Jaitley to finalise wage, IR codes next week in panel meet
Arun Jaitley led Ministerial panel will meet next week and finalise drafts of the new industrial relations code and wage code on labor issue.
New Delhi, Mar 15: The ministerial panel on labour issues headed by Finance Minister Arun Jaitley will meet next week to finalise drafts of the new industrial relations code and the wage code. The ministerial panel broadly agrees on the wage code while more deliberations will be held on the industrial relations code.
After ministerial panel's approval, the two Bills will be put up for Cabinet approval before introducing the same in Parliament for passage. "Next meeting of the panel will be held next week," Labour Minister Bandaru Dattatreya told reporters on the sidelines of a conference 'Vision Zero' on occupational safety and health.
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The minister further said, "In the inter-ministerial meeting, we have cleared the wage code. There was a first phase of discussion on the industrial relations code. The Code on Wages... everybody has agreed. We proceed (on the wage code)." The minister also indicated the government's intent to push amendments in the Payment of Gratuity Act to enhance the ceiling of tax-free gratuity to Rs 20 lakh from the existing Rs 10 lakh in the ongoing session of Parliament.
"We have cleared the amendments in the Payment of Gratuity Act in the tripartite meeting and also we have taken it up to the Cabinet. After clearance from the Cabinet, it will come to Parliament. This time, we have proposed to increase the (tax free ceiling of) gratuity from Rs 10 lakh to Rs 20 lakh," the minister said.
Earlier last week, the ministerial panel headed by the Finance Minister had deliberated on the suggestions for the two codes at a meeting. It was attended by Labour Minister Bandaru Dattatreya and Power Minister Piyush Goyal. Asked whether there will be more discussions on the two codes, the Labour Minister had said there could be another on the two bills later this month.
He had also dropped hints that the two Bills will be pushed for passage in Parliament during the second leg of the Budget Session, which began on March 9.
The two legislations are significant as they form part of the efforts of the government to improve ease of doing business. The labour ministry has plans to condense nearly 44 labour laws into four codes -- wages, industrial relations, social security and safety, health and working conditions.
Trade
unions
are
opposed
to
certain
amendments
in
these
codes
and
have
already
submitted
their
dissent
note.
The
new
industrial
relations
code
proposes
to
raise
the
ceiling
on
number
of
workers
for
units
that
can
go
for
closure,
retrenchment
or
layoff
without
government
approval
to
300
from
100.
At
present,
all
units
with
up
to
100
workers
are
not
required
to
seek
government
nod
for
closure,
retrenchment
or
layoff.
The
government
has
completed
tripartite
discussions
on
these
two
codes
to
seek
view
of
stakeholders,
including
the
industry,
unions
and
states.
The proposed code on wages will subsume the Minimum Wages Act of 1948, the Payment of Wages Act of 1936, the Payment of Bonus Act of 1965 and the Equal Remuneration Act of 1976. Similarly, the code on industrial relations will subsume Industrial Disputes Act, 1947, the Trade Unions Act, 1926, and the Industrial Employment (Standing Orders) Act, 1946.
PTI