The government released new codes on Friday, November 21, combining 29 laws into four labour codes in a major change to labour standards. The goal of these codes is to protect workers' rights while facilitating business. These include the Social Security Code, Occupational Safety Code, Industrial Relations Code, and Code on Wages.

The most recent labour codes include a number of important provisions that will probably affect over 400 million workers in both the formal and informal sectors.

Code 1: Code of Wages (2019) – Overview

The goal of Code 1, also known as the Code on Wages, 2019 is to streamline and combine four laws: the Equal Remuneration Act of 1976 the Payment of Wages Act of 1936, the Minimum Wages Act of 1948 and the Payment of Bonus Act of 1965. It aims to uphold worker rights and encourage consistency in matters related to wages.

The Code of Wages, 2019 gives all employees a legal right to minimum wages with a government set floor wage that cannot be undercut. Wages depend on skill, location and job conditions. Employers must ensure equal pay regardless of gender pay on time and compensate overtime at double rates. Minor first time offences can be fined while repeated or serious offences face stricter penalties replacing some imprisonment with monetary fines.

Code 2: Industrial Relation Code (2020) – Overview

The Trade Unions Act of 1926, the Industrial Employment (Standing Orders) Act of 1946, and the Industrial Disputes Act of 1947 were combined to create the Industrial Relations Code (IR Code).

The Industrial Relations Code 2020 allows fixed term employment with equal pay and gratuity sets up a re-skilling fund for retrenched workers and recognises trade unions based on membership. It expands the definitions of workers and industry, raises the layoff approval threshold to 300 workers and ensures women’s representation in grievance committees. Work-from-home is allowed by mutual consent, Industrial Tribunals are set up for faster dispute resolution, strikes require 14-day notice and minor offences can be settled with fines.

Code 3: Social Security Code (2020) – Overview

The current nine Social Security Acts are incorporated into the Code on Social Security, which covers life, health, maternity, and provident fund benefits for all workers, including gig, platform, and unorganised workers.

The Social Security Code expands ESIC and EPF coverage, includes gig and platform workers, and sets up a fund for life, health, disability, and old-age benefits. It defines wages and dependents broadly, covers travel-related accidents, and allows early gratuity for fixed-term employees.

Code 4: The Occupational Safety, Health and Working Conditions Code (2020) – Overview

The 13 Central Labour Acts' relevant sections were combined and simplified before the Code was draughted. In addition to promoting a business-friendly regulatory environment, it seeks to strike a balance between the dual goals of protecting worker rights and guaranteeing safe working conditions.

The Occupational Safety, Health, and Working Conditions Code allows women to work all hours with safety measures, provides free annual health check-ups, limits work to 8 hours/day and pays double for overtime. It covers migrant workers, requires appointment letters, directs fines to victims and mandates safety committees in large establishments.