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Why in News?
- The Central government has officially notified all four Labour Codes, bringing major changes to India’s labour laws.
- These Codes replace 29 older labour laws and aim to simplify, modernise, and widen worker protection across the country.
FOUR LABOUR CODES
- Code on Wages, 2019
- What it Merges
- Minimum Wages Act, 1948
- Payment of Wages Act, 1936
- Payment of Bonus Act, 1965
- Equal Remuneration Act, 1976
- Key Provisions
- Universal minimum wage concept → floor wage set by the Central Government for all workers.
- States cannot set wages below the national floor wage.
- Ensures timely payment of wages to all employees.
- Provides gender equality in wages (same work → same pay).
- Bonus calculation rationalised.
- What it Merges
- Industrial Relations Code, 2020
- What it Merges
- Trade Unions Act, 1926
- Industrial Employment (Standing Orders) Act, 1946
- Industrial Disputes Act, 1947
- Key Provisions
- Single registration for trade unions; recognition of “negotiating union”.
- Stricter provisions for strikes: 14-day notice mandatory.
- Retrenchment threshold raised: Firms with up to 300 workers can hire/fire without govt approval.
- Promotes fixed-term employment.
- Establishes Industrial Tribunals for faster resolution.
- What it Merges
- Occupational Safety, Health and Working Conditions (OSH) Code, 2020
- What it Merges
- 13 labour laws related to safety, health & working conditions
- Factories Act, Contract Labour Act, Mines Act, Inter-State Migrant Workmen Act etc.
- Key Provisions
- Applies to all establishments with 10+ workers, mines, docks, and plantations.
- Mandatory health, safety and working-condition standards.
- Free annual health check-ups for workers.
- Mock drills, safety committees in hazardous industries.
- Database for inter-state migrant workers; benefits like journey allowance.
- Better housing conditions for workers in mines, plantations, and construction.
- What it Merges
- Code on Social Security, 2020
- What it Merges
- 9 laws including EPF Act, ESI Act, Maternity Benefit Act, Unorganized Workers’ Social Security Act.
- Key Provisions
- Expands social security to gig workers, platform workers, and the unorganised sector.
- Universal social security architecture → EPF, ESI, pension, maternity, disability benefit.
- Creation of a National Social Security Board for informal workers.
- Aggregators (food delivery apps, ride-hailing apps) must contribute to gig worker fund.
- Facilitates portability of benefits across states.
- What it Merges
Why Labour Codes Matter
- Advantages
- Simplifies compliance → improves ease of doing business.
- Enhances labour rights: wage security, safety, social protection.
- Supports labour formalisation.
- Helps integrate gig and platform workers into welfare systems.
- Creates a unified, digital, national labour database.
- Concerns
- Fear of hire-and-fire due to raised retrenchment threshold.
- Rules vary across states → may delay uniform implementation.
- Gig worker coverage still depends on state-level rules.
- Trade unions worry about restrictions on the right to strike.
Way forward
- Ensure uniform implementation of the Labour Codes by completing state-level rules and creating a clear national roadmap.
- Balance flexibility with worker protection by safeguarding fair wages, job security, and safety standards.
- Expand social security for gig workers, informal workers, and migrants through a strong, portable digital welfare system.
- Strengthen enforcement with digital inspections, better-trained officers, and transparent grievance redressal.
- Increase awareness and dialogue among workers, employers, and states to ensure smooth, conflict-free implementation.
