Context: Employees may soon have an option to work for four days a week in the country. The Union Ministry of Labour and Employment is working to roll out new labour codes, where it proposes flexibility to companies to reduce the number of working days to four days a week. However, the cap on working hours of 48 hours per week will remain sacrosanct. Labour and Employment Secretary Apurva Chandra informed on Monday that organisations would have three choices - deploying employees for four days at 12 hours per day, five days at around 10 hours per day and six days at eight hours per day. Those working for four days will have to be given three days off by their employers while those working for five days will have to be given two off days before they move on to the next week. The employers or employees will not be forced to comply with the provision. As per the government, the move is aimed at providing flexibility and to be in sync with changing work culture in the country. On this edition of Discussion Today, we will talk about the 4-day work per week provision in the new labour code.. whether and how this flexibility will help the employees and the challenges going forward in effective implementation of the new labour codes.

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.