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.