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30 Nov 2025·Source: The Sunday EXPRESS
3 min
Polity & GovernanceEconomySocial IssuesNEWS

Modi Government's Labour Reforms: Key Guarantees for Textile Workers

The Modi government highlights the implementation of new Labour Codes, ensuring various benefits and protections for textile workers.

Modi Government's Labour Reforms: Key Guarantees for Textile Workers

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The Modi government has emphasized the effectiveness of its Labour Codes, specifically detailing guarantees for textile workers as part of the 'Labour Reforms for Aatmanirbhar Bharat'. This initiative aims to provide mandatory appointment letters, ensure minimum and timely wages, and grant annual paid leave after 180 days of work. Fixed-term employees will receive benefits on par with permanent workers, including gratuity after just one year of service.

The reforms also standardize working hours, mandate double overtime wages, and permit women to work night shifts with their consent and adequate safety provisions. These changes are part of a broader effort to formalize the labour sector and enhance worker welfare.

Key Facts

1.

Mandatory appointment letter for all workers.

2.

Minimum and timely wages for all workers.

3.

Annual paid leave after 180 days of work.

4.

Fixed-term employees to receive benefits at par with permanent employees.

5.

Gratuity just after one year of service for fixed-term employees.

6.

Provisions for standard working hours and double overtime wages.

7.

Women permitted to work in night shifts with consent and adequate provisions.

UPSC Exam Angles

1.

Constitutional provisions related to labour (Concurrent List, DPSPs)

2.

Impact of labour reforms on formalization of economy and worker welfare

3.

Ease of doing business vs. labour rights debate

4.

Social security coverage for unorganized and gig workers

5.

Gender-specific provisions in labour laws (e.g., night shifts for women)

6.

Role of international labour organizations (ILO) and conventions

Visual Insights

Modi Govt's Labour Reforms: Key Guarantees for Textile Workers

This mind map illustrates the core guarantees provided to textile workers under the Modi government's Labour Reforms, highlighting their connection to broader policy objectives like Aatmanirbhar Bharat and formalization.

Labour Reforms for Textile Workers

  • ●Key Guarantees (Textile Workers)
  • ●Underlying Labour Codes
  • ●Part of Aatmanirbhar Bharat Abhiyan
  • ●Broader Objectives
More Information

Background

India's labour laws have historically been complex, fragmented, and often criticized for being rigid, hindering industrial growth, and failing to adequately protect unorganized sector workers. Prior to the recent reforms, there were over 40 central labour laws and more than 100 state labour laws. The Second National Commission on Labour (2002) recommended the consolidation of these laws into broader codes.

Latest Developments

The Modi government consolidated 29 central labour laws into four broad 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. These codes aim to simplify regulations, promote ease of doing business, and extend social security benefits to a wider section of workers, including those in the unorganized sector and fixed-term employment. The news highlights specific guarantees for textile workers under these reforms, emphasizing formalization and enhanced welfare.

Practice Questions (MCQs)

1. With reference to the recent Labour Reforms for Aatmanirbhar Bharat, particularly concerning textile workers, consider the following statements: 1. Mandatory appointment letters are to be provided to all workers, irrespective of their employment type. 2. Fixed-term employees are entitled to gratuity only after completing five years of continuous service, similar to permanent workers. 3. Women are permitted to work night shifts, provided their consent is obtained and adequate safety provisions are ensured. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: C

Statement 1 is correct. The reforms aim to provide mandatory appointment letters to formalize employment. Statement 3 is correct, as the reforms permit women to work night shifts with consent and safety. Statement 2 is incorrect. The news explicitly states that fixed-term employees will receive gratuity after just one year of service, not five years, making their benefits on par with permanent workers in this aspect.

2. Which of the following statements correctly describes the constitutional basis for labour legislation in India?

  • A.Labour is exclusively a Union List subject, allowing the Central Government to legislate on all labour matters without state intervention.
  • B.Labour is primarily a State List subject, with the Central Government only having advisory powers.
  • C.Labour is a Concurrent List subject, enabling both the Central and State Governments to enact laws on labour matters.
  • D.Labour is not explicitly mentioned in any list, falling under the residuary powers of the Parliament.
Show Answer

Answer: C

Labour is a subject under the Concurrent List (List III, Entry 22) of the Seventh Schedule of the Indian Constitution. This means both the Parliament and state legislatures can make laws on labour matters. In case of a conflict, a central law generally prevails if it has received presidential assent, or if the state law is repugnant to the central law and has not received presidential assent. Option A, B, and D are incorrect as they misrepresent the constitutional allocation of powers.

3. Consider the following statements regarding the new Labour Codes in India: 1. The Code on Wages, 2019, subsumes four existing laws, including the Minimum Wages Act, 1948. 2. The Industrial Relations Code, 2020, consolidates laws related to trade unions, industrial disputes, and standing orders. 3. The Code on Social Security, 2020, aims to extend social security benefits to workers in the unorganized sector, including gig and platform workers. 4. The Occupational Safety, Health and Working Conditions Code, 2020, mandates a uniform 8-hour workday across all industries. Which of the statements given above are correct?

  • A.1, 2 and 3 only
  • B.2, 3 and 4 only
  • C.1, 3 and 4 only
  • D.1, 2, 3 and 4
Show Answer

Answer: A

Statement 1 is correct. The Code on Wages consolidates the Minimum Wages Act, Payment of Wages Act, Payment of Bonus Act, and Equal Remuneration Act. Statement 2 is correct. The Industrial Relations Code consolidates the Trade Unions Act, Industrial Employment (Standing Orders) Act, and Industrial Disputes Act. Statement 3 is correct. The Code on Social Security aims to universalize social security by including unorganized, gig, and platform workers. Statement 4 is incorrect. While the OSHWC Code addresses working hours, it does not mandate a uniform 8-hour workday across all industries in a rigid manner. It sets limits on daily and weekly working hours (e.g., 8 hours a day, 48 hours a week) and addresses overtime, but the 'uniform 8-hour workday across all industries' as a strict mandate is not the primary or sole focus, and flexibility exists within the framework for certain sectors or conditions. The news mentions 'standardized working hours' but not a rigid 'uniform 8-hour workday' for *all* industries.

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