Workers expect timely payments, income security under Labour Codes: Study

A perception-based VVGNLI study finds most workers expect better income security and timely wages under the new Labour Codes, even as awareness and clarity on provisions remain uneven

A majority of workers expect timely payment of wages and better income security under the new labour Codes, showed a perception-based study by V.V. Giri National Labour Institute (VVGNLI).

 

VVGNLI is a government-funded autonomous body, operating under the administrative control of the Ministry of Labour and Employment.

 

The study is based on a survey of 6,435 people, among whom 5,720 are workers and 715 employers. 

 

Among the surveyed workers, 64 per cent of respondents said they expect an improvement in income security under the new labour laws. Similarly, 54 per cent of workers said they expected timely payment of wages with the enforcement of the Codes.

   

A majority of respondents also said they expect to see an improvement in job security and better protection for contract and fixed-term workers. 

 

To be sure, lack of awareness and want for clarity on certain provisions under the new labour Codes still persist over a month after the Centre notified the draft rules, showed the study.

 

With the end of the consultation period for the draft rules nearing, findings from the study showed that there is ‘moderate levels of clarity’ among employers on the provisions in the four new Codes.

 

Among the themes studied, the lowest level of 'perceived realisation' was observed in the theme of Clarity and Understanding.

 

“Only 34 per cent report overall clarity of provisions, while 28 per cent remain uncertain. Clarity is comparatively lower in relation to wage and working-hour provisions, where 26 per cent report agreement and 29 per cent indicate uncertainty,” said the report. 

 

On overall clarity on provisions in the labour Codes, only 34 per cent of the surveyed employers agreed that the provisions are clear, with 7 per cent reporting strong agreement. Around 66 per cent reported either disagreement or uncertainty. 

 

Employer responses showed that receipt of official communication about the labour Codes remained low.

 

Only 36 per cent reported that their organisations have received formal communication. A relatively high 35 per cent fell in the ‘cannot say’ category, while 29 per cent said no official communication was received. 

 

 “This suggests that formal dissemination channels have not reached all establishments uniformly,” the study said. 

 

The study showed that 56 per cent of employers surveyed indicate that explanatory documents and support materials will help in better understanding of the rules. 

 

“The pattern suggests that interpretational clarity is still evolving and that institutional guidance plays an important role in supporting compliance during the transition phase,” the study added. 

 

To improve understanding and fast track the rollout of the Codes at the state level, the labour ministry is conducting six regional conferences. Additionally, Labour Secretary Vandana Gurnani had said in December that the government will release a compliance handbook to help businesses comply with the new rules and provisions brought by the Codes.

 

"The presence of ‘cannot say’ responses across several aspects indicates that workers’ understanding is still evolving, reflecting the early stage of implementation. This uncertainty is more visible in areas involving procedural details, administrative mechanisms, and institutional performance," the study said.

 

Notably, 56 per cent of respondents felt that there is a variation in awareness according to the size of a firm and the sector it belongs to.