India's Bidi Workers: How New Labour Codes Bring Security and Dignity

The new Labour Codes mark a significant shift for India's bidi and cigar sector. They replace the outdated 1966 Act with stronger, worker-centric protections. Key improvements include shorter workdays, easier leave eligibility, and guaranteed minimum wages for all. These changes aim to provide greater financial stability and dignity to this workforce.

Key Points: New Labour Codes Expand Protections for Bidi and Cigar Workers

  • Normal working day reduced from nine to eight hours under the new OSHWC code
  • Annual leave eligibility shortened from 240 to 180 work days
  • Mandatory free annual health check-ups introduced for all employees
  • Minimum wage protections now cover all employees, not just scheduled ones
3 min read

New Labour Codes ensure security and protection for Bidi & Cigar workers

New labour codes ensure minimum wage, overtime pay, annual health checks, and reduced working hours for India's bidi and cigar workforce, formalizing the sector.

"It mandates that overtime be compensated at double the wage rate. - Government Note"

New Delhi, Dec 3

With the recent implementation of the Labour Codes, India's bidi and cigar workforce benefits from an expanded system of wage protection, social-security coverage and workplace safeguards, the government said in a note on Wednesday.

The sector, now more formalised, moves forward with a stronger regulatory foundation that brings greater stability to workers’ livelihoods across India. Under the previous Bidi and Cigar Workers (Conditions of Employment) Act, 1966, workers in the sector operated under a narrower set of protections.

A normal working day could extend up to nine hours, though weekly work hours were capped at 48 hours. Eligibility for annual leave with wages required a worker to complete 240 days of work in a calendar year, and there was also no provision for medical examinations.

These gaps have been addressed in the new occupational safety, health and working conditions (OSHWC) code, 2020, where the normal working day is uniformly fixed at eight hours while retaining the weekly limit of 48 hours.

"It mandates that overtime be compensated at double the wage rate," the note highlighted.

Under the new labour code, annual leave with wages is now available after 180 days of work in a calendar year, making leave entitlements more worker-friendly. In addition, employees are now entitled to free annual health check-ups.

The new Labour Codes bring not only improved financial stability to bidi and cigar workers but also reduce vulnerabilities and support a more dignified and stable livelihood across the sector. Under the new provisions, no employer shall pay any employee less than the minimum wage notified by the Government.

Previously, minimum wages applied only to scheduled employees, but now they cover all employees. The government shall review or revise minimum rates of wages ordinarily at intervals not exceeding five years.

The government shall fix a minimum rate of wages for time work, piece work for different wage periods, such as by hours, day or by month, taking into account the skill of the employee, and taking into account the arduousness of work.

Floor wages will be fixed by the Central government, considering the minimum living standards of an employee, including food, clothing, etc. The central government will revise the floor wage at regular intervals.

It will reduce the migration of labour from one state to another due to similar wages. Additionally, employers must pay employees at least twice the normal wage rate for any work beyond normal working hours.

Another important safeguard under the new labour code is time-bound payment of wages.

- IANS

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Reader Comments

S
Shreya B
Finally! The 1966 Act was ancient. The free annual health check-up is crucial for these workers who are exposed to tobacco dust. Hope the state governments ensure strict monitoring so that factory owners don't find loopholes.
A
Aman W
Good move on paper. But let's be honest, the challenge is always enforcement, especially in the unorganized sectors and smaller units. Will there be enough labour inspectors? Workers need to be made aware of their rights too.
P
Priyanka N
The provision for floor wages to reduce interstate migration is a thoughtful long-term measure. It should help stabilize local economies in states with high bidi production. Jai Hind!
M
Michael C
As someone who studies labor policies, this is a significant modernization. Extending minimum wage to all employees and revising it every five years is a global best practice. India is moving in the right direction with these codes.
K
Kavya N
Many women work in this sector. Easier leave eligibility (after 180 days instead of 240) and time-bound wage payment will empower them greatly. A step towards dignity for lakhs of workers. 👏

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