Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Context
- The Centre has notified all four Labour Codes, replacing 29 old labour laws (1930s–1950s).
- Codes: Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), OSHWC Code (2020).
- Trade unions criticised them as “pro-employer”, while the government terms them progressive reforms.
Key Features of the Four Labour Codes
- Universal Social Security & Worker Protection
-
- Extends social security to gig and platform workers for the first time.
- Provides pan-India ESIC coverage, including hazardous industries.
- Ensures minimum wages with statutory backing and a national floor wage.
- Rights and Safety for Women Workers
-
- Allows night-shift employment with safeguards.
- Ensures gender pay parity and a gender-neutral work policy.
- Mandates free annual health check-ups for workers aged above 40 years.
- Simplified Regulatory Framework
-
- Introduces a single registration, licence and return system.
- Establishes an inspector-cum-facilitator model for supportive compliance.
- Creates a National OSH Board to harmonise safety standards.
- Employment & Industrial Relations
- Recognises fixed-term employment, granting benefits equal to permanent workers (leave, medical, social security).
- Promises faster dispute resolution through two-member Industrial Tribunals.
- Defines gig work, platform work, and aggregators in law for the first time.
Government Stand vs Trade Union Concerns
- Government: Codes will formalise labour, improve protections, simplify compliance, and align India with global labour standards.
- Trade Unions: Call them anti-worker, reducing collective bargaining and increasing employer flexibility.