Context: The new labour codes set to be implemented soon would provide companies the flexibility of reducing the number of working days to four days a week and provide free medical check-ups to workers through the Employees State Insurance Corporation.
Key Points

• The draft rules under the labour codes are being finalised. 
• Most States were in the process of framing their rules and some, including U.P., Punjab and M.P., would be ready with their drafts this week.
• The concerns about the working hours going up from 10.5 hours to 12 hours, with one hour of rest, that arose during consultations had been addressed.
• Under the Occupational Safety, Health and Working Conditions Code, 2020 draft rules, the limit of working hours for a week was 48 hours. 
• This limit was “sacrosanct” and the employers and workers would have to agree to a change in working days. It cannot be forced.

Right Code For Labour 
Labour falls under the Concurrent List of the Constitution. Recently, the Parliament passed three labour codes proposing to simplify the country’s archaic labour laws and give impetus to economic activity without compromising with the workers’ benefits. 

• On industrial relations; 
• Occupational safety, health and working conditions; 
• Social security

The labour codes were adopted on the recommendations of the Second National Commission on Labour (2002), which suggested consolidating 100 State laws and 40 Central laws across industries, occupations and regions. 
Existing Labour Codes Subsumed

• The social security code replaces nine laws on social security, including the Employees’ Provident Fund Act, 1952, and the Maternity Benefit Act, 1961. 
• Industrial Relations Code subsumes the Industrial Disputes Act, 1974, the Trade Unions Act, 1926; and Industrial Employment (Standing Orders) Act, 1946.
• The Occupational Safety, Health and Working Conditions Code replaces 13 labour laws.

Benefits of Labour Codes
Consolidation and simplification of the Complex laws: The three Codes simplify labour laws by subsuming 25 central labour laws that have been on the table for at least 17 years. 

• It will provide a big boost to industry & employment and will reduce multiplicity of definition and multiplicity of authority for businesses. 
• Single Licensing Mechanism: The codes provide for a single licensing mechanism. 
• It will give fillip to industries by ushering in substantive reform in the licensing mechanism. Currently, industries have to apply for their licence under different laws.

Easier Dispute resolution: The codes also simplify archaic laws dealing with industrial disputes and revamp the adjudication process, which will pave the way for early resolution of disputes. 
Ease of Doing Business: According to the industry and some economists such reform shall boost investment and improve ease of doing business. 

• It drastically reduces complexity and internal contradictions, increases flexibility & modernizes regulations on safety/working conditions 

Other benefits for Labour: The three codes will promote fixed term employment, reduce influence of trade unions and expand the social security net for informal sector workers. Concerns with the Labour codes 
Against the Interests of Employees: The codes provide the liberty to industrial establishments to hire and fire their employees at will. 

• This move might enable companies to introduce arbitrary service conditions for workers.

Free Hand to States: The central government has also attracted criticism that states have been given a free hand to exempt laws in violation of labour rights. 

• However, the Union Labour Minister has said the labour issue is in the Concurrent list of the Constitution and therefore states have been given the flexibility to make changes as they wish. 

Affect Industrial Peace: Industrial Relation Code proposes that workers in factories will have to give a notice at least 14 days in advance to employers if they want to go on strike.

• However, earlier the Standing Committee on Labour had recommended against the expansion of the required notice period for strike beyond the public utility services like water, electricity, natural gas, telephone and other essential services.
• Further, Bharatiya Mazdoor Sangh has also opposed the Code, describing it as a clear attempt to diminish the role of trade unions.