Maharashtra announces draft rules for new labour codes

Labour unions have hit out at the draft rules, most significantly the increase in thresholds for the applicability of the new codes

MUMB AI: The Maharashtra government has published its draft rules for the new labour codes announced by the central government late last year, amid stiff opposition from labour unions.

Mumbai, India - May 11, 2022: A labourer works at a coal wholesale market, amid increasing power outages due to its shortage owing to the spell of heat wave, in Mumbai, India, on Wednesday, May 11, 2022. (Photo by Bhushan Koyande/ HT Photo) (HT PHOTO)

The draft rules, dated April 28, have now been made public, with the state inviting objections and suggestions from stakeholders. If the rules are not challenged during this 45-day period, the state will notify the labour codes for Maharashtra.

The new labour codes announced in November last year consolidate 29 laws into a contemporary framework. They ensure minimum wages, social security for all workers, make appointment letters compulsory, mandate free annual medical check-ups, formal grievance redressal systems, equal opportunities for women, and measures that enhance workers’ safety, among other things.

They also remove blanket restrictions on women working night shifts in factories and other establishments. The rules also mandate for crèche facilities in establishments employing 50 or more workers, work-from-home options after maternity leave, and equal wages regardless of gender.

The state government has issued draft rules under four codes – Industrial Relations Code, 2020; Code on Wages, 2019; Code on Social Security 2020; and Occupational Safety, Health and Working Conditions Code, 2020.

Unions are also opposed to the fixed-term employment clause, saying it is an attempt to discourage permanent employment and will compromise job security. They have also opposed the 14-day notice required to declare a strike, saying it would weaken the unions’ bargaining power.

Calling the new codes “anti-labour”, Gangaram Gawde, director, Ambekar Institute of Labour Studies, alleged that the codes favour managements and companies. “The increase in threshold for the applicability of laws is a clear indication that the government does not wish to continue social security for workers. Similarly, fixed-term employment is like having a sword hanging over the head of workers, who would find difficult even to get housing loans,” he said.

From the government’s perspective, an official with the state labour department said these reforms would lead to ease of doing business and create an industry-friendly atmosphere. “The amendment relating to the threshold of workers frees smaller units from compliance and offers them an industry-friendly atmosphere. The draft rules have been drawn up to align with the principle of ‘minimum government, maximum governance’,” he said.

“The strike-related restrictions intend to avoid man-hour losses and hindrances in production. They emphasise negotiations between workers and management beforehand,” the officer added.

According to state labour minister Akash Phundkar, the draft rules introduce more discipline into the “industrial atmosphere”. He remarked, “The rules ensure security of gig workers, and prioritise the safety, health and wages of workers from all sectors. They have brough clarity to wages and will work as guidelines for industrial establishments, the construction sector and unorganised sector.”