India’s New Labour Codes 2025: A Reforms Revolution?

Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.


Context

  • The Centre has notified all four Labour Codes, replacing 29 old labour laws (1930s–1950s).
  • Codes: Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), OSHWC Code (2020).
  • Trade unions criticised them as “pro-employer”, while the government terms them progressive reforms.

Key Features of the Four Labour Codes

  • Universal Social Security & Worker Protection
    • Extends social security to gig and platform workers for the first time.
    • Provides pan-India ESIC coverage, including hazardous industries.
    • Ensures minimum wages with statutory backing and a national floor wage.
  • Rights and Safety for Women Workers
    • Allows night-shift employment with safeguards.
    • Ensures gender pay parity and a gender-neutral work policy.
    • Mandates free annual health check-ups for workers aged above 40 years.
  • Simplified Regulatory Framework
    • Introduces a single registration, licence and return system.
    • Establishes an inspector-cum-facilitator model for supportive compliance.
    • Creates a National OSH Board to harmonise safety standards.
  • Employment & Industrial Relations
    • Recognises fixed-term employment, granting benefits equal to permanent workers (leave, medical, social security).
    • Promises faster dispute resolution through two-member Industrial Tribunals.
    • Defines gig work, platform work, and aggregators in law for the first time.

Government Stand vs Trade Union Concerns

  • Government: Codes will formalise labour, improve protections, simplify compliance, and align India with global labour standards.
  • Trade Unions: Call them anti-worker, reducing collective bargaining and increasing employer flexibility.

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