Congress questions effectiveness of new labour codes

New Delhi: The Congress on Saturday said the Modi government must ensure a national minimum wage of Rs 400 a day, Rs 25 lakh universal health coverage and an employment guarantee act for Indian workers in urban areas to make "Shramik Nyay" a reality under the much-touted new labour codes.

A day after the Centre notified the four Labour Codes, pending since 2020, with several worker-friendly measures, the principal opposition party questioned their effectiveness in giving justice to workers and said it should learn from the Congress governments in Karnataka and Rajasthan.

Congress general secretary, communications, Jairam Ramesh said the 29 existing labour-related laws have been re-packaged into the four Codes and are being marketed as some revolutionary reform when even the Rules are yet to be notified.

"But will these codes make these 5 essential demands of India's workers for Shramik Nyay a reality? "National minimum wage at Rs 400 per day, including for MGNREGA. Right to Health law that will provide universal health coverage of Rs 25 lakhs. Employment Guarantee Act for urban areas. Comprehensive social security for all unorganised workers, including life insurance and accident insurance and a commitment to stop contractualisation of employment in core Government functions," Ramesh said in a post on X.

"The Modi Government must learn from the examples of the Congress Government in Karnataka and the former Government in Rajasthan, which have pioneered labour reform for the 21st century with their groundbreaking gig worker laws that preceded the new codes," the Congress leader also said.

The four Labour Codes include worker-friendly measures like a timely minimum wage for all and universal social security, including gig and platform workers, while allowing longer work hours, broader fixed-term employment and employer-friendly retrenchment rules.

While the four Labour Codes -- the Code of Wages (2019, Industrial Relations Code (2020), Code on Social Security (2020) and Occupational Safety, Health and Working Conditions Code (2020), which were passed by Parliament five years back -- were notified on Friday to replace 29 fragmented laws with a unified and modern framework, rules that will bring them into force with immediate effect will be issued shortly.

Key reforms include mandatory appointment letters to workers to ensure formalisation and job security; universal social security coverage, including to gig, platform, contract, and migrant workers, with PF, ESIC, and insurance benefits; statutory minimum wages and timely payment across all sectors; expanded rights and safety for women, including night-shift work and mandatory grievance committees; and free annual health check-ups for workers aged 40 and above.

The Codes, however, had earlier come under criticism from trade unions over unclear provisions on retrenchment and possible discretionary behaviour during the implementation by the central or state governments.

The rules raised the ceiling for mandatory government approval for carrying out closures, layoffs or retrenchment. Against the existing provision of establishments employing 100 or more workmen needing government nod, the new code raises the cap to 300 workmen. It also increases working hours in factories from 9 to 12 hours and in shops and establishments from 9 to 10 hours.