Cabinet approves bill to merge all labour laws into single code

The Union Cabinet has approved a bill to merge 13 central labour laws into a single code which will apply to all establishments employing 10 or more workers.

This consolidation can potentially benefit large sections of the 40-crore workforce. The proposed Code on Occupational Safety, Health and Working Conditions Bill, will enhance coverage of workers manifold. Labour minister Santosh Gangwar said the code will be applicable to all business entities dealing in the port and mining sector even if they have only one employee. The proposed changes are intended to improve ease of business and giving enhanced protection to employees by mandating certain norms.

The bill provides for a single licence regime for staffing firms, thus significantly improving their ease of doing business. Mr Gangwar said that a comprehensive change in labour law, which the government will bring through legislation, will make appointment letters mandatory. The decision comes a week after the Cabinet gave its go-ahead to a labour code on wages, which has the provision of mandatory compliance of minimum wage and timely payment.

Both the bills will be introduced during the current session of Parliament.