**Executive Summary**
This document outlines the salient features of the new Labour Codes in India, as presented in response to an unstarred question in the Lok Sabha. The codes aim to reduce multiplicity, leverage technology, enhance transparency, and promote employment generation while strengthening worker protections. The features are summarised under the Code on Wages 2019, Industrial Relations Code 2020, Code on Social Security 2020 and OSH & WC Code 2020.
**Key Points / Main Content**
* **General Features of Labour Codes:**
* Reduce multiplicity of definitions and authorities.
* Facilitate the use of technology in enforcement.
* Enhance transparency and accountability.
* Promote employment generation.
* Strengthen protection for workers, including unorganized workers.
* **Specific Features:**
* Uniform definitions for wages, employee, worker.
* Leveraging technology through electronic forms, registers, and returns.
* Implementation of inspector-cum-facilitator in place of inspector.
* Randomized web-based inspection system.
* Higher female labour force participation.
* Right to work in all roles, including at night with consent.
* Crèche facility in establishments with 50 or more employees.
* Flexibility in fixing working and overtime hours.
* **Code on Wages 2019:**
* Universalisation of minimum wages.
* Statutory 'Floor Wage' notified by Central Government.
* Promote gender neutrality and prohibit discrimination.
* Timely payment of wages.
* Allowances exceeding 50% made part of wages to enhance benefits.
* **Industrial Relations Code 2020:**
* Fixed Term Employment (FTE) with benefits at par with permanent workers.
* Statutory ‘Negotiating Union' and ‘Negotiating Council' for collective bargaining.
* Two-Member Industrial Tribunal for speedy disposal of industrial disputes.
* Rationalized penalties commensurate with the gravity of the offence.
* **Code on Social Security 2020:**
* Social Security cover to all workers, including unorganized, Gig, and Platform workers.
* New definitions for aggregator, gig worker, and platform workers.
* Universal coverage of ESIC, extended pan-India.
* ESIC benefits extended to establishments with less than 10 employees (voluntary basis).
* Mandatory ESIC coverage to establishments employing even single employee, involving hazardous process.
* Universal coverage of EPFO to all establishments employing 20 or more employees.
* **OSH & WC Code 2020:**
* Universal application of occupational safety, health, and welfare standards to establishments having 10 or more workers, or even one employee in hazardous occupations.
* Formalization of employment through mandatory issue of appointment letters.
* Employer to provide free annual health check-up for employees above the specified age.
* Expanded definition of Inter-State Migrant Worker, including self-migrated workers.
* Women workers allowed to work in all establishments, for all types of work (with consent and safety).
**Impact Analysis**
**Employers**
* **Impact:** Required to comply with new labor codes, including those related to wages, social security, occupational safety and health, and employment terms. They may need to implement new processes and technologies to ensure compliance.
* **Action Required:** Understand the changes, update policies, implement new technologies, and ensure compliance with new provisions
**Employees**
* **Impact:** Increased protection of workers' rights, including universalization of minimum wages, social security benefits, and improved working conditions. Access to social security benefits and other benefits, such as health check-ups.
* **Action Required:** Understand the provisions and benefits available to them under the new codes.
**Government**
* **Impact:** The changes impact the enforcement and administration of labour laws.
* **Action Required:** Implementation of the new codes and ongoing compliance oversight.
Key Entities Referenced
Labour Codes: A set of four new labour codes consolidating and simplifying existing labor laws in India to improve ease of doing business, ensure compliance, and uphold workers' rights.
Code on Wages 2019: A labor code focused on universalizing minimum wages, setting statutory floor wages, promoting gender neutrality in wage payments, and ensuring timely wage payments.
Industrial Relations Code 2020: A labor code dealing with employment conditions, trade unions, and dispute resolution mechanisms, introducing concepts like Fixed Term Employment and statutory negotiating bodies.
Code on Social Security, 2020: A labor code focused on extending social security benefits to all workers, including unorganized, gig, and platform workers, and expanding the coverage of ESIC.
OSH & WC Code 2020: A labor code focused on occupational safety, health, and welfare standards in establishments, mandating appointment letters, health check-ups, and addressing the rights of inter-state migrant workers.
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO. 2484
TO BE ANSWERED ON 15.12.2025
FEATURES OF NEW LABOUR CODES
2484. SHRI TATKARE SUNIL DATTATREY:
Will the Minister of LABOUR AND EMPLOYMENT be pleased to
state:
(a) the details of the salient features of the new labour codes
introduced by the Government;
(b) whether the said codes will enhance the ease of doing business in
the country and if so, the details thereof;
(c) whether the said codes will simultaneously ensure compliance and
uphold workers’ rights; and
(d) the details of the provisions under the new codes regarding
working hours, overtime pay and to expand social security?
ANSWER
MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SUSHRI SHOBHA KARANDLAJE)
(a) to (d): The four Labour Codes reduce multiplicity of definitions &
authorities, facilitate use of technology in enforcement of labour
laws, bring transparency & accountability in enforcement and
promote employment generation. Simultaneously, it strengthens the
protection available to workers, including unorganized
workers, in terms of statutory minimum wage, social security and
healthcare of workers. The following are the salient features of the
Labour Codes:
i. Uniform Definitions: Wages, Employee, Worker etc.
ii. Leveraging technology: Electronic forms, registers and returns
iii. Transparency in enforcement
iv. Inspector-cum-Facilitator in place of Inspector
v. Randomized Web-based Inspection System
vi. Higher female labour force participation
vii. Right to work in all roles; work at night with consent
viii. Crèche facility in establishments having 50 or more employees
ix. Flexibility in fixing working & overtime hours to Appropriate
Government.
Contd..2/-:: 2 ::
Code-wise salient features are briefly given hereunder:
Code on Wages 2019
• Universalisation of minimum wages to all employments as against
scheduled employment in the existing Act.
• ‘Floor Wage’ has been made Statutory which will be notified by
Central Government. Minimum rates of wages fixed by the
appropriate Government shall not be less than floor wage.
• Promote gender neutrality and prohibit discrimination in
recruitment and wage payment, including transgender.
• Timely payment of wages to all employees.
• Allowances exceeding 50% made part of wages which will
enhance maternity benefits, gratuity, EPF, EPS Contribution, etc.
Industrial Relations Code 2020
• Fixed Term Employment (FTE) introduced where an employee gets
all the benefits at par with permanent worker. Proportionate
gratuity on completion of 1 year of service.
• Statutory ‘Negotiating Union’ and ‘Negotiating Council’ to facilitate
collective bargaining.
• Two-Member Industrial Tribunal as against one member for speedy
disposal of industrial disputes. Equal representation of employer
and employee in Grievance Redressal committee.
• Penalties for violations rationalized and made commensurate with
gravity of offence.
Code on Social Security, 2020
• Social Security cover to all workers including unorganised
workers, Gig & Platform workers.
• To cater to new forms of employment, definitions of aggregator,
gig worker, platform workers introduced
• Universal coverage of ESIC, extended pan-India against in notified
districts/areas at present.
• ESIC benefits extended to establishments with less than 10
employees on voluntary basis
• Mandatory ESIC coverage to establishments employing even
single employee, involving hazardous process.
Contd..3/-:: 3 ::
• Universal coverage of EPFO, now applies to all establishments
employing 20 or more employees. The existing provision of
schedule has been removed.
OSH & WC Code 2020
• The Code provides for universal application of occupational safety,
health and welfare standards in all establishments having 10 or
more workers and even for establishment with one employee,
carrying out hazardous or life-threatening occupations.
• Formalization of employment through mandatory issue of
appointment letter.
• Employer to provide free of cost annual health check-up for
employees above the specified age.
• Definition of Inter-State Migrant Worker expanded that includes
migrant workers employed by contractor, and also self-migrated
workers. They are entitled for (a) annual lump-sum travel
allowance, (b) portability of benefits
• Women workers are allowed to work in all establishments, for all
types of work including during night subject to their consent and
safety.
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