(Sanghnomics is a weekly column that tracks down and demystifies the economic world view of Rashtriya Swayamsevak Sangh (RSS) and organisations inspired by its ideology.)
In a historic decision, the Modi government recently announced the implementation of the four Labour Codes. These much-awaited Codes, which rationalised 29 existing labour laws, have now received support from India’s largest labour organisation, the Bharatiya Mazdoor Sangh (BMS). BMS is an organisation inspired by the Rashtriya Swayamsevak Sangh (RSS), the ideological mentor of the Bharatiya Janata Party (BJP), which leads the National Democratic Alliance that governs at the Centre as well as in several states.
Labour laws have long been a contentious issue in India, where a highly politicised trade union movement influenced the policy apparatus for several decades. These were the times when the Communists dominated the trade union landscape. Whatever space was left was occupied by trade unions that may not have been Communist but were left-of-centre and leaned more towards confrontation than constructive engagement. Most importantly, these trade unions ignored the unorganised sector, which formed the backbone of the Indian labour force.
The rise of BMS since the 1950s changed the scenario. Since then, it has grown consistently and rapidly, helping depoliticise the trade union movement by replacing the ‘confrontationist’ approach with a ‘constructive’ one. One of the keys to the phenomenal rise of the BMS has been its work in organising workers in the unorganised sector, making it a highly effective grassroots organisation across the country.
BMS had long been seeking labour reforms to protect the interests of workers in a rapidly changing global scenario, especially since many existing labour laws were colonial-era legacies—redundant, ineffective, and contributors to unproductivity. Hence, it supported the Modi government’s decision to implement the four Labour Codes—the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020—from 21 November this year.
Key reasons for supporting the Codes
A detailed analysis by BMS has highlighted several key benefits. Under the Code on Wages, 2019, universalisation of minimum wages has been achieved 78 years after Independence. Even the last worker in the country now enjoys a legal right to minimum wages.
Earlier, minimum wages did not apply universally—they applied only to a few scheduled sectors. Different sectors had different wage structures, and even within the same sector, different jobs carried different wage rates. All these inconsistencies have now been resolved.
Revision of minimum wages must now be conducted compulsorily within five years. There can be no gender discrimination, not only in wages but also in recruitment and conditions of employment. The right to file criminal complaints has been granted to workers and trade unions; this power is no longer confined to labour inspectors. Claims for wages can now be filed within three years, compared to the earlier six-month limitation.
Benefits for gig workers
One of the biggest beneficiaries of the Code on Social Security, 2020 will be gig workers. According to a NITI Aayog report titled India’s Booming Gig and Platform Economy (June 2022), the number of gig and platform workers in the country stood at 7.7 million in 2020–21, including women, and is expected to rise to 23.5 million by 2029–30.
The Code on Social Security, 2020 provides clear definitions of ‘gig workers’ and ‘platform workers’. Under this Code, appointment letters must be issued to every worker. It mandates compulsory registration of all establishments irrespective of their size. ESI now applies to all establishments employing 10 or more workers and is extended across the entire country. The Employees’ State Insurance scheme provides socio-economic protection against sickness, maternity, disablement, and death due to employment injury, along with medical care for employees and their families. Under the new Code, ESI applies even to hazardous occupations employing just a single worker.
In cases where an employer fails to enrol or register an employee or does not pay contributions, the employee remains entitled to benefits under the Code.
Compensation is now provided for accidents occurring while travelling to and from the workplace. The Code extends social security not only to gig and platform workers but also to unorganised sector workers, inter-state migrants, home-based workers, domestic workers, and fixed-term employees.
According to the BMS, “The Four Labour Codes are designed to be dynamic and future-ready, addressing the emerging realities of the labour market. The broadening of wage coverage beyond scheduled employment and the extension of social security protection to new and unorganised sectors reflect forward-looking reforms aligned with the aspirations of the modern workforce.”
Conclusion
The broad endorsement of the Labour Codes by the Bharatiya Mazdoor Sangh (BMS) and their smooth implementation marks a watershed moment in India’s labour landscape. It demonstrates that meaningful reform is possible when governments and labour organisations engage with mutual trust and a shared national outlook.
These Codes are not merely legal updates; they offer a model of cooperative policymaking that replaces outdated confrontationist approaches, particularly in labour matters. This harmonised approach between policymakers and labour representatives provides an effective template showing that reforms must be shaped through consensus and grounded in the welfare of all stakeholders.
Earlier Sanghnomics columns can be read here.
(Arun Anand has authored two books on the RSS. His X handle is @ArunAnandLive.)
Views are personal, and do not represent the stand of this publication.
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