This article is written by Jagriti Sanghi, an Advocate practising in the Courts of Telangana. This article discusses the National Employment Policy.

Introduction

​​It is undisputed that one has to be employed in order to have a stable source of income which can help them have a minimum standard of life. Employment can be defined as a relationship between the service provider who is called an employee towards an employer that might be a corporation, organisation or an individual. The employee is to be remunerated appropriately for the service that he does.

Subsequently, unemployment is a state where one is unable to find any means of employment even after actively being in search of the same. According to the data of CMIE, the unemployment rate in India had been between 7-11 % in the year 2021. India has been afflicted with the issue of unemployment for a long time. The primary reason for this is that there are not enough opportunities equal to the workforce in India. Other reasons for this are illiteracy, lack of skilled labourers, inadequate state support, an ineffective system of education etc. It is surprising that India has only come to formulate a national employment policy in the year 2021 in spite of a desperate need for the same.

Unemployment directly or indirectly creates a negative impact on the standard of life of individuals and also on the economy as a whole. As unemployment advances, the borrowing burden on the government keeps on increasing. Also, when people are not able to make money in the right ways, they turn to wrong or illegal ways which raise the crime rate in the country. In short, it can be said to disrupt the stability of a society and its beings.

Origin of the policy

A National Employment Policy can be defined as a strategic plan to address and resolve the issue of unemployment. The origin of the National employment policy was in the year 2008 when the United Progressive Alliance regime happened. However, there was no development on the same until the year 2016 at the first meeting of the BRICS {BRICS is an acronym for Brazil, Russia, India, China, and South Africa} employment working group where the NDA government started working on it but no significant progress was made. It was then in 2021 that the government started an effort to set up a committee as part of the National Employment Policy. The committee is said to have representatives from different sectors like academics, trade unions, stakeholder ministries etc.

About the National Employment Policy

India’s first National Employment Policy aims to increase the generation of employment in the country through its twin objective of instituting an environment for the establishment of new enterprises in order to generate more employment opportunities and also improve the skills of the already existing employees. A large portion of the country’s workforce is engaged in the informal unorganised sector; the policy will also include this sector thereby providing them with job security, humane working conditions and other basic necessities unlike earlier. It further wishes to match the skill set of the workforce to international standards and also increase the percentage of females in the workforce. This was sought after the current situation of a pandemic that caused mass unemployment which depreciated the unemployment to alarming levels.

The National Employment Policy draft is expected to be presented by FY 22-23. It will take into account the number of jobs to be created across a number of sectors and will also include freelancers. The policy will be mainly based on the results of a number of employment surveys by the labour bureau and 5 other labour market surveys too. A few of the former are:

• All-India Quarterly Establishment-based Employment Survey (AQEES),
• All-India survey of migrant workers,
• All-India survey of domestic workers,
• All-India survey of employment generated by professionals,
• All-India survey of employment generated in the transport sector,

AQEES was conducted during April-June 2021 quarter and its results are out too. According to the survey, the manufacturing sector accounted for 41% of employment, the education sector was at 22%, the trade and IT sector at 17% and the health sector at 8%. By sourcing information from these surveys, the government aims to frame an evidence-based National Employment Policy.

E-shram Portal

E-shram is a portal instituted by the Ministry of Labour in the month of August to create a National Database of Unorganised Workers (NDUW). It facilitates the registration of employees aged between 16-59 years in the unorganised sector like street vendors, workers in construction, freelancers, domestic, migrant, agricultural workers and so on. The data emerging from this portal will also be taken into account while drafting the policy as it is important that the benefits of this policy reach every person for whom it is targeted. The database can also aid other ministries as well especially in securing social security and welfare benefits during the pandemic.

Why is a National Employment Policy necessary

1. Structural Change

With development, there have been structural changes in the country. It means that people who were earlier engaged in say-agriculture have now shifted to manufacturing or other employment opportunities. Structural change can be both good and bad for the economy. Firstly, it is necessary that the training and education sector keep up with the required skill sets. Secondly, it is not guaranteed that a shift can yield a good or a higher income.

2. The employment generation is not constant

Although there has been a significant increase in opportunities through the years, the generated employment is not sustainable or constant. That is exactly why instances like mass layoffs happen. Therefore, a policy that not only creates employment but also secures the same should be focused on.

3. Rigid definition of the term ‘employee’

As of now, the definition of ‘employee’ or ‘worker’ is not flexible enough to include street vendors, fishermen & gig-workers etc. When there is no regulation protecting the workmen of the unorganised sector, they become more susceptible to their rights being violated. Hence, it is significant that the new policy establishes measures to regulate the wage, working conditions and facilities of the workmen of unorganised sectors.

4. Wage inequality

The concept of wage inequality is well prevailing in India. The same qualification and similar work should attract the same incentive irrespective of whether it is a woman or a man. It is a social evil that has to be eradicated at the first instance and thereby increase the workforce of women.

5. Working poverty

This refers to a condition where one is working but they are still poor. The reasons for this can be additional expenses like rent, transportation mode, etc. It is suggested that the new policy be drafted keeping in mind the welfare of the employed but unable to thrive category of people.

6. Working days

In addition to employment, it is vital that a person have a balance between being employed and other personal commitments and moreover mental and physical health. Very recently. UAE reduced a working week from the normal 5 days to 4.5 days, Saturday and Sunday being mandatorily full holidays. It is very likely that an employer exploits the employee by making him/her work irrespective of the day. It is recommended that the drafters of the policy take the necessary steps to avoid the same.

Latest update about India’s National Employment Policy

On December 20, ‘Rojgar Sansad’ was held. It was a gathering of teachers, resident welfare associations and 30 student organisations including AISA, SFI, CYSS, AAP’s student wing etc. at Jantar Mantar, New Delhi to deliberate upon a National Employment Policy draft. Following this, the draft was handed over to the Prime Minister. The organisers also intend to give a memorandum on the same to the District Magistrate of every state. The draft also seeks to disagree with the opinion that unemployment is due to a large population by stating the example of China having allocated its human resources effectively and thereby having a larger economy. The gathering was held with an aim to push the government to resolve the issue of unemployment.

Other government initiatives to aid employment

1. Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

This is a scheme where the government provides an incentive to the employers in the form of EPS Employee Pension Scheme and EPF Employee Provident Fund for generating new employment. By doing so, there are more employment opportunities and the incentive will motivate the employers to provide the same.

2. Atal Beema Vyakti Kalyan Yojana

This scheme was introduced in 2018 for a period of 2 years but was extended considering the pandemic. It provides relief to insured persons at the instance of their unemployment. There have been 43,299 beneficiaries of this scheme since its inception.

3. Rajiv Gandhi Shramik Kalyan Yojna (RGSKY)

Under this scheme, persons who are insured for a period of 3 or more years are eligible to gain relief when they are unemployed, medical care from ESI hospitals for self as well as family and can also engage in training programmes to upgrade skills.

4. The National Rural Employment Guarantee Scheme (MNREGA)

This scheme was initiated under the National Rural Employment Guarantee Act, 2005 with an aim to provide security of livelihood to rural people and guaranteed to prove at least 100 wage working days. If one is not able to land a job after 15 days of application, he/she is eligible for an unemployment allowance by the government.

5. Aam Admi Bima Yojana

The name of this scheme translates to “Common Man’s Insurance Scheme”. The scheme provides monetary aid for death or disability. The people who are eligible for this scheme are the ones who are not on payroll like fishermen, auto drivers, etc.

6. National Career Service

This is a site ICT based portal under the Ministry of Labour and Employment that provides a platform to people for career opportunities as well as opportunities to hire people to companies and other institutions.

7. Sampoorna Rojgar Yojana

The aim of this scheme is to provide skilled and educated but unemployed youth manual jobs with a base wage with a bonus depending on performance. The jobs are meant for youth below the poverty line and in rural areas.

8. Aajeevika – National Rural Livelihoods Programme

Launched by the Ministry of rural development in 2011, this scheme targets rural poor households through self-managed Self Help Groups (SHGs) and other institutions to create a livelihood.

9. Prime Minister’s Employment Generation Programme (PMEGP)

Announced in 2008, this government PMEGP scheme aims to generate sustainable and continuous employment opportunities in rural and urban areas of India. It is a credit-linked scheme and was created by merging two other existing schemes.

Conclusion

The first-ever National Employment Policy of India can be seen as a welcome move in managing the situation of unemployment in the country. However, the policy that gained traction during the beginning of this year has not set up a committee to draft the policy yet. There had been a huge ambiguity in the security of the labourers of the unorganised sector. It is hoped that this policy will fill the gaps in the earlier definitions of ‘employee’. The Industrial Relations Code, 2020 defines the word ‘employee’ in reference to an employer-employee relationship. Many jobs in the present world cannot fit into that definition. So, it is necessary that the policy be drafted keeping in mind the newest jobs in the market. It is suggested that the government should focus on the policy itself rather than its by-product as the employment generation ratio differs from sector to sector and therefore, expecting similar outcomes for all sectors is impractical. Therefore, a sector-wise strategy or a multi-faceted approach for the implementation of the policy is suggested. Although surveys are scientific data, it is of utmost importance that the policy is drafted keeping in mind the societal needs. The liability of creating the policy on the Ministry of Labour and Employment alone seems like a burden. It would be ideal if the same can be spread across different sectors and thereby the respective ministries. The nation is awaiting the draft of the employment policy and it is hoped that it fills the voids in the earlier legislation.

References

1. https://economictimes.indiatimes.com/news/economy/policy/govt-to-soon-set-up-panel-for-national-employment-policy/articleshow/87246863.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
2. https://economictimes.indiatimes.com/news/economy/policy/govt-to-soon-set-up-panel-for-national-employment-policy/articleshow/87246863.cms
3. https://unemploymentinindia.cmie.com/
4. https://www.republicworld.com/india-news/education/30-student-organisations-others-to-deliberate-upon-draft-of-national-employment-policy-on-sunday.html
5. https://vikaspedia.in/social-welfare/social-security/employment
6. https://www.ilo.org/wcmsp5/groups/public/—ed_emp/—emp_policy/documents/publication/wcms_334913.pdf