💥UPSC 2026, 2027 UAP Mentorship September Batch

Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

Are workers’ rights being eroded?

Introduction / Context

  • Recent Disasters: In 2025, three major industrial accidents — the Sigachi Industries chemical blast in Telangana (June 30), the Gokulesh Fireworks explosion in Sivakasi (July 1), and the Ennore Thermal Power Station collapse in Chennai (September 30) — killed nearly 60 workers within three months.
  • Scale of the Problem: According to the British Safety Council, one in four fatal workplace accidents globally occurs in India, though actual figures are higher due to underreporting in informal sectors.
  • Structural Failure: These tragedies expose a systemic breakdown in safety enforcement, where profit maximisation overrides worker protection.

Why Workplace Accidents Occur

  1. Preventable Failures: Most industrial accidents occur due to negligence in hazard prevention such as poor equipment design, absence of alarms, and lack of maintenance.
  2. Telangana Case: The chemical reactor was operated at twice its safe limit, safety alarms failed, and untrained contract workers were deployed without records or protection.
  3. ILO Findings: The International Labour Organization (ILO) attributes most accidents to cost-cutting by managements, not random chance or individual mistakes.
  4. Human Error Myth: Employers blame workers for “human error”, but systemic issues like excessive work hours, fatigue, and exploitative conditions are the root causes.
  5. Lack of Safety Oversight: The absence of mandatory inspections and safety officers allows hazardous practices to continue unchecked.

Evolution of Workplace Safety Laws in India

  1. Colonial Roots: The first Factories Act of 1881 was enacted under British rule to regulate working hours and conditions in textile mills.
  2. Post-Independence Framework: The Factories Act of 1948 became the foundation of India’s occupational safety regime, covering licensing, rest periods, and machine maintenance.
  3. Bhopal Legacy: The 1987 Amendment followed the Bhopal Gas Tragedy, introducing stricter safety clauses but failing in enforcement due to bribery and falsified records.
  4. Compensation Mechanisms: The Workmen’s Compensation Act (1923) and Employees’ State Insurance Act (1948) provide for injury and income loss but remain financially inadequate.
  5. Lack of Criminal Accountability: Employers rarely face criminal charges for fatal negligence; compensation is often paid through government relief funds, not company liability.

Post-Liberalisation Deregulation and Impact

  1. Shift in Policy: Since the 1990s, India’s industrial policy has prioritised labour flexibility over worker protection.
  2. Self-Certification: States like Maharashtra (2015) allowed industries to self-certify compliance, effectively dismantling inspection-based oversight.
  3. Ease of Doing Business: Safety rules are now portrayed as regulatory hurdles, diluting mandatory standards for inspection and reporting.
  4. Contract Labour Expansion: Informal and outsourced workforces dominate hazardous sectors, operating without registration or legal protection.
  5. Erosion of State Capacity: Labour departments have been underfunded and depowered, reducing preventive enforcement to mere paperwork.

The Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020

  1. Purpose: Consolidates 13 older laws including the Factories Act (1948), Mines Act (1952), and Contract Labour Act (1970) into one unified framework.
  2. Scope: Applies to all workplaces with 10 or more workers and covers mines, docks, and factories.
  3. Employer Duties: Mandates risk-free work environments, medical check-ups, and welfare amenities, with provisions for National and State Safety Boards.
  4. Penalties: Prescribes monetary penalties for violations and limited punishment for accidents causing death.
  5. Criticism: The Code converts safety from a statutory right to administrative discretion, weakening enforceability and inspection mechanisms.

Other Key Labour Codes:

  1. Code on Wages (2019): Ensures minimum wages, equal pay for equal work, and timely payment, reducing wage-related exploitation.
  2. Industrial Relations Code (2020): Governs strikes, layoffs, and retrenchments, focusing on maintaining employer–employee harmony under managerial control.
  3. Social Security Code (2020): Extends healthcare, pension, and insurance benefits to gig and platform workers, integrating fragmented welfare laws into one structure.

Current Trends and Emerging Risks

  1. Extended Working Hours: Post-pandemic, States have increased daily limits and reduced rest periods, heightening fatigue-related risks.
  2. Case Example: Karnataka (2023) made longer shifts permanent, undermining rest and recovery norms critical to accident prevention.
  3. Informalisation: Over 90% of India’s workforce operates informally, with no safety records or accident insurance, leaving families uncompensated.
  4. Weakened Enforcement: Inspections replaced by self-reporting allow companies to evade accountability for safety violations.
  5. Outcome: India remains among the world’s most dangerous industrial economies, with preventable deaths treated as operational costs.

Institutional and Governance Failures:

  1. Policy Shift: The State’s role has shifted from enforcer to facilitator, prioritising investment over worker welfare.
  2. Diluted Inspections: Labour departments, understaffed and politically pressured, no longer conduct surprise or independent audits.
  3. Token Punishment: Accident inquiries result in minor fines or temporary closures, not criminal prosecutions.
  4. Moral Blindness: Treating workplace deaths as “inevitable” reflects a moral and administrative collapse in valuing human life.

Way Forward: Restoring Safety as a Fundamental Right

  1. Safety as Right: Workplace safety must be reinstated as a non-negotiable constitutional right, not a regulatory privilege.
  2. Reinforce Inspection: Mandatory and surprise inspections must replace self-certification to ensure compliance.
  3. Criminal Liability: Employers responsible for preventable deaths must face criminal prosecution, not ex gratia settlements.
  4. Economic Logic: Studies confirm that safe workplaces increase productivity and profitability, contradicting industry claims of cost burdens.
  5. Moral Imperative: Until the State enforces accountability, transparency, and legal deterrence, India’s workers will remain collateral casualties of deregulated growth.

 

[UPSC 2024] Discuss the merits and demerits of the four ‘Labour Codes’ in the context of labour market reforms in India. What has been the progress so far in this regard?

Linkage: The topic of the erosion of workers’ rights is highly important for the upcoming UPSC Mains, particularly because it connects statutory, economic, and social issues, making it a favorite for analytical questions

 

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