📜 Decoding India’s Labour Laws
Trade unions of India have been strictly against new labour laws. Here’s why.
Want a four-day workweek*?
Want to be able to save more money for your retirement*?
These are a few of the benefits that the new labour codes of our country are set to give us.
But well, as the asterisk suggests, these benefits come with a lot of other terms and conditions.
So, let’s look at the fine print of the document carefully.
The Good 👍
Let’s start off by looking at the positive aspects of these laws.
First of all, they are trying to streamline things into four codes that cover all aspects of work and labour. Earlier there were 44 laws in this space which often led to confusion and conflicts.
Second, these laws reinforce the idea of a minimum wage. Now, India has always had a minimum wage, but the problem is every state has a different minimum wage according to labour standards. Plus, under the earlier laws, only workers from a few industries (amounting to 40% of the workforce) were entitled to a minimum wage. Now, all workers will be entitled to a minimum wage, set by the government according to their skills and profile.
Third, the government is finally recognising gig workers and platform workers. These are basically independent contractors that work for companies like Ola, Zepto, and Swiggy. And because they were not full-time employees, they did not get the benefits that other full-time employees got: like fixed leaves, insurance benefits, maternity benefits, and more. So, the government is now recognising them and giving them these social security benefits. A social security fund will be created for these workers that will be funded by employers, the state government, and the central government. To get these benefits, the workers will have to register themselves on an online portal.
Finally, the government is also making health and safety provisions stricter in workplaces.
Looks like these rules really want to improve the working conditions in India. Then why are trade unions across the country protesting these laws?
The Bad 👎
Well, unions are claiming that these laws are pro-employers and not pro-workers. Plus, they threaten their very existence. How?
Companies with less than 300 employees can mass lay off workers without government approval. Earlier only factories with less than a 100 employees could do this. So, the move makes it easier for employers to get away with firing a huge chunk of the workforce (something that a lot of startups are now doing).
Union workers will no longer be able to strike or walk out of their jobs to ensure their demands are fulfilled. They have to give 60 days’ notice for even a casual walkout by 50% of the workforce. The whole point of these strikes was to stop production to get better working conditions. But if workers give a two-month notice, companies can easily replace them.
Plus, even though gig workers and platform workers are being recognised, their definitions do not really make sense.
So, an Uber driver is both a gig worker and a platform worker. But the benefits for gig workers and platform workers are slightly different, causing a lot of confusion.
And a lot of unorganised workers (90% of India’s workforce) and self-employed freelancers have been left out of these laws completely.
The Best/ Worse 🤷♀️
Now, you must be wondering about those exciting clauses that we started out with.
But we’ve saved the best (or the worst, depending on your POV for the last).
These laws highlight how important it is to read the terms and conditions.
So, like many other developed countries, India is also technically getting a four-day workweek.
The problem? You’ll have to work 12-hour days to get extra leave.
Now, if you have a good workplace and don’t mind getting your work done in one stretch, this is great news for you.
But those of us who already work long hours and even take calls on weekends may bear the brunt of this. Employers could take advantage of this provision to make you work even longer hours.
And the extra funds for retirement? Well, they’ll have to be deducted from your salary only.
Under the new provisions, your in-hand salary will be brought down (by almost 50%) to increase provident fund deposits.
This could be a major problem as 80% of Indian employees run out of their salary before the month ends.
So, the government is taking a step in the right direction with these laws.
But certain provisions need to be tweaked a bit to ensure that workers are taken care of.
In A Line: India wants to make working conditions better for our over 500 million workers but workers think the changes will only benefit employers.
Quick Question: Should the labour laws be implemented from July or will the unions succeed in getting them repealed?
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