DAILY NEWS ANALYSIS

GS-III : Economic Issues Labour

26 September, 2020
8 Min Read

Code debate

Context:

The parliament has passed three codes aimed at consolidating diverse labour laws.
They are the Industrial Relations Code, the Social Security Code and the Occupational Safety, Health and Working Conditions Code, 2020.

News:

The June 2002 report of the 2nd National Commission on Labour is the root of the idea of consolidated labour codes.
The broad vision has been to give an impetus to economic activity without adversely affecting the interests of workers.
They were drafted with the basic objective of amalgamating, simplifying and rationalising labour laws.
A positive feature is that the Social Security Code promises the establishment of social security funds for unorganised workers, as well as gig and platform workers, and their welfare would be addressed by the National Social Security Board.
The threshold for considering any premises as a factory has also been raised from 10 to 20 workers without the use of power, and from 20 to 40 with power.

Criticisms:

It is argued that the laws of paramount importance, having far too much impact on the people were passed in haste or without sufficient deliberation.
The three codes are an updated version of the respective Codes of 2019, which were scrutinised by a Standing Committee, therefore, it is widely opined that they should have been sent back to the panel for an assessment.
The most contentious feature is the increase in the threshold for an establishment to seek government permission before closure, lay-off or retrenchment from units that employ 100 workers to 300.
This gives establishments greater freedom in their termination and exit decisions. This was not found in the 2019 draft.
It is argued that, with these codes involving a voluminous body of legislation, the final version should have been widely discussed with the stakeholders.
Another contentious section allows the appropriate government to exempt any new factory from all provisions of the Code on occupational health, safety and working conditions.
There is a fear that expansive powers of the exemption have been conferred on the respective governments and there has been an excessive delegation of rule-making powers.

Source: TH

Join Our Telegram

India–Australia Economic Cooperation and Trade Agreem

India–Azerbaijan

05 Apr, 26
SHARE

A year after tensions arising from Operation Sindoor, India and Azerbaijan have taken steps to restore and normalise bilateral relations. The 6th round of Foreign Office Consultations, held in Baku, marked the first such engagement since 2022, signaling renewed diplomatic momentum. Recent Diplomatic Engagement During the consultations, bo

India–Australia Economic Cooperation and Trade Agreem

04 Apr, 26
SHARE

The India–Australia Economic Cooperation and Trade Agreement has completed four years since its signing. Both countries now aim to build on this progress through strengthened collaboration and ambitious targets, including reaching AUD 100 billion in bilateral trade by 2030. What is the India–Australia Economic Cooperation and Tra

ADR Report on Political Funding

03 Apr, 26
SHARE

A recent report by the Association for Democratic Reforms (ADR) analyses donations of ?20,000 or more declared to the Election Commission of India (ECI) by national political parties for FY 2024–25, highlighting transparency and accountability in political financing. Key Findings Massive Funding Surge Total donations to nationa

Maritime Chokepoints

03 Apr, 26
SHARE

Maritime chokepoints are narrow channels along global shipping routes where maritime traffic is concentrated. These points are geopolitically and economically critical, as they handle a large proportion of global trade, especially energy shipments. Current Relevance Over two-thirds of seaborne energy trade passes through a handful o

US-Israel-Iran War

01 Apr, 26
SHARE

Following the launch of Operation Epic Fury (U.S.) and Operation Roaring Lion (Israel), the geopolitical landscape has shifted fundamentally with the confirmed death of Iran’s Supreme Leader, Ayatollah Ali Khamenei.Iran retaliated through Operation True Promise 4, launching missile attacks against Israel and nearby Gulf states. The escala

Quick Links Testimonials FAQ

Crash Course

Regular Modules 2024

Mains

Optional

Code debate

Code debate

India–Azerbaijan

India–Australia Economic Cooperation and Trade Agreem

ADR Report on Political Funding

Maritime Chokepoints

US-Israel-Iran War

DNA

05 Apr,2026

Important GS Topics

Toppers

Search By Date

Top Editorials

UPSC Courses

Saarthi Mentorship Programme

Important Tags

Articles:Geography And Environment

Articles: History Culture Society

Articles: Governance & National Issues

Articles: IR & IO

Articles: Economic Development & Economic Issues

Articles: S&T Internal Security

Articles: Ethics & Others

Articles: Others

Newsletter Subscription

SMS Alerts

Important Links