PPt on new labour codes

1. India's New Labour Codes
Comprehensive Reform Framework
Effective from November 21, 2025

2. Consolidation of Labour Laws
29 central labour laws consolidated into 4 comprehensive codes
First major labour reform in decades
Aligns India with global labour standards
Covers organized, unorganized, and gig workers

3. Four Pillars of Labour Reform
Code on Wages
Minimum wages, overtime, bonus provisions
Industrial Relations
Trade unions, strikes, grievance redressal
Social Security
Gig workers, unorganized sector coverage
Occupational Safety

4. Code on Wages, 2019
Universal minimum wage for all workers
• National Floor Wage set by central government
Unified definition of "wages" (reduces disputes)
• Timely wage payment guaranteed within 2 working days
• Bonus after 30 days of work in a year

5. Industrial Relations Code, 2020
Freedom of association and trade union formation
Layoff threshold raised from 100 to 300+ employees
Mandatory standing orders for all establishments
• Recognition of right to strike with conditions
• Grievance redressal and dispute resolution mechanisms

6. Social Security Code, 2020
First time coverage of gig and platform workers
• Unorganized workers included in social security schemes
Uniform policies on flexible work schedules
• Social Security Fund for unorganized workers (funded by penalties)
• Maternity, disability, and medical benefits expanded

7. Occupational Safety, Health & Working
Conditions
8-hour workday / 48-hour week baseline
• Mandatory appointment letters for all workers
• Safety standards unified across factories, mines, plantations
• Plantation workers now covered under safety provisions
• Women allowed night shifts with consent and double wages

8. Wage Reforms at a Glance
• No wage ceiling restrictions (previous limits removed)
• Prohibited unauthorized wage deductions
• Overtime work consent-based; double wage payment
• Beedi & cigar workers: 8-12 hours/day capped at 48 hours/week
• Gender pay equity provisions introduced

9. Simplified Compliance Framework
One License, One Registration, One Return Model
• Unified registration and licensing system
• Factory threshold raised from 10 to 20 workers (with power)
• Auto-generated contract labour licenses valid 5 years
• Deemed license after expiry of prescribed period
• Reduced redundancy and regulatory complexity

10. Contract Labour Provisions
Threshold raised from 20 to 50 contract workers
All-India license valid for 5 years (vs. 12 months previously)
Principal employer responsible for worker welfare
• No direct or indirect commission charged to contract labour
• Contractor cannot charge commission (penalty-backed)

11. New Protections for Gig Workers
First-time comprehensive coverage in labour law
• Platform workers eligible for social security benefits
• Uniform overtime and wage payment provisions
• Flexible work schedules with same protections
• Discrimination prevention in recruitment and wages
• Healthcare and accident benefits inclusion

12. Implementation Status & Next Steps
November 21, 2025: All codes came into force
• Central and state rules being finalized
• Organizations must update policies and procedures
• Increased penalties for non-compliance enforced
• Technology-friendly digital compliance system introduced

13. Organizational Implications
• Wage policy revision required (minimum wage alignment)
• Updated standing orders and grievance mechanisms
• Social security scheme enrollment for all workers
• Enhanced safety and health program implementation
• Documentation and digital record-keeping critical

14. Questions & Discussion
Transitioning to Compliant Labour Practices
For detailed compliance guidance, consult labour law advisors