New labour codes anti-worker, say trade unions; nationwide protest tomorrow

NEW DELHI: Trade unions across the country will hold a nationwide protest on Tuesday, alleging that the new labour codes introduced by the Central Government are “anti-worker.” The government claims the codes will ensure social security in the unorganised sector and guarantee workplace equality for women, but unions argue the changes weaken workers’ rights.

The protest has been called by ten major trade unions along with farmers’ and workers’ organisations. The pro-government union BMS is not supporting the strike.

Earlier, 29 labour laws that protected workers’ rights were repealed and replaced with four labour codes. Though the previous laws had shortcomings, they guaranteed wages, working hours, social security, industrial safety, inspections and collective bargaining. Unions say the new codes favour employers and dilute workers’ protections.

They also allege that the government accepted multinational corporations’ claim that strikes and union interventions hinder an industry-friendly environment. The unions demand that the codes be withdrawn, stating they were implemented without proper consultation.

Easier layoffs and closures; stricter strike rules

• Companies with fewer than 300 employees can now lay off workers or shut down operations without government approval. Previously, this exemption applied only to firms with up to 100 employees. Strike restrictions earlier applicable only to public services have been extended to all industries. The notice period before going on strike has been increased from six weeks to two months, significantly limiting the right to strike.
• Key protections under the laws governing dispute resolution and trade unions have been removed in the new codes, according to critics. This makes termination of workers easier. Membership verification for trade unions will now be conducted by a “verification officer” appointed by the employer, which unions call a biased arrangement.
• The government did not convene the Indian Labour Conference (ILC)—a platform involving representatives of the government, employers and trade unions—before implementing the new codes. Trade unions say objections they raised in meetings called by the Labour Ministry since June 2024 were ignored.
• Meanwhile, small-scale industries argue that implementing welfare schemes for unorganised workers and reducing the requirement for gratuity eligibility to one year will significantly increase operational expenses.