Government Consolidates 29 Labour Laws into Four Comprehensive Labour Codes to Modernise India’s Workforce Framework

In a landmark reform aimed at simplifying India’s labour governance framework, the Indian government has merged 29 existing labour laws into four unified labour codes. These codes – Code on Wages, 2019 (Code 1), Industrial Relations Code, 2020 (Code 2), Code on Social Security, 2020 (Code 3) and Occupational Safety, Health and Working Conditions Code, 2020 (Code 4) are designed to create a transparent, balanced and business-friendly labour environment while strengthening worker welfare across industries.

Code 1: The Code on Wages, 2019
Code 1 introduces universal minimum wages for all sectors, bringing nearly the entire workforce under a unified wage framework. It also mandates a national floor wage, timely salary payments and non-discrimination across gender, including transgender workers. Overtime must be paid at twice the regular wage, ensuring fair compensation for extended hours.

Code 2: The Industrial Relations Code, 2020
Code 2 streamlines industrial relations by integrating provisions related to trade unions, employment conditions and dispute resolution. It formalises fixed-term employment with benefits matching permanent staff, mandates 14-day strike notices and sets up re-skilling funds for retrenched workers. The code expands the definition of “worker” and recognises work-from-home arrangements in service sectors.

Code 3: The Code on Social Security, 2020
Code 3 broadens the scope of social security by integrating nine key laws covering PF, ESIC, maternity benefits, insurance and pension. For the first time, gig workers, platform workers and unorganised labourers are included. Nationwide ESIC coverage, reduced EPF appeal deposits and one-year gratuity eligibility for fixed-term employees enhance protection.

Code 4: The Occupational Safety, Health and Working Conditions Code, 2020
Code 4 focuses on workplace safety and employee welfare. It standardises working hours, expands the definition of migrant workers, mandates appointment letters and strengthens safety mechanisms. Women can work in all shifts with consent and safety measures, and establishments with 500 or more workers must form safety committees.

Together, these four codes represent a historic restructuring of India’s labour landscape, promising clarity for employers and stronger protections for millions of workers.