Labour reforms form an important topic for UPSC and State PCS exams. It is mainly covered under General Studies Paper. Questions from this topic can be expected in both prelims and mains examination. Here, in the article, all aspects of Labour Reforms are well discussed.

LABOUR REFORMS IN INDIA

Important facts

• "Labour" is a subject mentioned in the concurrent list of the seventh schedule in the Indian Constitution. It means both the Centre and the states can make laws on the issue of labour management.
• In our constitution, there are many other Articles which have provisions for the labour force, eg. Article-23 (prohibits the practice of debt bondage and other forms of slavery. Also prohibits Traffic in human beings and the beggar and other similar types of forced labour), Article-24 (Prohibition of employment of children in factories below the age of 14 years) etc.
• Article 43A of the constitution directs the state to take steps to ensure worker’s participation in the management of industries.
• Around the world, more than 25% of workers are Indian.
• By 2025 around 300 million young population are set to enter the labour force.
• India has good availability of a workforce with an average age of 29.
• In India, 85-90% workforce is employed in the informal sector where the reach of labour laws is the least.

Need for the Labour Reforms

• to establish the concept of the welfare state by providing social justice.
• productive and judicious management of India’s vast labour force.
• better management of the unorganized sector as most of the workforce is employed in this sector.
• to enhance the ease of doing business in the country, which can help in increasing foreign investment.
• generation of more employment opportunities.
• help in setting minimum standards on working conditions, minimum wages, Personal progress, strengthening of Labor unions, post-retirement benefits, Social security, skill development, Dignified and respectful job.
• Greater protection to the workers will help in increase in productivity and overall growth of the country.

Issues and Challenges in Labour Reforms

• India is a labour surplus country where demand and supply is mismatching.
• The available labour force is not skilled enough to fulfil the demands.
• The requirement of adequate infrastructure and the vocational institute is huge for the transformation of the unskilled labour force into a productive labour force.
• Minimum wages for unskilled labours has been increased considerably, which has a big impact on the cost of production.
• Rigid labour laws have created hindrances in the creation of jobs in the formal sector.
• Lack of proper manpower planning and inadequate management of resources.
• Non-cooperative and adamant behaviours of the labour unions are major hurdles in progressing labour reforms.
• The compliance of a large number of labour laws (approx 144 central and state laws) is a difficult task that needs to be reduced to the bare minimum.
• The casualisation of the labour force is also one of the important issues.

Government of India schemes/ initiatives

• The Apprentice Protshan Yojanaand the Ayushman Bharat Yojana for labours in the unorganized sector has started yielding desired results.
• Various skill development initiatives like Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Shramev Jayate, National Skill DevelopmentMission etc. of the Government of India has been a milestone in labour reforms in India.
• The Make in India scheme aims to create new opportunities in the employment generation.
• Various efforts have been made in cutting red-tapism in the government working which has signification impact on the grievance redressal and other issues of the labour force.
• Labour inspection regime has been made more transparent.
• ShramSuvidha portal has been launched for timely redressal and self-certification by industry.

Important Labour Laws enacted by the Government

There are approximately 44 central laws and 100 state laws which seek compliance from industries. The important are as follows:-

Laws On Industrial Relations-

• Trade Unions Act, 1926
• Industrial Disputes Act, 1947

Laws On Wages

• Payment of Wages Act, 1936
• Minimum Wages Act, 1948
• Payment of Bonus Act, 1965

Laws On Social Security

• Employee's Compensation Act, 1923
• Employees' State Insurance Act, 1948
• EPF and Miscellaneous Provisions Act, 1952
• Payment of Gratuity Act, 1972

Laws On Working Hours and Conditions of Services

• Weekly Holiday Act, 1942
• Industrial Employment (Standing Orders) Act, 1946
• Factories Act, 1948
• The Plantation Labour Act, 1951
• The Mines Act, 1952
• Contract Labour Act, 1970
• Inter-State Migrant Workmen Act, 1979
• The Dock Workers (Safety, Health & Welfare) Act, 1986

Laws On Equality of Women

• Maternity Benefits Act, 1961
• Equal Remuneration Act, 1976

Prohibitive Labour Laws

• The Beedi and Cigar Workers Act, 1966
• Bonded Labour System (Abolition), Act, 1976
• Child Labour (Prohibition & Regulation) Act, 1986
• The Sexual Harassment at workplace (Prevention, Prohibition and Redressal) Act, 2013

Laws On Employment and Training

• Employment Exchanges Act, 1959
• Apprentices Act, 1961

NITI Aayog Strategy for new India@75: Employment and Labour Reforms

NITI Aayog has made the following recommendations for Employment and Labour Reforms in India:-

• Codifying Labour Laws – Complete codification of central labour laws into four codes by 2019
• Enhance Female Labour Force Participation – Increase female labour force participation to at least 30 per cent by 2022-23
• Improve Data Collection and Management on Employment - Disseminate publicly available data, collected through rigorous household and enterprise surveys and innovative use of administrative data on a quarterly basis by 2022-23
• Workers Welfare - Encourage increased formalization of the labour force by reforming labour laws, easing of industrial relations and ensuring of fair wages, working conditions and social security through significant productivity improvements in the economy
• Enhance skills and apprenticeships - Ensure the wider use of apprenticeship programmes by all enterprises.
• Ease industrial relations to encourage formalization - Overhaul the labour dispute resolution system to resolve disputes quickly, efficiently, fairly and at low cost
• Wages - Make compliance with the national floor-level minimum wage mandatory and the payment of wages in the account only through cheque or through ADHAR.
• Improvement in working conditions and social security - Enact a comprehensive occupational health and safety legislation based on risk assessment, employer-worker co-operation, and effective educational, remedial and sanctioning.

Government’s recent initiatives for Liberalization of Labour Reforms

The Government of India under its aim of improving the ease of doing business initiative has proposed to subsume all its 44 central laws and codify it into four codes which are as appended below:-

• Code on Wages Bill
• Code of Occupational, Safety, Health and Working Conditions Bill, 2019
• Code on Industrial Relations
• Code on Social Security.

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