Implementation of new labour codes complete, but workers remain vulnerable due to critical gaps
The implementation framework for India's four labour codes (Code on Wages 2019, Industrial Relations Code 2020, Social Security Code 2020, Occupational Safety, Health and Working Conditions Code 2020) is complete, but critics argue the rules fail to address key concerns, leaving workers vulnerable. Gaps include vague definitions of "floor wage," lack of minimum tenure for Fixed-Term Employment, and inadequate safeguards for gig workers. The rules also do not clarify employment relationships in the gig economy or mandatory gratuity insurance, and set a high 30% membership threshold for union recognition, weakening workers' bargaining power.
Key Points
- India's four new labour codes have been operationalized, but the accompanying rules are criticized for failing to protect workers adequately.
- Critical gaps exist in defining "floor wage" and establishing minimum tenure or renewal limits for Fixed-Term Employment.
- Gig and platform workers remain vulnerable as the rules do not clarify their employment relationship or ensure mandatory gratuity insurance.
- The 30% membership threshold for trade union recognition is seen as weakening workers' bargaining power.
- The rules lack clarity on contract labour activities and occupation-specific welfare measures.
Exam Facts
- The four labour codes are: The Code on Wages, 2019; The Industrial Relations Code, 2020; The Code on Social Security, 2020; and The Occupational Safety, Health and Working Conditions Code, 2020.
- The Industrial Relations Code, 2020, formally introduced Fixed-Term Employment (FTE).
- The Code on Wages (Central) Rules provide a vague definition of "floor wage."
- The Industrial Relations Code (Central) Rules require a sole registered trade union to have at least 30% membership for recognition.
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.