Saturday, November 22, 2025

Labour Codes notified by the central government.

The Centre notified the four Labour Codes pending since 2020, ushering in several worker-friendly measures such as universal social security and timely minimum wage, while also trying to make life easy for companies in terms of compliance and paper work.

Big-Bang Labour Reforms

29 labour laws streamlined into 4 comprehensive Labour Codes.

1. Code of wages

     * Establishes a statutory right to minimum wages for all, including those in unorganised sector.
     * Review of minimum wages every 5 years.
     * Equal remuneration to male and female workers.

2. Code on social security

     * Benefit of pension scheme to all workers of organised, unorganised and self-employed sectors.
     * Employees engaged on fixed term (contract) to get same social security benefit as permanent
        employees.
     * Social security fund for the unorganised sector.

3. Code on occupational safety, health and working conditions

     * Creating safe working conditions in business-friendly environment.
     * Mandatory, free annual health check-up of workers.
     * Database of migrant workers.

4. Code of Industrial Relations

     * Allows direct, time-bound contracts with full parity in wages, benefits; gratuity eligibility
        after one year.
     * Re-skilling fund to train retrenched employees; amount equal to 15 days' wages for every
        worker retrenched.

My take

* While the government claims the move will go a long way in ease of doing business, it will also
   increase operating costs for companies due to higher wages and greater accountability on
   safety and working conditions.

* Meanwhile, a joint platform of 10 central trade unions called for a nation-wide protest on 26 Nov
   demanding the withdrawal of the codes, terming them "anti-worker" and "pro-employer". Some
   trade unions welcomed the reforms.

* The next step is framing the rules. As labour is a concurrent subject, the centre and states have to 
   frame laws and rules.


Tailpiece.

A quiet Saturday. The maid was on leave.

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