The central government has announced four new labour codes: (1) the Wage Code, (2) the Industrial Relations Code, (3) the Social Security Code and (4) the Occupational Safety and Health Code. These reforms had been pending for several years. Nearly five years after Parliament passed them, the government has now notified their implementation. The four codes subsume 29 earlier labour laws into a single, consolidated framework. Despite consistent resistance from trade unions, the Modi government has pushed ahead with their rollout.
According to the government, these codes will benefit 50 crore workers. Gratuity will now be available after one year instead of five. Workers will receive employment-related documents that were previously unavailable. The ambit of social security will expand, covering PF, ESIC, insurance and other protections. Minimum wages—earlier limited to a narrow segment—will now apply to all. Every worker over 40 is to receive mandatory health check-ups. Timely payment of wages will be compulsory. Women may now work night shifts (subject to their consent) and must be paid equal wages for equal work. For the first time, gig and platform workers—those employed on short-term, task-based or contractual work—have been formally defined.
In short, the government claims the reforms aim to reduce paperwork and compliance burdens, extend social protection to gig workers, encourage more formal employment, increase women’s labour-force participation, and ensure fixed-term employees receive benefits comparable to permanent workers. The India Employment Report 2024, however, points out that industrial production is becoming increasingly capital-intensive and labour-saving—a model misaligned with an economy like India, which has a massive labour surplus. Easier rules and reduced compliance friction may help firms scale up and generate formal jobs, but the question remains whether this will truly produce labour-intensive growth.
The four codes were passed during the 2019–20 Covid period, at the same time the farmers’ protests were gaining momentum. Farmers took to the streets and succeeded in forcing the withdrawal of the three farm laws. Trade unions, too, strongly opposed the labour codes. Nationwide protests were held as recently as 9 July 2025, though they did not mirror the impact of the farmers’ movement. The codes were pushed through at a time when the opposition had been effectively sidelined in Parliament. If the government genuinely intended these to be pro-worker reforms, why did it not implement them immediately after passage in 2019–20? Why the five-year wait?
The Silence Around Tripartite Dialogue
Consider the Indian Labour Conference (ILC), the apex tripartite platform for dialogue between government, employers and workers on issues concerning the working class. Often called “India’s Labour Parliament,” the ILC functions under the Labour Ministry and draws inspiration from International Labour Organization (ILO) structures. Established in 1942 as the Tripartite National Labour Conference, it evolved into an annual or periodic consultative forum after independence. A total of 46 sessions have been held so far.
The ILC includes 12 central trade union organisations, major employer bodies such as ASSOCHAM and FICCI, all state governments, Union Territories and relevant central ministries. It maintains parity between worker and employer representation.
The ILC plays a crucial role in shaping labour policy, industrial relations and worker welfare. It deliberates on minimum wages, labour law reforms, contract labour, the informal sector, women workers’ rights and social security. As a founding member of the ILO, India is obligated under Convention 144 to uphold effective tripartite consultation. The ILC has historically influenced significant labour policy decisions; for instance, its 1957 recommendations still form the basis for minimum wage calculations.
Yet the last ILC meeting—its 46th—was held in July 2015. No session has taken place since. As of 24 November 2025, the 47th session has not been convened. Trade unions and the Labour Standing Committee have repeatedly protested this abandonment of the tripartite process. In 2021, the BMS wrote to the Prime Minister demanding the resumption of ILC meetings; in 2025, a Parliamentary Committee reaffirmed this need. Despite this, PIB claims the codes were implemented after “tripartite consultation”—possibly referring to closed-door discussions with one politically aligned union.
The Question of Union Rights
Whether workers will retain the right to unionise and strike under the new codes is itself under question. Under the earlier laws, a factory employing over 100 workers could only close with government approval. Under the new codes, this threshold has been raised to 300. Reports indicate that 77% of workers are employed in establishments with up to 100 workers; raising the limit to 300 places nearly 90% of workers in units where employers can shut down operations without oversight, potentially disregarding workers’ safety, security and livelihoods.
An internal memo of the Labour Ministry notes that over a dozen meetings with unions took place after June 2024, but the ministry has yet to respond to renewed protests.
Ten major national trade unions have condemned the implementation of the four labour codes as a “deceitful move” and announced nationwide protests on November 26—Constitution Day. They demand that the government withdraw the codes. The unions argue the reforms make hiring and firing easier and were implemented unilaterally, without meaningful consultation, despite years of sustained resistance. In a late-night statement, the joint platform of ten unions called on workers across the country to mobilise in large numbers.
These unions have been protesting the reforms for five years. They argue the implementation is “openly unilateral,” “anti-worker” and “pro-employer.”
Where Does This Leave Workers—and States?
Students facing NEP reforms, farmers confronted with the three farm bills, and now workers confronting the new labour codes—different sectors are asking: are these reforms beneficial or harmful? Under the federalised structure of the new labour codes, states must now formulate their own rules. This means the actual ground-level impact of provisions relating to wages, industrial relations, social security and safety will depend on how each state implements them.
Whether these codes will protect workers—or undermine their rights—remains to be seen.
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*Gujarat-based human rights activist
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