In a landmark reform, the government has merged 29 existing labour laws into four comprehensive codes, effective Friday. These codes cover wages, industrial relations, social security, and workplace safety, aiming to simplify compliance while strengthening worker protections.
Key Benefits for Workers
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Mandatory appointment letters for all employees, ensuring transparency in hiring.
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Double overtime pay, rewarding extra hours fairly.
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Gratuity for fixed-term staff after just one year of service, extending benefits to temporary workers.
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Welfare funds for gig and platform workers, financed directly by digital platforms.
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Equal pay for women and provisions for safe night shifts, promoting inclusivity and workplace safety.
Advantages for Businesses
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Simplified registrations and compliance processes, reducing bureaucratic hurdles.
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Higher layoff thresholds, giving companies more flexibility in workforce management.
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Streamlined rules designed to encourage investment and industrial growth.
Reactions and Criticism
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Trade unions have raised concerns over easier layoffs and restrictions on strikes, warning that these changes could weaken collective bargaining power. Protests are being planned to oppose the reforms.
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Officials and industry leaders, however, have welcomed the codes, calling them a balanced framework that protects workers while fostering economic growth.
The new labour codes mark a significant shift in India’s employment landscape. While they promise greater rights, security, and inclusivity for workers, they also aim to boost business efficiency and competitiveness. The coming months will reveal whether this balance between rights and reforms holds strong amid union resistance and industry optimism.
