What are the 4 New Labour Codes, Download PDF

Hellobanker Team

6 days ago

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There is a lot of controversy going on regarding the four new labour codes in India. Central government is pushing for the implementation of four labour codes introduced in 2020 (Code of Wage Act in 2019), replacing 29 sets of labour laws. But the central trade unions are protesting against it. Let’s understand all the details and you can also download PDF of all the new 4 labour codes.

Four new Labour Codes

The Indian government has introduced four new Labour Codes to replace the 29 old and complex labour laws. These reforms are intended to simplify regulations, make compliance easier for employers, and offer better protection and benefits for workers. The four codes are: Code on Wages, Industrial Relations Code, Social Security Code, and Occupational Safety, Health and Working Conditions (OSH) Code.

1. Code on Wages, 2019

This code ensures that every worker in India receives a fair wage. It combines four earlier laws related to payment of wages, minimum wages, bonus, and equal pay. The main goal is to guarantee timely payment and minimum wage protection for all types of workers, whether they work in factories, offices, or the unorganized sector.

A national floor wage will be set by the central government; no state can fix a wage below this.
Employers must pay wages on time: daily workers on the same day, weekly by the week’s end, and monthly workers by the 7th of the next month.
The code also promotes equal pay for equal work, especially between men and women.

2. Industrial Relations Code, 2020

This code focuses on industrial peace and better employer-employee relationships. It brings together laws related to trade unions, industrial disputes, and termination rules.

A significant change is that companies with up to 300 employees can now hire and fire workers without prior government approval — this was earlier limited to 100 employees. Also, going on strike will now require a 60-day notice and is restricted during tribunal hearings or shortly after their conclusion.

To help workers who are laid off, the code also proposes setting up a Re-skilling Fund, which can be used to provide training and help them find new jobs.

3. Social Security Code, 2020

This is one of the most impactful reforms, aiming to extend social security coverage to unorganized workers, gig workers, and platform workers like those working with Ola, Swiggy, or Zomato.

A National Social Security Board will be created to recommend and monitor benefit schemes.
Employers using gig workers must contribute 1–2% of their annual turnover for workers’ welfare, though not more than 5% of payments made to such workers.

This code attempts to bring millions of informal workers into the fold of health insurance, pension, maternity benefits, and more.

4. OSH (Occupational Safety, Health and Working Conditions) Code, 2020

This code merges many laws related to the health and safety of workers at the workplace. It covers factories, mines, construction sites, and even gig work setups.

One key reform is that inter-state migrant workers earning up to ₹18,000 per month will now be officially recognized and protected under this law. Employers are required to pay for their to-and-fro journey home once a year.

However, a previously included requirement for providing temporary housing near construction sites has been removed, which has drawn criticism.

Why These 4 New Labour Codes Matter?

These new codes are expected to make labour laws simpler and more uniform, which helps both employers and workers. They:

Simplify compliance for businesses by merging multiple laws
Improve transparency and reduce legal disputes
Ensure timely payments and minimum wages
Extend social benefits to millions of gig and informal workers
Allow women to work night shifts, with safety measures
Increase maternity leave to 26 weeks

Challenges in Implementation of 4 New Labour Codes

Despite the benefits, these codes have not been implemented yet because both central and state governments must frame rules, and many states are yet to do so. Also:

Workers in smaller companies (less than 300 staff) may lose some protection due to relaxed firing rules
Mandatory Aadhaar-based registration for informal workers may create hurdles in access
Gig and rural workers still lack legal clarity on how they’ll get these benefits
Domestic workers are not yet officially recognized for social protection