New labour codes threaten Indian workers’ rights, warn Church groups

Fr George Thomas Nirappukalayil called the new codes ‘products of a strengthening crony-capitalist climate’ in India, shifting the balance of power heavily in favour of employers.

Church-backed unions condemned new labour codes introduced by India’s federal government, warning that they would increase the dangers of “job insecurity” and “exploitation” of workers.

The new legislation aims to simplify 29 laws into four codes on Wages, Social Security, Industrial Relations and Occupational Safety and Health. The government claims it would boost ease of business with universal minimum wages, social security for gig workers and streamlined compliance.

Critics raised numerous concerns, however, saying that provisions such as fixed-term contracts would fuel job insecurity while increased overtime thresholds could lead to potential exploitation. They also said the codes included weak enforcement of rights for informal workers, risks to collective bargaining and threats to small scale industries which could be crippled by higher compliance costs.

Fr George Thomas Nirappukalayil, director the Workers India Federation (WIF) under the Catholic Bishops’ Conference of India, told The Tablet that the codes would erode trade union rights, deny social security to 93 per cent of India’s workforce and allow for sudden closures of small establishments without government approval. He said these would impinge upon workers’ fundamental rights and pave the way for widespread exploitation in the name of reform.

He emphasised that labour laws were historically enacted to protect workers from exploitation and to ensure constitutional guarantees of dignity, equality and social justice.

“Any law preventing workers from organising themselves is a direct attack on labour democracy, weakening collective bargaining and exposing workers to unchecked exploitation,” he said. “Under fixed term contracts, employers can refuse to renew contracts and replace employees at will.”

Fr Nirappukalayil called the new codes “products of a strengthening crony-capitalist climate” in India, shifting the balance of power heavily in “favour” of employers.

Amarjeet Kaur, national general secretary of the All India Trade Union Congress, said trade unions were not consulted while drafting the codes. He said the laws passed five years ago were not notified until 21 November this year because of the government’s fear of a backlash. Despite strong opposition from trade unions, the laws have been implemented.

“We fear erosion of rights that were available to the workers under the earlier laws,” Kaur said, noting that companies can now lay off up to 300 workers without government approval, putting many in danger of arbitrary dismissals, while even forming a union has become more difficult with a requirement of 51 per cent worker support for recognition.

The new laws allow women to work night shifts and recognise gig and platform workers, who now constitute a significant proportion of the workforce. However, Fr Gaurav Nair, editor of the Indian Currents, weekly, asked whether this much-publicised social security would materialise.

“There are no defined benefits, no fund allocation, no timelines, not to mention the complete absence of the employer-employee relationship,” he said. “How will digitalisation help the illiterate, who constitute a vast demographic in India? Who will issue employment letters to the billions in the unorganised sector?”

Nearly 90 per cent of Indian workers are in the informal sector, while around 8-9 per cent are covered by labour laws.

Fr Nirappukalayil said the WIF urges the government to revisit the codes with meaningful consultation and align labour reforms with constitutional guarantees and international standards.

“The future of India’s workforce cannot be compromised for short-term economic gains,” he said. “Labour reforms should strengthen protections, not dismantle them. The voices of workers must be at the centre of policymaking.”

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