Insights
Tranche II of measures under special economic package – Imp labour law amendments, among others
May 15, 2020In the second tranche of the special economic package, the Finance Minister announced various short and long term measures for supporting the poor, including migrants, farmers, small businesses and street vendors. The important labour law amendments that were announced under the four Labour Codes pending in the legislature (which amalgamates 44 central labour laws) are :
- Universalization of minimum wages and timely payment of wages to all workers, including unorganized workers (presently minimum wages applicable to only 30% of workers)
- Introduction of a statutory ‘National Floor Wage’ to reduce regional disparity in minimum wages.
- Fixation of minimum wages simplified so as to reduce the number of rates of minimum wages and have better compliance.
- Appointment letter for all workers, to promote formalization.
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- Annual Health Check-up for employees.
- Occupational Safety & Health Code to be applicable to establishments engaged in work of hazardous nature, even with threshold of less than 10 workers.
- Definition of inter-state migrant worker modified to include migrant workers employed directly by the employer and workers directly coming to destination State of their own, besides migrant workers employed through a contractor.
- Portability of welfare benefits for migrant workers.
- Extension of ESIC coverage pan-India to all districts and all establishments employing 10 or more employees, as against those in notified districts/areas only.
- Extension of ESIC coverage to employees working in establishments with less than 10 employees on a voluntary basis.
- Mandatory ESIC coverage, through notification by the Central Government, for employees in hazardous industries with less than 10 employees.
- Social Security Scheme for Gig workers and Platform workers.
- Re-skilling fund introduced for retrenched employees.
- All occupations opened for women, permitted to work at night, with safeguards.
- Provision for Social Security Fund for unorganised workers.
- Gratuity for Fixed Term Employment – Provision of gratuity on completion of one year service as against 5 years.
To refer to Tranche II of the FM’s announcements, click here. To refer to the press release of the MoF, click here.
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