India’s New Labour Codes: A Unified Era for Industrial Growth and Worker Welfare
India’s evolving labour law in India framework has been significantly restructured through the introduction of the four new labour codes. These reforms aim to simplify compliance, improve worker protection, and enhance ease of doing business. Commonly searched as labour codes, new labour code in India, or 4 labour codes in India, these legislations consolidate 29 central labour laws into four comprehensive codes.
Code on Wages, 2019
The new wage code standardises wage-related regulations across sectors. It subsumes laws like the Payment of Wages Act, Minimum Wages Act, Bonus Act, and Equal Remuneration Act. The key objective is to ensure fair and timely wages for all employees. It introduces a uniform definition of “wages” and mandates a national floor wage to reduce income disparity. This code plays a critical role in improving transparency and consistency in wage structures across industries.
Industrial Relations Code, 2020
The Industrial Relations Code consolidates laws relating to trade unions, industrial disputes, and employment conditions. It replaces the Trade Unions Act, Industrial Disputes Act, and Standing Orders Act. The code introduces streamlined mechanisms for dispute resolution, grievance redressal, and union recognition. It also revises thresholds for layoffs and closures, aiming to balance worker rights with industrial growth. This is a key component of the new labour codes in India focused on improving employer-employee relations.
Occupational Safety, Health and Working Conditions Code, 2020
This code merges 13 laws related to workplace safety, health, and working conditions. It ensures uniform standards across industries and strengthens employer accountability. It also emphasises welfare provisions such as working hours, hygiene, and safety measures. However, its implementation depends on rule notifications by central and state governments. The code reflects India’s intent to align workplace standards with global benchmarks.
Code on Social Security, 2020
The Code on Social Security expands coverage to include unorganised workers, gig workers, and platform workers. It integrates laws related to provident fund, insurance, gratuity, and maternity benefits. A major highlight is its focus on universal social security, ensuring income protection and healthcare access. It also introduces digitisation and inspector-cum-facilitator roles to improve compliance efficiency.
Frequently Asked Questions
The four labour codes are the Code on Wages (2019), Industrial Relations Code (2020), Occupational Safety Code (2020), and Social Security Code (2020).
They aim to simplify labour laws, improve compliance, protect workers, and promote ease of doing business.
The Code on Wages is enacted but awaits full implementation along with rules notified by governments.
It benefits organised and unorganised workers, including gig and platform workers.
To replace outdated laws with a unified framework that supports economic growth and worker welfare.
