January 04, 2026

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THE GREAT RESET

THE EMPLOYEES' COMPENSATION ACT, which kicks in when an employee is injured in an accident at the workplace, was enacted way back in 1923It has remained in force even as India's economy underwent a structural transformation--from a British colony attaining Independence in 1947, to experimenting with nationalisation in 1969, liberalisation in 1991 and, more recently, demonetisation, the introduction of the goods and services tax (GST), the outbreak of the Covid-19 pandemic and now the emergence of the digital economyTo keep pace with that change, the government started working on modernising the archaic labour laws nearly a decade ago. Those efforts culminated in the four Labour Codes enacted in 2019 and 2020--the Code on Wages, 2019, Occupational Safety, Health and Working Conditions Code, 2019, the Industrial Relations Code, 2020, and the Code on Social Security, 2020The government aimed to subsume and codify 29 central labour laws that were brought about over the last century and needed an overhaul to bring them in sync with the requirements of the modern economy and the needs of employers and workersFor employers, the minutiae of labour laws and compliance with them have been a sore point--these pertain to everything from meeting much needed norms for toilets and working hours to monthly returns for provident fund contributions. Several provisions carried penal and even criminal provisions in case of noncomplianceBut the Codes were kept on hold for five years faced with massive opposition from trade unions and at least some concerns of employers. All that changed when the government finally decided to implement the Codes with effect from November 21. Union Labour Minister Mansukh Mandaviya had said the Codes are both pro-worker and pro-growth, establishing a strong foundation for universal social security, fair and timely wage payment, safer workplaces, formal recognition for emerging segments such as gig and platform workers, and greater empowerment for Yuva (youth) and Nari Shakti (women).

GETTING IT RIGHT

FOR YEARS, the Employees' Provident Fund Organisation (EPFO) has been seen as a lethargic entity with labyrinthine processes, which often resulted in requests from its over 300 million members being rejected or delayedBut over the past two years, it has made a concerted effort to iron out these wrinkles and help subscribers access their savings in time. In October, the Central Board of Trustees, chaired by Union Labour and Employment Minister Mansukh Mandaviya, simplified the partial withdrawal provisions by merging 13 categories into three broad headings-- essential needs such as illness, education and marriage; housing; and special circumstancesNow, the EPFO is working on automating transfers, which remain a sore point for subscribers, says Central Provident Fund Commissioner Ramesh Krishnamurthi. He adds that one of the key areas of focus will be those still holding PF accounts from before 2017 when Unique Account Numbers (UANs) and Aadhaar were not linked with each other. The EPFO is also consolidating its multiple databases under the Centralised IT Enabled System (CITES) plan, which will enable faster processing of claims"The focus of our reforms has been to do away with manual interventions, discretion, and un- necessary or redundant processes," Krishnamurthi tells BT. He says measures like scrapping the need for uploading a cheque leaf or attested copy of the bank passbook for online claims and approval from employer for transferring a PF account have already led to faster claims processingAbout 30 million claims have been filed without the cheque leaves being approved and 3.5-4 million transfers have occurred without employer approval. Simplification of joint declaration has also led to a reduction in the number of grievances, he notesFor the EPFO, these reforms have not only helped in better customer service but also reduced