Four Labour Codes Notified: Wages, IR, Social Security, OSH
Why in the news
The government formally brought into force all four Labour Codes, folding 29 laws, some from the 1930s-1950s, into a modern framework.
Key facts
- Four codes: Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020 and OSHWC Code 2020.
- Aims: simpler laws, worker protection, a future-ready workforce, inclusive growth and easier compliance via single registration, licence and return.
- Coverage extends to gender equality, youth, and gig and migrant workers.
Code-wise highlights
| Code | Main features |
|---|---|
| Wages, 2019 | Minimum wage for all; national floor wage that states cannot undercut; gender-neutral pay including transgender workers; overtime at 2x; inspector-cum-facilitator; minor offences become monetary penalties |
| Industrial Relations, 2020 | Fixed-term employment with gratuity after 1 year; re-skilling fund of 15 days’ wages for retrenched staff; union with 51%+ membership recognised, else a negotiating council; layoff approval threshold 100 to 300 workers; 14-day strike notice; wider worker definition including journalists, sales and supervisory staff earning up to ₹18,000 |
| Social Security, 2020 | Life, health, maternity and old-age cover for unorganised, gig and platform workers; ESIC and EPF expansion; fund for gig workers financed by aggregator contributions and penalties; digital self-assessed construction cess; uniform wage definition |
| OSHWC, 2020 | Single registration and return; migrant worker benefits with annual travel allowance and portability; women’s night work with consent and safety; national worker database; 8 hours a day, 48 a week; safety committees at 500+ workers; fines or compounding for minor offences |
Significance
- Social security coverage up from 19% (2015) to 64% (2025).
- Protects informal, gig, migrant and young workers while allowing flexible work.
- Simpler compliance should lift productivity, industry growth and jobs.
- Promotes equal pay and safety standards for women.
Exam angle
- Number of laws replaced: 29.
- Layoff approval threshold: from 100 to 300 workers.
- Working hours cap: 8 a day, 48 a week.