“We built airports for billionaires but no footpath for a TB patient with a shovel.”
I have come from 200 Kms three times and still my social security claims are pending- The common grievance of labourers across labour offices. In Jaisalmer, Rajasthan, a silicosis-widow will travel more than 260 km to Jodhpur just to prove her dead husband is dead. In Bihar, a gig worker hit by a tempo may be asked to appear in person—300 km away—for a claim form he can’t even download. These are not exceptions. They are policy outcomes. And behind every such tragedy lies a brutal truth: India’s labour system is not broken—but a break.
For decades, India’s Ministry of Labour & Employment and its state counterparts have governed a the same system in similar fashion until 2014 the year when reforms started : offices without buildings, benefits without windows, and rights without roads. And now, the country is preparing to implement a new set of labour codes in 2025—without first fixing the most glaring omission: real, functioning, district-level infrastructure.
Ministry, Machinery, Mercy
India has over 50 crore workers, yet labour offices exist only in capital cities. The Ministry of Labour & Employment, despite overseeing ESIC, EPFO, and e‑Shram, operates more like a spectator than a service provider. The state labour departments are worse: often underfunded, understaffed, and physically missing from most districts.
- Rajasthan—8 ESIC hospitals for tens of lakhs of people, mostly around Jaipur and Jodhpur—yet 80 % of beneficiaries live in rural areas (ESIC Annual Report, 2023).
The consequences? Every single benefit—be it EPFO pension, ESIC medical claim, or silicosis compensation—becomes a Himalayan pilgrimage. A daily-wage labourer must choose between a day’s wages and a day in line. When digital systems crash (as for EPFO happened many times), there is no backup. Just suffering.
Labour Embassies in Every District
Before a single clause of the new labour codes is enforced, India must create District Labour Fortresses—integrated hubs where workers can access all labour-related services under one roof, in their own town, in their own language.
What Every District Needs:
- Permanent Labour Office: Full-fledged district office with state & central labour officers.
- ESIC Hospital + Trauma Centre: ≥100 beds, specialists in silicosis, TB, chemical poisoning.
- EPFO & Claims Hub: District level processing of pensions, accident & maternity benefits, vernacular e‑kiosks.
- Compliance & Justice Section: Fast-track benches, union registration desks, field inspectors who visit worksites better with less distance to cover.
- Skill & Job Matching Unit: Certification of informal skills (masonry, weaving, welding) and direct pipelines to local employers.
No More Excuses
The Comptroller & Auditor General (CAG) found ₹82,000 crore idle in ESIC coffers in 2023. Redirect half of it, and district infrastructure can be built today. Labour cess collections—from 1 %–4 % on construction—remain unspent in state treasuries like Madhya Pradesh.
Repurpose existing assets: Convert defunct govt offices, buildings and land into Labour Fortresses. No new committees—just action.
Modi Initiatives (2014–2025)
Since 2014, the Union Ministry has launched schemes and digital platforms aimed at worker welfare—but without matching physical infrastructure, they’ve too often remained inadequate:
- e‑Shram Portal (Aug 2021): Over 35 crore registrations of unorganized workers—yet only few schemes integrated, forcing many to still travel far for claims.
- Pradhan Mantri Shram Yogi MaanDhan (Sept 2019): Voluntary pension for unorganized workers; more than crore subscribers, but offices to service them exist in only some of 741 districts.
- Atal Bimit Vyakti Kalyan Yojana (July 2018): Unemployment insurance for EPFO members; heavy signup but benefits accessed via EPFO offices, absent in many district hubs.
- ESIC Online & e‑Claim Systems (2016–2022): Digitization of ESIC processes; system outages and lack of local helpdesks mean illiterate or rural workers still trek to metros and giving share of their dignity and social security share to those who know the system.
- Skill India & NCS (2015–present): National Career Service portal and Pradhan Mantri Kaushal Vikas Yojana have certified 1 crore workers—but placement linkages in districts remain weak.
- Labour Code Legislation (2020–22): Four Codes passed by Parliament; none can be effectively implemented without district-level offices and courts.
- The Coordination efforts– through schemes like Nidhi Apke Nikat, EPFO and ESIC were together brough together and then there were whispers to merge them which would have been a great step in it self but silenced by great noise of so called elites, leading labourers.
These initiatives show intent on paper—but without brick-and-mortar support in every district, they are digital illusions.
Global Models Show the Way
- Brazil’s Postos de Atendimento ao Trabalhador: Municipal “labour embassies” handling pensions, medical exams, legal aid—leading to 89 % formalization in São Paulo (World Bank 2023).
- Vietnam’s Dignity Districts: Co‑located labour, health & finance services, cutting travel time by 94 % (ILO Vietnam 2022).
- Colombia’s Single‑Window Hubs: District-level convergence slashed claim delays from 18 months to 22 days (ILO Colombia 2024).
The Invisible Skeleton
State departments are inefficient—less offices, less facilitators, less digital and physical connectivity in many districts. In Rajasthan, the Inspector‑cum‑Facilitator scheme collapsed for lack of both inspectors and office space; in Jharkhand, many officials operate from panchayat huts.
State Reforms Must Include:
- Rotation: Deploy 30 % of central officers to districts for 3-year tenures and new recruitment for the upcoming need.
- Digital Convergence: Merge e‑Shram, EPFO, ESIC & state welfare into a district‑auto‑disbursal portal, Aadhaar‑linked and DBT based.
- Penalty for Delay: Statutory compensation for any benefit delayed over 30 days.
Foundation to Labour Law reforms
The 2025 Labour Codes will doubtfully work unless the groundwork is laid first. UPI without smartphones is easier than implementing gig‑worker accident benefits without a local claims desk. Digital platforms crash; paper files get lost; workers bleed.
Real reform means ensuring no woman walks 260 km to prove her husband is dead, and no labourer skips TB treatment for lack of an ESIC dispensary. It means labour embassies in every district—where the Ministry finally shows up.
India doesn’t need more codes—it needs District Labour Dignity Centres. Only then can laws protect workers instead of punishing them.
