Rights of an Employee against an Employer under the New Labour Codes

Introduction

In order to promote ease of doing business in India, streamline the interests of the workforce, reduce red-tapism of labour inspectors, and improve working conditions, the Indian government has codified 29 national labour statutes into four labour codes:

• The Code on Wages, 2019 (Wages Code)
• The Industrial Relations Code, 2020 (IR Code)
• The Code on Social Security, 2020 ("SS Code")
• The Occupational Safety, Health and Working Conditions Code, 2020 ("OSH Code")

The Code on Wages, 2019 ("Wages Code")

The Wages Code aims to ensure fair treatment in the payment of wages. Key rights include:

• Equal Wages: No gender discrimination in wage payment.
• Minimum Wage: Entitlement to minimum wages for all employees.
• Bonus Payment: Employees working at least 30 days in the accounting year are entitled to an annual bonus of 8.33% of wages or Rs. 100, whichever is higher.

Rights under the Industrial Relations Code, 2020

Employees have several rights under the IR Code, including:

• Grievance Redressal: Disputes can be resolved within 30 days through the Grievance Redressal Committee.
• Protection Against Unfair Practices: Safeguards against discrimination, wrongful dismissal, and coercion.
• Right to Trade Union Participation: Employees can form and join trade unions for collective bargaining.
• Protection During Disputes: Industrial disputes can be resolved via conciliation, arbitration, or tribunals.
• Notice for Employment Changes: Employers must provide 21 days' notice before altering service conditions.
• Fair Treatment for Fixed-Term Employees: Equal wages and benefits as permanent workers.
• Protection from Unjust Retrenchment: Includes notice and compensation.
• Subsistence Allowance During Suspension: Workers receive 50%-75% of wages during suspension.
• Right to Arbitration: Disputes can be resolved through binding arbitration.

Rights under the Code on Social Security, 2020

Employees' rights under the SS Code include:

• Provident Fund: Retirement savings under the Employees' Provident Fund Scheme.
• Pension: Retirement pensions under the Employees' Pension Scheme.
• Insurance: Deposit-Linked Insurance Scheme benefits for dependents.
• Health Benefits: Medical care under the Employees' State Insurance Scheme.
• Maternity Benefits: Paid leave and medical care during pregnancy.
• Gratuity: Financial benefits for long-term service.
• Compensation: Benefits for employment injury or disease.
• Social Security for Gig and Platform Workers: Coverage for non-traditional workers.
• Unorganized Workers: Welfare schemes for health care and financial protection.
• Disability and Death Benefits: Compensation for the employee and family.

Rights under the Occupational Safety, Health and Working Conditions Code, 2020

Employees' safety rights under the OSH Code include:

• Safe Workplace: Hazard-free environment to avoid injuries and diseases.
• Annual Health Checks: Free annual health check-ups for specific employees.
• No Fees for Safety: Employers cannot charge employees for workplace safety measures.
• Safety Information Access: Right to health and safety information.
• Reporting Unsafe Conditions: Employees can report unsafe situations.
• Safe Work Systems: Employers must arrange for safe handling and storage of hazardous materials.
• Disease Notification: Right to report occupational diseases.
• Action to Remove Danger: Right to discontinue dangerous work without penalties.
• Safety Training and Supervision: Employers must provide training and supervision for safety.
• Welfare Facilities: Access to restrooms and first-aid facilities.
• Protection from Dangerous Work: Employees can refuse inherently dangerous tasks.
• Redressal Mechanism: Grievances can be raised with safety committees or facilitators.