Indian Govt rolls out 4 new labour codes, replacing 29 laws; PM Modi says it ‘promotes ease of doing business’

India has introduced a major update to its labour system by putting four new labour codes into effect. These codes replace 29 older laws that had become scattered and hard to follow. 

The government says the goal is to make rules clearer, protect workers better, and reduce unnecessary paperwork for businesses. 

In a post on X, PM Narendra Modi said, “Shramev Jayate… It is one of the most comprehensive and progressive labour-oriented reforms since Independence. It greatly empowers our workers.” 

What the Four New Labour Codes in India 

The four labour codes now in place are the Code on Wages, Industrial Relations Code, Code on Social Security, and the Occupational Safety, Health and Working Conditions (OSHWC) Code. These replace 29 older laws that were scattered and hard to follow.

• Code on Wages: Sets common rules for minimum wages, payment of wages, and bonuses so workers across sectors receive fair pay under one clear structure.

• Industrial Relations Code: Covers how companies and workers handle disputes, strikes, layoffs, and union matters, giving both sides a clearer process.

• Code on Social Security: Combines all major social security plans such as PF, ESIC, and maternity benefits, and adds support for gig and platform workers.

• OSHWC Code: Focuses on safety, working conditions, and facilities at workplaces to ensure safer environments in factories, mines, and other sites.

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How the New Labour Codes Work and How They Help Workers and Businesses

The new codes make several changes that affect daily work life. Every worker must now receive a written appointment letter so their role and terms are clear. A national floor wage ensures no worker is paid below a set minimum. 

Gig and platform workers are officially recognised for the first time and can access social security. Fixed-term workers can receive gratuity after one year of service, and workers above 40 are entitled to a free yearly health check-up. Women may work night shifts if they agree and proper safety steps are in place.

For employers, the reform cuts down on paperwork by replacing many separate filings with a single registration and a single return. Inspections will follow an inspector-cum-facilitator model that focuses more on guidance. 

A two-member tribunal system is expected to make dispute resolution faster. While some unions have raised concerns, many industry groups say the simpler system will make compliance easier.

Overall, the new labour codes aim to bring order, clarity, and fair treatment for workers while giving businesses a cleaner and more manageable rulebook.

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