Labour Codes And Worker Dignity: A Legal Perspective On Welfare Reforms For Building And Other Construction Workers (BOCW)
Introduction
India’s labour law regime has undergone a structural transformation with the enactment of the four Labour Codes namely the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively, the Labour Codes). These reforms are particularly significant for Building and Other Construction Workers (BOCW), a workforce characterised by informality, high mobility, contractual fragmentation, and elevated occupational risk.
From a legal and regulatory standpoint, the Labour Codes aim to consolidate, rationalise, and modernise India’s previously fragmented labour laws, while strengthening worker dignity through enforceable standards on wages, safety, social security, and non-discrimination. For the construction sector which is one of the largest employers in India, these Codes seek to move beyond welfare rhetoric and establish a rights-based, compliance-driven framework that recognises the economic and social contribution of construction labour to national infrastructure development.
This article examines the practical and legal implications of the Labour Codes for BOCW workers, with a focus on wage protection, occupational safety, formalisation of employment, migrant worker welfare, and gender equality.
Table of Contents
A Unified Statutory Framework for Construction Labour
One of the most consequential features of the Labour Codes is the consolidation of multiple central labour enactments into four thematic Codes. For BOCW workers, who were earlier governed by a patchwork of statutes including the Minimum Wages Act, 1948, the Contract Labour (Regulation and Abolition) Act, 1970, the Employees’ Compensation Act, 1923, and the Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996, this consolidation enhances legal clarity and administrative coherence.
The Codes introduce uniform definitions, standardised compliance obligations, and harmonised welfare entitlements, reducing interpretational ambiguities that historically diluted enforcement in the construction sector. From a compliance perspective, employers, principal employers, and contractors are now subject to a single integrated framework, facilitating better accountability and regulatory oversight.
Strengthening Wage Protection and Income Security
Universalisation of Minimum Wages
The Code on Wages, 2019 marks a paradigm shift by extending minimum wage protection to all employments, dismantling the earlier distinction between scheduled and non-scheduled employments. For BOCW workers, this ensures statutory wage protection irrespective of the nature, duration, or location of work.
The Code empowers the Central Government to notify a national floor wage, benchmarked against minimum living standards. State governments are statutorily barred from fixing minimum wages below this threshold, thereby addressing long-standing inter-state wage disparities that disproportionately affected migrant construction workers.
Timely Payment and Overtime Safeguards
The Code prescribes strict timelines for wage disbursement, tailored to different wage periods:
- Daily-rated workers: payment at the end of the shift
- Weekly-rated workers: before the weekly rest day
- Fortnightly workers: within two days of the end of the wage period
- Monthly workers: within seven days of the succeeding month
In cases of termination, all dues must be cleared within two working days, significantly strengthening worker remedies against delayed payments. Additionally, overtime wages are statutorily fixed at twice the ordinary rate of wages, and normal working hours are capped at eight hours per day or forty-eight hours per week, reinforcing constitutional principles against forced or exploitative labour.1
The limitation period for filing wage-related claims has also been extended to three years, enhancing access to justice for construction workers who often lack immediate legal recourse.
Occupational Safety, Health, and Dignified Working Conditions
The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) represents a comprehensive recalibration of workplace safety obligations in high-risk sectors such as construction.
Expanded Scope of Employee Compensation
A notable reform under the OSH Code is the recognition of accidents occurring during commuting to and from the workplace as compensable, subject to prescribed conditions. This provision is particularly relevant for construction workers, who frequently travel long distances under unsafe conditions.
Preventive Healthcare and Welfare Facilities
The OSH Code mandates:
- Free annual health examinations for workers
- Uniform safety standards across establishments
- Provision of safe drinking water, sanitation, restrooms, and ventilation
- Canteen facilities in establishments employing 100 or more workers, including contract labour.
These requirements elevate workplace safety from a discretionary obligation to a non-negotiable statutory duty, reinforcing the concept of dignity at work.
The Code also integrates welfare schemes for unorganised workers, providing access to life and disability insurance, maternity benefits, healthcare support, and old-age protection, thereby strengthening social security coverage for construction labour.2
Formalisation of Employment and Documentation of Rights
Formalisation is a cornerstone of the Labour Codes. Employers are now obligated to issue appointment letters specifying designation, wage structure, and applicable social security benefits. For BOCW workers who have historically operated in informal and undocumented arrangements, this requirement enhances transparency, reduces disputes, and facilitates enforcement of statutory entitlements.
The Codes also broaden the definition of “family” for female employees to include parents-in-law, subject to prescribed income conditions. This expansion reflects a progressive understanding of dependency structures and enhances access to social security benefits.
Enhanced Protection for Inter-State Migrant Workers
Recognising the inherently migratory nature of construction labour, the Labour Codes adopt an expanded definition of inter-state migrant workers, covering individuals employed directly, through contractors, or through self-initiated migration.
Crucially, the Codes emphasise portability of welfare entitlements, enabling migrant BOCW workers to access benefits such as BOCW welfare funds and public distribution system (PDS) rations across state boundaries. This portability addresses one of the most persistent vulnerabilities faced by migrant construction workers which is loss of entitlements upon relocation.
Equality, Non-Discrimination, and Gender Justice
The Labour Codes reinforce constitutional guarantees of equality by expressly prohibiting gender-based discrimination in recruitment, wages, and conditions of service for the same or similar work. For women engaged in construction often subjected to wage discrimination and unsafe working environments, these provisions provide a statutory foundation for equitable treatment and legal redress.
Conclusion
From a legal perspective, the Labour Codes represent a decisive shift towards a rights-oriented and dignity-centric labour regime for Building and Other Construction Workers. By institutionalising a national floor wage, mandating timely wage payments, strengthening occupational safety norms, formalising employment relationships, ensuring portability of migrant welfare benefits, and reinforcing gender equality, the Codes lay the groundwork for a more transparent, equitable, and sustainable construction sector.
While the ultimate impact of these reforms will depend on phased implementation, rule-making, and enforcement at the state level, the statutory architecture itself marks a significant departure from the fragmented and compliance-light framework of the past. If effectively operationalised, the Labour Codes have the potential not only to improve working conditions for BOCW workers but also to enhance productivity, legal certainty, and long-term resilience in India’s infrastructure and construction ecosystem.
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