Labour to strengthen workers’ rights, women employee safety in focus: Economic Survey

The Economic Survey 2024-25 on Friday highlights the significance of the four labour codes enacted by Parliament in strengthening workers' rights. These codes aim to simplify and rationalize the 29 existing central laws around labour and employment.

These codes, namely the Code on Wages, 2019, the Code on Social Security, 2020, the Industrial Relations Code, 2020, and the Occupational Safety, Health, and Working Conditions Code, 2020, will play a vital role in enhancing workers' rights. They are set to extend protection to unorganized workers, including those in the gig economy, and provide for timely payment of wages, social security, occupational safety, and healthcare benefits.

"Labour regulations play a significant role in safeguarding worker rights and holding firms accountable for their working conditions. The regulatory framework not only shapes the business environment and the competitive dynamics of firms and factories but also ensures workers’ well-being. Among these, Occupational Safety and Health (OSH) regulations stand out as foundational measures to ensure secure and dignified working conditions, providing a sense of security and confidence to the workforce," the survey stated.

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Many states have already implemented reforms in line with the codes, such as increasing the threshold for prior approval of retrenchment, layoff, or closure of establishments. Some key reforms implemented by states include increasing the threshold for prior approval of retrenchment, layoff, or closure of establishments from 100 to 300 workers; fixed-term employment; allowing women to work night shifts with safety provisions; and increasing the ceiling of overtime from 75 to 144 hours per quarter.

The survey emphasizes the need for swift implementation of the labour codes to promote a more harmonious work environment, particularly for women. Experts stress that the implementation of these codes will make it easier to do business in India and address concerns about labour reforms.

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"There has been a rather substantial gap in implementing labour reforms. The four labour codes have been pending for over four years, and there is an expectation that the codes should be implemented at the earliest," said Debjani Aich, partner at IndusLaw.

"While there is a continued focus on incentivizing youth to get jobs and resultant greater economic progress, also discussion on a more harmonious work environment for women, unless we have the labour codes in place, this is going to be a continued issue, and the expectation is that the codes need to be implemented at the earliest in 2025. This will genuinely make it easier to do business in India," she added.

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