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Zomato Parent Eternal Ltd Welcomes New Labour Codes, Says Impact on Business Will Be Manageable
Labor Codes: The government has implemented four labor codes: the Wage Code 2019, the Industrial Relations Code 2020, the Social Security Code 2020, and the Occupational Safety, Health and Working Conditions Code 2020. The new codes define 'gig work,' 'platform work,' and 'aggregators' for the first time. Let's explore this in detail.
Eternal Limited, the parent company of Zomato and Blinkit, said on Saturday that it welcomes the implementation of the four labour codes. The company said they will help strengthen access to social security for gig workers including its businesses from Zomato and Blinkit. In a regulatory filing, Eternal said it does not believe the financial impact of these rules will be detrimental to the long-term health and sustainability of the business.
On Friday, the government notified the four labour codes. These rationalise 29 extant labour laws. These codes will formalise employment, strengthen protection of workers, and make the labour ecosystem simpler, safer, and globally integrated.
The four labor codes implemented by the government are: the Wage Code 2019, the Industrial Relations Code 2020, the Social Security Code 2020, and the Occupational Safety, Health, and Working Conditions Code 2020. The new codes for the first time define 'gig work', 'platform work', and 'aggregators'.
The Code requires aggregators to contribute 1 to 2 percent of their annual turnover for the welfare of gig workers. This contribution will be limited to five percent of the amount paid to gig and platform workers.
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Eternal said, "The unification of labor laws provides clearer, more uniform, and consistent rules that support both the country and our ecosystem. One of these four labor codes, the Code on Social Security, 2020 (CoSS), helps strengthen social security access for gig workers across the country, including those who power our Zomato and Blinkit businesses."
A unified, nationwide framework under the new labor codes is crucial for gig workers. It provides them with a number of options. Furthermore, the new labor codes also promote ease of doing business for platforms. Overall, this is a step in the right direction.
Eternal said it is fully committed to the well-being of gig workers and already provides comprehensive insurance and welfare benefits to its gig workers free of charge. "We are committed to supporting measures that further improve outcomes for gig workers and therefore welcome this announcement," the company said.
