Centre Implements Four Labour Codes

The Union Government on November 21, 2025 officially implemented the four Labour Codes—the Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and Occupational Safety, Health and Working Conditions (OSHWC) Code (2020). These codes replace 29 existing Central labour laws, simplifying compliance and expanding coverage for workers across sectors.

1. Code on Wages, 2019

• Purpose: Simplifies and consolidates four labour laws: Payment of Wages Act (1936), Minimum Wages Act (1948), Payment of Bonus Act (1965), Equal Remuneration Act (1976).
• Key Features:
  • Statutory right to minimum wages for all employees across organized and unorganized sectors.
  • Prevents unauthorized deductions and ensures timely wage payment.
  • Introduction of a national floor wage with regional variations allowed.
  • Expands coverage beyond employees earning ₹24,000/month.

2. Industrial Relations Code, 2020

• Purpose: Combines Trade Unions Act (1926), Industrial Employment (Standing Orders) Act (1946), and Industrial Disputes Act (1947).
• Key Features:
  • Fixed Term Employment (FTE): Time-bound contracts with full parity in wages/benefits; gratuity after one year.
  • Collective Bargaining: Unions with ≥51% membership recognized; otherwise, a Negotiating Council is formed.
  • Expands definition of worker to include sales promotion staff, journalists, and supervisory employees earning ≤₹18,000/month.
  • Lay-off/Retrenchment/Closure: Approval limit raised from 100 to 300 workers.
  • Permits work-from-home in service sectors by mutual consent.

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3. Code on Social Security, 2020

• Purpose: Incorporates nine social security laws into one framework.
• Key Features:
  • ESIC now applies pan-India, eliminating the “notified areas” restriction.
  • Establishments <10 employees may voluntarily opt in.
  • Mandatory coverage for hazardous occupations and plantation workers.
  • Includes new categories: aggregators, gig workers, platform workers.
  • Aggregators contribute 1–2% of annual turnover (capped at 5% of payments to workers).

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

• Purpose: Consolidates 13 central labour laws related to safety, health, and working conditions.
• Key Features:
  • Electronic registration for establishments with ≥10 employees.
  • Single registration replaces six separate registrations under earlier laws.
  • Free annual health check-ups for employees.
  • Women allowed to work in all establishments and during night hours with consent and safety measures.
  • Expands coverage for working journalists and cine workers to include electronic media and all audio-visual production.
  • A single tripartite advisory board sets national safety and health standards.
  • Establishes a fund for unorganised workers, financed through penalties and compounding fees.

Significance

The implementation of these codes aims to simplify compliance, expand social security, ensure fair wages, and enhance worker safety, while promoting formalization of employment and gender equality in workplaces.

Source: PIB