New Labour Laws

Understanding the New Labour Codes and Regulations in India

Overview

India has recently consolidated its labour laws into four comprehensive codes that aim to simplify and modernize the regulatory framework. These codes replace 29 central labour laws and provide a unified approach to labour regulation in India.

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The Four Labour Codes

1. Code on Wages, 2019

The Code on Wages, 2019, after implementation, will subsume 4 existing laws namely:

  • Minimum Wages Act, 1948
  • Payment of Wages Act, 1936
  • Payment of Bonus Act, 1965
  • Equal Remuneration Act, 1976

Key Highlights

  • Unified definition of "wages" across all labour laws
  • Universal minimum wage coverage
  • Simplified compliance requirements
  • Digital payment of wages

2. Code on Social Security, 2020

The Code, 2020 amalgamates 9 existing labour acts namely:

  • The Employees' Compensation Act, 1923
  • The Employees' State Insurance Act, 1948
  • The Employees' Provident Funds and Miscellaneous Provisions Act, 1952
  • The Employment Exchanges (Compulsary Notification of Vacancies) Act, 1959
  • The Maternity Benefit Act, 1961
  • The Payment of Gratuity Act, 1972
  • The Cine Welfare Fund Act, 1982
  • The Building and Other Construction Worker Welfares Cess Act, 1996
  • The Unorganised Worker's Social Security Act, 2008

Key Highlights

  • Universal social security coverage
  • Gig and platform workers included
  • Streamlined registration and compliance
  • National Social Security Board

3. Code on Industrial Relations, 2020

The Industrial Relation Code, 2020 amalgamates 3 existing labour acts namely:

  • The Trade Unions Act, 1926
  • The Industrial Employement (Standing Orders) Act, 1946
  • The Industrial Disputes Act, 1947

Key Highlights

  • Simplified procedures for retrenchment and closure
  • Fixed-term employment provisions
  • Industrial Relations Code
  • Reskilling fund for retrenched workers

4. Code on Occupational Safety, Health and Working Conditions, 2020

The OSH, 2020, after implementation, will subsume 13 existing labour laws namely:

  • The Factories Act, 1948
  • The Contract Labour (Regulation and Abolition) Act, 1970
  • The Mines Act, 1952
  • The Dock Workers (Safety, Health and Welfare) Act, 1986
  • The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
  • The Plantations Labour Act, 1951
  • The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
  • The Working Journalist and other News Paper Employees (Conditions of Service and Miscellaneous Provision) Act, 1955
  • The Working Journalist (Fixation of rates of wages) Act, 1958
  • The Cine Workers and Cinema Theatre Workers Act, 1981
  • The Motor Transport Workers Act, 1961
  • The Sales Promotion Employees (Conditions of Service) Act, 1976
  • The Beedi and Cigar Workers (Conditions of Employment) Act, 1966

Key Highlights

  • Single registration for establishments
  • Common definition of "factory" and "worker"
  • Enhanced safety provisions
  • Welfare facilities for workers

Key Benefits

  • Simplified Compliance: Reduced from 29 laws to 4 codes, making compliance easier for employers
  • Universal Coverage: Extended coverage to previously excluded sectors
  • Digital Transformation: Emphasis on digital processes and e-governance
  • Worker Protection: Enhanced protection for workers including gig and platform workers
  • Ease of Doing Business: Streamlined procedures and reduced paperwork