The Unwritten Contract's Heavy Price
Across India’s vast unorganised sector, which employs over 90% of the workforce, employment is often a matter of a handshake. For an estimated 100 million seasonal migrant workers, this informality is the standard. They leave their homes for brick kilns,
construction sites, and agricultural fields based on verbal agreements with contractors or middlemen. These unwritten contracts rarely specify exact start and end dates, scope of work, or, most critically, payment schedules. This power imbalance creates a foundation for exploitation. Workers who travel hundreds of kilometres for a job may find the work delayed, the wages lower than promised, or the conditions unsafe, with no formal document to prove the original terms. The very informality that defines these arrangements leaves workers with little to no recourse when promises are broken.
A Predictable Cycle of Exploitation
The absence of clear terms fuels a cycle of vulnerability. Wage theft—the practice of underpayment, delayed payment, or non-payment of earned wages—is rampant. Workers who complete months of hard labour may find their final payments withheld under false pretences or their wages arbitrarily deducted. With no written proof of their employment, they struggle to make a claim. This financial precarity has devastating consequences. It traps workers in debt, often to the very contractors who employ them, creating conditions akin to bondage. It prevents families from planning for essential expenses like education and healthcare. Moreover, the lack of defined end dates means workers can be dismissed without notice, leaving them stranded far from home with no income and no way to return. Without a formal contract, access to social security benefits like provident fund or health insurance remains a distant dream.
The Ripples of Uncertainty
The instability of seasonal work doesn't just harm the individual worker; it has a profound impact on the wider economy. The lack of predictable income suppresses consumption and prevents families from investing in their future. It also means a significant portion of the labour force is 'invisible' to the state, limiting the tax base and making it difficult to implement effective social welfare programs. Entire rural economies that depend on remittances from migrant workers suffer when payments are unreliable. This systemic uncertainty hinders national development. A workforce that is constantly insecure and underpaid is less productive and unable to contribute to its full potential. Formalising employment isn't just about protecting workers; it's about building a more stable and resilient national economy.
Legislation Is Not Enough
India has numerous labour laws, and the recent consolidation into four Labour Codes aims to simplify and strengthen worker protections. These codes introduce provisions for fixed-term employment, expand social security, and mandate the issuance of appointment letters. However, the challenge lies in enforcement, especially in the sprawling informal sector. Laws that exist on paper are often flouted on the ground, where contractors and employers exploit gaps in implementation. For the most vulnerable seasonal migrants, who may be unaware of their rights or intimidated by the system, these legal protections often fail to materialise. The new codes recognise gig and platform workers and extend gratuity benefits to fixed-term employees after one year, but bridging the gap between legislative intent and the on-ground reality for the most marginalised workers remains the biggest hurdle.
A Simple Framework for Dignity
The solution is not more complex legislation, but the mandatory and enforceable implementation of basic terms. A simple, legally binding document—even a digital one—outlining the start date, the expected end date or project completion, the work to be performed, and the exact payment amount and schedule is a non-negotiable first step. This doesn't have to be complicated. Leveraging India's digital infrastructure, such agreements could be registered on a portal like e-Shram, creating an official record. Digital payments via UPI can provide an irrefutable trail of wages paid. Making these simple terms a mandatory prerequisite for hiring seasonal labour would shift the balance of power, giving workers the proof they need to demand their dues and hold employers accountable. It would transform seasonal work from a gamble into a dignified livelihood.
