New Labour Codes Enhance Worker Rights and Social Security
The Indian Central Government has officially enacted four comprehensive Labour Codes, aimed at transforming the landscape of worker rights and simplifying labor laws across the nation. The newly implemented codes—namely, the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020—came into effect on November 21, 2025, following a thorough consolidation of 29 previous Central Labour Acts.
These pivotal Labour Codes aim to streamline regulations, reduce bureaucratic hurdles, and enhance the protection of workers, particularly those in unorganised sectors. By implementing these codes, the government intends to introduce more transparency and accountability in labor law enforcement while also promoting the use of technology.
Key Features of the Social Security Code
Under the Code on Social Security, 2020, all workers, including those in the unorganised, gig, and platform sectors, will now benefit from enhanced social security. This code introduces critical definitions that reflect modern employment structures, ensuring comprehensive coverage for gig and platform workers. The Employees’ State Insurance Corporation (ESIC) will expand its coverage nationwide, offering protection even to establishments with fewer than 10 employees, provided participation is voluntary. Additionally, companies engaging workers in hazardous conditions must enroll even a single employee under mandatory coverage.
Minimum Wage Provisions
The Code on Wages, enacted in 2019, brings a much-needed overhaul by universalizing minimum wages across all sectors, moving beyond just scheduled employments. A statutory floor wage will be established, ensuring that no minimum wage falls below this threshold. This code actively promotes gender equality and prohibits discriminatory practices in hiring and wage allocations, including for transgender individuals. Furthermore, it mandates timely wage payments for employees and incorporates allowances into the wage structure to improve maternity benefits and retirement contributions.
Health and Safety Regulations
The Occupational Safety, Health and Working Conditions (OSH & WC) Code, 2020, sets new standards for workplace health and safety. Employers are required to provide free annual health check-ups for older employees, ensuring their well-being. The code also expands the definition of inter-state migrant workers, entitling them to travel allowances and ensuring the portability of their benefits.
With these reforms, the government aims to provide robust protective measures for unorganised and vulnerable workers while fostering a fairer and more transparent labor market. As India transitions into this new regulatory framework, the focus remains on encouraging social security inclusivity and safeguarding the rights of every worker.
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