Cabinet approves bill to merge 13 labour laws into single code

NEW DELHI: The Union Cabinet cleared a bill to merge 13 labour laws into a single code and approved the third phase of the Pradhan Mantri Gramin Sadak Yojana.

The Cabinet also approved the Banning of Unregulated Deposit Schemes Bill on Wednesday to tackle the menace of illicit deposit-taking activities. The bill will replace the Banning of Unregulated Deposit Schemes Ordinance, 2019.

The proposed Code on Occupational Safety, Health and Working Conditions Bill, 2019, would apply to all establishments that employ 10 or more workers. It is expected to benefit 400 million workers.


The decision comes a week after the Cabinet gave its goahead to a labour code on wages, signalling the government’s commitment to push labour reforms in its second term. “The proposed code enhances the coverage of workers manifold as it would be applicable to all establishments employing 10 or more workers across industries and service sectors and will ensure that all workers now get an offer letter besides an annual medical check-up,” labour minister Santosh Gangwar said, adding that both the bills will be tabled in Parliament soon.

The bill encompasses provisions from 13 labour laws, including the Factories Act, the Mines Act, the Dock Workers Act, the Working Journalists and other Newspaper Employees Act, and the Cine Workers and Cinema Theatre Workers Act. The bill provides for a single licence regime for staffing firms, thus significantly improving their ease of doing business.

The Cabinet’s approval of the third phase of the Pradhan Mantri Gramin Sadak Yojana to improve rural roads followed an announcement by finance minister.