The Indian government has consolidated 29 central labour laws into 4 new labour codes. Here is what employers and employees need to know.
The Indian government has consolidated 29 central labour laws into 4 comprehensive labour codes: the Code on Wages, the Industrial Relations Code, the Social Security Code, and the Occupational Safety, Health and Working Conditions Code.
Code on Wages
This code amalgamates four wage-related laws and introduces a universal minimum wage applicable to all workers, including unorganized sector workers. It mandates timely payment of wages and prohibits discrimination in wages based on gender.
Industrial Relations Code
This code simplifies the process for trade unions, dispute resolution, and conditions for strikes and lockouts. It raises the threshold for seeking government permission before layoffs, retrenchment, or closure.
Social Security Code
Consolidating nine social security laws, this code extends coverage to gig workers, platform workers, and the unorganized sector, bringing millions of previously unprotected workers into the social security net.
Occupational Safety, Health and Working Conditions Code
This code consolidates 13 laws relating to workplace safety, health, and working conditions. It introduces provisions for contract workers and aims to ensure safer workplaces across industries.
Employers and HR professionals should proactively review their compliance frameworks to align with these new codes as they come into effect state by state.