Four New Labour Codes Take Effect: Key Changes Explained
In a historic move, the Indian government has implemented four comprehensive Labour Codes, replacing 29 existing labour laws with immediate effect. The reforms aim to simplify regulations and enhance worker protections across industries.
Key Takeaways
- Four Labour Codes now replace 29 previous laws
- Gratuity eligibility reduced from 5 years to just 1 year
- Equal benefits for fixed-term and permanent employees
- Enhanced rights for women workers including night shifts
- Mandatory appointment letters for all workers
The four codes include: 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).
Labour Minister Mansukh Mandaviya confirmed: “The four labour codes have been notified and now they are the law of the land.”
Major Benefits for Workers
Fixed-Term Employees will now receive all benefits equal to permanent workers, ending the disparity between contract and permanent staff.
Gratuity Reform represents one of the most significant changes – workers become eligible for gratuity after just one year of service instead of the previous five-year requirement.
Health Benefits include free annual health check-ups for contract workers, while all workers will receive appointment letters to formalize employment relationships.
Gender Equality measures ensure equal pay for equal work and legally prohibit gender discrimination. Women can now work night shifts and in all types of work, including underground mining and heavy machinery operations, with proper safety measures and consent provisions.
The new labour ecosystem marks a fundamental shift in India’s workplace regulations, creating a more unified and protective framework for the country’s workforce.
