Labour Reforms

NEWS:  Factory workers’ protests in Noida over low wages and poor working conditions reveal operational gaps in India’s new Labour Codes

Vulnerabilities in India’s New Labour Codes

  • Wage Dilution → Undefined wage metrics + states fix low wages (<2700 calorie norm)
  • Arbitrary Dismissal: 300-worker threshold ↑, easier retrenchment (35% workforce exposed)
  • Shift Exploitation → 12-hour spread-over → unpaid downtime + no overtime
  • Contract Labour Exclusion → 50-worker limit ↑ → ~70% contract workers out of coverage
  • Wage Jeopardy → Deductions up to 50% → threatens basic sustenance

Systemic Vulnerabilities

  • Informality Blindspot → Gig workers ≠ employees → no full labour rights
  • Executive Overreach → Wide discretionary powers → weak safeguards
  • Enforcement Vacuum → Self-certification + weak inspections → low accountability

Way Forward

  • Floor Wage Reform → Link to 2700-calorie norm + CPI-IW indexation
  • Algorithmic Accountability → “Right to Explanation” for gig/platform workers
  • Modern Inspectorate → Risk-based digital audits (payroll data)
  • Tripartite Dialogue → Revive Indian Labour Conference → consensus policymaking
  • National Labour Council → GST-like body → Centre-State coordination