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India's ambitious legislative reform that consolidated 29 archaic Central Labour Laws into four modern codes to simplify compliance, expand social security, and improve ease of doing business.
Why in News
At the 114th International Labour Conference (ILC) in Geneva (June 2026), India highlighted the enactment of four Labour Codes as a cornerstone of its labour reforms, though concerns persist over weak implementation and inadequate protection for gig and informal workers.
Key Facts
- Code on Wages, 2019: Universalizes minimum wages and timely payment to all employees across organized and unorganized sectors.
- Industrial Relations Code, 2020: Streamlines dispute resolution, modifies trade union recognition rules, and raises the threshold for prior government permission before layoffs/closures from 100 to 300 workers.
- Code on Social Security, 2020: Extends ESIC and EPFO coverage; first legal framework to theoretically include gig workers and platform workers in the social security net.
- Occupational Safety, Health and Working Conditions (OSH) Code, 2020: Regulates health and safety conditions; addresses inter-state migrant workers and contract labourers; applies to establishments with 10 or more workers.
- The codes were enacted to simplify compliance by consolidating 29 Central Labour Laws into 4 modern codes. (UPSC Mains Usage: Links to GS2 — Social Justice and GS3 — Employment)
- Higher 'hire and fire' flexibility: threshold increase to 300 workers leaves millions in MSMEs without job security.
- OSH Code enforces a 48-hour work week but leaves daily shift limits and mandatory rest intervals ambiguous.
- Trade union recognition now requires support of 51% of workers on the muster roll, making unionization harder for unorganized workers.
Quick Revision Box
|
Code |
Key Provision |
|
Code on Wages, 2019 |
Universalizes minimum wages across organized & unorganized sectors |
|
Industrial Relations Code, 2020 |
Raises layoff threshold from 100 to 300 workers; 60-day strike notice |
|
Social Security Code, 2020 |
First to theoretically cover gig & platform workers; extends ESIC/EPFO |
|
OSH Code, 2020 |
Regulates safety for migrant/contract workers; applies to 10+ workers |
|
Trade Union Recognition |
Now requires 51% worker support on muster roll |
|
Consolidation Achievement |
29 Central Labour Laws merged into 4 codes |
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