Context: Recently, the Union cabinet approved amendments to the labour codes on September 8, 2020. The Three codes include social security, industrial relations, and occupational safety and health (OSH) out of four codes that was proposed in the Industrial Relations Code, 2019 bill.
Key highlights of the Industrial Relations Code, 2019

• The bill recognises trade unions.
• It seeks to provide pension and medical benefits to gig workers.
• The codes will define areas and conditions in which fixed-term employment can be allowed.
• The bill seeks to replace three labour laws namely, the Industrial Disputes Act, 1947; the Trade Unions Act, 1926; and the Industrial Employment (Standing Orders) Act, 1946.
• It subsumes 44 labour laws into four codes namely, on wages; industrial relations; social security and safety; health and working conditions.
• The bill proposes that, employee can strike only after providing notice 14 days prior to strike.
• Factories, mines or plantations needs to take permission from central or state government before firing their workers.
• Industrial Tribunals would also be constituted for the settlement of industrial disputes.
• Industrial Tribunal comprises a Judicial member and an Administrative member.

Labour codes

• The Union cabinet approved amendments to the labour codes on social security, industrial relations, and occupational safety and health (OSH), which could include pension and medical benefits to gig workers.
• It will allow states to introduce significant changes to their labour laws framework.

Note: These code amendments will allow states such as Uttar Pradesh, Madhya Pradesh and Gujarat to push through their planned labour reforms.
About the codes

• The social security code – involving provident fund, insurance, maternity benefits. 
• The industrial relations code – it will combine laws on industrial disputes, trade unions and others. 
• The occupational health and safety code – involving industrial safety and welfare laws.

The proposed changes include

• medical and pension for informal workers.
• removes ‘employees’ and ‘workers’ distinction and defines areas and conditions for fixed-term employment, layoffs and retrenchment policies under industrial relations (IR).
• clear definition of ‘appropriate authority’ and strengthening of health facilities at factory premises under occupational safety and health (OSH).

Who can make laws for labour?

• Labour has been kept under the Concurrent List of the seventh schedule. So, Parliament and state legislatures both can make laws to regulate them.