Context: Lack of implementation of Labour Codes and Inefficiencies with the current legislative frameworks for labour welfare, calls for attention into the falling state of labour conditions in India.
Relevance of the Topic: Mains: Labour Welfare: Framework and challenges.
What is Labour Welfare?
- Definition: In India, labour welfare refers to various measures undertaken by both the government and employers to improve the working conditions, well-being, and overall quality of life of workers and industrial workers.
- Objective:
- To address the social, economic, and health needs of workers and their families.
- To ensure a better standard of living for the workforce.
- What does it include?
- Provisions for safe working environments
- Reasonable working hours
- Fair wages
- Access to healthcare
- Housing facilities
- Education for workers’ children
- Social security benefits
Framework Regarding Labour in India
- Constitutional Framework:
- Labour is a subject in the Concurrent List. Thus, both Central and State governments are competent to enact legislation.
- Judicial Interpretation:
- The Supreme Court emphasised “the principle of ‘Equal pay for Equal work’, to be achieved through Article 14, 16 and 39 (c) of Indian Constitution.” (Randhir Singh vs Union of India).
- Legislative Framework: India has enacted four labour codes to consolidate 29 outdated laws to simplify and modernise existing labour laws and improve working conditions of labour. They include-
- Code of Wages, 2019
- Industrial Relations Code, 2020
- Social Security Code, 2020
- Occupational Safety, Health and Working Conditions Code, 2020.
- Expansion of Social Security Net:
- The Code on Social Security, 2020 aims to widen the scope of social security schemes to include unorganised workers, gig workers and platform workers.
Benefits of Labour Codes
- Simplification of the Complex laws: Consolidate 29 Central laws, thus reducing multiplicity of definition and authority for businesses.
- Easier Dispute Resolution: The codes simplify archaic labour laws and revamp adjudication processes, which will lead to quicker dispute resolution.
- Gender Parity:
- All sectors must allow women to work at night.
- Employers must ensure that security arrangements are made for them.
- Women must consent before working at night.
- Ease of Doing Business: These reforms will boost investment and make doing business easier.
Issues associated with Labour Welfare
- Labour codes are not operational:
- Implementation of labour codes has been delayed repeatedly due to state-level compliance issues and stakeholder resistance, with no clear indication when they will be operational.
- The primary challenge is the shared jurisdiction over labour laws between India’s central and state governments.
- The central government has passed the codes, but the state governments are responsible for drafting and notifying their own rules under each code, before they can be fully implemented.
- This duality has led to significant inconsistencies, and states are yet to finalise their rules under these codes.
- Poor Implementation of Building and Other Construction Workers Act:
- Many State governments have not reconstituted the welfare boards or implemented the BOCW Act effectively.
- As per the recent CAG report, the welfare boards have not yet used the cess worth ₹70,744.16 crore, collected from the employers for the welfare of the workers, under the BOCW Act.
- Benefits like free temporary accommodation, drinking water and sanitation facilities to workers, remain unfulfilled.
- Concerns with Labour Codes:
- Code on Social Security has provisions for self-assessment of cess by the employer, concerning contributions meant for workers’ welfare. This has the risk of underreporting by the employers, in the absence of any external regulatory check, and thus, could evade employer accountability. The Code also reduced the rate of cess and interest.
- The statutory entitlements to workers under the BOCW Act are now subject to prescription by the Union government, under the new code. This means that there is no right to workers to these facilities, if not prescribed.
- No Recognition for Invisible Labour:
- Childcare, household work, looking after elderly are some examples of unpaid work and constitute invisible labour. They go unnoticed, unrecognised and are thus unregulated. The labour codes are silent about invisible labour.
Read More: Analysis of Labour Codes
Way Forward
- Vocational Training: Establish accrediting agencies & vocational training institutes to provide skill-based training to the labour workforce.
- Social Security: State governments should codify laws for implementation of the new labour codes and the welfare of unorganised workers.
- Create centralised employment platforms to register workers, and connect workers with potential employers, to match the demand-supply gap.
Along with these, it is also essential that we adopt a futuristic approach when it comes to protecting workers and handling disputes regarding Automation and Robotics, AI-powered workforces, and bioengineering, which may hamper workers' rights in the future.