Enslavement by Law

Context: Parliament had recently passed three new labour codes to replace 25 existing labour laws. The deregulations introduced in the code may lead to generalisation of the highly oppressive paradigm of work relations.

Problems with the new codes

• Decreased the ambit of labour law enforcement:

• Pushing large sections of workers out of the ambit of industrial disputes legislation: Because the new codes allow establishments employing up to 300 workers to layoff and retrench workers or close units without prior approval of the government. (Earlier threshold was 100 workers)

• Doubled the threshold for the applicability of the Factories Act, 1948: from 10 to 20 workers in case of establishments running on electricity and from 20 to 40 workers otherwise

• Defining employment conditions: Earlier under Industrial Employment (Standing Orders) Act, 1946, an establishment with at least 100 workers was mandated to formally define employment conditions. Now the threshold increased to 300 workers.

• Increased the threshold limit of contractor-employed workers from 20 to 50 and allows them to  work in all areas, including core production

• Removes the protection offered by the law to workers of larger establishments by converting them to small establishments:

• As the codes have expanded the definition of small establishment and thus will be exempted from the ambit of crucial labour laws

• Generalisation of a paradigm of labour–capital relations:  based on reduced state intervention or deregulation.

• This marks a jurisprudential shift towards the more brutal, early colonial precarious labour conditions in which the state refrained from regulating work relations
• Generalisation of the highly oppressive paradigm of work relations typical of the informal sector

• Enhanced powers to employers: 

• Self-certification system and third-party inspection by the employer as provided by the labour codes will increase the powers of employers related to work contracts

• State intervention will be restricted to the use of the criminal law framework to curb labour unrest.

• Spill over effects on informal workers: Problems related to labour codes on higher segments of the labour market shall have a spill over effect on the lower rungs where informal workers will be exposed to exceedingly higher levels of exploitation. 

Conclusion:  Deregulation and persistent criminalisation of the labour movement will expunge the collective force of labour from ensuring the implementation of welfare legislation. This is an obstacle to extending social security to a larger section of workers.