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 INDIAN LABOUR
REFORMS
Presented By:
G. Sai Teja
K. Nitish Kumar
P. Nanda Kishore
V. Abhinav Santosh
 INTRODUCTION
◇ Who is labour?
◇ Why we need labour?
◇ What labour need?
◇ Labour laws
◇ Reforms in labours laws
◇ Consolidating existing labour laws to codes
Labour codes – an  overview

Consolidates 29 Uniformity in
existing laws definations

Emphasis on Accountability
use of and
technology transparecny

Effective Ease of
enforcement implementation
1 Code on Wages 
But first thing’s first. What exactly is a
Wage?
A Wage
“Will be inclusive of basic pay, dearness allowance, and
retaining allowance, all expressed in terms of money or
capable of being so expressed, and meant to create
expressed or implied employment.”
 Now let's look at them separately
Dearness
Basic Pay: Retaining
Allowance:
Allowance:
It’s the fixed It’s paid to make
Paid when an
amount an sure that the cost
employer wants to
of living doesn’t
employer pays. retain the services.
cripple the
employees.
 What doesn’t constitute a Wage
◇ Leave travel Concession
◇  House Rent Allowance
◇  Overtime Payments
◇  Commissions etc., 
◇ Bonuses can no longer exceed 50% of the total
pay and this bit has some implications.
 Calculation of Wage
◇ Let’s suppose you were making ₹25,000  a  month — 
all things considered. No Dearness Allowance and
Retaining allowance included.
◇  Now What is 40% of 25,000?
◇  Its 10,000(Basic Pay)
◇ ₹15,000 is paid to you by way of additional allowance
and bonus and this sum is usually tax-exempt to a
certain level.
◇ The government-led pension scheme that
helps you build a retirement corpus. 
◇  You are expected to pay 12% of your basic
pay towards this corpus each month. Now
what is 12% of ₹10,000(Basic Pay).
◇  So you’ll have to contribute ₹1,200 towards
the Employee Provident Fund.
◇ That leaves you with ₹23,800.
◇  But the awards of bonus and allowance that
doesn’t constitute a wage must not exceed
50% of your total pay.
 Correction
◇  So now we change the Basic Pay Number, now
your Basic Pay is 50% 0f ₹25,000.
◇  Its ₹12,500.
◇  And now our PF contribution is 12% of ₹25,000
which is?
◇ ₹1500, now ₹25,000- ₹1500= ₹23,500.
◇  The Benefit here is the Basic Pay must be
₹12,500 the take home salary is less but the
Retirement corpus will be more.
Legislations Subsumed
◇  The minimum Wages Act, 1948
◇  The Payment of Wages Act, 1936
◇  The Payment of Bonus Act, 1965
◇  The Equal Remuneration Act, 1976
15
Coverage
The code will apply to all employees. The Central
Government will make wage-related decisions for
employments such as railways, mines, and oil fields,
among others.

Floor Wage
The Central Government will fix a floor wage,
taking into account living standards of workers and
the geographical areas.
 Fixing Minimum Wages
Minimum Wages will be notified by the Central or
State Governments based on time, or number of
pieces produced and will be reviewed and revised at
an interval of not more than five years.

Payment of Wages
The bill will ensure that employees getting a monthly
salary are paid by the 7th of the following month. It is
envisaged that states will notify payment of wages to
workers through digital mode.
Salient Features of Code
◇ The Code on Wages Bill for the first time
universalizes the provision of minimum
wages.
◇ Ensure timely payment.
◇ Ease of Compliance.
◇ One code in place of multiple laws.
 Code on  Social 
2 security
What is Security?
 Social Security
◇ Social security is the protection that a society
provides to individuals and households to
ensure access to health care and to guarantee
income security.
◇ The Employees’ Compensation Act, 1923, 
◇ The Employees’ State Insurance Act, 1948, 
◇ The Employees’ Provident Funds and Miscellaneous
Provisions Act, 1952, 
◇ The Employment Exchanges (Compulsory Notification of
Vacancies) Act, 1959, 
◇ The Maternity Benefit Act, 1961, 
◇ The Payment of Gratuity Act, 1972, 
◇ The Cine Workers Welfare Fund Act, 1981, 
◇ The Building and Other Construction Workers
Welfare Cess Act, 1996,
◇ Unorganized Workers' Social Security Act 2008.
 Code on  Social  Security 
The Social Security Code, 2020 brings
unorganized sector, gig workers and platform
workers under the ambit of social security
schemes, including life insurance and disability
insurance, health and maternity benefits,
provident fund and skill upgradation, etc. 
◇ The main vision of the code  was to provide
social security to unorganized and gig
workers of India.
◇ Who are around 91% of the
total workforce in India.
◇ Still today India as only 9% of the organized 
labour force , this is the main reason to setup
and bring this code.
The bill was introduced by the
Labour Minister Santosh
Gangwar. The bill was passed
by the Lok Sabha 22
September 2020 

The bill was passed by

the Rajya Sabha on 23
September 2020

The bill received the presidential

assent on 28 September 2020,
and section 142 of the Act has
come into force on 3 May 2021
What If?
◇ Flexible working hours
◇ Enhanced cost of employees
◇ Secured lifestyle
 Flexible Working hours
◇ If this code comes into play the employee's  will get 
to work only 4 days of a week with 3 days paid 
leave.
◇ The working hours of a day's work will also be
changed.
◇ The working hours are set in a way that no
employee undergoes any kind
of mental disturbance's.
 Enhanced cost of employee
◇ This code not only gives stress free working
space but also enhances the cost of employee.
◇ If this code comes into play the take home
salary of the employee increases.
◇ I.e., the employees can see an increase  in their
retirement plan.
 Secured lifestyle
◇ The government through a scheme called
ESIC provides insurance to all gig workers,
platform workers and unorganized workers.
◇ The scheme offers medical benefits, disability
benefits, maternity benefits, unemployment
allowance, etc.,
 ESIC
(Employee's State Insurance Corporation)

~How it works?
 ~How to get registered 
3 Code on Industrial Relations
 Laws replaced by this Code
◇ The Industrial Disputes Act (ID Act), 1947
◇ The Industrial Employment (Standing
Orders) Act, 1946
◇ The Trade Unions Act, 1926
◇ Industrial Relation Code, 2020 is an Act to
consolidate and amend all laws  relating to
trade union, conditions of employment in
industrial establishment  or undertaking,
investigation and settlement of industrial
disputes and for  matters connected to unions
and employer
Brief of industrial relations code
The Industrial Relations Code, 2020 provides a
broader framework to protect the rights of
workers to make unions, to reduce the friction
between the employers, and workers and to
provide regulations for settlement of industrial
disputes.
Main Purpose of the IR Code
◇ Streamlining the dispute resolution
mechanism.
◇ Protecting fixed-term employees, that is, those
employees who have been contracted to work for a
specific period of time.
◇ Ensuring implementation of standing orders by large
industrial establishment
◇ Enforcing strict penalties to avoid non-compliance.
◇ Initiating a re-skill fund for retrenched
employees.
◇ Enabling a business-friendly environment as the Code
provides for a single negotiating body and greater
flexibility to employers to make operational
decisions. prevent industrial disputes.
 CODE ON OCCUPATIONAL
SAFETY, HEALTH AND
4
WORKING CONDITIONS

 46% Deductions in
registration & licenses
related compliance;
resulting in a consolidated
database centrally
What's the need of
OSHWC code?
 20 Times higher  21% Reduction of prior
workplace deaths in laws, resulting it to
India as compared to dynamic legislation as
those of Britain compared to the existing
sectoral approach
 AMALGAMATION OF 13 LAWS
RELATING TO
◇ FACTORIES
◇ MINES
◇ DOCK WORKERS
◇ BUILDING AND OTHER CONSTRUCTION
WORKERS
◇ PLANTATION LABOUR
◇ CONTRACT LABOUR
◇ INTER STATE MIGRANT WORKSMEN
◇ Working journalists and newspaper employees.
◇ Motor transport employees.
◇ Sales promotion employees.
◇ Beedi and cigar workers.
◇ Cine workers and cinema theater workers
 SALIENT FEATURES
◇ Single registration for all establishments.
◇ Working hours: 8 hours with a spread of 48 hours
in a week.
◇  Issuance of appointment letter to employees/workers is
mandatory
◇ Prohibition to engage contract labour in core
activities
◇ Mandatory free health check-ups for
certain categories
◇ Benefits for inter-state migrant workers has been
extended.
◇ Census 2011 says 45 million Indians more outside their district of
birth for work opportunities- be it employment or business.
◇ Balance went of nationwide lockdown measures in March 2020 Will
stop based on available statistics and official reports, it is estimated
that 11 million migrants returned to the state of origin between March
and June 2020.
◇ Workers faced multiple hardships. With factories and workplaces shut
down due to the lockdown imposed in the country, millions of migrant
workers had to deal with the loss of income, food shortages and
uncertainty about their future.
◇ Flexibility in employment of women.
◇ Constitution of safety and appointment of safety
officer in Hazardous workplaces.
        CONCLUSION
 Advantages
◇ Labour code will come out as a game-changer initiative by the
government. 
◇ Will give leverage to workmen uplifting their standard and condition
of leaving.
◇ Employers flexibility to protect the Business interest.
◇ Build transparency  with digitalization and take interest of
employees. 
 Disadvantages
◇ The union may lose its control and fundamental rights  
    too.
◇ State government cannot keep the Minimum wages  
  less than Floor  Wages set by central government.
Looking ahead...
 Thanks You!
                              Sairam
                                        Any questions?
1. https://finshots.in/archive/the-labour-codes-revisited/
2. https://lawescort.in/2020/04/forty-four-acts-repealed-and-converted-into-four-codes-the-code-on
-wages-2019/
3. https://economictimes.indiatimes.com/news/economy/policy/how-will-the-new-labour-codes-imp
act-you-key-provisions-decoded/videoshow/81227362.cms?from=mdr
4. https://www.lawrbit.com/article/industrial-relations-code-2020
5. https://prsindia.org/billtrack/the-occupational-safety-health-and-working-conditions-code-2020
6. https://www.hrkatha.com/news/ir-labour-laws-news/labour-law-changes-all-you-need-to-know