Skip to main content

Whither protection? 88% Gujarat employees without job contract, 67% sans paid leave

By Rajiv Shah 
Amidst apprehensions that the Government of India’s new labour codes, tabled in Parliament recently, are driven by the interests of the industry in order to “alter” the labour protection landscape in India “beyond repair and reclaim”, facts have come to light suggesting that “model” Gujarat has been one of the worst states in the country as far as providing any form of protection to its workers is concerned.
Published by the Ministry of Statistics and Programme Implementation, Government of India, a recent report, “Annual Report: Periodic Labour Force Survey (PLFS)”, has found that 87.7% of Gujarat wage or salaried employees in the non-agricultural sector work “without job contract”, which is the second highest among 21 major states, next to Karnataka (94.2%).
Based on a survey carried out across India between July 2017and June 2018, the report has also found that Gujarat’s 66.8% workers in the same category are “not eligible for paid leave”, which is again the second highest in India, next only to Rajasthan (68.4%), and the state’s 55.9% workers do not get “any social security benefit”, which is fifth worst following Andhra Pradesh (62.7%), Rajasthan (61.1%), Punjab (60.8%) and West Bengal (59.2%).
Combining all the three ingredients, the survey has further found that as for “workers not eligible for paid leave, without written job contract and without any social security benefit”, Gujarat is the fourth worst (47.3%), following Rajasthan (54.3%), Punjab (52.2%) and Andhra Pradesh (51.9%). The national average is 38%. 
The inter-state comparative figures come amidst Gujarat government claims that it has been following the International Labour Organization (ILO) guidelines in order to “protect” workers from exploitation, one reason why it has refused to accept the exit policy, allowing industry to retrench workers at will, as suggested by the Government of India.
Through a labour law amendment, the home state of Prime Minister Narendra Modi has not only given powers to the government to prohibit strikes in public utility services – where increasing number of persons are being appointed on contract – it has scaled down the period a worker could fight a case against the industry.
Under the amended law, an industrial worker now gets only a year to make an application against his dismissal, discharge, etc., raising an "industrial dispute" to the labour court or tribunal, as against the earlier window of three years. Further, the state has allowed industrial units in special economic zones (SEZs) to lay off workers without government’s sanction, which is seen as a precursor of things to come in Gujarat.
The failure to provide workers’ protection in Gujarat, significantly, is coupled with the same Government of India report pointing out that the per month average wages or salary earnings for regular employees in Gujarat during April-June 2018 was Rs 14,528.24, which is lower than all major 21 states with the sole exception of West Bengal (Rs 11,978.99).
The all-India average for lack of protection to its workers is, no doubt, poor, but not as bad as the one finds in Gujarat. Thus, as against Gujarat’s 87.7%, the report says, in India, among regular wage/salaried employees in the non-agriculture sector, 71.1 per cent do no have a written job contract.
Further, as against Gujarat’s 66.8%, the report states, 54.2% in workers in the same category across India are found to be not eligible for paid leave. And, as against Gujarat’s 55.9%, in India, 49.6% workers are found to be not eligible for any social security benefit.
The authoritative survey, even as seeking to ascertain the duration of the written contract or agreement with the employer, including the date of termination, if any, in all Indian states, says, “However, if no written contract existed, then irrespective of the duration of employment, it was considered as no written job contract.”
For the ascertaining whether employees were eligible to get paid leave, the report takes into account paid leave “during sickness, maternity, or such leave, as an employee was eligible to take without loss of pay, as per the conditions of employment.”
And as for ascertaining whether employees are covered under any of the specified social security benefits or a combination of them arranged by the employer, the survey seeks details of whether contribution has been made by the employer towards provident fund, pension, gratuity, health care, maternity benefits.
It states, “Those who were not covered under any of the above social security schemes were considered as not eligible for any social security benefits.”

Comments

Anonymous said…
What is important a growth with wealth or a standstill where no generation of wealth and employment and people live a life of poor. Entrepreneurs restrict the number of workers within limit so that they remain out of the net of the labour laws and improve efficiency of the unit by keeping industrious force and become competitive. Ultimately he is taking all the risk of the business and if workers with the legal protection come as extra burden he will die. Many such units closed down and there is demand to relax the labour laws to ease the business environment. Rajasthan goverment amended their labour laws and the results are encouraging. The units life extended and more wealth and more employments generated. Most important is the sustainable of the industry. It it dies, who will employ?
Uma said…
Why is Gujarat used as standard? Many other states are doing, or trying to do, better

TRENDING

NYT: RSS 'infiltrates' institutions, 'drives' religious divide under Modi's leadership

By Jag Jivan   A comprehensive New York Times investigation published on December 26, 2025, chronicles the rise of the Rashtriya Swayamsevak Sangh (RSS) — characterized as a far-right Hindu nationalist organization — from a shadowy group founded in 1925 to the world's largest right-wing force, marking its centenary in 2025 with unprecedented influence and mainstream acceptance. Prime Minister Narendra Modi , who joined the RSS as a young boy and later became a full-time campaigner before being deputized to its political wing in the 1980s, delivered his strongest public tribute to the group in his August 2025 Independence Day address. Speaking from the Red Fort , he called the RSS a "giant river" with dozens of streams touching every aspect of Indian life, praising its "service, dedication, organization, and unmatched discipline." The report describes how the RSS has deeply infiltrated India's institutions — government, courts, police, media, and academia — ...

Why experts say replacing MGNREGA could undo two decades of rural empowerment

By A Representative   A group of scientists, academics, civil society organisations and field practitioners from India and abroad has issued an open letter urging the Union government to reconsider the repeal of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and to withdraw the newly enacted Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025. The letter, dated December 27, 2025, comes days after the VB–G RAM G Bill was introduced in the Lok Sabha on December 16 and subsequently approved by both Houses of Parliament, formally replacing the two-decade-old employment guarantee law.

Domestic vote-bank politics 'behind official solidarity' with Bangladeshi Hindus

By Sandeep Pandey, Faisal Khan  The Indian government has registered a protest with Bangladesh over the mob lynching of two Hindus—Deepu Chandra Das in Mymensingh and Amrit Mandal in Rajbari. In its communication, the government cited a report by the Association of Hindus, Buddhists and Christian Unity Council, which claims that more than 2,900 incidents of killings, arson, and land encroachments targeting minorities have taken place since the interim government assumed power in Bangladesh. 

Investment in rule of law a corporate imperative, not charity: Business, civil society leaders

By A Representative   In a compelling town hall discussion hosted at L.J School of Law , prominent voices from industry and civil society underscored that corporate investment in strengthening the rule of law is not an act of charity but a critical business strategy for building a safer, stronger, and developed India by 2047. The dialogue, part of the Unmute podcast series, examined the intrinsic link between ethical business conduct , robust legal frameworks, and sustainable national development, against the sobering backdrop of India ranking 79th out of 142 countries on the global Rule of Law Index .

ArcelorMittal faces global scrutiny for retreat from green steel, job cuts, and environmental violations

By  Jag Jivan    ArcelorMittal is facing mounting criticism after cancelling or delaying nearly all of its major green steel projects across Europe, citing an “unsupportive policy environment” from the European Union . The company has shelved projects in Germany , Belgium , and France , while leaving the future of its Spanish decarbonisation plan uncertain. The decision comes as global unions warn that more than 5,500 jobs are at risk across its operations, including 4,000 in South Africa , 1,400 in Europe, and 160 in Canada .

From colonial mercantilism to Hindutva: New book on the making of power in Gujarat

By Rajiv Shah  Professor Ghanshyam Shah ’s latest book, “ Caste-Class Hegemony and State Power: A Study of Gujarat Politics ”, published by Routledge , is penned by one of Gujarat ’s most respected chroniclers, drawing on decades of fieldwork in the state. It seeks to dissect how caste and class factors overlap to perpetuate the hegemony of upper strata in an ostensibly democratic polity. The book probes the dominance of two main political parties in Gujarat—the Indian National Congress and the BJP—arguing that both have sustained capitalist growth while reinforcing Brahmanic hierarchies.

2025 was not just a bad year—it was a moral failure, it normalised crisis

By Atanu Roy*  The clock has struck midnight. 2025 has passed, and 2026 has arrived. Firecrackers were already bursting in celebration. If this is merely a ritual, like Deepavali, there is little to comment on. Otherwise, I find 2025 to have been a dismal year, weighed down by relentless odds—perhaps the worst year I have personally witnessed.

Gig workers’ strike halts platforms, union submits demands to Labour Ministry

By A Representative   India’s gig economy witnessed an partial disruption on December 31, 2025, as a large number of delivery workers, app-based service providers, and freelancers across the country participated in a nationwide strike called by the Gig & Platform Service Workers Union (GIPSWU). The strike, which followed days of coordinated protests, shut down major platforms including Zomato , Swiggy , Blinkit , Zepto , Flipkart , and BigBasket in several areas.

Can global labour demand absorb India’s growing workforce?

By N.S. Venkataraman*  Over the past eleven years, India has claimed significant economic growth , emerging as the world’s fourth-largest economy. With the Government of India continuing to pursue economic and industrial development initiatives, this growth momentum is expected to continue in the medium term.