India’s New Labour Codes

India’s four Labour Codes—the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020, and the Occupational Safety, Health and Working Conditions (OSH) Code, 2020—seek to consolidate 29 central labour laws into a unified framework governing wages, industrial relations, social security and workplace safety. The Codes have been passed and notified, but are yet to be brought into force; implementation will follow separate commencement notifications, and recent policy statements indicate an intention to make them fully operational from 1 April 2026, after re-publication and finalisation of rules by the Centre and States.

The reforms introduce several cross cutting features: a uniform definition of “wages” with a 50% cap on specified exclusions; broader definitions of “worker” and “employee”; an inspector cum facilitator regime; digitisation of registers and returns through portals such as Shram Suvidha; and a common licensing framework, particularly relevant for contract labour and inter State migrant work. At the Code specific level, key changes include a statutory floor wage and universalised wage coverage, expanded social security to gig and platform workers funded partly by aggregator contributions, higher thresholds for prior permission on lay off and closure and for standing orders, recognition of a sole negotiating union with 51% membership, rationalis