India has completed the implementation of four labour codes. However, concerns remain that workers, especially informal and gig workers, continue to face vulnerabilities despite the new framework. This topic is important for aspirants preparing for GS2 Polity and labour law-related issues through UPSC coaching in Hyderabad.
Labour Codes Simplification Vs Workers
• Consolidation of Laws: The four labour codes merge 29 existing labour laws to simplify compliance and improve ease of doing business.
• Universal Social Security: They aim to provide social security coverage for all workers, including gig and platform workers, while streamlining wage definitions.
• Industrial Relations: Designed to strengthen employer–employee relations by setting clear rules on layoffs, retrenchments, and dispute resolution.
Key Provisions
• Code on Wages, 2019: Standardizes wage definitions, ensures timely payment, and introduces a national minimum wage.
• Industrial Relations Code, 2020: Raises threshold for layoffs and retrenchments without government approval, impacting job security.
• Social Security Code, 2020: Extends coverage to gig and platform workers, but lacks clarity on funding and benefits.
• Occupational Safety, Health and Working Conditions Code, 2020: Consolidates safety laws but excludes smaller establishments, leaving many workers outside its ambit.
Critical Gaps
• Wage Definition Issues: Ambiguity in wage calculation may reduce take-home pay.
• Worker Safeguards: Limited consultation with unions; grievance redressal mechanisms remain weak.
• Gig Economy: While recognized, gig workers lack enforceable social security benefits.
• Safety Concerns: Codes overlook informal sector workers who face hazardous conditions.
Relevant Examples
• Construction Workers: Despite welfare boards, many remain outside coverage due to registration hurdles.
• Gig Workers: Platforms like Swiggy and Ola employ lakhs, but benefits under the Social Security Code are not yet operational.
• ILO & NITI Aayog Reports: Stress the need for inclusive labour protections to meet SDG 8 (Decent Work and Economic Growth).
• Government Portals: The Shram Suvidha Portal aims to simplify compliance, but workers’ awareness remains low.
Way Forward
• Effective Implementation: Clear rules and accountability are vital — India has one inspector for every 500 factories (DGFASLI, 2024), highlighting the need for stronger enforcement capacity.
• Social Security for Informal Workers: Over 90% of India’s workforce is informal (ILO, 2023); strengthening social security funds can protect gig and platform workers under the Social Security Code.
• Tripartite Consultations: Worker participation in policy-making remains weak — only 12% of registered trade unions are consulted (Labour Ministry data, 2022), showing the need for inclusive dialogue.
• Safety Norms Expansion: Small and informal establishments employ nearly 70% of workers (Economic Survey, 2023) but remain outside safety coverage; expanding norms can reduce accidents and fatalities.
Conclusion
Labour codes promise simplification, but without robust safeguards, they risk leaving millions of workers vulnerable in India’s changing economy.
