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Social Infrastructure, Employment and Human Development 365

benefits like a permanent worker. Further, a FTE worker has also been allowed benefit of
proportionate gratuity even if the contract is for a period of one year.
iii. A “Re-skilling Fund” for training of retrenched employees has been setup from the
contribution to be made by an industrial establishment for an amount equal to 15 days’
wages for every worker retrenched. This is in addition to retrenchment compensation.
The amount will be credited to the workers account within 45 days.
iv. The Central and State Governments have been given flexibility to modify the retrenchment
compensation which is at present 15 days per completed year of service to any number of
days.
v. A long pending demand of the trade unions to provide them statutory recognition has been
considered by including a concept of ‘Negotiating Union’. It will facilitate negotiation
between employer and employees. If a trade union enjoys membership of more than 51
per cent of workers on muster roll, then it shall be recognized as negotiating union for
negotiation with employer. If no single Trade Union has support of more than 51 per
cent of workers, then a Negotiating Council will be constituted in an establishment for
negotiation. Every trade union having 20 per cent or more membership will be eligible for
a seat in the ‘Negotiating Council’.

vi. Similarly, a provision has been made to recognize trade unions, federation of trade union
at Central and State level.
vii. To facilitate ease of doing business, the Code removes requirement of prior permission of
appropriate Government for seeking permission for lay-off, retrenchment and closure of a
factory, mine and plantation having less than 300 workers. The benefits of notice period,
retrenchment compensation, and pay in lieu of notice period have been retained.
viii. Compounding of offences has been introduced. However, the benefit of compounding
will be available only once in three years for an offence. The amount collected from
compounding shall be used for welfare of workers in unorganized sector.
ix. Two- Member Industrial Tribunal will help in speedy disposal of labour disputes.
x. To facilitate crystalizing the rights of workers and also to promote ease of doing business,
responsibility has been cast upon the Central Government to prepare model standing
orders which will have standardized provisions relating to working hours, shifts, holidays,
disciplinary proceeding and other service conditions.
xi. Care has been taken that the rights of the workers are not compromised and to provide
for easy, transparent and accountable compliance. The reduction and rationalization of
definitions will reduce litigation, promote transparency and accountability.

The Occupational Safety, Health and Working Conditions Code, 2020: The Code has been
drafted after amalgamation, simplification and rationalization of the relevant provisions of
the 13 Central Labour Acts viz; the Factories Act, 1948, the Mines Act, 1952, the Plantation
Labour Act, 1951, the Dock Workers (Safety, Health and Welfare) Act, 1986, the Building and
other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996,
the Contract Labour (Regulation and Abolition) Act,1970, the Inter-State Migrant Workmen
(Regulation of Employment and Conditions of Service) Act, 1979, the Working Journalists
and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act,