What is Labor Codes?
Historical Background
Key Points
10 points- 1.
Wage Code ensures minimum wages and timely payment of wages to all workers.
- 2.
Social Security Code provides for social security benefits like provident fund, gratuity, and insurance.
- 3.
Industrial Relations Code regulates trade unions, strikes, and lockouts.
- 4.
Occupational Safety, Health and Working Conditions Code ensures safe and healthy working conditions.
- 5.
The codes aim to cover both organized and unorganized sectors.
- 6.
They introduce the concept of a National Floor Wageminimum wage below which no state can fix its minimum wage.
- 7.
Increased threshold for applicability of certain provisions to reduce compliance burden on smaller establishments.
- 8.
Provision for fixed-term employment to provide flexibility to employers.
- 9.
Focus on promoting harmonious industrial relations through conciliation and arbitration.
- 10.
The codes are yet to be fully implemented by all states.
Visual Insights
Evolution of Labor Codes in India
Timeline showing the key milestones in the development and implementation of the new labor codes in India.
The new labor codes aim to consolidate and simplify existing labor laws, promote ease of doing business, and enhance social security coverage for workers. However, their implementation has faced delays and challenges.
- 2014Shram Suvidha Portal launched to simplify labor compliance.
- 2019Wage Code passed by Parliament.
- 2020Social Security Code, Industrial Relations Code, and Occupational Safety, Health and Working Conditions Code passed by Parliament.
- 2021Several states begin drafting rules under the new labor codes.
- 2024Original deadline for nationwide implementation of the Labor Codes, repeatedly extended.
- 2026Infosys reports exceptional charge due to the statutory impact of new labor codes.
Labor Codes - Key Concepts and Implications
Mind map illustrating the key concepts related to the Labor Codes and their implications for various stakeholders.
Labor Codes
- ●Wage Code
- ●Social Security Code
- ●Industrial Relations Code
- ●Occupational Safety, Health and Working Conditions Code
- ●Impact on Industry
Recent Developments
5 developmentsSeveral states have notified rules under the new labor codes.
The central government is pushing for nationwide implementation of the codes.
Concerns remain about the impact of the codes on workers' rights and social security.
Debate on the impact of the codes on ease of doing business and job creation.
The implementation timeline has been repeatedly delayed.