The Hindu Editorial Analysis
28 November 2025
Enabling a Modern and Future-Ready Labour Ecosystem
(Source – The Hindu, International Edition – Page No. – 8)
Topic : GS Paper III – Indian Economy | Inclusive Growth | Employment | Labour Reforms
Context
On November 27, 2025, the Government of India will operationalise the four Labour Codes —
- Code on Wages (2019)
- Industrial Relations Code (2020)
- Code on Social Security (2020)
- Occupational Safety, Health and Working Conditions Code (2020)
Together they aim to simplify, consolidate, and modernise India’s 29 central labour laws, creating a unified, flexible, and worker-friendly framework aligned with the goals of Viksit Bharat and Aatmanirbhar Bharat.
1. Evolution of India’s Labour Framework
- For decades, India’s labour laws were fragmented, sector-specific, and sometimes contradictory.
- The Second National Commission on Labour (2002) recommended consolidation to reduce complexity.
- After wide consultations (2015–2019), the Codes were enacted to make compliance easier, reduce litigation, and align laws with changing employment realities.
2. India’s Workforce Landscape
- India has one of the world’s largest and youngest workforces (643 million workers).
- Between 2017 and 2023-24, unemployment fell from 6.0 % to 3.2 %, and formal employment rose.
- Yet informal labour still dominates — nearly 90 % of workers lack social security and written contracts.
- The Codes seek to formalise this segment and extend safety nets to gig and platform workers.
3. Key Provisions and Benefits
(a) Code on Wages (2019)
- Introduces a universal minimum wage and floor wage.
- Ensures timely payment of wages, equal remuneration and revised definitions to cover contract and platform workers.
(b) Code on Social Security (2020)
- Expands coverage of ESI and EPF to unorganised workers.
- Creates a National Social Security Fund and universal registration via digital portals.
- Extends benefits like maternity aid, disability insurance, and pension.
(c) Occupational Safety & Health (2020)
- Emphasises 48-hour weekly work limit, safety committees, periodic health checks and gender-sensitive provisions for women working night shifts with consent.
(d) Industrial Relations Code (2020)
- Streamlines labour-management relations by codifying rules on strikes, lay-offs and conciliation.
- Encourages collective bargaining and predictable dispute resolution mechanisms.
4. Boosting Women’s Workforce Participation
- India’s female labour force participation (2024) stands at 32.8 % – among the lowest globally.
- The Codes address this by strengthening maternity benefits, providing safe night-work conditions, and expanding social security to gig and platform sectors.
- Greater formal employment opportunities will enhance India’s gender equity and productivity.
5. Preparing for the Future of Work
- The rise of AI, automation and digital platforms demands flexible labour policies.
- The Codes enable formalisation of gig economy workers, support skill development and adaptability.
- Streamlined licensing and self-certification mechanisms reduce compliance burden for MSMEs, encouraging innovation and ease of doing business.
6. Challenges in Implementation
- Success depends on effective state-level execution, since labour is a Concurrent List subject.
- Uniform rules, digital registries, and transparency are needed to ensure workers actually receive benefits.
- Strong tripartite dialogue among government, industry, and labour unions remains essential.
Conclusion
“The Four Labour Codes represent a historic move toward a balanced labour market that combines flexibility with fairness.”
A modern, future-ready labour ecosystem will promote job security alongside enterprise competitiveness. By expanding social protection to unorganised workers and aligning labour governance with India’s economic ambition, these reforms lay the foundation for inclusive growth and sustainable development under Viksit Bharat 2047.