What is New Labour Codes (Four Labour Codes)?
Historical Background
Key Points
8 points- 1.
The Code on Wages, 2019: Consolidates 4 laws, unifying provisions related to minimum wage, payment of wages, bonus, and equal remuneration. It introduces a universal minimum wage for all workers.
- 2.
The Industrial Relations Code, 2020: Replaces 3 laws, dealing with trade unions, industrial disputes, and conditions of employment. It raises the threshold for requiring government permission for layoff/retrenchment to 300 workers (from 100) and introduces a re-skilling fund.
- 3.
The Code on Social Security, 2020: Replaces 9 laws, aiming to universalize social security benefits (PF, ESI, gratuity, maternity benefit) to all workers, including gig and platform workers and contract employees.
- 4.
The Occupational Safety, Health and Working Conditions Code, 2020: Replaces 13 laws, consolidating provisions on safety, health, and working conditions for workers in various establishments. It explicitly allows women's night shifts with adequate safety provisions.
- 5.
Ease of Doing Business: Simplifies compliance by reducing the number of registers and returns, aiming to attract investment.
- 6.
Formalization of Economy: Seeks to bring more workers into the formal sector by extending social security benefits to a wider segment.
- 7.
Worker Welfare: Aims to provide a comprehensive social security net and ensure better working conditions and wages.
- 8.
Flexibility for Employers: Provides more flexibility in hiring and firing, balanced with provisions for worker protection and re-skilling.
Visual Insights
Structure & Objectives of India's New Labour Codes (2019-2020)
This mind map illustrates the four central Labour Codes, the old laws they subsume, their key provisions, and the overarching goals of this legislative reform, crucial for understanding India's modern labour framework.
New Labour Codes (2019-2020)
- ●Code on Wages, 2019
- ●Industrial Relations Code, 2020
- ●Code on Social Security, 2020
- ●OSHWC Code, 2020
- ●Overarching Goals
Recent Developments
4 developmentsEnacted between 2019-2020, but their implementation has been pending due to the need for draft rules by both central and state governments.
The current news states the central government has released draft rules for public feedback, with final rules expected by March and implementation from April 1, 2026.
Ongoing debates regarding the impact on labour rights, particularly the increased threshold for layoffs and the definition of 'worker'.
Focus on extending social security to the unorganized sector and gig workers, which is a significant reform.