Labour Codes (Indian Economy)
Labour Codes (Indian Economy)
Why In News:
India's labour reform process has received a significant push with West Bengal, among the last major states yet to notify rules under the four central Labour Codes, now coming on board.
Source: The Indian Express, Page 21, 11 July 2026 - 'Boost for labour reforms as West Bengal on board now'
The Four Labour Codes
The Code on Wages, 2019: consolidates four existing wage related laws and universalises the right to a minimum wage and timely payment of wages to all workers, organised and unorganised.
The Industrial Relations Code, 2020: consolidates three laws dealing with trade unions, industrial disputes and conditions of employment, and introduces a fixed term employment category.
The Code on Social Security, 2020: consolidates nine laws related to provident fund, insurance, gratuity and maternity benefit, and for the first time extends social security coverage to gig and platform workers.
The Occupational Safety, Health and Working Conditions Code, 2020: consolidates thirteen laws governing workplace safety, health and working conditions, including provisions applicable to migrant and contract workers.
Why State Rules Matter
Labour is placed in the Concurrent List (Entries 22, 23 and 24 of List III) of the Seventh Schedule, meaning both Parliament and state legislatures can make laws on the subject.
Although Parliament has passed the four Codes, they can only come into force once both the Centre and the respective states notify their implementation rules, since several provisions require state level operationalisation.
Key Reform Features
A single registration and licensing system replaces multiple separate registrations previously required under different labour laws.
Universalisation of the right to minimum wages, removing earlier restrictions based on type of employment or wage ceiling.
Extension of social security benefits, including a dedicated social security fund, to gig workers and platform workers such as those in app based delivery and ride hailing services.
Greater flexibility in working hours and conditions for fixed term employment, subject to specified safeguards.
Key Facts for Prelims
The four Labour Codes together subsume 29 existing central labour laws.
The Second National Commission on Labour (2002) had originally recommended the consolidation of labour laws into broader codes.
The Ministry of Labour and Employment is the nodal ministry overseeing the Labour Codes.