Will New Labour Reforms Enhance Worker Rights and Outcomes?

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Will New Labour Reforms Enhance Worker Rights and Outcomes?

Synopsis

New labour reforms promise to transform worker rights and social security in India. With significant changes for gig workers and enhanced health benefits, these reforms could reshape the employment landscape. Trade unions are optimistic about these changes, viewing them as essential for improving the welfare of millions.

Key Takeaways

  • Strengthened worker rights in both organised and unorganised sectors.
  • Mandatory appointment letters for gig workers.
  • Free health check-ups for workers aged 40 and above.
  • Expanded ESIC coverage for all units.
  • Gratuity eligibility after one year of service.

New Delhi, Nov 24 (NationPress) Trade unions have expressed their approval of the Centre's recently introduced labour reforms, asserting that these changes will fortify worker rights, enhance social security, and lead to noticeable improvements at the grassroots level in both the organised and unorganised sectors.

Bumba Mukherjee, the President of the National Front of Indian Trade Unions in West Bengal, remarked that these reforms mark a significant advancement for worker welfare.

"These labour reforms are genuinely designed for the benefit of workers. Regardless of whether they belong to the organised or unorganised sector, every worker is taken into account," Mukherjee told IANS.

He highlighted that workers over the age of 40 will now receive complimentary health check-ups, which are anticipated to enhance long-term healthcare access for millions.

The coverage of the Employees' State Insurance Corporation (ESIC), previously not mandatory for units with fewer than 10 employees, has now been broadened to include all such units, Mukherjee added.

"This change will greatly improve social security and employee benefits," he stated.

Focusing on a significant development for gig and platform workers, Mukherjee noted that previously, employees working for platforms like Ola or Swiggy did not receive appointment letters.

"Now, the Central government mandates appointment letters for all workers. These letters will outline the terms and conditions of employment, thereby fostering transparency and enhancing employee rights," he explained.

Echoing these sentiments, Rakesh Mani Pandey, National General Secretary of the National Front of Trade Unions, commented, "The revamping of these archaic, colonial-era labour laws has been long overdue."

"These modifications are a positive step and evidently advantageous for workers. They integrate substantial portions of the workforce into the mainstream," he affirmed.

Pandey pointed out that in many workplaces, minimum wages and appointment letters were not issued, and worker names were often omitted from official records.

"The new legislation will help eliminate such practices and ensure accountability," he added.

He also praised the adjustments to gratuity regulations.

"Previously, gratuity was only available after five years of service. With the new codes, workers will qualify after just one year. This is a significant move towards ensuring financial security," he remarked.

With the new labour codes now in effect, trade unions believe these reforms will serve as a crucial modernisation component for India's labour ecosystem, greatly enhancing protection for millions of workers.

Point of View

It is crucial to highlight that these labour reforms are a significant step forward in modernising India's workforce. They aim to protect the interests of workers from all sectors, ensuring that their rights are acknowledged and upheld. The reforms reflect a commitment to enhancing social security, which is vital for the country’s economic growth and stability, aligning with the nation's approach to welfare.
NationPress
24/11/2025

Frequently Asked Questions

What are the new labour reforms?
The new labour reforms introduced by the Centre aim to strengthen worker rights, enhance social security, and improve conditions in both organised and unorganised sectors.
How will these reforms impact gig workers?
Gig workers will now receive mandatory appointment letters, which will clarify their terms of employment and enhance their rights.
What health benefits are included in the reforms?
Workers aged 40 and above will now have access to free health check-ups, improving long-term healthcare access.
How does ESIC coverage change?
ESIC coverage has been expanded to include all units, regardless of employee count, enhancing social security for workers.
What changes have been made to gratuity rules?
Under the new codes, workers will be eligible for gratuity after just one year of service instead of five.
Nation Press