Friday, August 1, 2025

Delhi Takes First Step Toward Implementing Labour Codes

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Delhi government has released draft rules under the Code on Social Security, marking a significant move toward implementing long-pending labour reforms.

These rules aim to extend structured welfare benefits to unorganised sector workers, including provisions for career support, accident compensation, and maternity benefits.

The draft, published by the Labour Department, invites public feedback and suggestions, indicating a consultative approach to finalizing the framework.

This development is part of a broader national effort to operationalize the four labour codes passed by Parliament between 2019 and 2020, which consolidate 29 central labour laws.

The state government has framed Delhi’s draft rules on social security as the first among the four codes.

Rules for the remaining three—Wages, Industrial Relations, and Occupational Safety, Health and Working Conditions—are still pending.

Key Provisions in the Draft Rules by Delhi

The draft outlines several institutional and financial mechanisms to support workers:

  • Career Centres: The government proposes to either establish new career centres or repurpose existing employment exchanges and digital portals. These centres will assist both job seekers and entrepreneurs in accessing employment opportunities and posting vacancies.
  • Social Security Fund: A dedicated fund will be created, comprising contributions from the state government, central government grants, statutory bodies, and employer associations. This fund will be used to implement welfare schemes targeted at unorganised workers.
  • Delhi Unorganised Workers Social Security Board: The proposed board will include seven representatives each from worker and employer organisations, two MLAs, five civil society members, and ten officials from relevant departments. This diverse composition aims to ensure balanced representation and oversight.
  • Compensation and Benefits: The rules formalize compensation for accidents and maternity benefits, which have often been inconsistently applied in the unorganised sector.

Labour Union Concerns and Criticism

While the draft rules represent progress, they have drawn criticism from labour unions.

CITU has voiced concerns that the new framework might weaken the current social security structure.

They fear it could undermine benefits offered through established institutions such as EPFO, ESI, and the Construction Workers’ Welfare Board.

CITU General Secretary Aniyan Varkey raised concerns about the definition of ā€œunorganised worker.ā€

He highlighted that it unusually includes some workers in the organised sector who aren’t protected under the Industrial Disputes Act, 1947.

This ambiguity, unions argue, could lead to reduced protections for some categories of workers.

Public Participation and Next Steps

The Delhi government has invited objections and suggestions from stakeholders and the general public.

Respondents must specify the chapter and rule or sub-rule they intend to modify, and provide the rationale behind it.

The feedback mechanism aims to refine the rules before they are formally notified.

Official government portals have published the draft rules for review, and the consultation period will continue for several weeks.

Finalizing these rules will lay the groundwork for a structured rollout of social security benefits in Delhi.

The focus will be on extending support to workers who fall outside the scope of formal employment.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus