Context

• The labour reforms enacted by the Indian government in 2019 and 2020 have faced sustained opposition from trade unions and worker collectives across the country.
• These labour reforms have generated widespread concern, particularly for unorganised workers, who form over 90% of India’s workforce and contribute nearly 65% of national output.
• The new labour codes, covering wages, industrial relations, social security, and working conditions, were passed without tripartite consultation.
• Their implementation raises serious concerns about the future of worker rights and protections in India.

Background and Claims of the Labour Codes

• The Union government has justified the reforms as an attempt at consolidation of labour laws and expansion of social protection.
• However, the restructuring has instead resulted in the dilution of several sector-specific protections that previously addressed the realities of informal employment.
• Rather than strengthening safeguards, the reforms centralise authority while weakening legal mechanisms built through decades of labour struggles.

Criticism of New Labour Codes

• Dilution of Occupational Safety and Health Protections
  • One of the most significant consequences of the reforms is the weakening of occupational safeguards under the Occupational Safety Health and Working Conditions framework.
  • The repeal of protections governing the construction sector has removed detailed safety regulations despite the hazardous nature of work and high fatality rates.
  • The shift from physical workplace inspections to digital systems has undermined effective inspections, limiting enforcement and accountability.
  • This approach reduces on-ground verification and weakens compliance mechanisms essential for protecting workers in informal and high-risk settings.
• Neglect of Occupational Health of Informal Workers
  • Informal workers face severe occupational health risks across sectors.
  • Construction workers suffer from silicosis, agricultural labourers are exposed to carcinogenic pesticides, and salt workers experience chronic eye, skin, and kidney ailments.
  • The absence of structured mechanisms for diagnosis, treatment, and rehabilitation leaves these workers without meaningful protection.
  • Without access to formal insurance systems, occupational diseases remain unrecognised, untreated, and uncompensated, deepening health-related vulnerabilities among informal workers.
• Threats to Welfare Boards and Social Security
  • The restructuring of social protection frameworks poses serious risks to worker welfare.
  • Sector-specific funding mechanisms, including dedicated cesses, have been removed without viable alternatives.
  • This has disrupted financial support systems for workers in mining, construction, beedi, and salt industries.
  • The move towards a single welfare structure undermines existing State-level boards that provide pensions, maternity benefits, and educational assistance.
  • These boards were designed to address sector-specific needs and have played a crucial role in supporting informal workers. 

Federal Concerns and the Case of Tamil Nadu

• The reforms raise important federal concerns, particularly for States with long-standing welfare architectures.
• Tamil Nadu has built an extensive system supporting informal workers through legislation and welfare boards developed over decades.
• The introduction of the e-Shram registry raises apprehensions regarding central control over accumulated welfare funds, estimated to be substantial.
• Such centralisation threatens State autonomy and risks diverting resources away from intended beneficiaries.

Conclusion

• The labour reforms mark a significant retreat from worker-centric protections.
• The erosion of safety standards, weakening of welfare mechanisms, and centralisation of authority have intensified worker precarity.
• Without corrective measures, these changes risk deepening inequality and insecurity among informal workers.
• Preserving State initiatives and ensuring participatory reform processes are essential to uphold worker dignity and long-term social justice.