Parliament Question: Implementation of Four Labour Codes

GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA STARRED QUESTION NO. 218 TO BE ANSWERED ON 15.12.2025 IMPLEMENTATION OF FOUR LABOUR CODES 218. SHRI SUDHEER GUPTA: SHRI DHAIRYASHEEL SAMBHAJIRAO MANE: Will the Minister of LABOUR AND EMPLOYMENT be pleased to state: (a) whether the Government has made the Four Labour Codes viz., Code on Wages, Industrial Relations Code, Code on Social Security and Occupational Safety, Health and Working Conditions Code to be effective across the country; (b) if so, the details thereof and the date by which these Codes have come into force; (c) the names of the States/Union Territories which have completed the process of framing and notifying the corresponding rules; (d) the details of the manner in which implementation of said Labour Codes is likely to simplify, rationalise and streamline the existing labour laws for workers and employers; (e) the details of major changes introduced under each Labour Code and their likely impact on wages, social security and working conditions of employees; and (f) the details of the steps taken/being taken by the Government to ensure smooth, uniform and effective enforcement of the Labour Codes across all sectors in the country? ANSWER MINISTER OF LABOUR AND EMPLOYMENT (DR. MANSUKH MANDAVIYA) (a) to (f): A statement is laid on the Table of the House. * *****STATEMENT REFERRED TO IN REPLY TO PART (a) TO (f) OF LOK SABHA STARRED QUESTION NO. 218 TO BE ANSWERED ON 15.12.2025 REGARDING ‘IMPLEMENTATION OF FOUR LABOUR CODES’ Raised BY SHRI SUDHEER GUPTA & SHRI DHAIRYASHEEL SAMBHAJIRAO MANE. (a) & (b): The Central Government has formulated the four Labour Codes, namely, 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 after amalgamating, simplifying and rationalising the relevant provisions of the previous 29 Central Labour Acts. The four Labour Codes have come into force with effect from 21st November 2025 across the country. (c): The States/UTs are still in process of finalizing the Rules under the four Labour Codes. As per available information, Code wise status of pre-published Rules by States/UTs are as under: (i) The Code on Wages, 2019: 34 (ii) The Industrial Relations Code, 2020: 35 (iii)The Code on Social Security, 2020: 34 (iii) The Occupational Safety, Health and Working Conditions Code, 2020 : 35 (d) & (e): The four Labour Codes reduce multiplicity of definitions & authorities, facilitate use of technology, bring transparency & accountability in enforcement. Simultaneously, it strengthens the protection available to workers, including unorganized workers. The following are the salient features of the Labour Codes: Code on Wages 2019 • Universalisation of minimum wages to all employments as against scheduled employment in the previous 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, Employees Provident Fund (EPF), Employees Pension Scheme (EPS) Contribution, etc.Industrial Relations Code 2020 • 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. • 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. • 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 Employees State Insurance Corporation (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. • Universal coverage of Employees Provident Fund Organization (EPFO), now applies to all establishments employing 20 or more employees. The existing provision regarding schedule of industries 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-migratedworkers. 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. (f): The four Labour Codes were passed after extensive consultations with all stakeholders including States/UTs. The comments/concerns raised by the stakeholders were acknowledged and examined before the passage of four Labour Codes. Further, several National and Regional Labour Conferences were held with States/UTs to discuss issues relating to four Labour Codes. The Ministry of Labour and Employment is pursuing with stakeholders including States/UTs for smooth implementation of the Codes. *****