Labour Bill 2020 – New Labour Law Amendments in India 2020

labour laws bills

Let’s discuss:

What are 3 New Labour Codes?

How these laws will affect workers & employees?

Provisions of 3 New Labour Codes?

Pros of 3 New Labour Laws?

Cons of 3 New Labour Laws?

Recently, in the last days of September 2020, Parliament has passed 3 New Labour Law Codes 2020. These new Labour Law Amendments 2020 are namely:




Let’s discuss each one of them briefly and at the end, we will look at their advantages and disadvantages:

  1. Industrial Relations Code Bill, 2020:
    • Previously, Standing Orders i.e. forming Service Rules for workmen, was compulsory for an employer if he hires equal to or over 100 employees. This limit has now been increased to 300 employees.
    • Now to conduct any strike, prior notice (60 days prior to strike) to the employer is mandatory if proceedings are going on in any tribunal & also to give 60 day notice period if the proceeding are concluded.
    • To Reskill retrenched workers, the employer will contribute to a worker’s last drawn 15 days pay.
  2. Social Security Code Bill, 2020:
    • National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganized workers, gig workers.
    • Social security for gig workers: Also, aggregators employing gig workers will have to contribute 1-2 percent of their annual turnover for social security of workers.
  3. Occupational Safety, Health & Working Conditions Code Bill, 2020:
    • Inclusion of inter-state migrant workers in the definition of worker: Inter-state migrant workers are defined as the worker who have come on his own from one state and got employment in another state, earning up to Rs 18,000 a month. 
    • Proposed a journey allowance — a lump sum amount of fare to be paid by the employer for the back-and-forth journey of the worker to his/her native place from the place of his/her employment.
    • To Promote Formalization: Issuing of appointment letter mandatorily by the employer of an establishment to promote formalization in employment.
    • Portability Benefits: An Inter-State Migrant Worker has been provided with the portability to avail benefits in the destination State regarding ration and availing other benefits.
    • The code has dropped the earlier provision for temporary accommodation for workers near worksites.
    • To employ women in all establishments for all types of work: The timing of working for women in any type of work is fixed from 6 A.M. and till 7 P.M.. They can also work at night, that is, beyond 7 PM and before 6 AM, subject to the conditions relating to safety, holiday, working hours and their consent.
  • Now let’s look at some advantages of these New Labour Reforms in India 2020:
    1. Fund for reskilling retrenched workers might help workers.
    2. National Social Security Board, which will recommend schemes for unorganized and gig workers, can help in receiving benefits.
    3. Employer’s contribution of 1-2% from turnover will uplift social security of these gig workers.
    4. Defining Inter-State Migrant Worker will reduce ambiguity.
    5. Journey Allowance can reduce burden on employees.
    6. Formalizing employment will provide appointment letter, which can be used as a proof of experience in other employments.
    7. Changing working conditions could help employed in generating more revenue.
  • Now let’s look at some disadvantages of these New Labour Laws 2020:
    1. New labor laws have diluted workers’ rights.
    2. These laws have reduced safety of workers. Companies might impose arbitrary working conditions.
    3. These laws are corporate-friendly, providing more flexibility to them for hiring and removing workers.
    4. Introducing new striking conditions will make workers vulnerable to exploitation, and their freedom of speech might be restricted.
    5. The functioning & implementation of the Reskill Fund is unclear in new labor laws.
    6. Women are now more vulnerable to abuse as they can now work at the night as well.

Let us see what happens with the functioning and implementation of the beneficial aspects of these labor reforms and how the government of India will tackle the challenges of the negative aspects of these new labor law amendments in 2020.

you can access the Video Version (Hindi) free of cost here >> Labour Law Amendments 2020 in Hindi – YouTube

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Om Ram

Om Ram

Om Ram is currently a 2nd-year LL.B. student at Campus Law Centre, Delhi University. Previously he did Life Sciences from SVC, Delhi University. He shows his life journey by making Legal Vlogs on a YouTube channel named 'Om Ram'. He has interests in Law, Science & Film making. Some of his notable work related to photography and other interests can be seen on his Instagram. He also has a channel named 'Law Planet' where he along with his sister makes videos to make people aware of laws and their rights.
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