Labour Law Reforms In India

The National Democratic Alliance government enacted the Code on Wages in August 2019 and the other three Codes, viz., the Industrial Relations Code, the Occupational Safety, Health and Working Conditions Code and Code on Social Security (CSS) in September 2020. Later, it had framed the draft rules albeit incompletely under all the codes – incompletely because the rules have not covered some aspects of the Codes, e.g. rules regarding recognition of central trade unions have not been framed so far.

* The incidence of major industrial accidents has remained undiminished even during the COVID-19 period. For instance, Industrial reported that between May to June, 32 major industrial accidents occurred in India, killing 75 workers. The media reported four accidents in Vizag during 2020. Safe in India’s annual reports, CRUSHED, for 2019 and 2020, provide a disturbing picture of industrial accidents in the automobile industry in the Gurgaon region. Industrial safety continues to be a grave concern even after the enactment of the Occupational Safety, Health and Working Conditions Code.

* Controversies surround the processes of the enactment of codes and the framing of rules. The Government has held only symbolic and partial consultation with the central trade unions. The three codes were passed in Parliament even as the Opposition parties, otherwise insignificant, boycotted the proceedings. The tearing hurry in which the Government carried out the reforms even during the COVID-19 period gave tremendous hope to employers and potential investors. It announced its intentions of implementing the Codes from April 1, 2021 even as State governments were completely unprepared with the rules.