Topic: Draft Rules for Four Labour Codes

 

Syllabus Mapping

• GS Paper 2: Government Policies and Interventions for Development in various sectors; Social Justice.

• GS Paper 3: Indian Economy (Employment); Labour Reforms.

 

Why in News?

The Union Labour Ministry has pre-published the draft Rules for all four Labour Codes (Wages, Industrial Relations, Social Security, and OSH) and invited public feedback within 45 days, signalling the final push for their implementation.

 

Key Highlights

• Working Hours & Conditions:

  • 48-Hour Week: The rules mandate a standard 48-hour work week.

  • Night Shifts for Women: Women can work night shifts (7 PM - 6 AM) subject to written consent, adequate transportation, and mandatory CCTV surveillance.

• Minimum Wage Criteria:

  • The rules standardise the "Minimum Wage" based on a "Standard Working Class Family" comprising a spouse and two children (equivalent to 3 adult consumption units).

  • Consumption Norms: Net intake of 2,700 calories per day, 66 metres of cloth per year, 10% of expenditure for housing, 20% for fuel/electricity, and 25% for children's education/medical needs.

• Social Security & Gig Workers:

  • Gig Economy: A National Social Security Board will be constituted to oversee welfare for gig and platform workers. It will include representatives from aggregators and workers.

  • Gratuity: Fixed-term employees will be eligible for gratuity after one year of service (unlike the standard 5 years for regular employees).

• Administrative Reforms:

  • Single Window: The rules propose a single electronic registration for trade unions and allow for secret ballots.

 

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Critical Analysis

Significance:

• • Standardisation: By superseding 29 disparate labour laws, these codes aim to unify definitions (e.g., "Wages") and reduce compliance burdens.

  • Inclusivity: Recognizing "Gig Workers" for the first time in legal framework ensures social security for the booming platform economy (Zomato, Uber, etc.).

• Challenges:

  • The "4-Day Week" ambiguity: While the 48-hour limit is set, earlier discussions suggested allowing 12-hour shifts (4 days a week). If implemented without strict oversight, this could lead to worker exploitation.

  • Implementation Federalism: Labour is a Concurrent List subject. States must also frame their rules, which has historically caused delays.

 

Value Addition

• Origin of the Formula: The criteria mentioned in the article (2700 calories, 3 consumption units) are based on the recommendations of the 15th Indian Labour Conference (1957).

• The 25% Add-on: The additional 25% allocated for education, medical, and recreation expenses (mentioned in the draft) comes from the landmark Supreme Court judgment in the Raptakos Brett & Co. vs Workmen (1991) case, which ruled that minimum wage must go beyond mere survival.

 

Mains Question

Q. "The new Labour Codes attempt to balance the 'flexibility' demanded by industries with the 'security' needed by workers." Discuss this statement with special reference to the provisions for gig workers and fixed-term employment. (250 words)

 

Preliminary Question

With reference to the Draft Rules for the Code on Wages, consider the following statements regarding the calculation of Minimum Wage:

1. The standard working class family is assumed to consist of the earning employee, a spouse, and two children, equivalent to four adult consumption units.

2. The minimum caloric requirement is set at 2,400 calories per day per consumption unit.

3. An additional 25% of the minimum wage is allocated for children's education, medical requirements, and recreation.

Which of the statements given above is/are correct?

(A) 1 and 2 only

(B) 3 only

(C) 1 and 3 only

(D) 1, 2 and 3

 

Answer: (B)

• Explanation:

  • Statement 1 is incorrect: The article states the family is equivalent to three adult consumption units (Earner=1, Spouse=0.8, Two Children=0.6 each = ~3 units).

  • Statement 2 is incorrect: The caloric intake is fixed at 2,700 calories, not 2,400.

Statement 3 is correct: The rules explicitly allocate 25% for education, health, and recreation (based on the Raptakos Brett judgment norms).