Labour reforms, social security for informal workers, transformative policies on cards in 2025

New Delhi: Speedy implementation of labour codes, providing social security to informal workers, especially gig and platform, and bringing transformative policies would be the government's priority in 2025 to empower all and boost the economy.

All 36 states and UTs are expected to complete harmonization and pre-publication of draft rules under the four labour codes by 31st March 2025, according to the labour ministry.

The ministry has identified four reforms in labour laws to be carried out viz. Single Registration, Single Return, Firm-based common licence with five years validity.

Talking to PTI, Union Minister of Labour & Employment and Youth Affairs & Sports Dr Mansukh Mandaviya stated: "As we stand at the dawn of a New Year, our commitment remains resolute -- building a resilient, inclusive, and future-ready workforce for India." In 2024, "we achieved significant milestones in enhancing the IT systems of EPFO (Employees' Provident Fund Organisation) and ESIC (Employees' State Insurance Corporation), enabling the prompt and efficient resolution of grievances for millions of beneficiaries".

Recognizing the growing importance of gig and platform workers, he stated that the government has taken proactive steps to address their social security concerns' – a journey that is ongoing and central to the agenda.

"Looking ahead, we are determined to accelerate the implementation of labour codes and introduce transformative policies that empower every citizen to contribute meaningfully to the nation's growth story," he said.

The four labour codes on social security, industrial relations, wages, and Occupational Safety Health & Working Conditions (OSH) were passed by Parliament. These can be implemented across the country only when the Centre and states notify the respective rules simultaneously as labour is a concurrent subject.

According to the labour ministry, as of December 3, 2024, three states viz Meghalaya, Nagaland and West Bengal and a union territory of Lakshadweep, have not yet pre-published the Rules on the Code on Wages, 2019.

Two states viz. Meghalaya and West Bengal and two union territories (UTs) viz. Andaman and Nicobar Islands, Lakshadweep and NCT of Delhi have not pre-published the Rules on the Occupational Safety, Health and Working Conditions Code, 2020.

Similarly three states viz. Meghalaya, Nagaland, West Bengal and two UTs viz. Lakshadweep and NCT of Delhi have not prepublished the Rules on the Industrial Relations Code, 2020.

Likewise three states viz. Meghalaya, Tamil Nadu and West Bengal and two UT viz. Lakshadweep and NCT of Delhi have not pre-published the Rules on the Code on Social Security, 2020.

Among others, the codes provide for a uniform definition of 'wages' that will help in reducing multiple interpretations of the labour law and related litigations. Under the codes, the gig and platform workers have been defined for the purpose of formulating schemes to provide social security benefits.

Also, the central government may also extend benefits to unorganised workers, gig workers and platform workers and the members of their families through Employees' State Insurance Corporation or Employees' Provident Fund Organization (EPFO).

While provisions of the codes aim to enhance job security and enable workers to claim statutory benefits such as minimum wage and social security, labour unions are up in arms against these new rules.

AITUC General Secretary Amarjeet Kaur said trade unions will intensify their struggle against the present form of labour codes and its notification and demand the Indian Labour Conference to be held to consider the view point of trade unions on these codes.

The unions would fight to defend public sector and public services in the interest of common people and the nation as such. "We consider the four labour codes as negation of the labour rights won over after struggle of 150 years from British Raj onwards.

“These codes negate our right to strike, make union registration problematic, de-recognition of unions easy, the process of conciliation and adjudication cumbersome, winding up labour courts and introducing tribunal for workers, overriding power to registrars to de-register unions," he said.

The trade unions have common cause with the farmers movement supporting each other and would intensify this unity and enhance agitations on the new year. They would resort to massive mobilisations nationwide and also plan for general strike, he added.

In addition to labour codes rules, the government took measures to ease processes for EPFO members and pensioners and expand social security benefits by creating database of various workers.

The Central Board of Trustees (CBT) of EPFO approved a proposal for a Centralized Pension Payment System (CPPS) enabling EPS Pensioners to get pension from any bank, any branch, anywhere in India from January 2025.

The CBT also recommended EPFO Amnesty Scheme 2024 which has been designed to encourage employers to voluntarily disclose and rectify past non-compliance or under-compliance without facing penalties or legal repercussions.

EPFO enhanced the limit for Auto claim settlement of partial withdrawals from Rs 50,000 to Rs 1,00,000. The Facility has been extended for housing, education and marriage in addition to illness.

EPFO is also working on an integrated, centralized data-base, bringing efficiency in the process. The IT upgradation involving hardware and software upgrade, is targeted to be completed by January 2025. ESIC gave in-principle approval for the establishment of 10 New ESIC Medical Colleges.

Besides, the government announced the Employment Linked Incentive Scheme, in the Union Budget 2024-25, for boosting employment.

An MIS portal for building and construction workers was launched in August for compilation and analysis of the data obtained from BoCW welfare boards of the states.

The National Career Service portal announced partnerships with leading employers to drive employment. From 1st January 2024 to 15th December 2024, 1,89,33,219 vacancies were mobilized on the NCS portal, taking the total vacancies mobilized since inception to 3.89 crores.

Registrations on e-shram crossed 30 crores this year showcasing its rapid and widespread adoption among the unorganised workers.