Overview of India's Labour Codes
Land and labour are key to India's development, with land fostering infrastructure and industrial growth, and labour driving productivity and inclusion. The new Labour Codes in India are a transformative step, merging 29 laws into a cohesive framework that provides clarity, consistency, and equity in the workforce.
Benefits for Workers and Businesses
- Workers: The Codes offer stronger social protection, safer workplaces, and broader access to formal benefits.
- Businesses: They benefit from simplified compliance, flexible workforce management, and a consistent playing field across sectors.
Objectives of the Labour Codes
- To provide access to safe working conditions, fair remuneration, and portable social security.
- To ensure income stability, predictable social protection, and dignity in employment.
Expansion of Social Security Coverage
- Recognition and entitlements for millions of unorganised, gig, and platform workers.
- Extension of provident fund, health insurance, and maternity benefits beyond the formal sector.
- The establishment of dedicated social security funds for gig and platform workers, supported by contributions from aggregators.
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- Over 310 million workers enrolled with a Universal Account Number (UAN).
- Enables portability of benefits such as health insurance and pensions across different workplaces.
Key Features of Specific Codes
- Occupational Safety, Health and Working Conditions Code: Unifies safety norms and allows women to work night shifts with consent. Promotes risk-based, technology-enabled compliance.
- Code on Wages: Universalises minimum wages and timely payments across all sectors.
- Industrial Relations Code: Strengthens dispute resolution mechanisms and promotes social dialogue.
Impact on Enterprises and Investment
For MSMEs, the Codes simplify compliance through standardised definitions, fewer registers, and digital filings. India's FDI inflows have remained strong, supported by these reforms and other significant changes in the manufacturing and mineral sectors.
Implementation Challenges and Recommendations
- Labour is a Concurrent List subject, requiring both the Centre and states to draft and notify rules.
- Priorities include operationalising coverage for unorganised workers, linking digital infrastructure for real entitlements, and building awareness and capacity.
Conclusion
Successful implementation of the Labour Codes can ensure safe, fairly paid work and a predictable environment for investors. This aligns with the vision of a Viksit Bharat, promoting growth with inclusion and prosperity for all workers.