Relevance: GS-2 (Governance, Labour Reforms) | Source: Ministry of Labour and Employment; The Hindu
The Government of India has notified the enforcement of all four Labour Codes—the Code on Wages (2019), Industrial Relations Code (2020), Social Security Code (2020), and Occupational Safety, Health and Working Conditions Code (2020)—from 21 November 2025.
Together, they replace 29 Central labour laws, creating a unified framework for wages, social security, industrial relations, and workplace safety.
1. What Do the Four Labour Codes Provide?
Labour Code | Major Provisions |
| Code on Wages, 2019 | Universal floor wage, gender-neutral pay, timely wage payment, uniform definitions of “wage”. |
| Industrial Relations Code, 2020 | Single registration/licensing, streamlined dispute settlement, norms for strikes and layoffs, time-bound industrial tribunals. |
| Social Security Code, 2020 | Expanded coverage under the Employees’ State Insurance Corporation (ESIC) and Employees’ Provident Fund Organisation (EPFO); social security for gig workers and platform workers; portability of benefits; maternity and disability support. |
| Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020 | Uniform safety norms, annual health check-up for workers aged 40+, flexibility for women to work night shifts with safeguards, modernised norms for mines, ports, information technology/ information technology–enabled service sectors, plantations, and textiles. |
2. Pre vs Post Implementation: Key Regulatory Shifts
Aspect | Before (29 Laws) | After (4 Labour Codes) |
| Compliance burden | Multiple registrations, overlapping inspections | Single registration and single license, digital compliance |
| Wages | Different minimum wages across laws | Universal minimum wage + national floor wage |
| Social security | Informal workers largely excluded | Inclusion of gig workers, platform workers, migrant workers, and unorganised sector workers |
| Worker safety | Fragmented rules | Uniform Occupational Safety and Health (OSH) standards, free annual check-up for 40+ |
| Dispute resolution | Lengthy and multi-layered | Conciliation + time-bound industrial tribunals |
| Women’s work | Restrictions in night shifts | Night work allowed with safety conditions |
| Inspections | Inspector-driven, punitive approach | Inspector-cum-Facilitator, technology-enabled inspections |
| Fixed-term employment | Gratuity unavailable | Gratuity after one year for fixed-term employees |
3. Additional Important Highlights
- Nationwide Employees’ State Insurance Corporation (ESIC) coverage, including establishments with even one hazardous-process worker.
- Double wages for overtime work.
- Mandatory appointment letters, promoting formalisation.
- Stronger protections for workers in mines, dock work, construction, plantations, and micro–small–medium enterprises (MSMEs).
- Annual health check-ups improve preventive occupational care.
4. Challenges & The Way Forward
Challenges | Way Forward |
| Uneven readiness among States (labour is in the Concurrent List) | Build State capacity for digital compliance and ensure uniform notification of rules |
| Low awareness among employers and workers | National awareness campaigns, training modules, simplified guides |
| Incomplete database of gig workers and platform workers | Create an integrated, real-time worker registry for social security delivery |
| Possibility of misuse of flexibility | Reinforce labour inspection systems, digital audits, accountability measures |
| Weak tripartite dialogue | Strengthen consultations among government, employers, and workers as per International Labour Organization (ILO) standards |
| Safety concerns in high-risk sectors | Continuous monitoring and sector-specific safety protocols |
5. Why the Labour Codes Matter
- Simplify India’s labour law landscape.
- Expand social protection to gig workers, platform workers, migrant workers, and unorganised workers.
- Promote formalisation in a labour force where nearly 90% is informal.
- Improve ease of doing business through unified compliance.
- Align India with International Labour Organization (ILO) norms and Sustainable Development Goal 8 (Decent Work and Economic Growth).
One-Line Wrap
The Labour Codes modernise India’s labour governance by consolidating 29 laws into four balanced frameworks focused on workers’ welfare, safety, and business efficiency.
UPSC Mains Question
Examine the significance of India’s Four Labour Codes in balancing labour welfare with industrial flexibility. What challenges may hinder their effective implementation?
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