The new labour codes proposed by the government are overall an improvement over the earlier antiquated labour laws.
However, it is retrograde as far as changes proposed for ESIC go.
Earlier, ESIC coverage was limited to notified areas and specific industries. It was not applicable for industries in rural areas which did not have ESIC clinics or hospitals.
Even for companies which were covered by ESIC, the monthly ESIC payment, borne by both the employer and employee, was largely a waste of money. Employees chose to ignore this facility in favour of going for Mediclaim, inspite of having paid for it.
Now, ESIC coverage and benefits are extended Pan-India.
This will shoot up the number of people enrolled manifold. The burden on companies will be in tens of thousands of crores. Without any commensurate benefit. ESIC, relic of the license Raj, will grow fatter still, a burden on industry without providing any commensurate benefits.
Instead, government should make ESIC voluntary and have companies offer either ESIC or similarly priced Mediclaim for all employees regardless of location. That will be real reform and will be of use to the employees.
Also, the new code should have been more flexible on the working hours and requirement for overtime. As far as minimum wages are being adhered to for the slated 48 hours per week, it should allow proportionately increasing hours with increased remuneration.