Introduction

India’s labour laws have historically been complex, scattered and difficult to follow. For decades, employers and workers had to navigate more than forty central labour laws and many state laws. This created confusion, compliance burdens and inconsistent protection for workers. To solve these issues, the Government of India introduced four major labour codes between 2019 and 2020. These codes aim to simplify and modernize labour regulation. They merge many older laws into four unified codes. They also attempt to protect workers’ rights while encouraging economic growth, investment and industrial harmony. Together, they form one of the most significant labour reforms in India.

What Is the Code on Wages, 2019 and How Can It Change Wage Regulation?

The Code on Wages, 2019 brings all major wage-related laws under one umbrella. Earlier, different laws applied to payment of wages, minimum wages, bonuses and equal pay for men and women. Now, these four areas are combined in a single law. The Code ensures that all workers, both in organised and unorganised sectors, have a legal right to minimum wages. This is a major shift because earlier the Minimum Wages Act applied only to scheduled employments. The new Code removes that limitation.

The Code also introduces the concept of floor wages, which the central government will fix after consulting states. States must set their minimum wages above this floor wage. This mechanism tries to reduce large wage differences between states. It also protects workers in poorer states from extremely low wages. Wages cannot legally fall below the minimum wage set by the authorities.

The Code promotes fairness by requiring that wages be revised every five years. This ensures that inflation and changing living standards are reflected in income levels. The Code also keeps provisions for equal remuneration. It prohibits discrimination between male and female workers who perform similar work. By combining laws, the Code seeks to reduce disputes, increase clarity, improve transparency in wage payments and support better living standards for workers.

What Major Changes Does the Industrial Relations Code, 2020 Introduce?

The Industrial Relations Code, 2020 reshapes the legal framework related to trade unions, conditions of employment and industrial disputes. It brings together laws on trade unions, standing orders and industrial disputes into one code. This makes the system more predictable and easier to understand for employers and workers. It also introduces the concept of worker eligibility based on wages, with the Code applying to employees earning up to a fixed limit, currently around eighteen thousand rupees.

A major change in this Code is the introduction of fixed-term employment. Under this system, employers can hire workers for a specific duration. These workers must receive the same wages and social security benefits as permanent employees doing similar work. However, they may be terminated when their contract ends without retrenchment compensation. The goal is to allow industries seasonal flexibility while protecting basic worker rights.

The Code also increases the threshold for layoffs, retrenchment and closure. Earlier, establishments with more than one hundred workers needed government permission for these actions. The new threshold is three hundred workers. Supporters argue this will encourage investment and job creation by reducing administrative delays. Critics fear it may increase job insecurity.

The Code requires a fourteen-day notice period before any strike or lockout in essential and non-essential industries. This aims to foster dialogue and prevent sudden disruptions. Another change is the reduction of the time limit for filing industrial disputes from three years to two years. The Code seeks to promote industrial peace through more efficient dispute resolution and clearer rules.

How Does the Code on Social Security, 2020 Expand Social Protection?

The Code on Social Security, 2020 attempts to create a universal social security system for India. It merges nine earlier laws on provident funds, employees’ insurance, maternity benefits, gratuity and other forms of social protection. One of its most important contributions is that it extends social security to workers who were earlier uncovered, especially unorganised workers, gig workers and platform workers.

The Code provides for schemes covering life insurance, disability insurance, health benefits, maternity benefits and provident funds. It also proposes schemes for gig and platform workers who work for digital platforms such as ride-hailing services and delivery apps. These workers often face uncertain incomes and lack formal protection. By recognizing them legally, the Code aims to extend at least some benefits through joint contributions from governments and aggregators.

The Code establishes a National Social Security Board. This Board will recommend and monitor schemes for unorganised and gig workers. The Code also attempts to simplify registration by introducing a single electronic system. Workers can register themselves using basic identification documents. This reduces dependency on employers for documentation and increases access.

The Code’s goal is to build a safety net that supports workers throughout their employment journey. It tries to ensure that workers have financial protection during sickness, pregnancy, disability or old age. If implemented effectively, it could create one of the largest social security systems in the world.

What Protections Does the Occupational Safety, Health and Working Conditions Code, 2020 Provide?

The Occupational Safety, Health and Working Conditions (OSH) Code, 2020 focuses on ensuring safe and healthy work environments. It merges many existing laws on factories, mines, contract labour, migrant workers and working conditions. By bringing these together, the Code aims to modernize safety standards and reduce workplace risks.

The Code expands the definitions of workers and establishments. It covers contractor employees and migrant workers with monthly wages up to eighteen thousand rupees. This ensures that a larger number of vulnerable workers are included. The Code sets the maximum daily working hours at eight. It also requires employers to provide free annual health check-ups for all employees. This helps in early detection of occupational diseases.

The OSH Code creates a single National Occupational Safety and Health Advisory Board. This Board will include representatives from the government, workers and employers. It will frame national policies and standards for workplace safety. The Code requires factories to prepare on-site emergency plans and disaster management measures. This is especially important for industries dealing with hazardous materials.

The Code also sets standards for accommodation, sanitation, welfare facilities and working conditions for migrant workers. It introduces registration systems that make it easier to track and protect these workers. By promoting safety and health, the Code aims to reduce accidents, improve productivity and foster a culture of prevention.

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Conclusion

The four labour codes are designed to function as a unified framework. Each Code focuses on a specific aspect of labour regulation, but together they aim to create balance between worker protection and industrial flexibility. Wage standards, social security, worker safety and industrial relations are interconnected areas. By simplifying laws and harmonizing definitions, the Codes make compliance easier for businesses operating in multiple states.

For workers, the Codes seek to improve wages, expand safety nets, protect health and promote fair treatment. For employers, they aim to reduce litigation, eliminate overlapping rules and increase operational ease. The government expects that these reforms will boost investment, create jobs and support economic modernization.

However, the success of these Codes will depend on strong implementation, effective coordination with states and clear communication with workers and employers. If implemented well, the four labour codes can shape a labour system that is fairer, more transparent and more supportive of India’s economic ambitions.