Congress Leader Criticizes New Labor Codes as Major Setback for Workers

by

Deependra Singh

Congress Leader Criticizes New Labor Codes as Major Setback for Workers

New Delhi, May 11: Congress President Mallikarjun Kharge has expressed strong objections to the four new labor codes recently implemented in India, labeling them a significant blow to workers’ rights. He criticized the central government for enacting these codes without any consultation.

In a statement, Kharge noted that the Modi government waited until after the assembly elections to issue the gazette notifications on May 8 and 9, 2026, thereby introducing what he termed “anti-labor” laws. He warned that these codes promote a “hire and fire” policy, allowing employers to hire and dismiss workers at will. Additionally, he pointed out that contract employment will increase, significantly reducing the scope for forming trade unions.

Kharge emphasized the importance of recognizing that the Modi government drafted these anti-worker codes without any consultation and has not convened the “Indian Labor Conference” since 2015. He described this move as the most severe blow to workers’ rights since independence.

Referring to the Wage Code of 2019, Kharge stated that the entire wage structure is now “corporate-centric” rather than “worker-centric.” The government has removed specific criteria for calculating minimum wages, which will now be determined through arbitrary orders from the central government. This change is expected to lead to a decrease in minimum wages.

Under the new regulations, the basic salary must constitute at least 50% of the total remuneration, resulting in a significant reduction in take-home pay for employees. The complex and singular definition of “wages” has completely disrupted the wage structure, leading to reduced allowances and considerable confusion. The additional costs and digital compliance burdens on micro, small, and medium enterprises pose a challenge to their survival. Notably, agricultural workers and domestic helpers are excluded from minimum wage protections.

Kharge also referenced the Occupational Safety, Health, and Working Conditions Code of 2020, which he argued has shifted workplace safety from being an employer’s mandatory duty to merely an additional business expense. This code introduces a framework for “decriminalization,” allowing employers to pay fines instead of facing criminal charges for serious injuries or accidents. There are no solid, mandatory safety measures, such as escorts, transportation, or CCTV coverage, for women working night shifts. Furthermore, there are no provisions for the health and safety of contract workers.

Regarding the Social Security Code of 2020, Kharge pointed out that it has proven to be little more than a formality for the 90% of workers in the unorganized sector, as small and micro enterprises are exempt from certain provisions. There is no clear model for funding, contributions, or insurance for gig workers. They are neither recognized as employees nor provided with comprehensive protections. The roles of welfare boards for construction workers and other categories have been limited, hindering the portability of benefits. Social security has been reduced to mere data entry tasks, with 90% of workers receiving identification cards but lacking legal guarantees or real benefits.

Kharge reaffirmed the Indian National Congress’s unwavering commitment to the rights of workers. He outlined a five-point “Labor Justice” agenda, which includes restoring and expanding MGNREGA to urban areas, establishing a national minimum wage of 400 rupees per day, enacting a “Right to Health” law for universal health coverage, providing comprehensive social security for all unorganized workers, and a commitment to halt the contracting of jobs while reviewing the weakening of labor laws by the Modi government.

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