India’s world of work stands at an inflection point. India’s workforce must increasingly find place in formal employment, supported by written contracts, adequate wages, and comprehensive social protection, so that the gains of growth translate into secure and dignified livelihoods for all. The persistence of older regulatory frameworks has, in part, limited the pace of formalisation and the ability of enterprises to generate secure and quality jobs. The four labour codes enacted by Parliament between 2019 and 2020, on Wages, Industrial Relations, Social Security, and Occupational Safety, Health and Working Conditions, represent the long-pending reform envisioned by the Second National Commission on Labour chaired by Ravindra Varma in 2002 with a mission to codify, simplify & modify then existing labour frame work. The Codes offer a comprehensive framework to modernise India’s labour landscape and correct structural imbalances. Their uniform implementation across all States has now become an urgent national priority.
The new codes simplify and modernise 29 central labour laws, many dating back to the mid-twentieth century. They seek not merely to merge statutes but to make multiple definitions of workers/workmen employee into simple definition. Each code strengthens the rights and welfare of workers while providing clarity and predictability for employers.
Fair wages and dignity of labour
The Code on Wages, 2019 marks a historic step towards ensuring that every worker receives a wage that respects the dignity of labour. By introducing universal minimum wages and a national floor wage, it guarantees that no worker, regardless of occupation or location, is left without a basic standard of income. Elimination of schedule of industry pave the road for universal wages.
Timely payment provisions have been strengthened, eliminating delays that once pushed families into debt. Workers can now claim unpaid wages or bonuses more easily, and the burden of proof in such disputes rests with the employer, creating greater accountability.
At the same time, the Code streamlines compliance for enterprises. Electronic record-keeping, a single registration, and unified returns reduce paperwork, rationalise chances of manipulation.
Extending the social security net
The Code on Social Security, 2020 represents one of the most inclusive expansions of welfare in independent India. By consolidating nine major laws, including the Employees’ Provident Fund Act, Employees’ State Insurance Act, and Maternity Benefit Act, it establishes a unified system that covers both traditional and future of work.
For the first time, gig workers, platform workers, and those in the unorganised sector are explicitly recognised as part of the national workforce. Every worker is to be registered and issued a unique social security number through the e-Shram portal, enabling direct delivery of benefits such as health insurance, pensions, and maternity support. Central and State Social Security Funds will be created to ensure that workers like app-based delivery partners or construction labourers are no longer left outside the safety net and funds are managed in holistic manner.
The Code also introduces career centres, digital and physical platforms that will provide vocational guidance, counselling, and employment services. This institutional support links welfare with multiple employability, helping workers transition from insecurity to opportunity.
Safety, dignity, and equality at work
The Occupational Safety, Health and Working Conditions Code, 2020 (OSH Code) is a statement of care and responsibility towards those who build the nation. By broadening the definition of “establishment,” the Code extends protection to millions previously uncovered by safety legislation.
It mandates free annual health check-ups for workers and requires employers to maintain safe, hygienic workplaces without any financial burden on employees. The formation of a National Occupational Safety and Health Advisory Board ensures that safety standards evolve with changing industrial conditions.
The OSH Code makes important strides in gender equality. Women workers are permitted to work in all establishments and night shifts, provided adequate facilities and security arrangements exist, empowering more women to join and remain in the labour force. Migrant workers, too, gain recognition through a national registration system, enabling access to welfare schemes and mobility benefits and monitoring legal framework to ensure recent live and livelihood.
Facilities such as canteens and restrooms are now mandatory at lower thresholds, and contract workers are counted for determining such provisions. These measures reflect a shift from minimal compliance to genuine concern for worker welfare.
Dialogue and industrial harmony
The Industrial Relations Code, 2020 brings clarity to the relationship between employers and employees, replacing three earlier Acts with a unified framework. It requires establishments with twenty or more workers to set up Grievance Redressal Committees, ensuring that disputes are resolved promptly at the enterprise level rather than festering into strikes or litigation.
Trade unions gain recognition through the concept of a negotiating union or council, strengthening collective bargaining and giving workers an effective voice in shaping their workplace. Workers facing retrenchment are now entitled to 30 days’ notice and adequate compensation, a humane reform that respects livelihood security. The establishment of a re-skilling fund for retrenched workers signals a forward-looking approach that values learning and adaptability in a changing economy. The provisions related to strike rights need to be revisited. Upgradation of workers limit for the industry upto 300 to get easier clearance for closure or lock outs should also be reconsidered.
Fixed-term employment, formally recognised by the Code, offers flexibility to industry while guaranteeing parity in wages and other social security provisions including gratuity in tandem with regular employees. It balances the needs of a modern economy with fairness and security for those who work within it.
Why implementation matters now
Evidence from several developing nations shows that labour reforms have played a key role in driving economic growth. In the face of a shifting global economy marked by rising tariffs and changing trade patterns, India must urgently implement its new labour codes. Simplified and transparent laws will attract investment, promote formal employment, and uphold worker dignity. Timely notification will pave the way towards India reaching developed nations tag.
In a time when automation and digitalisation threaten to displace traditional jobs, the codes provide a framework for balanced growth, one that preserves human dignity even as technology advances. Implementation across all States would create uniform standards, reduce ambiguity, and easy access to jobs.
The way forward
The four codes form the backbone of India’s ambition for a Viksit Bharat, a developed, self-reliant nation that combines economic dynamism with social justice. They transform inspectors into facilitators, replace outdated and overlapping laws with clear, consistent ones, and place worker welfare at the centre of economic policy.
The spirit of these reforms with some riders lies not merely in consolidation but in compassion, ensuring that every worker, from the factory floor to the digital platform, enjoys dignity, safety, and security. For workers, they promise fairness and opportunity. Implementing these codes swiftly and uniformly is therefore not only a matter of administrative urgency but of national commitment, to build an economy where growth is shared, work is respected, and every hand that contributes to India’s progress is protected and avail ease of living.
The author is the National General Secretary, Trade Union Co-ordination Centre (TUCC)
Courtesy PIB, Srinagar
