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Four Labour Codes Consolidating 29 Central Laws
India’s four labour codes have consolidated 29 central labour laws to simplify the regulatory framework. The reform focuses on wages, social security, industrial relations, and workplace conditions.
Labour Codes in India:
| Dimension | Key Details |
|---|---|
| Consolidation | Consolidation of 29 central labour laws into 4 labour codes. |
| Code on Wages 2019 | Minimum wages applicable to all workers. |
| Wage Issue | Provides for risk of wage suppression due to low wage fixation. |
| Code on Social Security 2020 | Expansion of social security to unorganised workers and definition of gig workers. |
| Coverage Thresholds | Applicability thresholds of 20 workers for EPFO and 10 workers for ESIC. |
| Gig Worker Issues | Opaque algorithms, precarious earnings, and lack of cost compensation. |
| OSH Code 2020 | Regulation of occupational safety, health, and working conditions. |
| Compliance Burden | Higher compliance burden on small and medium enterprises. |
| Industrial Relations Code 2020 | Provides for regulation of trade unions, disputes, and employment conditions. |
| Layoff Threshold | Requirement of prior government approval for layoff, retrenchment, or closure in establishments with 300 workers. |
| Enforcement Challenge | Weak monitoring in informal sector comprising more than 90 % of workforce. |
| Reform Measures | Strengthening enforcement, digital compliance systems, national floor wage, SME support, and social security for gig workers. |