Roadmap for Answer Writing
1. Introduction
- Briefly introduce the four Labour Codes: Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety, Health, and Working Conditions Code.
- State the purpose of these reforms in the context of India’s labour market.
2. Merits of the Labour Codes
- Simplification of Laws: Discuss how the Codes consolidate 29 existing laws into four, making compliance easier for businesses.
- Universal Minimum Wages: Explain the provision for minimum wages across all sectors, including the unorganized sector.
- Flexibility in Hiring and Firing: Highlight the changes that allow firms to lay off workers without government approval for smaller firms.
- Social Security for Gig Workers: Describe how the Codes extend social security benefits to gig and platform workers.
- Grievance Redressal Mechanism: Mention the establishment of Grievance Redressal Committees for efficient dispute resolution.
3. Demerits of the Labour Codes
- Erosion of Collective Bargaining: Discuss how the new regulations may weaken trade unions and collective bargaining power.
- Inadequate Social Security for Informal Workers: Highlight the limitations in social security provisions for informal workers.
- Employer-Friendly Provisions: Explain concerns regarding job security due to increased thresholds for layoffs.
- Limited Occupational Safety Measures: Discuss the lack of stringent safety measures in hazardous sectors.
- Ambiguity in Implementation: Mention the potential variability in implementation across different states.
4. Progress So Far
- Discuss the delays in implementation due to the pandemic and resistance from trade unions.
- Mention the status of rule finalization in various states, highlighting states like Gujarat that have made progress.
- Describe ongoing tripartite consultations and the establishment of social security boards for gig workers.
5. Conclusion
- Summarize the potential benefits and challenges of the Labour Codes.
- Emphasize the importance of effective implementation and stakeholder engagement for the success of these reforms.
Relevant Facts
- Simplification of Laws: The Labour Codes consolidate 29 central labour laws into four, improving compliance.
- Universal Minimum Wages: The Codes aim to ensure minimum wage protection for approximately 500 million workers in the unorganized sector.
- Flexibility in Hiring and Firing: Factories with up to 300 workers can now lay off employees without government approval.
- Social Security for Gig Workers: The Code on Social Security mandates contributions from aggregators like Ola and Zomato to a social security fund.
- Erosion of Collective Bargaining: Strikes now require a 60-day notice period, which may dilute the power of trade unions.
- Inadequate Social Security: The Codes provide limited social security for the informal workforce, which constitutes about 90% of the labour market.
- Implementation Delays: As of 2023, many states have not finalized the rules required for implementation of the Codes.
By following this roadmap and utilizing these facts, you can construct a comprehensive answer to the question regarding the merits, demerits, and progress of the four Labour Codes in India.
Model Answer
Introduction
The four Labour Codes—Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety, Health, and Working Conditions Code—represent a significant reform in India’s labour market, aiming to simplify and consolidate existing laws.
Merits of the Labour Codes
Demerits of the Labour Codes
Progress So Far
The implementation of the Labour Codes has faced delays, primarily due to the pandemic and resistance from trade unions. As of 2023, many states have not finalized the necessary rules, although some, like Gujarat, have made progress in notifying aspects of the Codes . The government continues to engage in tripartite consultations to address concerns and establish social security boards for gig workers .
Conclusion
While the Labour Codes have the potential to streamline India’s labour laws and enhance worker protections, their success will depend on effective implementation and addressing the concerns of various stakeholders.
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.