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| Empowering India’s workforce: Trade union perspectives on inclusive labour code reforms | | |  Girish Arya
The aspiration of a “Viksit Bharat” can be achieved only when the nation’s hardworking workforce is treated with dignity, provided with protection, and empowered with a sense of security. Sustainable economic progress and accelerated development depend on a foundation of trust, fairness and mutual respect between workers and industry.
However, the limitations and inconsistencies of longstanding labour systems cannot be overlooked. Official data indicates that employment ratios in the manufacturing sector have long fallen short of expectations, impeding India’s production capacity and industrial potential. In this context, comprehensive structural reforms to address the complexities and disparities of outdated labour laws are essential and have become the need of the hour.
As a responsible labour organization, we regard the new labour codes as a visionary step towards strengthening worker interests, expanding opportunities, and ensuring a safe, respectful workplace. The Bharatiya Mazdoor Sangh (BMS) underscores the vital role of tripartite dialogue among industry, government, and labour. We believe that industry, along with workers, is a major stakeholder and a crucial component in the nation’s progress. Since 2015, ongoing tripartite negotiations on labour laws have brought together all central labour organizations and industrial bodies. BMS champions the concept of the “industrial family,” recognizing that industry and workers are mutually dependent, with shared and interconnected interests. Industry organizations have actively participated in these negotiations, and the successful implementation of labour codes will have a significant and equal impact on both employers and employees.
The majority of provisions in these codes prioritize and protect the interests of workers. They promise to enhance productivity, accelerate job creation, and broaden social security coverage. We believe that certain strikes and protests by other trade unions are primarily politically motivated. While we commend the government’s reformative steps, we also have specific concerns and constructive suggestions, and welcome further dialogue with the government to address these matters for the continued improvement of labour policy.
Achieving ‘Atmanirbhar Bharat’ and ‘Make in India’ demands close cooperation between industry, workers, and government. We welcome these reforms and are confident that they will have a positive and lasting impact on India’s economic growth, industrial development, and worker welfare.
In pursuit of transformative progress, the government has consolidated twenty-nine longstanding central labour laws into four streamlined codes:
1. Code on Wages (2019)
2. Code on Social Security (2020)
3. Code on Occupational Safety, Health and Working Conditions (2020)
4. Code on Industrial Relations (2020).
This consolidation represents the most significant labour reform in Indian history. This historic shift signifies a proud departure from outdated, colonial-era statutes and the adoption of modern, forward-looking laws. The government’s decisive implementation of these reforms is highly commendable, and the nation expresses its gratitude to the leadership for ushering in this change. With the operationalization of these codes nationwide, a new golden era has begun for India’s workforce.
The implementation of these codes will ensure that every worker has easy access to security, respect, and justice; fundamentals that will further strengthen national development. This reform invigorates the spirit of ‘Atmanirbhar Bharat’ and advances the country on the foundation of its industrious workforce. Global experience shows that well-designed labour reforms in workers’ interests drive higher productivity, attract investment, and foster inclusive growth and development.
Today, as the world economy undergoes rapid transformation, India enjoys a unique position to advance and progress. The introduction of contemporary labour codes is both timely and relevant to evolving market needs. These reforms instill confidence that economic growth will progress hand-in-hand with the protection of worker rights. Their clarity and simplicity will stimulate investment, generate new employment opportunities, and uphold the dignity of every worker.
From Unorganized to Organized: Advancing Social Justice through Inclusive Reforms
The swift implementation of the new labour codes reflects the government’s responsiveness to the aspirations of India’s youth workforce and evolving labour market. A large segment of the country’s working population contributes to nation-building. Whether they are construction workers, gig workers, street vendors, and interstate migrant labourers, they are all now covered by legal protections and social security. These reforms realize the constitutional promise of dignity for all.
Importantly, the new codes are progressive and inclusive, extending benefits beyond the organized sector to empower every worker. They are not limited to large companies. By consolidating fair wages, timely payments, and social security provisions such as pensions and insurance under one unified framework, these codes ensure equitable participation in the nation’s progress. Protecting the dignity of every worker is fundamental; only then can the benefits of national growth be justly and universally shared.
Key Worker-Centric Provisions in the Labour Codes
The transformative strength of these new Codes is their alignment of Indian labour laws with globally recognized best practices.
Code on Wages (2019):
This Code establishes minimum wages as a universal right, guaranteeing every worker; regardless of sector, will receive a guaranteed minimum wage on time.
It introduces a national floor wage, ensuring no worker can be paid below a set standard, thereby upholding a respectable standard of living.
The Code expands coverage far beyond the limited reach of the previous Factories Act (1948), which applied to only (Scheduled Employments) about 10 percent of workers. As a result, most workers were deprived of their legal right to receive a minimum wage.
It mandates “equal pay for equal work,” a major step towards ensuring equal pay and advancing gender equality and respect, particularly for women workers. It further guarantees double wages for overtime, reinforcing fair compensation for extra effort.
The Social Security Code (2020)
This Code is a major breakthrough in inclusiveness. It legally brings gig and platform workers (such as online delivery persons or app-based taxi drivers) under the ambit of social security for the first time. It requires companies (aggregators) to contribute to a dedicated social security fund for these workers, acting as a prudent initiative to secure the future of young people working in the digital world. Recognizing the evolving nature of work, the Code ensures essential protections and support for those employed through technology-driven platforms. Additionally, the Code guarantees social security coverage for over 400 million workers and mandates the establishment of a special fund for those in the unorganized sector, providing health benefits, pensions, and emergency assistance.
Occupational Safety, Health, and Working Conditions Code (2020):
This Code establishes robust standards for workplace safety and health, guaranteeing protection for every worker, especially in hazardous sectors, where comprehensive health safeguards are ensured. Notably, workers aged over 40 are entitled to free annual health checkups, setting a new benchmark for occupational health.
The Code introduces special provisions for migrant workers, including travel allowances for returning home and benefit portability; similar to the “One Nation, One Ration Card” initiative, so their rights and entitlements are accessible anywhere in the country, eliminating destitution and insecurity.
In addition, the Code guarantees that women may work across all shifts with assured workplace security and safe transit between home and the workplace, both ways; fostering economic independence and creating new pathways for their empowerment.
Industrial Relations Code (2020):
This Code makes it mandatory for employers to issue appointment letters, formalizing employment relationships in industry. It introduces key measures such as fixed-term employment for contract workers and gratuity eligibility after only one year of service, enhancing job security and benefits.
Additionally, the Code establishes a streamlined grievance redressal mechanism, fostering a supportive and harmonious workplace environment. By simplifying regulations and promoting industrial peace, it paves the way for large-scale employment generation. These provisions collectively ensure that the Indian workforce receives social justice on par with international standards.
Towards Worker-Centric Development: The Dawn of a Golden Future
The implementation of these four labour codes establishes a robust legal and administrative framework for India’s workforce. By streamlining regulations, these codes will greatly enhance the ease of doing business and the quality of life for all workers. They strengthen the connection between workers and the nation, empowering those in the unorganized sector to become key pillars of a ‘developed India.’
The positive environment fostered by these reforms clearly signals that India is progressing in the right direction. Achieving their full potential will lead to greater prosperity and renewed optimism for millions of workers. This new era of labour legislation safeguards the rights of every Indian worker and delivers on the republic’s promises of social justice. Through these landmark steps, India moves closer to its aspiration of becoming a true ‘Vishwa Guru’; a global leader in worker welfare and equitable development.
With the formulation of the new labour codes, India has taken a historic step, but their true impact depends on swift and effective rule-making for operationalization. But, codes alone are insufficient. It is imperative that beneficiaries begin receiving the intended advantages without delay. We urge all stakeholders, whether in support or opposition, to come together and prioritize the immediate disbursal of these benefits. Only through collaborative and timely implementation can the spirit of these reforms be realized, empowering every worker and moving India closer to its vision of inclusive growth and social justice.
Bharatiya Mazdoor Sangh appreciates the enactment of the new labour codes and urges the government to promptly arrange for the swift allocation of proposed benefits, in active consultation with all stakeholders, so that every beneficiary receives their entitlements without delay.
(The author is All India Secretary, Bharatiya Mazdoor Sangh, BMS) |
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