Main Features of the Four Labour Codes

 

India has consolidated 29 central labour laws into 4 Labour Codes to simplify compliance, improve ease of doing business, and enhance worker protection.

The four Codes are:

            1.        Code on Wages, 2019

            2.        Industrial Relations Code, 2020

            3.        Code on Social Security, 2020

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

 

 

1. Code on Wages, 2019

1.1 Consolidates Four Laws

            •          Payment of Wages Act, 1936

            •          Minimum Wages Act, 1948

            •          Payment of Bonus Act, 1965

            •          Equal Remuneration Act, 1976

 

1.2 Key Features

            •          Uniform definition of “Wages” across all labour laws.

            •          Floor wage to be fixed by Central Government → State minimum wages cannot fall below floor wage.

            •          Minimum wage applicable to all employees, removing scheduled employments.

            •          Timely payment of wages — monthly, weekly, daily, or piece-rate.

            •          Gender-neutral provisions for equal remuneration.

            •          Bonus eligibility and disqualification retained with rationalisation.

            •          Digital payment of wages encouraged.

 

 

2. Industrial Relations Code, 2020

2.1 Consolidates Three Laws

            •          Industrial Disputes Act, 1947

            •          Trade Unions Act, 1926

            •          Industrial Employment (Standing Orders) Act, 1946

 

2.2 Key Features

            •          Single negotiating union: Union with 51% membership gets sole negotiating rights.

            •          Fixed-term employment legalised — same benefits as permanent workers (except retrenchment compensation).

            •          Threshold for Standing Orders increased from 100 to 300 employees.

            •          Retrenchment, lay-off, and closure also require permission only if >300 workers (States can revise).

            •          Strikes restricted: 14 days’ prior notice mandatory in all establishments.

            •          Emphasis on conciliation and dispute settlement.

            •          Re-skilling fund introduced for retrenched workers (15 days’ wages).

 

3. Code on Social Security, 2020

3.1 Consolidates Nine Laws

Includes EPF, ESI, Maternity Benefit Act, Payment of Gratuity Act, Employees’ Compensation Act, etc.

 

3.2 Key Features

            •          Universalisation of social security for formal and informal workers.

            •          Registration of employees, gig workers, and platform workers through Aadhaar-linked portal.

            •          National database of unorganised workers (e-Shram portal).

            •          Gig workers and platform workers brought under social security schemes for the first time.

            •          EPF and ESI coverage extended through employer thresholds, with flexibility for government to notify new categories.

            •          Gratuity for fixed-term employees — payable even without 5 years’ service.

            •          Maternity benefits rationalised and digitised.

 

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

 

4.1 Consolidates 13 Laws

 

Includes Factories Act, Mines Act, Contract Labour Act, Inter-State Migrant Workmen Act, etc.

 

4.2 Key Features

            •          Applicable to establishments with 10+ workers and state-notified establishments.

            •          Uniform standards for health, safety, working conditions across sectors.

            •          Free annual health check-ups for workers.

            •          Mandatory appointment letters for all employees.

            •          Working hours capped; overtime regulations standardised.

            •          Welfare facilities (canteens, crèches, first-aid) rationalised.

            •          Registration through a single common licence for factories, contract labour, and migrant workmen.

            •          Inter-state migrant workers—benefits improved; portability of ration and social security ensured.

            •          Women allowed to work in all establishments and night shifts with safety measures.

 

Cross-Cutting Features Across All Four Codes

            1.        Uniform definition of “worker”, “employee”, and “wages”.

            2.        Digitisation and e-governance for registrations, returns, licences.

            3.        Reduction of compliance burden through single registration & single licence.

            4.        Ease of doing business through consolidated and simplified codes.

            5.        Greater predictability in industrial relations.

            6.        Balanced approach—protection of workers + flexibility for employers.

            7.        National floor wage as a benchmark for all states.

            8.        Special provisions for unorganised, gig, platform, and inter-state migrant workers.

            9.        Encouragement of women’s participation in the workforce.

            10.      Grievance redressal mechanisms strengthened across codes.