Central govt rolls out 4 new Labour Codes aimed at transparency, worker protection
New Delhi: India’s labour framework witnessed its biggest overhaul in decades as the Centre officially implemented the four new Labour Codes, replacing 29 fragmented, colonial-era laws with a unified and modern system. Positioned as a major step towards Viksit Bharat 2047, the reforms aim to create a fair, transparent and growth-oriented labour ecosystem. As Prime Minister Narendra Modi has emphasised, “Naye Bharat ka shramik majboor nahi, majboot hai.”
The new regime brings a single national definition of wages under the Code on Wages, 2019, ending long-standing ambiguities that often enabled arbitrary payment practices. Minimum wages will now apply across all sectors, overtime must be paid at double rates and gender discrimination is explicitly prohibited, “full stop.” The code also extends legal wage protection to transgender workers, marking a progressive shift in India’s labour policy.
The Industrial Relations Code, 2020 introduces structural changes aimed at reducing disputes and improving workplace harmony.
Grievance redressal committees must include women members, fixed-term employees will receive full social-security and gratuity benefits, and work-from-home arrangements have been formally recognised. The push for digitalisation is expected to speed up dispute resolution and reduce compliance burdens, described by officials as “asli ease of living aur ease of doing business.”
Among the most widely welcomed changes is the inclusion of gig and platform workers under the Social Security Code, 2020.
A dedicated fund, mandatory contributions from aggregators and portable social-security benefits bring delivery partners, cab drivers and app-based freelancers under formal protection for the first time. Officials say the reform ensures recognition for millions of workers who form the backbone of the digital economy.
States that adopted labour reforms earlier have already reported strong outcomes. Gujarat recorded 13.36 per cent GSDP growth, Andhra Pradesh added 5.7 lakh organised manufacturing jobs, Uttar Pradesh added 7.4 lakh workers, Rajasthan saw a 13 per cent increase in female workers after night-shift permissions and Haryana’s unemployment rate fell from 9.3 per cent to 3.4 per cent.
The Occupational Safety, Health and Working Conditions Code, 2020 further strengthens safety norms, mandates appointment letters, enforces health check-ups and provides safeguards for women working night shifts. By pushing through reforms that previous governments “only debated,” the Centre says the new codes mark a decisive shift towards a labour regime aligned with global standards.
