Four Labour Codes 2020 — Set 8

Correct Answer: B. To simplify compliance and improve ease of doing business while protecting workers

The primary objective of consolidating 29 central labour laws into four codes is to simplify compliance, reduce the multiplicity of definitions and regulatory authorities, and improve ease of doing business in India. The earlier web of 29 laws had overlapping definitions, different thresholds, and varying compliance requirements. The consolidation was also meant to modernise labour relations while maintaining essential worker protections.

Correct Answer: B. Industrial Relations Code

The Industrial Relations Code 2020 deals with the recognition and functioning of trade unions, having consolidated the Trade Unions Act 1926. It introduces the concept of a sole negotiating union (requiring 51% membership) and a Negotiating Council for multi-union scenarios. The code also governs collective bargaining, strikes, lockouts, and industrial dispute resolution.

Correct Answer: C. Industrial Relations Code

Disputes between employers and workers, including those relating to wages, are governed by the Industrial Relations Code 2020 which incorporated the Industrial Disputes Act 1947. The code provides for conciliation, mediation, arbitration, and adjudication through Labour Courts, Industrial Tribunals, and National Industrial Tribunals. The dispute resolution framework is meant to ensure peaceful resolution of labour conflicts.

Correct Answer: C. State Government or a designated authority

Under the Code on Social Security 2020, unorganised workers are to be registered by the State Government or an authority designated by it. The registration is to be done through a self-declaration on a portal. Registered workers become eligible for welfare schemes notified under the code, forming the basis for extending social security to the vast unorganised sector.

Correct Answer: C. Code on Social Security

The Employee's Compensation Act 1923 (earlier called the Workmen's Compensation Act) is consolidated under the Code on Social Security 2020. This act provides for compensation to employees and their dependants in cases of injury, disability, or death arising out of and in the course of employment. Its provisions are retained in the new code with updated terminology.

Correct Answer: C. They are provided by the employer free of cost to workers above a specified age or in hazardous work

The OSHWC Code 2020 mandates that employers provide free annual health check-ups to workers above a specified age and to those engaged in hazardous or dangerous operations. The purpose is to detect occupational diseases at an early stage and prevent long-term health damage. The results of these check-ups are to be maintained in health records by the employer.

Correct Answer: B. Industrial Relations Code

The Industrial Employment (Standing Orders) Act 1946 is one of the three laws merged under the Industrial Relations Code 2020. Standing orders define terms and conditions of employment such as working hours, leave, and disciplinary procedures. Under the new code, standing orders are mandatory only for establishments with 300 or more workers, up from 100 under the earlier act.

Correct Answer: B. Employers in all sectors can now hire on fixed contracts with proportionate benefits

Before the Industrial Relations Code 2020, fixed-term employment was permitted only in specific sectors like apparel and footwear. The universalisation allows employers in all industries to hire workers on fixed-term contracts, with the key safeguard that such workers receive all statutory benefits proportionate to their tenure. This was seen as giving employers flexibility while ensuring basic protections for fixed-term workers.

Correct Answer: C. Code on Wages

The Code on Wages was the first of the four Labour Codes to be passed, receiving Presidential assent in August 2019. The remaining three codes — the Industrial Relations Code, Code on Social Security, and the OSHWC Code — were all passed in September 2020 during the monsoon session of Parliament. The Code on Wages set the precedent for the comprehensive labour law reforms that followed.

Correct Answer: C. Both Code on Social Security and OSHWC Code

The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act 1996 is split across two Labour Codes. Its occupational safety and working conditions provisions are consolidated under the OSHWC Code 2020, while welfare and social security provisions are absorbed into the Code on Social Security 2020. This reflects the dual nature of the original BOCW Act covering both safety and welfare.