly.

Recently, in the last days of September 2020, Parliament has passed 3 New Labour Law Codes 2020. These new Labour Law Amendments 2020 are namely:





1.Industrial Relations Code Bill, 2020:

        It’s combine three labour acts which are Trade Union Act ,1926 , Industrial Employment Act, 1946 and Industrial Dispute Act ,1947.

        The major changes in this act is related to the no of workers . If in any factory there are 300 or more than 300 workers are there than this establishment should have worker classification, holidays, paydays, wage rates for all this they should have rule and regulation are compulsory and this regulations are also called as Standing Orders.

        Next change in this establishment is if there is closure , layoff or retrenchment is there and there are more than 300+ workers so they have to take government prior permission .

        This act also said that if any employee wants to go to the strike than before going to strike they have to give notice of strike before 14 days and this notice is valid for 60 days.

        This act also gives some changes on Trade Union Act ,1926 and that is if in any establishment there is more than one trade union so they will give Sole Negotiating Union status if there is 51% of the employees as members are there.

  2.Social Security Code Bill, 2020:

·       This code promises the Universal Code of Security for the first time . It includes Organized workers as well as Unorganized workers .

·       Some provision are made for various schemes to provide comprehensive social security to workers of Unorganized sector.

·       This code said that the government should provide time to time validate the suitable welfare into Provident fund , employment injury benefits, Housing and Educational schemes for children.

·       Employees definition expanded in this code only to involve :-

1.     Inter State Migrant Workers

2.     Gig workers

3.     Platform workers

4.     Film industry workers etc.

·       Central government can reduce employer’s or employee’s contribution under Provident Fund and Employees State Insurance for a period of three months in the case of a pandemic , endemic and national disaster .


3. Occupational Safety, Health & Working Conditions Code Bill, 2020:-

·       This code was recently passed . And it replaced 13 labour law which relate safety, health and working condition such as :-

1.       Factories Act ,1948

2.       Dock workers Act ,1986

3.       Contract Labour Act ,1970

4.       Inter State Migrant Workers Act,1979 Act.

·       The main aim of this code is not only for regulate the employment but it is for regulate the employees health, safety,working condition. Some features of this code are :-

1.     After this code the defination of factory is expanded.

2.     Manpower limit on hazardous conditions removed.

3.     Maximum daily work limit 8 hrs per day .

4.     Women can work in any establishment and it’s the employers responsibility to provide adequate safeguard.

5.     Record of inter state Migrant Workers.

6.     Workers earing > 18k per month are called as Inter State Migrant Workers under this code and they can take benefit of Public distribution system , building, Insurance and Provident funds.


Reasons for the amendments

One of the major reasons as to why there has been such a major change in the Labour law is because it is the need of the hour especially given this covid era, the rights of workers have to be protected. Many workers have been facing a lot of issues regarding their employment as many are terminated and laid off without a reason or facing concerns with their workplace environment etc, therefore it is important for laws also to be amended along with the development of labour for the smooth functioning of the economy.

Suggestions & Conclusion

The suggestion for the new codes are balanced in terms of cause and effect and they are more effective and helpful with regard to the employee-employer relationship. This codes will help the employees and employer’s to get more benefits in such a critical situation like covid era.

The workers have been a strong part in the development of the economy from t and these laws are needed to be improved with the needs and development of the working class so that the laws are also evolved with the passing of time and so that the rights of the workers are also safe and protected.

The new amendments were very much necessary with regard to the global crisis that has hit because of which hundreds have lost their jobs and these laws also help to strike a balance with the employer-employee relationship which is very much needed.






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