Implementation of New Labour Codes

The Union government has notified the implementation of four Labour Codes, aimed at modernizing labour regulations and enhancing workers' welfare:

• Code on Wages (2019)
• Industrial Relations (2020)
• Social Security (2020)
• Occupational Safety, Health and Working Conditions (2020)

The Code on Social Security is significant as it recognizes gig workers for the first time, providing for welfare schemes covering health, pension, education, and disability.

Concerns and Challenges

• Social Security Contributions: lack of clarity in contribution mechanisms and enforcement pathways for social security benefits.
• Insufficient Coverage: The Provident Fund and insurance for workers have not been adequately addressed, with certain thresholds exempting smaller employers.
• Digital Compliance Challenges: Reliance on digital compliance may undermine small businesses that lack the capacity to adapt.
• Exclusion of Informal Workers: The OSH Code excludes many informal workers from social security benefits.
• Enforcement of Minimum Wages: Enforcement remains challenging, as recent ILO data shows a significant portion of workers not receiving minimum wages.

Impact of Rule-Making

The labour subject's concurrent nature allows states to draft their own rules, potentially leading to divergent implementations. A 2023 study by the VVGNLI warns against excessive divergence in state rules. Uniformity and harmonization remain a challenge, as seen in states like West Bengal and Delhi, which are yet to publish draft rules.

Reactions from Trade Unions

Trade unions have criticized the new Codes as detrimental to workers' rights, with major unions warning of protests. Key concerns include:

• Job Security Dismantlement: The Codes are viewed as diluting job security and empowering employers.
• Increased Notice Period for Strikes: Provisions like extending the strike notice period weaken bargaining power.

Conclusion and Future Outlook

The Centre aims to implement the new Codes by April 1 next year, but execution challenges and potential resistance from trade unions could affect millions of workers. The evolving workplace landscape and implementation effectiveness will ultimately determine the impact on gig workers.