Page 9 - Plastics News October 2020

The Industrial Reforms
The Industrial Relations Code 2020 is seen as one that would energise industry and spur
economic activity. It aims to free employees from the constraints of earlier labour laws.
The Industrial Relations Code combines the features of three erstwhile laws. These are –
the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and
the Industrial Disputes Act, 1947.
The codes substantially revise the pre-existing thresholds which were used to earmark
the ambit of labour law enforcement; namely the size of an establishment's workforce.
The Industrial Relations Code, for instance, allows establishments employing up to 300
workers to layoff and retrench workers or close units without prior approval of the
government.
Also, the codes categorically double the threshold for the applicability of the Factories
Act, 1948, i.e. from 10 to 20 workers in the case of establishments run on electricity, and
from 20 to 40 workers in the case of units run without electric power.
The bulk of amendments have concentrated on introducing self-certification of
employers' compliance with labour laws in small and micro industrial establishments,
and the exemption of these establishments from the ambit of crucial labour laws.
One would agree that an adjustable framework is required for hiring workers that can
adapt to the market changes. Considering the fact that the contractual employment
workforce is quite often exploited with respect to wages, social security, and working
conditions as well as welfare facilities, Fixed Term Employment is an intervention to
enable the hiring of employees directly instead of hiring through contractors, which will
ensure flexibility.
The Code on Industrial Relations also extends the benefit of gratuity even for an FTE
contract of one year, which is five years in the case of regular employees.
The inclusion of the gig and platform workers in the Social Security Code 2020 is a step
towards strengthening the formal economy. The ESIC and EPFO requirements will now
apply to establishments employing less than 10 and 20 workers respectively on a
volunteer basis.
The Occupational Health, Safety & Working Conditions Code expands the definition of a
migrant worker. Further, it has also been made possible that a migrant, who comes on his
own to the destination state, can declare himself a migrant worker by registering on an
electronic portal based on self-declaration seeded with Aadhaar.
One of the most apt amendment under Industrial Relations Code 2020, is the provision
for a 14-day notice period before strikes and lockdowns would allow both workers and
employers to attempt resolving the issues.
The codes also promote lifelong learning mechanism through the introduction of a
reskilling fund. The lifelong learning opportunity is provided to match the evolving skill
sets required for technology and process changes.
However these reforms have also had its share of criticism but then it is fair enough, for
who knows, it might have further amendments based on teething problems.
Wishing Happy Dusshera to all of our readers !!

October 2020 9 Plastics News