Centre Releases Draft Rules for Implementation of Four Labour Codes

Context:
The Union Government has pre-published the Draft Rules for the four Labour Codes, inviting public comments within 45 days. The Rules operationalize major reforms including a 48-hour work week, safeguards for women in night shifts, revised definitions of wages and employment, and expanded social security coverage, including for gig and unorganized workers.

Key Highlights:

Work Hours & Employment Norms

• Mandates a 48-hour work week.
• Defines categories of workers: permanent, temporary, fixed-term employment.
• Clarifies provisions on wages, bonus, gratuity, and social security.

Women’s Night Shift Safety

• Employment permitted with:

  • Written consent

  • Transportation facilities

  • CCTV surveillance and safety measures

Social Security Expansion

• Formation of a National Social Security Board for unorganized workers.
• Board to include representatives of gig/platform workers and associations.
• Establishments with 50+ employees must provide a creche facility.

Minimum Wage Framework

• Based on criteria including:

  • Standard working-class family

  • 2,700 calories per day requirement

  • Housing, clothing, education expenditure

• Government to consider:

  • Geographical area

  • Skill level

  • Experience

• A Technical Committee, headed by the Director-General of Employment, to advise on skill categorization.

Codification Structure

Code on Wages – Consolidates 18 previous laws (minimum wages, equal remuneration).
Code on Social Security – Merges 12 laws (ESI, EPF, gratuity, unorganized workers’ welfare).
Industrial Relations Code – Governs trade unions and dispute resolution.
Occupational Safety, Health and Working Conditions Code – Workplace safety norms.

Relevant Mains Points:

Issue & Causes:

  • Fragmented labour laws (29 central laws earlier).

  • Low formalization and inadequate worker protection.

  • Growing gig economy.

Benefits:

  • Simplification and transparency.

  • Ease of doing business.

  • Inclusion of unorganized and gig workers.

  • Gender inclusion in workforce.

Challenges:

  • Implementation capacity of States.

  • Concerns over labour rights dilution.

  • Enforcement in informal sector.

Impact:

  • Formalization of labour market.

  • Improved social security coverage.

  • Greater labour flexibility.

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