Context: The Construction Workers’ Federation of India (CWFI) has opposed recent digital initiatives by the Union Ministry of Labour & Employment, citing exclusion errors and centralization.
1. Key Initiatives Launched
- Digital Labour Chowk (Portal & App): A digital marketplace intended to match construction workers with potential employers.
- Labour Felicitation Centres (LCFCs): Established to facilitate service delivery and grievance redressal for workers.
- Online Cess Collection Portal: A centralized digital mechanism to collect the Building and Other Construction Workers (BOCW) Cess.
Labour Laws and Reforms in India
Context & Need for Reform :-
- Jobless Growth: Despite 8% average economic growth (2000–2009), employment generation has lagged.
- The Unorganized Gap: Existing regulations protect only 7–8% of workers (organized sector), leaving 93% in the unorganized sector vulnerable.
- Legislative Status: ‘Labour’ is in the Concurrent List of the Seventh Schedule. Before 2020, the framework was fragmented with 44 Central and 100+ State laws.
2. Constitutional Framework :-
Fundamental Rights:
- Art 14: Equality before the law.
- Art 19(1)(c): Right to form associations/unions.
- Art 21: Right to life (implies right to livelihood).
- Art 23 & 24: Prohibition of forced labor and child labor.
Directive Principles (DPSPs):
- Art 39(a): Right to adequate livelihood.
- Art 41: Right to work and public assistance.
- Art 42: Just and humane conditions of work; maternity relief.
- Art 43: Living wage and decent standard of life.
- Art 43A: Workers’ participation in management.
The Four Labour Codes (2019–2020)
Following the 2nd National Commission on Labour (2002) recommendations, 29 central laws were consolidated into 4 Codes to streamline compliance and expand coverage.
A. Code on Wages, 2019
- Universalization: Applies to all employees (organized & unorganized).
- Floor Wage: Central Govt fixes a ‘Floor Wage’ based on living standards; State minimum wages cannot be lower than this.
- Gender Parity: Prohibits discrimination in recruitment and pay based on gender.
- Subsumed Acts: Minimum Wages Act (1948), Payment of Wages Act (1936), Payment of Bonus Act (1965), Equal Remuneration Act (1976).
B. Code on Industrial Relations, 2020
- Standing Orders: Mandatory for establishments with 300+ workers (previously 100) to define terms of employment, increasing flexibility for employers.
- Reskilling Fund: Employer to contribute 15 days’ wages of the last drawn salary for retrenched workers.
- Strike Norms: Stricter notice periods required for strikes to prevent flash strikes.
C. Code on Social Security, 2020
- Gig Economy: First-time legal recognition of Gig and Platform workers.
- Funding: Aggregators (e.g., Uber, Zomato) must contribute 1–2% of annual turnover (capped at 5% of amount paid to workers) toward social security.
- National Board: Establishment of a National Social Security Board for unorganized workers.
D. Code on OSH & Working Conditions, 2020
- Inter-State Migrants: Defined as those moving independently (earning < ₹18,000/month). Entitled to Journey Allowance (lump sum fare) from employers.
- Women in Night Shifts: Permitted to work at night (post 7 PM) with consent and mandatory safety provisions.
- One Nation, One License: Single licensing mechanism for staffing firms.
Significance of the Reforms
- Ease of Doing Business: Reduces compliance burden (one license, fewer definitions) and litigation.
- Gender Justice: Enhances maternity leave (26 weeks) and enables women to work in mines/night shifts with safety.
- Modernization: Shifts from rigid “inspector raj” to a facilitator model, aiming to formalize the workforce.
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