New Labour Code in India (Overview)
The New Labour Code in India refers to a major reform where the Government of India merged 29 old labour laws into 4 simplified labour codes. The goal is to make labour laws simpler, transparent, and worker-friendly, while also helping employers comply easily.
📘 The 4 New Labour Codes
1️⃣ Code on Wages, 2019
Ensures minimum wages for all workers (organized & unorganized).
Introduces national floor wage.
Timely payment of wages.
Equal pay for men and women.
👉 Covers gig workers, contract workers, daily wage earners.
2️⃣ Industrial Relations Code, 2020
Governs hiring, firing, layoffs, and strikes.
Companies with up to 300 workers can lay off workers without prior government approval.
Strikes require 14 days’ notice.
👉 Aims to balance worker rights & business flexibility.
3️⃣ Code on Social Security, 2020
Expands social security benefits to:
Gig workers (e.g., delivery partners)
Platform workers
Unorganized sector
Covers PF, ESIC, pension, maternity benefit, gratuity.
Allows portable social security across states.
👉 First time gig & platform workers are legally recognized.
4️⃣ Occupational Safety, Health & Working Conditions Code, 2020
Ensures safe working conditions.
Regulates:
Working hours
Leave
Health & safety standards
Applies to factories, mines, construction, transport, etc.
⏰ Key Changes Employees Should Know
Working hours: Maximum 48 hours/week
4-day workweek: Allowed if weekly hours remain 48
Gratuity: Payable after 5 years (with relaxations for fixed-term employees)
Leave: One earned leave after 20 days of work
🎯 Why New Labour Codes Were Introduced
✔ Simplify outdated laws
✔ Protect unorganized & gig workers
✔ Improve ease of doing business
✔ Encourage formal employment
✔ Ensure uniform labour standards across India
⚠️ Current Status (Important)
The labour codes are passed by Parliament
Not fully implemented yet because states must frame rules
Implementation is expected in phases
📌 Who Benefits the Most?
Workers in unorganized sector
Gig & platform workers
Small & medium enterprises
Migrant workers
Startups & new businesses
If you want, I can also explain:
Labour Code impact on salary & take-home pay
Effect on PF, gra