10/12/2024
India's initiative towards Labour Reforms Four Labour Codes brought into
force for implementation.
Intention and the Objectives.
The four labour codes in India aim to simplify, modernize, and consolidate the country's
complex and fragmented labor laws. They were introduced to improve compliance, ensure
worker welfare. and promote ease of doing business. Below is an overview of the intention and
objectives of these codes:
1. Code on Wages, 2019
Intention: To ensure uniformity in wage-related laws and guarantee timely payment of wages to
all workers.
Objectives:
Consolidate four existing laws.
Payment of Wages Act, 1936
1) Minimum Wages Act, 1948
2) Payment of Bonus Act, 1965
3) Equal Remuneration Act, 1976
Ensure minimum wages and equal remuneration for all.
Standardize wage definitions to prevent ambiguities and disputes.
Improve compliance and reduce litigation.
2. Industrial Relations Code, 2020
Intention: To foster harmonious employer-employee relations and simplify processes related to
industrial disputes and employment terms.
Objectives:
Replace three laws:
1. Industrial Disputes Act. 1947
2. Trade Unions Act, 1926
3. Industrial Employment (Standing Orders) Act, 1946
Simplify rules for hiring, retrenchment, and dispute resolution
Facilitate ease of doing business by reducing compliance burdens.
Strengthen dispute resolution mechanisms and reduce conflicts.
10/12/2024
3. Occupational Safety, Health and Working Conditions Code, 2020
Intention: To ensure safety, health, and decent working conditions for workers across sectors.
Objectives:
Merge 13 existing laws into a single code.
Provide a comprehensive framework for worker safety, health, and welfare.
Mandate workplace standards for all establishments, including gig and platform workers.
Promote gender equality by encouraging women's participation in all types of work.
4. Code on Social Security, 2020
Intention: To universalize social security coverage for all workers, including those in the
unorganized sector, gig workers, and platform workers.
Objectives:
Replace nine laws, including the Employees Provident Fund Act and Employees State
Insurance Act.
Expand social security benefits like pensions, maternity benefits, gratuity, and insurance
to all workers.
Set up a robust system for registration and tracking of workers.
Enable portability of benefits for inter-state migrant workers.