Labour codes: Legally accurate, socially transformative, and politically defining. A landmark reform of the Modi era

India, that is Bharat had long been burdened by laws created during the British regime, shaped by a colonial mentality that openly viewed Bharatiyas as their slaves and servants. Those laws were never meant to empower the people of this land.

They were crafted only to safeguard the interests of foreign rulers and to keep the native population dependent, restricted and voiceless. For decades, Bharat waited for a Government with the conviction to break free from these outdated colonial structures. This long pending transformation became possible only under the Modi Government, which has consistently delivered bold decisions, structural reforms and governance that truly serves the nation. In the past decade, the Modi Government has brought a historic reform package that has reshaped the governance

landscape of India, making it simpler, transparent and friendly for innovation and growth. More than 40000 unnecessary compliances have been abolished, around 1500 obsolete laws have been repealed and several existing regulations have been streamlined to reduce the burden on citizens, businesses and startups.

Through legislative action, more than a dozen laws have been simplified. Around 280 provisions have been removed to make governance more accessible and citizen centric. These reforms are fully aligned with the vision of Atmanirbhar Bharat and the goal of making India a developed nation by 2047.

Taking this reform journey to the next level, the Modi Government has now implemented the four Labour Codes from 21 November 2025. These Codes replace 29 scattered and confusing laws with one modern, clear and worker friendly framework. For the first time, India has a labour system that supports today’s economy, today’s workforce and tomorrow’s aspirations. It gives workers better protection, ensures fair wages, improves safety and strengthens industries so India can compete globally. This change was long overdue. Most of our old labour laws were written even before Independence viz., Workmen’s Compensation Act, 1923, Indian Trade Unions Act, 1926, Trade Disputes Act, 1929, Industrial Employment (Standing Orders) Act, 1946, etc.

The economy changed, industries changed, technology changed, but those laws remained frozen in the past. Workers suffered. Employers struggled. Compliance became a maze. The new Labour Codes finally break this cycle and bring India into a new era of simple rules and honest governance.

A broad range of benefits across sectors

The new Labour Codes bring clear, future ready protections for workers across every sector of the economy. Fixed term employees now receive the same benefits as permanent staff including leave, medical cover and social security, with gratuity eligibility reduced from five years to one. Gig and platform workers get formal recognition for the first time, with aggregators contributing to their social security and Aadhaar linked UAN ensuring portable benefits across states.

Contract workers gain transparent protection, social security and health coverage from principal employers, along with annual free health check-ups. Women workers are assured equal pay, protection from discrimination and the freedom to work night shifts and in all sectors with

full safety and consent. Youth workers benefit from guaranteed minimum wages, mandatory appointment letters and wages during leave.

The Labour Codes mark a historic step in modernising India’s workforce by aligning with

international standards on wages, gender equality and occupational safety. Over 2.78 million workers die globally each year from occupational accidents and diseases, highlighting the relevance of OSH provisions in the Codes.

MSME workers receive minimum wages, safe working conditions, double overtime wages and timely salary payments. Beedi and cigar workers are protected with fixed working hours, double overtime rates and bonus eligibility after thirty days. Plantation workers receive mandatory safety training, medical facilities for families and education support for children.

Audio visual and digital media workers including journalists and artists get clear wage structures, appointment letters and social security. Mining workers are protected under national safety standards, receive free annual health check-ups and regulated working hours. In hazardous industries, annual medical tests and safety committees are mandatory. Women are empowered to work safely even in high-risk environments.

Textile and migrant workers receive equal wages, PDS portability and protection for pending dues. IT and ITES workers get timely salaries, equal pay, social security and strong grievance redressal. Dock workers gain formal recognition along with provident fund, pension, insurance and essential workplace facilities.

Additional transformative reforms under the labour codes

A national floor wage now guarantees that every worker receives a dignified minimum earning ensuring uniform protection across the country. Gender neutral job opportunities and wages have been emphasised extending equal rights and safeguards to all workers including transgender persons.

To replace outdated inspection systems an inspector cum facilitator model has been introduced focusing on guidance and compliance support rather than fear and harassment. Disputes will now be resolved in a time bound manner through two member Industrial Tribunals giving workers and employers faster and predictable outcomes.

Paperwork has been simplified through single registration, single licence and single return replacing the earlier system of multiple overlapping filings. Workplace safety has also been strengthened with the creation of a National OSH Board to ensure uniform safety standards across sectors. Mandatory safety committees in major establishments further enhance accountability and on site protection.

Higher factory applicability limits ensure that smaller units are not overburdened by excessive regulations while core safeguards for workers remain fully intact. These reforms collectively reflect a clear commitment to worker dignity, workplace safety and smoother industrial operations.

Labour codes: modernising workplaces and empowering MSMEs

The new Labour Codes bring clarity, transparency and digitisation to India’s labour framework. Clear rules on contract labour, retrenchment and fixed-term employment will reduce disputes and help MSMEs formalise previously informal arrangements. Mandatory appointment letters, wage linkages to the national floor and timely payments encourage proper records and digital payroll adoption.

Recognition of fixed-term employment provides flexibility for project or seasonal work while ensuring wage and benefit parity, including gratuity after one year. Expanded ESIC, EPF and insurance coverage for casual, fixed-term, gig, platform and hazardous sector workers strengthens social security for all. 

Provisions on safety, welfare and timely wages are expected to improve workplace conditions, raise morale and create a more motivated workforce. Experts note that these reforms will lead to structured, predictable and cooperative labour management, benefiting both workers and businesses.

Global backing for India’s labour codes

The Director General of the International Labour Organisation praised India’s decision to implement the four Labour Codes, calling it an important step toward stronger social protection and fair wage systems. He emphasised that social dialogue between the Government, employers and workers will play a key role in ensuring positive outcomes for both labour and industry.

The International Social Security Association also welcomed the reforms, stating that India’s Labour Codes add powerful momentum to global efforts for building stronger and more inclusive social security systems. ISSA highlighted that India’s initiative strengthens global progress toward wider coverage, better protection and stronger institutional capacity.

Opposing for the sake of opposing

The Opposition’s stand against these reforms is baseless and unjustified. Their poster   marches and dramatic protests are nothing more than political theatrics designed to manufacture issues where none exist. These reforms have been thoughtfully drafted to protect workers’ interests and to

strengthen Bharat’s workforce. It is difficult to comprehend why the Opposition is resisting measures that clearly benefit the nation.

Do they not want Bharat’s workers to have stable and secure employment? Do they not want gig workers, platform workers and contract workers to receive the protections they deserve?

Do they not want women and youth to receive equal pay for equal work? Do they not want workers to access gratuity, health support and social security?

Do they not want our labour force to become more skilled and our economy to grow faster?  What exactly are they protesting? Only they can answer, because their objections clearly do not align with national interest.

Despite the opposition raised by the Left supported Trade Unions, Modi Government has delivered reforms that will protect workers, will formalise jobs and will strengthen the workforce while enabling businesses to grow, proving its commitment to a modern and prosperous India.

Author is a National coordinator of digital library, library and documentation, BJP; views are personal