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Discuss the merits and demerits of the four 'Labour Codes' in the context of labour market reforms in India. What has been the progress so far in this regard? (Answer in 250 words) [UPSC 2024]
Several legislative and administrative initiatives have been taken by the government to improve the working conditions of people and simplify labour laws. The most recent of these initiatives are the consolidation of 29 labour laws into four labour codes . Labour Codes ° Code of Wages 2019 ° IndustrRead more
Several legislative and administrative initiatives have been taken by the government to improve the working conditions of people and simplify labour laws. The most recent of these initiatives are the consolidation of 29 labour laws into four labour codes .
Labour Codes
° Code of Wages 2019
° Industrial relations code 2020
° Social Security Code 2020
° Occupational safety and Working Conditions Code 2020
Merits of the four labour Codes
• Simplification of complex laws:
The consolidation of 29 labour laws to 4 broad codes reduce the complexity of laws. Laws like Factory Act , Minimum Wages Act etc are consolidated into four comprehensive codes.
Eg: Instead of navigating into multiple laws labourers can use a single code to reduce legal complexity .
• Gender Parity:
Women are allowed working at the night hours in all sectors through this code.
Eg: Women in IT field are given work in the night shifts with proper security arrangements by the employers.
• Easier dispute resolution:
Industrial relations code mandates faster dispute resolution before the employees can go on strike.
Eg: Faster dispute resolution and lack of strokes helps in proper functioning and reduced business disruptions.
Employment Flexibility:
Recognition of fixed term employment results in creating a balance between job flexibility for employers and security for workers , ensuring parity in wages and benefits with permanent staffs.
Demerits of Labour Codes
°Ambiguities in the definition:
Words like worker and wages which are not well defined lack clarity and leads to misinterpretation.
Eg: Gig economy regulations in California
°Lack of knowledge:
A large portion of India’s informal workforce are unaware about the new labour code and it’s framework.
°Trade Union Opposition:
Labour unions are not satisfied with this new codes and voices strikes and protest against this codes.
Progress So far
•Delayed implementation:
Events like Covid 19 and 2024 general elections have pushed back the comprehensive rollout of the Codes.
•Limited Awareness Campaigns:
Both the employers and workers have limited understanding of reforms .
•Digital and administrative initiatives:
Platform for registering gig and migrant workers have been established but the adoption is in a slow pace.
Though the Four Labour Codes represents the shift towards a modernised and inclusive labour framework which fosters social justice and equality , the ultimate success hinges on the timely and uniform implementation and enhanced awareness of these laws.
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