How Shram Shakti weakens workers, shields Centre from constitutional duties

The BJP government led by Prime Minister Narendra Modi is on an apparent mission to align the economy on the lines of what ancient Hindu texts have prescribed. It appears to be immaterial to the ruling dispensation that the texts were written — some were not even written but passed down orally — centuries ago, and hardly seem tenable in the 21st century.

Be it the labour codes, or how wealth is distributed, or how new frameworks are arrived at, the Modi government appears keen on 'Hindu Economics', which stands in stark contrast to the constitutional state that India signed up for in 1950, when the Constitution was operationalised. For instance, the Shram Shakti Niti 2025's anchoring in the monarchical order that the ancient texts prescribed is completely alien and antithetical to this constitutional state and its responsibilities.

The Federal presents a three-part series decoding the BJP government's Hindu Economics. Part 1 delves deep into the new draft labour policy that essentially takes the Indian state away from its constitutional obligations, leaving the worker to fend for himself.

'Sacred duty'

It may have shocked some to know that the Shram Shakti Niti 2025, a draft of national labour and employment policy released on October 8, uses dharma, rajdharma and the “civilizational ethos and guiding principles” derived from ancient Indian texts to define the role of the Indian state.

The draft doesn’t define labour, work or worker as existing Indian laws do, although in a bewildering array of classifications and meanings. Even the four labour Codes of 2019 and 2020, which are put to sleep, do so in myriad ways, some worded differently and long winding.

The draft policy only defines “labour” as “a sacred duty and social value”, a part of “the broader order of dharma (righteous duty)” and “draws inspiration” from ancient texts such as Manusmriti, Yajnavalkyasmriti, Naradasmriti, Sukraniti and Arthashastra. The concluding paragraph says it “marks a paradigm shift” in labour governance – “from regulation and inspection to facilitation and empowerment”.

Also read: Shram Shakti Niti 2025 : Draft labour policy steps back to Manusmiriti

The draft does say that it is “anchored in constitutional values and the four Labour Codes”, but the actual anchoring is in the concepts of dharma and ancient texts. It is evident in the prescriptions in which the nodal agency, the Ministry of Labour and Employment, is described as a “facilitator” which will be “the national connector between opportunity and talent”.

Government steps back

That is, the Labour Ministry will step back from implementing its current “vision” and “mission” statements, which read:

• Vision: “To provide decent working conditions and improved quality of life for workers”.

• Mission: “Formulating and implementing policies /programmes/schemes/projects for providing social security and welfare, regulating conditions of work, occupational health and safety of workers, eliminating child labour, promoting harmonious industrial relations, ensuring enforcement of labour laws and promoting employment services”.

The draft also shifts the responsibility of implementing the four Labour Codes, alluded to as “reforms”, and piloted by the ministry in 2019 and 2020, to state governments.

These as yet unenforced codes are: The Code on Wages, 2019, The Occupational Safety, Health and Working Conditions Code, 2020, The Code on Social Security, 2020, and The Industrial Relations Code, 2020.

These codes consolidate 44 central labour laws. Once operationalised, they will override the states’ laws on labour; the states will be forced to act on them.

Workers’ rights weakened

A look at the key elements of these codes will make it clear why the Indian government is not ready to take ownership:

• Most workers are excluded from the universal minimum wage coverage – by omitting millions by not defining them as workers (these include gig/platform and home-based workers) and as many more by not listing them for wage coverage (agricultural establishments with five or less workers and Anganwadi, ASHA and MGNREGS workers who get “honorarium” or below statutory minimum wages despite being on the rolls of the Indian government).

Their inclusion would have entitled them to statutory minimum wages. For example, the US, the EU and the UK changed their laws and rules to declare gig workers as “employees”, “workers”, instead of “partners”, to ensure they get minimum wages and other benefits.

Also read: 51pc Indians work over 49 hours a week: Shocking ILO data emerges | EY employee death

• Wages are not linked to labour productivity; equal-pay-for-equal-work is not recognised, and working hours are extended from 8 to 12 hours, in normal conditions. While the Wage Code is silent on this, the extension gets in through the “draft” rules, circulated but not notified. The working hours can be extended to 16 hours a day, called “spread over” time or with a break in between. Many states, such as Rajasthan, Maharashtra, Gujarat and Uttar Pradesh, have adopted this “spread over” time to extend the working hours to 10-12 hours.

• The threshold for health and safety norms has been raised to establishments with 20 (in those without power) and 40 (in those with power), from 10-20 workers or more, respectively.

• Millions of migrants, gig/platform, self-employed and home-based workers are made eligible for social security cover, but no fund or scheme till date.

• The hire-and-fire law has been expanded by making it applicable to establishments with 300 or more workers, from 100 or more.

Also read: We have collectively failed generations of migrants to Gulf nations

• Instead of facilitating permanent employment, contractualisation has been boosted by expanding the list to add a new contract form called “fixed term employment” or FTE.

• The employer is also defined as ‘contractor’ – which allows him or her to escape accountability towards workers’ rights and protections that contractors have.

• Strike, as the last resort to press for workers’ demands, has been virtually banned. The Industrial Relations Code does mention giving advance notices, arbitration, but these are hemmed in by so many ‘don’ts’ that there is no room for a strike at all. Violations of these multiple conditionalities attract stiff penalties and/or imprisonment. There is no provision to facilitate collective bargaining, but interference by the employer and trade unions in collective bargaining is listed under “unfair labour practices”.

Also read: Labour law changes: Inhuman or bold move?

No effort has been made to fix the minimum wage. A committee was set up to provide social security to gig workers (but not to migrants, self-employed and home-based workers), which is yet to make its views public.

The February 2025 budget promised to cover “gig workers on online platforms” (about 10 million) under the Ayushman Bharat (Pradhan Mantri Jan Arogya Yojana or PM-JAY). But that will take years, just to issue them identity cards and register. The actual service will come into effect even later.

e-Shram portal fiasco

Here is how a similar attempt at setting up the e-Shram portal in 2020 to provide ration to migrant workers has failed over the years, despite repeated castigations by the Supreme Court.

Last heard in October 2024, the court fumed, “We have lost our patience”, because those already registered on the portal were not getting the ration.

The Centre promised to provide work opportunities through the portal later. But it does nothing except merely registering migrant workers, classifying them in the sectors they work (self-declared) and lists social-security and employment schemes. The Centre has been so insincere that it voted against a global convention for platform workers at the International Labour Organization's (ILO) plenary session in Geneva between June 2 and 13 this year.

Also read: Iron fist and velvet glove: Inside India’s Chanakyan strategy against Naga insurgents

Ironically, these workers are informal ones, poorly paid but drive the growth of global giants such as Amazon Flex, BigBasket, BluSmart, Flipkart, Ola, Porter, Swiggy, Uber, Urban Company, Zepto, and Zomato, among others.

Workers left at market's mercy

The rest of the Labour Ministry’s current responsibilities and the future of workers are left to the market (employer/industry). By quoting the Śulka Nyāya and Sukraniti, the Shram Shakti Niti 2025 makes it amply clear that the “responsibility” to provide fair wages and ensure dignity and equity of workers rests with “employers”, not the government.

It marks a clear signal to workers that they are on their own and to the industry that it will get a free pass.

If none of it makes sense (ironically, the draft policy sounds like it is meant to give shakti (power) to workers), re-read the first paragraph and read on.

Coming next: What 'dharma' and ancient Indian texts mean for modern work and workers