The Central Government’s formulation of the four Labour Codes in 2020 received much fanfare and was touted to herald major reforms in Indian labour laws. Three long years have passed, and it is yet to be implemented. A section of the industry was optimistic about its implementation this year. The latest reports, however, indicate the Government has decided to delay the implementation of the Labour Codes until after the 2024 general elections.
The delay is attributed to two factors: resistance posed by multiple trade unions and the state’s failure to notify the rules corresponding to the Labour Codes. Labour falls under the concurrent list of the Indian Constitution, which allows both the centre and the state to legislate on the matter. Thus, the centre is keen to have all stakeholders on board before implementation so that the Labour Codes do not suffer the same fate as the Farm laws, which had to be repealed for lack of support.
Unfortunately, the delay in implementation is hindering the enforcement of certain key provisions that seek to reform labour laws that were enacted half a century ago. One such progressive reform is allowing women to work on a night shift in establishments provided for in the Occupational Safety, Health and Working Conditions Code, 2020 (OSH), which is one of the four Labour Codes. While this allowance is subject to employers making adequate safeguards, it will still go a long way towards lifting legal barriers to female employment.
A few states in India, recognising the need for such progressive reforms, have taken the initiative and carried out the necessary legal changes. These states have either amended the Factories Act and corresponding Rules of the concerned state or issued an executive circular/notification allowing women to work night shifts.
Figure 1
For instance, Maharashtra brought about an amendment to its Factories Act in 2015 by substituting the proviso to Section 66(1)(b). Section 66(1)(b) of the Factories Act is the provision that disallows women to work beyond 7pm until 6 a.m. Maharashtra substituted the proviso to this section with – “Provided that, the women workers may be required or allowed to work even between the hours of 7 p.m. and 6 a.m. in any factory in which adequate safety and security measures or safeguards as may be prescribed are provided”. Goa and Odisha carried out similar amendments to the proviso, whereas Karnataka, the recent entrant to the list in 2023, substituted the entirety of Section 66 and even stipulated detailed safeguards.
Tamil Nadu added Rule 84B to its corresponding Factories Rules in 2017, not only making it possible for women to work at night but also outlining specific precautions that the employer must adopt.
Andhra Pradesh, Haryana, Himachal Pradesh, and Uttar Pradesh issued a circular or a notification through an executive body like the State Labour Department/Director of Factories allowing women to work at night, delineating safety measures to be undertaken by the employer. The states highlighted in red on the Map, which unfortunately make up the lion’s share of the country, have not taken steps to effectuate any such reforms.
The states highlighted in yellow, green, and blue on the Map are conscious of the cascading effects of such beneficial reforms and have taken the first step towards easing legal barriers to female employment by carrying out amendments or issuing notifications/circulars. Another important consideration is that these states have formidable manufacturing industries, resulting in numerous employment opportunities. Women can apply for positions that require a night shift, enabling them to grab a bigger piece of the pie that was for so long unfairly denied to them. It is essential that other states follow this lead and initiate legal reforms either through the enactment of similar amendments or the issuance of circulars/notifications.
Numerous reports and studies show that there is a direct correlation between women’s economic participation and legal restrictions on it. An IMF Report of 2015 titled “Fair Play: More Equal Laws Boost Female Labour Force Participation” concluded that countries seeking to improve their female labour force participation rates must direct their attention to reforming their laws with the objective of creating a level playing field. The female labour force participation rate in the ten countries with equal laws, as per the latest 2023 Women, Business, and Law Report published by the World Bank, is 70 percent or more. The countries include Scandinavian countries, Germany, France and Belgium.
A growing female labour force participation rate is a sound indicator of economic growth. Moreover, women all over the country deserve a progressive legal framework that supports their aspirations, accords them equal rights, and provides them with choices.
(This article is first published on TOI Samayam Malayalam)
Views expressed by the author are personal and need not reflect or represent the views of the Centre for Public Policy Research.