Published draft rules on social security, others to follow soon
By Dr. Gyan Pathak
Delhi government has finally taken a step towards implementation of the controversial new labour codes by publishing its Draft Code on Social Security Rules, 2025 on July 28, 2025. This is first to be framed by the Delhi Government under the Code on Social Security 2020 passed in the Parliament of India. The rules under other three codes – the Code on Wages 2019, Code on Industrial Relations 2020, and the Code on Occupational Safety, Health, and Working Conditions2020 – are in various states of finalization, which the state government expects to complete in near future.
It is to be noted that Delhi government led by Aam Aadmi Party (AAP) had been opposing the new labour codes which the PM Narendra Modi government at the centre got passed in the parliament as part of biggest labour reform in the country since independence. These codes primarily aimed at ease of doing business. PM Modi had said that it would benefit the workforce in the country, which the joint platform of the Central Trade Unions (CTUs) has been opposing these as anti-labour and pro-corporate, with numerous protest demonstrations and even all India strike actions, the last being on July 9, 2025.
Nevertheless, the BJP led government at the Centre and in Delhi does not seem to be affected by the strike action of July 9, and they are going forward to implement those controversial labour codes. On July 24, the Union Minister of State for Labour and Employment Shobha Karandlaje informed the Rajya Sabha in a written reply to a question that as a step towards implementation of the four labour codes, the Central Government has pre-published the draft Rules.
Since labour is in the Concurrent List of the Constitution of India, state governments are also empowered to make labour rules. She informed the parliament that out of 36 states and UTs, 32 have pre-published their draft rules under the four labour codes.
The states and UTs which have not pre-published their draft rules under any of the labour codes were West Bengal and Lakshadweep. Lakshadweep is a Union Territory while West Bengal is ruled by Trinamool Congress led by Mamata Banerjee, who is dead against the new labour codes.
As for Delhi, it had pre-published draft rules under the Code of Wages 2019 in November 2021, when the state ruled by AAP under chief ministership of its Supremo Arvind Kejriwal. It should be noted that pre-publication of the rules allows the government for public consultation. Thereafter, Delhi has stopped framing of rules and their pre-publication. The work on labour codes progressed only after BJP won the Delhi election held in February 2025, and came to power. BJP led government in Delhi has started working on framing of rules under the four labour codes.
Union Minister Shobha Karandlaje informed the Rajya Sabha that Tamil Nadu has not pre-published its draft rules under only one Code, ie, the Code on Social Security 2020.She also stated that there was no proposal to amend the new labour codes.
The Draft Delhi Code on Social Security Rules, 2025 has proposed establishment of career centres to assist both entrepreneurs and job-seekers, along with the creation of a social security board for unorganised workers. It also proposes a social security fund and the formalisation of compensation for workers in cases of accident and maternity benefits.
Joint platform of the CTUs has been demanding the all the four labour codes to be scrapped in general. However, after the publication of the Draft Delhi Code on Social Security Rules, 2025, the trade unions have criticized this in particular.
The Centre for Indian Trade Unions (CITU) has said that the rules would dilute the existing social security mechanisms under the Employees’ Provident Fund Organisation (EPFO), Employees’ State Insurance (ESI), and the Construction Workers’ Welfare Board. CITU general secretary Aniyan Varkey has raised concern about the change in definition of even “unorganised worker”, since it also includes a section of organised sector workers especially those who are not covered under the Industrial Dispute Act, 1947.
Delhi government intends not only to finalise and publish the draft rules for other three codes also in near future, but has also planned to amend the Industrial Dispute Act 1947 and the Delhi Shops and Establishment Act 1954. CTUs and experts have warned that if the governments go ahead with the proposed amendment of these two existing labour law as part of its “Ease of Doing Business” policy, it would adversely affect lakhs of workers in the National Capital Territory of Delhi, by stripping of their labour rights.
Under the proposed amendment in the Delhi Shops and Establishment Act 1954, it would be made applicable only in those establishments that employ 10 or more employees. Currently it is applicable to all establishments with minimum one employee. It would affect safeguards to workers like paid leaves, weekly holidays, and a month’s notice for dismissal.
Delhi government is also planning to amend the applicability of Industrial Disputes Act 1947 from the current establishments employing 100 or more workers to 300 and more workers. It would erode the safeguard to workers from lay-offs and closure of the units.
A meeting in this regard was already held on June 30 which was chaired by Lieutenant-Governor V K Saxena and attended by Chief Minister Rekha Gupta.
Several BJP ruled states have already amended several existing labour laws in accordant with the provisions of the four labour codes so that the provision could be implemented through backdoor before the new labour codes could be implemented.
BJP ruled states like Assam and Gujarat have already amended the Industrial Dispute Act 1947 and raised the threshold for its applicability from 100 to 300 employees.
Gujarat has also amended the Shop and Establishments (Regulation of Employment and Conditions of Service) Act 2019, six years ago and raised the employment threshold to 10.
It is estimated that if the Shop and Establishment Act is amended in Delhi as per the plan of the state government, it would affect around 15 lakh employees which may go to 20 lakh or even more. (IPA Service)
