LABOUR REFORMS

NEWS:  Factory workers’ protests in Noida over low wages and poor working conditions reveal operational gaps in India’s new Labour Codes

Vulnerabilities in India’s New Labour Codes

• Wage Dilution → Undefined wage metrics + states fix low wages (<2700 calorie norm)
• Arbitrary Dismissal: 300-worker threshold ↑, easier retrenchment (35% workforce exposed)
• Shift Exploitation → 12-hour spread-over → unpaid downtime + no overtime
• Contract Labour Exclusion → 50-worker limit ↑ → ~70% contract workers out of coverage
• Wage Jeopardy → Deductions up to 50% → threatens basic sustenance

Systemic Vulnerabilities

• Informality Blindspot → Gig workers ≠ employees → no full labour rights
• Executive Overreach → Wide discretionary powers → weak safeguards
• Enforcement Vacuum → Self-certification + weak inspections → low accountability

Way Forward

• Floor Wage Reform → Link to 2700-calorie norm + CPI-IW indexation
• Algorithmic Accountability → “Right to Explanation” for gig/platform workers
• Modern Inspectorate → Risk-based digital audits (payroll data)
• Tripartite Dialogue → Revive Indian Labour Conference → consensus policymaking
• National Labour Council → GST-like body → Centre-State coordination