THE IMPACT OF INDIA'S LOCKDOWN ON LABOUR RIGHTS: EXAMINING OPTIONS FOR RELIEF AND REFORM
By Akshay Singh
Final Year B.Com LLB (Energy Law), School of Law, UPES Dehradun, India.
I. INTRODUCTION
The announcement of a 21-day nationwide lockdown by our Honorable Prime Minister Mr. Narendra Modi on March 24, 2020, to combat the COVID 19 pandemic that had just struck India, was urgently needed. All businesses and factories were closed, and everyone was instructed to stay inside their houses, which severely restricted the movement of the world's 1.38 billion inhabitants.
People were having a really difficult time, so they began to rush to meet their fundamental requirements. As the covid expanded, so did the lockdown, which made things more difficult for the populace. Workers in various offices and in industries were those that suffered the most. Due to the lockdown, workers who had traveled from other locations to work were unemployed, and as a consequence of a shortage of resources for their daily needs, we saw a massive emigration of workers back to their homes. It caused millions of people to lose their jobs.
The rate of unemployment rose significantly after the introduction of the nationwide lockdown, despite a steep decline in the labour force participation rate. The wages were one of many areas of life where labour suffered, and when the lockdown struck the economy, trade slowed and businesses began to lose money. In order to recover from these losses, they decided that it would be more practical to remove the extra workers from the businesses. More than 120 million jobs were lost, according to estimates from the Centre of Monitoring Indian Economy (CMIE), meaning that more than one-fourth of the workforce lost their jobs in the first few months after the lockdown was declared. The agricultural industry was impacted in addition to the public and private sectors.
The workers suffered the most as a result of the rules that were in place at the time not being able to adjust to the lockdown situation. As a result, many businesses exploited the circumstance. They were not paid, and they were fired from their employment, among other things. As a result of all these issues and circumstances that the workers in various industries had to deal with, it became necessary to reform or simplify the legislation in order to protect their rights, ensure their survival, and lessen labour exploitation.
II. LABOUR LEGISLATIONS
The branch of law known as labour law establishes how employees, unions, and the general government interact. This law is crucial in protecting the rights of workers and their union. It strengthens the bond between the workforce and the government. It ensures that no worker is ever in any manner exploited. Additionally, it informs individuals of their obligations and rights within the sector. It is concerned with the system that ensures harmonious relations between employees and employers.
It establishes a legal framework that encourages fruitful relationships between individuals and groups in the workplace, which in turn supports a flourishing economy. It provides a framework within which employers, employees, and their representatives may address work-related issues, serving as a vital instrument for establishing healthy industrial relations based on workplace democracy. It serves as a clear and continual reminder of these core values and labour rights and ensures their adherence by outlining the mechanisms via which they can be put into practice and protected.
As we are all aware, the word "labour law" encompasses a vast array of laws, including the following: Building and other construction workers (Regulation and Employment and Condition Services) Act, 1996, The 1970 Contract Labour (Regulation and Abolition) Act, 1976 Equal Remuneration Act, The Minimum Wage Act of 1948 and Mine Act of 1952. With the aid of fundamental rights and Directive Principles of State Policies, the Indian Constitution also discusses the necessity to defend and safeguard the rights and interests of labour as a human person in addition to discussing other laws.
The Indian Constitution includes several provisions that discuss labour, including Articles 16, 19, 23, 24, 39, 41, 42, 43, 43A, and 54. Over the years, it has been observed that a variety of legal adjustments have been made, both to new and existing laws, depending on the needs of the populace or workforce and the circumstances that develop.
However, it's possible that no one ever considered the circumstance that might develop as a result of the Covid 19 lockdown in the past. Since none of us could have predicted this kind of circumstance, there were no laws in place to address it, making changes to the law absolutely required? Many states have changed their rules to make it easier for workers while still protecting their core rights. States like Uttar Pradesh, Gujarat, Rajasthan, and some other states changed their labour rules, which made it easier for many people to meet their basic demands.
III. COVID 19 PANDEMIC AND LABOUR LAW
Winston Churchill once said that one should never let a good crisis go to waste. Many labour law laws date back to the British Raj, but as times changed, many of them either lost their effectiveness or lost any relevance to the modern world. These provisions made it difficult for workers, not protected their interests.
Workers have to complete four forms due to the complex web of laws in order to claim a single benefit. As a result, the current administration has repealed the outdated labour laws. 4 Labour Codes now exist as a codification of 29 Labour Laws.The manufacturing industry has been the one most impacted by the pandemic due to the enforcement of lockdown, which caused the output to stop. As a result, many labourers who were employed have lost their employment, and many more are seeing their pay reduced. Several states are passing an ordinance to increase employment opportunities. The contemporaneous, which enables both the State and the Center to make changes, includes the concept of labour.
About 100 state legislation and 40 federal laws have been passed in favor of labour. The goal of the current study is to highlight the problems with unemployment in India during the COVID-19 pandemic. It had a significant impact on employees in the unorganized sector, particularly migrant workers across India. 93% of Indian employees, according to the economic study, are employed in the unorganized sector. People move from rural to metropolitan areas in search of economic possibilities, where they work in unorganized jobs to combat their poverty. Internal migrants now make up 45.36 individuals in India, up from 31.45 cores in the census of 2001, according to the census data from that year. All of India was placed under lockdown because to the COVID-19 pandemic, which caused the migrant labourers who worked in unorganized industries to lose their jobs. Due to nonpayment, the migrant workers experienced starvation and hardship.
Instead, of suspending labour regulations in the event of a pandemic, India needs labour reforms. Some states, including Gujarat, Madhya Pradesh, and Uttar Pradesh, say that suspending important labour rules will encourage investment and employment. The timing of the decision reveals the severity of the policy measure. This callous judgment strips our hardworking migrant labourers of the last vestige of their dignity at a time when the migrant worker dilemma is one of the most obvious failures in the fight against COVID-19. It does not imply that India does not require labour reforms.
The Indian economy was already faltering before the COVID-19 pandemic reared its ugly head and cast doubt on our immediate future. Prior to the epidemic, India's GDP growth for the October-December 2019 quarter (Q3 of FY20) was 4.7%, and during the prior quarter it had reached a six-year low of 4.5%. Already, economic growth was declining. It became worse due to the pandemic. In spite of the shutdown, several rating agencies anticipated 0% growth for FY 20-21. Between 2011–12 and 2019–20, India's investment rate, or Gross Fixed Capital Formation (GFCF), as a proportion of GDP, fell by a startling 9 percentage points.
This indicates a sharp decline in private investment. India's inability to expand its industrial sector is the main culprit. Reforming the labour rules structurally can increase private investment, but during a crisis like the pandemic this is hardly the time to do it. A comprehensive set of big-bang reforms is required as part of the post-COVID-19 reaction to revive the economy; labour reforms are but one component.
Prior to COVID, businesses either moved their manufacturing operations abroad or became more capital-intensive, which reduced their need for labour force participation. These policies not only increased unemployment but also drove more individuals into the unorganized sector. Already, private investment was declining. India's female labour force participation rate is very dismal.
The long-term solution is to change the labour laws' statutory foundation and to clarify them.
IV. REFORMS IN LABOUR LAW
The Central government’s new laws on labour took effect on July 1st 2022. This means there it will be huge transformations in all sectors and industries and how we’re accustomed to working. There will be changes to everything. the regulations controlling workers' working hours, the provisional fund, the pay scale, and the provident fund.
Up to this point, there has been a formal announcement detailing this problem. The new labour laws may have an impact on wages, social security benefits (pension or gratuities), worker welfare, health and safety, and working conditions (especially those that apply to women).
According to the reports, the new labour rules have been implemented in 23 states, including Uttarakhand, Chhattisgarh, Odisha, Arunachal Pradesh, Uttar Pradesh, Madhya Pradesh, Haryana, Jharkhand, Himachal Pradesh, Punjab, Manipur, Bihar, and the UT of Jammu & Kashmir.
· Three weeks of vacation time will be given for the workers.
· They have to work for no more than 48 hours at a time. A person who works eight hours every day will only get one week off.
· Employees who put in 12 hours a day in an organisation are given three weeks off.
· Those who work 9 hours a day will also receive two weeks off.
· The complete and final rules will undergo a comprehensive alteration as a result of the new labour regulations.
· You need to deal with professionals who leave the nation. Within two days on the date of withdrawal from the business, the final settlement is completed.
· The extension of maternity leave to 26 weeks will be advantageous to female employees. Female employees must give their consent before being allowed to work the night shift.
· The basic pay component will increase, and calculations for the provision fund based on the basic salary will also increase.
· This implies that the wage paid in cash would probably decline while the provisional employee fund will rise.
· After the code is adopted, employees will be given 180 days of vacation instead of the prior 244 days. In India, an organization's last payment is due 45 days after its conclusion.
V. CONCLUSION
The process of lockdown yet explain in the whole blog clearly states that even after taking reforms by the appropriate government the situation as to the labour are still not settled as per the international standards. If the present situation needs to get reformed, appropriate forum or Sensex should be considered. Therefore, there is need for the reforms in the labour law for the benefit of the labourers and the workers of the nation, governed and protected by the said Labour Law.
References
· https://ncib.in/pdf/ncib_pdf/Labour%20Act.pdf
· https://blogs.worldbank.org/en/jobs/what-weve-been-reading-how-post-pandemic-labour-p olicy-reforms-are-key-creating-more-better
· https://www.ilms.academy/blog/new-labour-laws-in-india
· https://enterslice.com/labour-employment-law-service
· https://www.consultancynepal.com/india/popular-job-sectors-for-international-students
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