Page 23 - Handbook on Convergence of Service

Ministry of Labour and Employment: An Overview

employee and the employer can engage a worker without intervention
of a contractor. An FTE worker will be entitled to all benefits like a
permanent worker. Further, an FTE worker has also been allowed benefit
of proportionate gratuity even if the contract is for a period of one year.
ii. A long pending demand of the trade unions to provide them statutory
recognition has been considered by including a concept of ‘Negotiating
Union’ and ‘Negotiating Council’. It will facilitate negotiation between
employer and employees.
iii. To facilitate ease of doing business and catalyse the creation of employment
opportunities, 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 Code increases the threshold for applicability of the chapter related to
Standing Order to 300 against 100 at present.

iv. Requirement of a notice period of 14 days has been incorporated for strikes
and lockouts in any establishment. This criterion, at present, is only for
public utility services.
v. The definition of “strike” has been amended to include “mass casual
leave”also within its ambit.
1.5.1.3. The Code on Social Security, 2020
i. The coverage of Employees’ State Insurance Corporation (ESIC) can be
extended pan India to all establishments employing 10 or more employees
as against notified districts/ areas.
ii. The Code envisages extension of ESIC benefits to the employees working
in establishments with less than 10 employees on voluntary basis and
on mandatory basis through notification by the Central Government for
employees working in hazardous industries. Further, ESIC coverage can
also be extended to plantations on option exercised by the employer.

iii. To cater to emerging new forms of employment, new definitions like of
aggregator, gig worker, platform worker have been introduced. A small
contribution from aggregator between one to two per cent of turnover
subject to limit of five per cent payable to gig and platform workers has
been introduced.
iv. A Social Security Fund is proposed to be established to formulate schemes
for social security to the workers of unorganised sector.
1.5.1.4. The Occupational Safety, Health and Working Conditions Code, 2020

i. The Code rationalises the compliance mechanism with one license, one
registration and one return for the establishments.

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