Aparajitha decodes the Labour Laws

Aparajitha’s 2 part ’60 Minutes Compliance’ Webinar addresses the provisions of the Labour Laws

Chennai, November 02, 2020: Aparajitha Corporate Services Private Limited, the country’s no.1 company for Compliance, today organized and ended its ’60 Minutes Compliance’ webinar session which discussed on the introduction of Labour Codes. The webinar was aimed at discussing the Labour Codes in detail and how it is being derived from the existing 29 Central Labour Laws without compromising any aspect of it.  

The session was continuation of the first part of the webinar which had taken place on 24^th October 2020.

The discussion included esteemed speakers Justice S. Vaidynathan, (Judge, Madras High Court) and Mr. S. Ravidran. (Sr. Advocate & President of Labour Law Practitioners Association) while the first part of session had Justice F.M Ibrahim Kalifulla (Retd. Judge , Supreme Court of India) and both session was addressed by K Varadan, Chief Consultation Officer, Aparajitha Corporate Services Private Limited.

The discussions on both the sessions highlighted on how these codes, when implemented, would benefit workers and safeguard their rights, especially in the unorganized sectors. It also mentions how these codes will work in favour of Managements by covering aspects such as Permission for Fixed Term Employment, increase in threshold limit for applicability of Standing Orders Act, Factories Act, Contract Labour Act, current Chapter VB under ID Act.

Speaking on the occasion, Mr. Nagaraj Krishnan, Managing Director, Aparajitha Corporate Service Private Limited said, “In a move to revive the industries that had been severely impacted by the pandemic, the government has proposed labour codes which had been in talks for over 17 years since its initial suggestion in 2003. The scope of these codes is huge and will set a framework for the rules which will cover all aspects as Hiring and firing, fixed-term employment, rudimentary security net that will now cover sections of the unorganized workforce, and a lot more. The quantum of penalty is also substantially increased according to these labour codes to lay emphasis on compliance for the industries. While this has made things easier from the legislation front, compressing almost 29 existing legislation laws into 4 codes can create huge confusion to employers and employees in terms of the new changes and amendments. Both sessions of the knowledge series were arranged to discuss the key changes that are likely to be brought about by the codes and the possible implications so that people would have better clarity about these codes that will be responsible for safeguarding their rights.

The webinar session highlighted the key features of the upcoming labour codes.

(A) Social Security Code, 2020

• The facility of ESIC would now be provided in all 740 districts which at present is only present in 566 districts.
• EPFO’s(Employees’ Provident Fund Organisation) coverage would be applicable to all establishments having 20 workers.
• Provisions will be made to formulate various schemes for providing comprehensive social security to workers in the unorganized sector and a “Social Security Fund” will be initiated to implement these schemes.
• Provision for Gratuity will be made for Fixed Term Employee and there would not be any condition for minimum service period for this.
• The making a national database for unorganized sector workers and registration of all these workers on an online portal through a simple procedure of Self Certification.

 (B) Occupational Safety, Health & Working Conditions Code, 2020

• Free health checkups once a year by the employers for workers and employees who are more than a certain age.
• Providing an Appointment Letter with terms and conditions to workers or employees while joining a company.
• (C) Industrial Relations Code, 2020
• Providing a facility for the helpline for redressal of problems of migrant workers.
• Provision for the accumulation of one day leave for every 20 days worked when work has been done for 180 days instead of 240 days.
• Permission for women to work in every sector at night with the provision for their security and the consent to work.
• Paying 50 percent penalty in addition to Employees Compensation in the event of the death of a worker or injury to a worker due to an accident at his workplace,
• Provision of “Social Security Fund” for unorganized workers along with GIG and platform workers.
• Occupational Safety & Health Code can cover workers from the IT and Service sectors.
• Providing a 14 days notice for Strike so that enough time is given to come up with an amicable solution. 

(D) Wage Code Bill, 2019

• Occupational Safety & Health Code can cover workers from the IT and Service sectors.
• Providing eligible basic pay, bonus payments and gratuity payments
• Contributing to pension or provident fund;
• Providing eligible conveyance allowances;
• Provision of sums paid to the employee to defray special expenses on him by the nature of his employment;
• Provision of overtime allowance;

The two part webinar sessions, which saw participation by 1700 individuals comprising of HR professionals, mid & senior level personnel, and employees from Corporates across various industry sectors, was moderated and addressed by Mr. K. Varadan, Chief Consultation Officer, Aparajitha Corporate Services Private Limited.