Labour codes continue to draw fire from Tamil Nadu workers

CHENNAI: The Union government’s decision to implement four new labour codes from November 21 continues to draw fire from organisations representing unorganised-sector workers in Tamil Nadu. The apprehensions focus on gaps in safety provisions, restructuring of welfare boards, and uncertainty over how the State’s existing welfare systems will operate under the new framework.

R Geetha of the Unorganised Workers' Federation said difficulties for workers in some sectors began even before the codes were introduced, particularly after the rollout of new GST regime, which led to the discontinuation of several labour welfare cesses. “Take the cess for beedi workers. Most are women working from home. They used to receive some assistance, but that stopped with GST,” she said. She noted that only the construction workers’ cess remains operational.

The Occupational Safety, Health and Working Conditions Code is a major point of contention. Labour groups argue that it weakens the existing safety framework. Earlier rules included over a hundred safety provisions covering various stages of construction and occupation-specific risks, Geetha explained. “Without these specific rules, workers are left without a clear enforcement mechanism,” she said. Many large unorganised sectors, including agriculture, fisheries, and domestic work, lack explicit coverage under the new safety regime.

Concerns are equally strong regarding the Social Security Code, which collapses most unorganised-sector welfare boards into a single national structure, allowing separate boards only for construction and agriculture. Tamil Nadu currently has at least 18 sector-specific welfare boards, providing benefits from scholarships and marriage assistance to old-age pensions and medical support. Stakeholders fear that the new framework could undermine this model.

While the State has published draft rules for three codes — the Code on Wages, Industrial Relations Code, and Occupational Safety, Health and Working Conditions Code — draft rules under the Social Security Code are still pending, reflecting these unresolved concerns.

The functioning of the e-Shram portal has also drawn criticism. Despite large-scale registration, workers report difficulties in accessing benefits. Digital-only systems remain inaccessible to many, especially as self-declaration now drives registration, reducing trade unions’ role in assisting and verifying workers.

Other unresolved issues include contract labour, fixed-term employment, and migrant workers. The codes no longer require migrant workers to register in their state of origin, affecting access to welfare schemes and voting rights. “Without source registration, a worker cannot even apply for postal voting,” Geetha said.

Finally, it remains unclear whether Tamil Nadu’s existing labour welfare statutes will continue unchanged, as the new codes lack a clause safeguarding stronger State laws. Labour organisations have urged the State to clarify its position, including the possibility of an Assembly resolution, but no official stance has been announced yet.