Compliance
India’s New Labour Codes Explained

India has introduced a major reform in its labour laws by implementing the four new Labour Codes. These changes affect millions of workers and employers across the country and are meant to simplify rules, improve worker protection, and modernize the workplace.


Earlier, India’s labour system was governed by 29 different laws, many of which were difficult to understand and unevenly applied. The new Labour Codes bring these laws together into a simpler and more unified framework, making it easier for people to know their rights and responsibilities.


Why Were the Labour Laws Changed?


Over time, work patterns in India changed, but labour laws did not always keep pace. Many workers—especially in informal jobs—were not covered by minimum wages or social security benefits. Employers, particularly small businesses, also faced complex compliance requirements.


The new Labour Codes aim to:

  1. Make labour laws easier to understand
  2. Ensure fair wages and basic protections for all workers
  3. Extend benefits to informal, gig, and platform workers
  4. Support economic growth while protecting worker rights


The Four Labour Codes in Simple Terms


1. Code on Wages

Ensures minimum wages and timely payment of salaries for all workers.


2. Industrial Relations Code

Sets rules for workplace relations, trade unions, and dispute resolution.


3. Code on Social Security

Expands social security benefits to include unorganized, gig, and platform workers.


4. Occupational Safety, Health and Working Conditions Code

Focuses on safe workplaces, reasonable working hours, and worker welfare.


What This Means for You


These reforms are meant to make sure that no worker is left out, wages are fair, and workplaces are safer. In the next article, we will look at how these laws directly affect workers’ daily lives.


FAQ


1. What are the new Labour Codes in India?

They are four new laws that replace 29 older labour laws, making rules on wages, safety, and social security simpler and clearer.


2. Why did the government change the labour laws?

The old laws were complex and outdated. The new codes aim to protect more workers and make rules easier to follow.


3. Do the new Labour Codes apply to all workers?

Yes, they apply to workers across sectors, including informal, contract, and gig workers.


4. Are these laws already in effect?

The laws have been enacted, and their implementation depends on central and state notifications.