Introduction
Work is an essential part of daily life, contributing to a person’s dignity, well-being, and overall development. Economic growth is not only about job creation but also about ensuring safe, fair, and dignified working conditions. In India, with a vast workforce of 501 million in 2020, ensuring quality employment remains a major challenge. The workforce is distributed across three key sectors:
- Agriculture: 41.19%
- Industry: 26.18%
- Service: 32.33%
Despite a large labour force, many Indian workers struggle with low wages, job insecurity, and poor working conditions, making employment quality a critical concern.
Organised vs. Unorganised Sectors
1. Organised Sector
The organised sector, also known as the formal sector, consists of businesses that are registered and pay Goods and Services Tax (GST). These include:
- Publicly traded companies
- Corporations
- Factories
- Large businesses
Workers in the organised sector typically enjoy job security, fixed wages, and legal protections under various labour laws.
2. Unorganised Sector
The unorganised sector comprises unregistered, self-employed, or small-scale businesses. This includes:
- Local general stores
- Handicrafts and handloom workers
- Rural traders and farmers
Workers in this sector often lack social security, fixed incomes, and legal protections, making them highly vulnerable to exploitation.
Legislative Framework for Labour Protection
The Indian government has introduced several legislative and administrative initiatives to improve working conditions. The most significant reform is the consolidation of 29 labour laws into four labour codes, which are yet to be implemented due to delays in state-level rule finalization.
The Four Labour Codes
- Code of Wages, 2019 – Regulates wages, equal remuneration, and payment structures.
- Industrial Relations Code, 2020 – Focuses on dispute resolution and employer-employee relations.
- Social Security Code, 2020 – Aims to provide social security benefits like pension, insurance, and maternity benefits.
- Occupational Safety, Health and Working Conditions Code, 2020 – Ensures safety, health, and better working conditions for employees.
Benefits of the Labour Codes
1. Simplification of Complex Laws
The labour codes merge 29 existing laws, reducing complexity and making compliance easier for businesses and workers. This is expected to boost both industry and employment.
2. Faster Dispute Resolution
By simplifying outdated labour laws, the new codes will help in quicker resolution of industrial disputes, ensuring a more efficient adjudication process.
3. Ease of Doing Business
These reforms aim to:
- Boost investment in industries
- Reduce contradictions in labour regulations
- Increase flexibility in hiring and employment practices
- Modernize safety and working condition standards
4. Gender Parity and Workplace Safety
Under the new codes, all sectors must allow women to work at night, provided employers ensure:
- Proper security arrangements
- Consent from female employees before assigning night shifts
The implementation of labour codes is a crucial step toward ensuring dignity, security, and equal opportunities for all workers in India. However, effective enforcement and state-level implementation are essential to bring about real change. A safe, fair, and inclusive workplace will not only uplift workers but also drive economic growth and social progress.
