The New Labour Codes in India comprise four consolidated laws that unify 29 existing labour laws into a single, streamlined framework.

The Second National Commission on Labour stressed the importance of industrial relations in the country’s economic development. They recommended significant changes to labour laws governing employer-worker-government relationships.

To streamline these relations and balance employer and worker interests, the Central Government is consolidating 29 out of 44 labour-related statutes into four new labour codes in India.

These codes modernize labour regulations, promote job growth, and safeguard workers’ rights. They have been approved by both Houses of Parliament and received Presidential Assent.

Code on Wages: This code amalgamates four previous acts related to wage and bonus payments. It aims to standardize wage definitions and payment processes across industries, ensuring minimum wages and timely wage revisions for workers.

Code on Industrial Relations: This code combines three acts related to industrial relations, trade unions, and dispute resolution. It introduces provisions for a single registration process for trade unions, simplifying the negotiation and resolution of industrial disputes.

Code on Social Security: This code unifies nine existing laws related to social security benefits for workers. It extends social security coverage to a broader range of employees, including gig workers and platform workers, and establishes a National Social Security Board to oversee the implementation.

Code on Occupational Safety, Health, and Working Conditions: This code consolidates and modernizes labour laws relating to workplace safety, health, and working conditions. It introduces provisions for fixed-term employment contracts, universal coverage of safety and health provisions, and enhanced penalties for non-compliance.

The introduction of these codes aims to create a more business-friendly environment by simplifying labour regulations and reducing compliance burdens on employers. Simultaneously, they seek to provide workers with enhanced protection, particularly in terms of wage security, social security benefits, and improved working conditions.

However, the new labour codes have also faced criticism from trade unions and labour activists. Some argue that they dilute workers’ rights, make it easier for employers to hire and fire workers, and weaken collective bargaining. Balancing the interests of employers and workers will be a key challenge in the effective implementation of these labour reforms in India.