India Rolls Out Implementation Of New Codes To Reform Labour Laws

Labour Laws: India officially rolled out four new labour codes on Friday, designed to simplify and modernise the country’s decades-old labour regulations, marking a major step in the government’s push to create a more investment-friendly environment. According to the Ministry of Labour, the updated framework aims to ensure better wages, improved safety standards, wider social security, and enhanced welfare measures for the workforce across sectors.

The ministry emphasised that, for the first time, gig and platform work has been formally defined in the new codes, a move expected to extend welfare protections to a rapidly expanding section of India’s economy.

The statement further noted, “With expanded social security, stronger protections and nationwide portability of entitlements, the codes place workers, especially women, youth, unorganised, gig and migrant workers, firmly at the centre of labour governance.”

A Long-Pending Overhaul Of Colonial-Era Labour Laws

Prime Minister Narendra Modi’s government secured parliamentary approval for these reforms in 2020, replacing 29 fragmented labour laws, some dating back to British rule with four consolidated codes aimed at establishing uniform standards for wages, working conditions, and factory safety.

However, implementation was delayed for years due to political resistance and objections from several trade unions. Despite the push for simplification, some labour experts argue that the revised structure exempts thousands of small firms and may limit workers’ rights to strike or access certain benefits.

4 Labour codes that came into effect are-

1. Code on Wages (2019)
2. Industrial Relations Code (2020)
3. Code on Social Security (2020)
4. Occupational Safety, Health and Working Conditions Code (2020)

What Changes For Workers

The reforms introduce several new worker-centric provisions, including:

1. Mandatory appointment letters for all employees
2. Minimum wage guarantees for workers across states
3. Free annual health check-ups for workers above 40
4. Permission for women to work night shifts across all sectors

While Indian states can pass their own labour regulations, the federal codes override any conflicting provisions, bringing greater uniformity across the country.

Labour Minister Mansukh Mandaviya hailed the rollout, saying in a post on X, “These new labour reforms are an important step towards a self-reliant India and will give new momentum to the goal of a developed India by 2047.”

(With agency inputs)

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