Dr. Udit Raj, (Former MP)

‘The Real Truth of the New Labor Codes - A Necessary and Deep Investigation’

Recently, the Modi government is implementing four major labour codes simultaneously for the first time in India. The Modi government claims that these codes will increase employment, simplify procedures, and empower workers. However, a careful reading of these codes clearly shows that these are not reforms, but a new chapter in the curtailment of workers’ rights and the concessions granted to companies.

These codes do not strengthen workers but make them isolated, insecure, and vulnerable. This report’s study reveals when, where, and how India’s workers will be ruined under the new labour codes.

1. The biggest attack on strikes and now heavy penalties for illegal strikes

Previously, striking was a worker’s right. Now it has been trapped in a ‘legal trap’. • Mandatory 14-day notice before a strike • Conciliation/mediation will follow after the notice - no strike during this period • In many cases, a 60-day moratorium • Minor procedural errors = illegal strike • Heavy penalties for illegal strikes, action against unions, and job threats This means that striking is no longer a right but a risk. Their power to protest will be weakened and companies will be able to impose decisions on them without any pressure.

2. Almost “complete freedom” for factory owners in factories with up to 300 workers

According to the new code, factories with 300 or fewer employees do not require any government permission to lay off, retire, or close. This change disrupts the entire country’s wage structure: The owner can declare any day, “We don’t need you. Your job is over from today.” The worker has no protection, no appeal, no time No government scrutiny or restrictions This means that in factories with upto 300 workers, workers will be completely at the mercy of the owner.

3. “How many factories with fewer than 300 workers are left?” This is a myth.

Many people think that factories with fewer than 300 employees are numerous. But the reality is this: • More than 80 percent of India’s factories are micro, small, and medium-sized. • Most of these employ between 50 and 200 workers. • Units employing more than 300 workers are very few. This means that this law directly impacts not just a few factories, but the majority of India’s workers.

4. The End of Permanent Jobs – A New Era of Contracts and Fixed-Term Employment

The new codes promote fixed-term and contract employment, while pushing back permanent employment. • Exceptions to contract employment even in core activities • Fixed-term employment legally encouraged • Easy to retrench and terminate jobs

Impact

• The worker will remain “temporary” for life • The job could end any day. • The family’s financial security will be lost. • The employer’s control will increase exponentially. The era of permanent workers is over—the era of temporary workers has begun.

5. Fewer safety inspections - increased risk of accidents

Previously, the factory inspector would conduct surprise inspections. Now, he has been renamed ‘inspector-cum-facilitator’. This means: • Less rigorous inspections, more ‘guidance’ • Many inspections will be conducted with advance notice • Safety lapses will go undetected

This increases the likelihood of accidents in mines, construction, warehouses, and heavy industries, and will further cost workers their lives.

6. Distinct and Serious Impact on Women Workers

The new labour code will have the most severe impact on women workers, as it promises ‘equal pay’ on one hand, but on the other, the rise of contract and fixed-term employment increases women’s risk of lower wages, shorter-term jobs, and repeated job losses due to pregnancy or family responsibilities. Weakening the inspection system by reducing it to ‘inspector-cum-facilitator’ will further weaken the safety of women working in factories, warehouses, hostels, BPOs, hospitals, and night shifts, as surprise inspections will be less frequent and safety violations will go undetected.The exemption to extend shifts to 12 hours directly threatens women’s health, fatigue, mental stress, and safety while returning home. For the millions of women working in the gig sector—such as Swiggy, Uber, Zomato, and Urban Company—there are no clear safety, insurance, PF, ESIC, or night shift rules. With lax supervision, unclear security, and unstable jobs, the POSH (Prevention of Sexual Harassment) system will also be weakened. Overall, this code does not provide equality to women, but rather poses a new threat to their jobs, safety, self-respect, and workplace dignity.

7. Gig and Platform Workers – A Name, But No Rights

Platform workers like Swiggy, Uber, Zomato, and Urban Company have been named in the law for the first time. However: • No PF • No ESIC • No pension • No minimum wage • No nighttime safety regulations That is, a name, but no rights.

8. Minimum Wage - Sounds Good, Implementation Is Incomplete

The idea of a minimum wage is good, but: • When will it be implemented? • What will be the role of states? • How will the benefits reach workers? No clear roadmap has been provided on all these issues. This means that the minimum wage is currently more of a promise than a reality.

9. Gratuity after one year of service – does not transform a worker’s life

To put it on a positive note, the government stated that fixed-term employees will receive gratuity after one year. However: • One year’s gratuity does not transform a worker’s future • The amount is very small • It does not enhance family security • Temporary job + small gratuity = insecure future This means it is not security, but merely consolation.

10. The Biggest Threat – The Web of Government Notifications

More than half of the provisions in these codes are directly dependent on government notifications. This means: • The government can implement anything if it wishes. • It can ban it if it wishes. • Workers’ rights are only ‘conditional’. This means that workers’ lives are now dependent on the mercy of government notifications.

11. Which workers will be most affected?

• Gig workers • Contract workers • Small factory workers • Migrant workers • Women workers • Youth seeking permanent employment These groups will be most affected. Final conclusion: This is not a reform, but a curtailment of workers’ rights. Some aspects of the new labour code appear promising, but upon closer examination, it becomes clear: • Job instability will increase • Layoffs will become easier • Strikes will be suppressed due to fear of punishment • Unions will become weaker • Safety inspections will become lax • Women workers will become more vulnerable • Gig workers will be powerless • Wage bargaining will end The new labour code does not modernize the country, but makes it labour-less and security-less. And in one line: This law strengthens those who ‘get things done’ but weakens those who ‘do the work’.

(The author is the National Chairman of Unorganised Workers and Employees Congress (KKC) and Confederation of Dalit, OBC, Minorities and Adivasi (DOMA) Organisations)