In the past couple of years, the Union Government has been ushering in a change in the rules governing the working conditions of people. But the new labour codes, by amalgamating existing asymmetrical labour laws, not only weaken safeguards for and entitlements of the countrys vast workforce, but also strike at one of the basic structures of theConstitution Federalism.
Since labour falls under the concurrent list of the Constitution, Parliament and state legislatures can make laws on the subject. The government of India has shifted deadlines and not fixed a date to implement theWage Code(enacted in August 2019), the Industrial Relations Code, the Code on Social Security and Occupational Safety, Health and Working Conditions Code (enacted in September 2020). The draft rules (by the Centre) for all the codes have been notified. But major industrial states like Nadu, Maharashtra, Haryana andWest Bengalare yet to frame and notify them. The rules could make a big difference, especially inTamil Naduwhere the DMK government has all along emphasised federalism and social Justice.
The buzz around federalism has made a comeback with the DMK assuming office and with it the demand for state autonomy. This is apparent especially on subjects like Education (shift from the concurrent to state List); NEET, UDAY scheme, one nation-one ration card, smart city projects and the National Food Security Act, which are perceived to be a push towards homogenisation.
The State Government must be alert about the following provisions which obfuscate the line between the Centre and states. Under the Wage Code, the Union government enjoins upon itself the power to fix a floor wage. Once fixed the state governments cannot fix minimum wage less than the floor wage. With an already low floor wage, states, to attract capital, could fix a relatively low minimum wage. The Wage Code also dispenses with the scheduled EMPLOYMENT under the Minimum Wages Act that provides state governments with the power to add any employment to the schedule for which minimum wages should be fixed. The absence of categorisation of different classes of work within the same scheduled employment could lead to skilled and semiskilled workers being paid less than the wages they received under the earlier schedule.
The Social Security Code envisages discretionary powers with the Union and state governments, which were previously either mandatory or specific under the existing laws. This discretion may result in arbitrary restrictions of coverage of schemes on the grounds of public interest and boosting Growth. The code also provides for schemes to be notified both by the Centre and the state governments, leaving the workers confused about their registration with either or both the governments to avail of their benefits.