Implementation of New Labour Codes

The Indian government has implemented four new labour codes aimed at simplifying and streamlining decades-old labour laws. These codes replace 29 existing laws, with the goal of enhancing workforce welfare and simplifying business compliance.

New Labour Codes Introduced

• Wages Code (2019)
• Industrial Relations Code (2020)
• Social Security Code (2020)
• Occupational Safety, Health and Working Conditions Code (2020)

These codes aim to provide universal social security and statutory minimum wages while promoting investment.

Key Features and Impacts

• Ensures better wages, safety, and welfare for workers.
• Defines gig and platform work for the first time.
• Allows for longer factory shifts and night work for women.
• Increases layoff approval threshold from 100 to 300 workers for enhanced flexibility.
• Guarantees appointment letters and equal pay for equal work.
• Provides gratuity for fixed-term employees after one year.
• Offers free annual health checks for workers over 40 years old.

Implementation and Reception

• The codes will be supported by new rules and schemes to be notified within 45 days.
• Existing labour provisions will continue during the transition.
• Almost all states, except West Bengal, have published draft rules for these codes.
• Labour, being on the concurrent list, allows both states and the Centre to legislate.

India Inc and industry leaders welcomed these reforms for aligning with global standards, easing compliance, and boosting productivity and competitiveness.