[India] Four new labour codes come into force

Four new labour codes are now in force in India, replacing 29 labour laws in a landmark reform that expands workers’ rights and social security while simplifying rules to help the struggling manufacturing sector, The Tribune reports.

On November 21, the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health, and Working Conditions Code, 2020, all came into force, advancing India's aim to create a future-ready workforce.

Mandatory appointment letters for workers across sectors, guaranteed minimum wage, social security for all, including gig and platform workers, compulsory wage payments, and the opening up of night shifts to women in all industries are key elements of the new codes.

The most significant reform reportedly relates to working hours and comes as the debate over the standard workweek length continues. Infosys founder NR Narayana Murthy recently advocated a 70-hour workweek to boost development. 

The new codes cap normal working hours at 8 hours a day and 48 hours a week, and mandate overtime only where workers have consented and pay is twice the regular rate.

Twenty states had previously rolled out the codes after their 2020 passage by Parliament. But the government reportedly stalled implementation amid stiff opposition from labour unions and the Opposition. The codes require employers to ensure annual health check-ups for workers aged 40 and above.

A government official said, “Social protection coverage will be expanded to all workers. ESIC coverage was limited to specific industries. Establishments with fewer than 10 employees were generally excluded, and hazardous-process units did not have uniform and mandatory ESIC coverage.” 

Prime Minister Narendra Modi said, “Shramev Jayate! Today, our government has given effect to the four labour codes. This is one of the most comprehensive and progressive labour-oriented reforms since Independence. It greatly empowers our workers. It also significantly simplifies compliance and promotes ease of doing business.”

Labour Minister Mansukh Mandaviya reportedly stated that the codes would guarantee dignity for every worker. The minister said they would ensure timely minimum wages for all workers, appointment letters, equal pay for equal work, social security for 40 crore workers and gratuity for fixed-term employees after one year of employment.

Other highlights of the codes include double wages for overtime, 100 per cent health security for workers in hazardous sectors and social justice for workers as per international standards, which Unicef has reportedly welcomed.

Another key reform is the first-ever legal definition of gig and platform workers, recognising their contribution by extending social protection to them. As of 2024-25, India has 12 million gig workers, and NITI Aayog projects the number to rise to 23.5 million by 2029-30.

Now that the codes are in effect, the government will begin consultations before framing the detailed rules.

Source: The Tribune

(Quotes via original reporting)

Four new labour codes are now in force in India, replacing 29 labour laws in a landmark reform that expands workers’ rights and social security while simplifying rules to help the struggling manufacturing sector, The Tribune reports.

On November 21, the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health, and Working Conditions Code, 2020, all came into force, advancing India's aim to create a future-ready workforce.

Mandatory appointment letters for workers across sectors, guaranteed minimum wage, social security for all, including gig and platform workers, compulsory wage payments, and the opening up of night shifts to women in all industries are key elements of the new codes.

The most significant reform reportedly relates to working hours and comes as the debate over the standard workweek length continues. Infosys founder NR Narayana Murthy recently advocated a 70-hour workweek to boost development. 

The new codes cap normal working hours at 8 hours a day and 48 hours a week, and mandate overtime only where workers have consented and pay is twice the regular rate.

Twenty states had previously rolled out the codes after their 2020 passage by Parliament. But the government reportedly stalled implementation amid stiff opposition from labour unions and the Opposition. The codes require employers to ensure annual health check-ups for workers aged 40 and above.

A government official said, “Social protection coverage will be expanded to all workers. ESIC coverage was limited to specific industries. Establishments with fewer than 10 employees were generally excluded, and hazardous-process units did not have uniform and mandatory ESIC coverage.” 

Prime Minister Narendra Modi said, “Shramev Jayate! Today, our government has given effect to the four labour codes. This is one of the most comprehensive and progressive labour-oriented reforms since Independence. It greatly empowers our workers. It also significantly simplifies compliance and promotes ease of doing business.”

Labour Minister Mansukh Mandaviya reportedly stated that the codes would guarantee dignity for every worker. The minister said they would ensure timely minimum wages for all workers, appointment letters, equal pay for equal work, social security for 40 crore workers and gratuity for fixed-term employees after one year of employment.

Other highlights of the codes include double wages for overtime, 100 per cent health security for workers in hazardous sectors and social justice for workers as per international standards, which Unicef has reportedly welcomed.

Another key reform is the first-ever legal definition of gig and platform workers, recognising their contribution by extending social protection to them. As of 2024-25, India has 12 million gig workers, and NITI Aayog projects the number to rise to 23.5 million by 2029-30.

Now that the codes are in effect, the government will begin consultations before framing the detailed rules.

Source: The Tribune

(Quotes via original reporting)