Background: Worker Unrest in India
A wave of strikes by gig workers and factory workers in Noida (Uttar Pradesh) and nearby industrial regions has exposed deep concerns over low wages, job insecurity, and poor working conditions, posing a serious test for India's Four Labour Codes.
Key Drivers of Worker Protests
- Inflation-Driven Wage Erosion
- The minimum wage system follows a two-component structure: base wage (revised every 5 years) and variable dearness allowance (updated twice yearly using CPI-IW)
- Between 2021-2026, CPI-IW surged by nearly 25%
- While states revised the inflation-linked component, base wage updates were delayed
- Haryana's 35% minimum wage hike in April 2026 raised expectations in neighboring regions
- Regional wage disparities (between Noida, municipalities, etc.) intensified dissatisfaction
- Exploitation of Working Hour Flexibility
- The OSH Code, 2020 shifts daily shift regulations from parliamentary law to executive rules
- While prescribing a 48-hour work week, it lacks clarity on daily hours, rest intervals, and spread-over limits
- Some employers exploit this by enforcing 12-hour shifts under "4-day workweek" guise without adequate overtime
- Rise of Precarity and Diluted Rights
- Industrial Relations Code, 2020 raises threshold for prior government approval for layoffs from 100 to 300 workers
- Mandates 60-day notice period before strikes and restricts strikes during conciliation
- Promotes Fixed Term Employment (FTE) and contract labour for core activities
- Gig and Platform Economy Crisis
- Platform workers face unilateral changes to piece-rate wages
- "Algorithmic tyranny" where ratings and software dictate earnings
- Workers classified as "independent contractors" to bypass Minimum Wages Act
India's Four Labour Codes
The Central Government consolidated 29 central labour laws into four distinct codes:
1. Code on Wages, 2019
- Merges: Payment of Wages Act, 1936; Minimum Wages Act, 1948; Payment of Bonus Act, 1965; Equal Remuneration Act, 1976
- Establishes statutory right to minimum wages for all employees (both organized and unorganized sectors)
- Ensures gender equality and simplifies compliance
2. Industrial Relations Code, 2020
- Combines: Trade Unions Act, 1926; Industrial Employment (Standing Orders) Act, 1946; Industrial Disputes Act, 1947
- Streamlines union recognition and dispute resolution
- Raises lay-off threshold to 300 workers
3. Code on Social Security, 2020
- Merges 9 existing laws including Employee's Compensation Act, ESI, EPF
- Extends benefits to unorganized, gig, and platform workers
- Covers maternity, health, life insurance, and provident fund
4. Occupational Safety, Health and Working Conditions Code, 2020
- Consolidates 13 labour laws including Factories Act, 1948; Mines Act, 1952
- Aims to ensure safer working conditions while simplifying compliance
Constitutional and Legal Framework
- Labour is on Concurrent List - delays by states in finalizing rules have created transitional grey areas
- Right to Strike: Not a fundamental right but a legal right subject to statutory restrictions (Article 19)
- Recognized under ILO conventions; India is a founding member
Measures to Strengthen Labour Reforms
- Rajasthan Model for Gig Workers: Rajasthan Platform Based Gig Workers Act, 2023 established welfare board with algorithmic tracking
- Algorithmic Transparency: Mandate aggregators share wage calculation data with Ministry of Labour
- Binding National Floor Wage: Must be revised dynamically based on CPI
- Strengthen Tripartism: Revive Indian Labour Conference (ILC) for consensus-building
- Data-Driven Inspection: Move away from "Inspector Raj" to risk-profiled systems
Challenges in Implementation
- Delayed state-level rules due to Concurrent List
- Without credible enforcement, statutory minimum wage remains non-binding
- Over 90% of workforce operates in informal sector without adequate protection
- Codes may remain pro-industry on paper but weak in practice