Centre’s Biggest Labour Reform Begins with Implementation of Four Codes

Overview: The Centre activates all four Labour Codes, replacing decades-old labour laws with a unified, transparent, and worker-friendly system. Explore key changes, benefits, and how the reform strengthens India’s labour ecosystem for future growth.


Centre’s Biggest Labour Reform Begins with Implementation of Four Codes

The Centre has made a landmark move by adopting all four labour codes, replacing 29 outdated labour laws, marking one of the most significant labour reforms in Indian history. These comprehensive codes cover wages, industrial relations, social security, and occupational safety to modernize the country’s labour policies and make it easier for businesses to comply. The reform improves worker protection, extends coverage to gig and platform workers, and raises safety standards across industries. This unified framework will help India develop a more transparent, efficient, and future-ready labour ecosystem aligned with global best practices.

Highlights of the New Four Labour Codes

  • The Code on Wages, 2019 — establishes a national floor wage, ensures timely payment of wages, and standardizes appointment letters for employees.
  • The Industrial Relations Code, 2020 — simplifies dispute resolution, provides for industrial tribunals, and formalizes processes for unions and negotiating councils.
  • The Code on Social Security, 2020 — extends social security benefits to gig workers, platform workers, fixed-term employees, and workers in the unorganised sector.
  • The Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020 — raises workplace safety standards, requires periodic health examinations for older employees, and allows more flexible work arrangements.
  • Other benefits include simplified registration systems, lower compliance costs, gender-neutral policies, and improved labour transparency.

Conclusion

Implementation of the Four Labour Codes marks a major step in transforming India’s economic and social framework. The reform strengthens worker protection while simplifying compliance with laws that were introduced decades ago. These changes help build a transparent, effective, and forward-looking labour ecosystem that supports sustainable development and better employment practices.

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