Post #9604

#lecturette@ssbclear Labour Reforms (with Recent Labour Code Implementation) “Labour reforms succeed when growth and worker welfare move together.” 1. Introduction Labour reforms modernize India’s framework for wages, employment, safety, and social security. To replace outdated and overlapping laws, the government consolidated 29 central labour laws into four labour codes, aiming for ease of doing business, formalisation of jobs, and worker protection in the era of globalization and gig work. 2. Why Reforms Were Needed - Complex laws created compliance burden and discouraged investment. - Nearly 90% of India’s workforce was informal, lacking social security. - Rigid rules limited large-scale manufacturing and job creation. - Gig and platform workers had no legal coverage. 3. The Four Labour Codes - Code on Wages (2019): Minimum wages, timely payment, equal pay. - Industrial Relations Code (2020): Regulates trade unions/strikes; layoff approval threshold raised to 300 workers. - Social Security Code (2020): Extends PF, ESIC, insurance to gig, platform, and unorganised workers. - OSH Code (2020): Improves workplace safety, health, and working conditions. 4. Recent Updates (2023–2025) - Nationwide implementation began in November 2025. - New wage definition: Allowances capped at 50%, boosting PF and gratuity. - Gig workers: Mandatory registration on a national portal; linked to a social security fund. - Digital compliance: Single registration, online filings to reduce inspector raj. - Flexible work hours: Provision for compressed schedules (e.g., 4-day work week) under discussion. 5. Benefits - Simplified laws and compliance. - Greater formalisation of jobs. - Enhanced social security and retirement benefits. - Boost to manufacturing, MSMEs, and foreign investment. - Supports Make in India and China+1 strategy. 6. Concerns - Worker fears of job insecurity. - Trade union resistance to strike restrictions. - Uneven state-level readiness. - Low awareness among workers. 7. Way Forward - Uniform implementation across states. - Strong digital delivery of social security. - Worker awareness and skill development. - Continuous dialogue between government, industry, and unions. 8. Conclusion India’s labour reforms, fully implemented in 2025, aim to balance flexibility with security. If executed effectively, they can boost employment, protect workers, and strengthen India’s global competitiveness — making them a cornerstone of long-term economic growth.