NEW LABOUR CODES

Why in News?

• The Government has brought in new Labour Codes.
• These codes bring better wages, safer working conditions, social security, and more rights for bidi and cigar workers across India.

The new laws include:

• Code on Wages (2019)
• Occupational Safety, Health & Working Conditions Code (2020)
• Social Security Code (2020)
• Industrial Relations Code (2020)

Together, they upgrade protection for lakhs of workers in this traditionally informal sector.

WHAT HAS CHANGED?

Old law (1966 Act):

• Working day could go up to 9 hours.
• Annual leave only after 240 days of work.
• No medical check-ups.
• Limited protections.

New Labour Codes:

• 8-hour working day (weekly limit still 48 hours).
• Overtime must be paid at double rate.
• Annual leave available after 180 days, not 240.
• Free annual health check-up for every worker.
• Much stronger safety and welfare rules.

KEY IMPROVEMENTS FOR WORKERS

WAGE PROTECTION

1. Minimum Wages for All

• No employer can pay below government-notified minimum wage.
• Earlier, minimum wage applied only to “scheduled jobs”.
• Now, it covers all employees, including bidi and cigar workers.

2. Floor Wages

• Central government will set a floor wage based on cost of living.
• States cannot go below this floor wage.
• This helps reduce migration caused by wage differences across states.

3. Overtime Pay

• Any work beyond normal hours must be paid 2 times the normal wage.

TIME BOUND PAYMENT OF WAGES

Also, rules on wage deductions now apply to all employees, not only those earning below ₹24,000. EMPLOYER'S RESPONSIBILITY If the employer fails to pay, the owner/proprietor/company is fully responsible for unpaid wages. WAGE SLIPS Every worker must get wage slips, either digital or paper.

BETTER WORKING HOURS RULES

• Normal working hours can be structured as:
  • 8 hours/day with 1 weekly holiday
  • 9.5 hours/day with 2 weekly holidays
  • 12 hours/day with 3 weekly holidays
• Total weekly hours remain 48.
• Overtime requires worker’s consent.

SOCIAL SECURITY IMPROVEMENTS

A. ESIC Coverage Expanded

• ESIC now covers all of India, ending the old “notified area” system.
• Even establishments with less than 10 workers can join voluntarily.

B. Larger Time Window for Claims

• Workers now get 3 years to file claims (earlier 6 months to 2 years).

C. Improved Bonus Rules

• Workers earning within the government-set limit get a bonus.
• Bonus must be minimum 8.33% of yearly wages, and can go up to 20%.
• Worker must have worked at least 30 days in the year.

D. Appointment Letters for All

• Every worker will get a formal appointment letter with details of wages, social security, job role, etc.

E. Wider Definition of “Family” for Women

• For female workers, parents-in-law are now included in the “family” definition if they fit the income limits.

SAFER & HEALTHIER WORKPLACES

A. Accident Coverage

• Includes accidents during travel to and from work.

B. Free Annual Health Check-ups

• Every worker is entitled to a free yearly health test.

C. Better Leave Rules

• Paid leave after 180 working days, instead of 240.

D. Welfare Facilities Government will set standards for:

• Cleanliness
• Drinking water
• Toilets
• Rest rooms
• Canteens
• Occupational safety rules for bidi/cigar units

E. No Gender Discrimination

• Employers cannot discriminate in hiring, wages, or working conditions.
• Same work = same pay, regardless of gender.

CONCLUSION The new Labour Codes bring big improvements for bidi and cigar workers. They ensure better wages, safer workplaces, social security, regular health check-ups, formalization, and gender equality. These reforms give workers more dignity, stability, and protection, helping them lead safer and more secure lives.