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Big Update on Labor Code: Labor Code will be implemented this year, Know to which workers it will apply

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Big Update on Labor Code: Labor Code will be implemented this year, Know to which workers it will apply

The Union Ministry of Labor and Employment will implement four labor codes this year to make labor reforms in the country. Union Minister of State for Labor and Employment Rameshwar Teli has said that the social security schemes being run for the unorganized sector will be linked to the E-Shram Database.


new Delhi. The Union Ministry of Labor and Employment will implement four labor codes this year to make labor reforms in the country. Along with this, the ministry is also considering bringing a social security scheme for gig workers and platform workers. Union Minister of State for Labor and Employment, Rameswar Teli has given this information. It is worth noting that the employees hired on the basis of payment for work are called gig workers. Employees doing delivery related work with online companies also come under the category of gig workers.

Union Minister of State for Labor and Employment Rameshwar Teli told Moneycontrol that the ministry is trying to take all the states along to implement the four labor codes. Along with this, the ministry is also working on integrating schemes like pension with the unorganized sector database (E-Shrm Database) being run to provide social security to the workers of the informal sector.

Labor codes benefit workers

Significantly, the central government says that with the implementation of these labor codes, where workers will benefit, economic development will also get momentum. The government says that these labor codes will provide minimum wages to the workers and ensure timely payment of wages. These will also ensure ease of doing business and workers in the unorganized sector will get the benefit of social security schemes.

Not implemented yet

The Center has consolidated 29 central labor laws into four labor codes. These include the Wage Code; Social Security Code; Industrial Relations Code and Occupational, Safety, Health and Working Conditions Code. Parliament had passed three of the four labor codes in 2020, while the wage code was approved in 2019 itself. But till now none of these have been implemented. As per the latest government data, at least 26 states and union territories (UTs) have prepared draft rules for the wage code. 22 states and union territories have prepared draft rules for the Industrial Relations Code.

38 crore will register

The Minister of State for Labor said that the government is continuously engaged in creating a database of the unorganized sector and is confident that it will touch the figure of 38 crore registrations. Rameshwar Teli says that the E-Shram Platform has started from August last year. The government’s target is to register 38 crore people. So far, about 26 crore people of the unorganized sector have been registered.

Some of the schemes will be integrated with the database of the unorganized sector. Teli told that PM Shram Yogi Maandhan Yojana (PM SYM) is being linked with it. There is a provision to give pension to the registered workers in PM Maandhan Yojana.

Steps being taken for the welfare of gig workers

The Union Minister said that the final decision will be taken soon for the welfare of gig workers and platform workers. Companies have been asked to provide more facilities to these employees and talks are on with them. According to official figures, there are 7,17,686 gig workers in India. Of these, 58% are in Uttar Pradesh, Bihar and West Bengal alone. Apart from these, the Ministry of Labor is also taking steps for the welfare of beedi workers.

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