India has finally cleaned up its messy, outdated labour system. For years, workers and employers had to deal with 29 different laws that often overlapped, contradicted each other, and slowed everything down. Most of these rules were written decades ago and didn’t match today’s workplaces at all. The new Labour Codes bring all of this into one clear, modern framework. They aim to make life simpler for businesses, fairer for workers, and more transparent overall. It’s a shift from scattered old laws to a unified system built for a growing, mobile workforce.
1. Wage Code
Earlier:
The wage framework was fragmented across four separate laws. Minimum wages applied only to select scheduled employments, leaving nearly 40 crore unorganised workers without wage protection. Wage definitions varied from law to law, and regional disparities were wide. Timely payment of wages was not uniformly enforced, and equal remuneration provisions were scattered across different acts.
Now:
The Wage Code provides a single, unified wage definition applicable across the country. Minimum wages are guaranteed to all 50 crore workers, including those in the unorganised sector. A national floor wage reduces regional differences, and minimum wages will mandatorily be reviewed every five years. The Code ensures on-time wage payment and reinforces equal pay for men and women.
2. Social Security Code
Earlier:
Social security was uneven and limited. ESIC applied only in 566 districts, leaving many workers outside insurance coverage. EPFO benefits were restricted to specific categories of establishments. Gig and platform workers had no legal recognition and were excluded entirely. Gratuity required long service, making fixed-term employees ineligible. There was no unified national database of unorganised workers.
Now:
The Social Security Code merges nine laws to universalise benefits. ESIC coverage extends to all 740 districts, and even one hazardous worker triggers mandatory coverage. Gig and platform workers are formally included for the first time. A Social Security Fund covers 40 crore unorganised workers. Fixed-term employees receive gratuity without any minimum service requirement. EPFO benefits are accessible to all worker categories, and Aadhaar-linked UAN ensures portability.
3. Occupational Safety, Health & Working Conditions (OSH) Code
Earlier:
Worker safety and working conditions were governed by 13 separate laws across factories, mines, plantations, and construction. Women were often restricted from night work and had limited safety protections. Appointment letters and annual health check-ups were not mandatory. Migrant workers were recognised only if hired through contractors, leaving millions outside the system.
Now:
The OSH Code creates one consolidated safety framework. Appointment letters are compulsory. Annual health check-ups must be provided by employers. Women may work in all establishments, including night shifts, subject to consent and safety measures. All inter-state migrant workers can self-register on a national portal, receive annual travel allowance, access helplines in every state, and benefit from One Nation One Ration Card. A national database strengthens delivery of entitlements.
4. Industrial Relations Code
Earlier:
Labour disputes were slow to resolve, often taking years. Retrenched workers received no structured reskilling support. Trade union recognition lacked clarity, creating frequent disputes and bargaining deadlocks. Tribunal structures were single-member and overburdened.
Now:
The IR Code mandates that disputes be resolved within one year. Tribunals now have two members for faster disposal. Retrenched workers must receive 15 days’ wages as a reskilling allowance directly into their accounts. A union that secures 51 percent of votes becomes the sole negotiating union, ensuring clarity in collective bargaining. Negotiating councils are created where no single union reaches the 51 per cent threshold.
India’s labour overhaul finally replaces years of confusion with a system people can actually use. The old maze of rules is gone, and the new codes give workers clearer rights and employers clearer expectations. It is a move toward simpler processes, safer workplaces and basic protections that reach everyone. The transition will take time, but the direction is straightforward, with fewer complications, more fairness, and a framework that matches how India works today. |
