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Legislative Commentary on India’s Labour Codes: A Transformative Shift in Labour and Employment Laws

Author(s) Preyas Haldar, Versha Dhakad
Country India
Abstract India’s labour regulations, once fragmented across various central and state-level laws, have seen substantial changes since 2020. The central government consolidated these regulations into four important Labour Codes: the Code on Wages (2019), the Code on Industrial Relations (2020), the Code on Social Security (2020), and the Occupational Safety, Health, and Working Conditions Code (2020). This was done in order to both simplify business operations and guarantee worker protections. These codes aim to simplify compliance, bolster social security, and address challenges like the gig economy. However, the nationwide rollout is anticipated in 2025–26 and states are required to finalize rules by March 2025. This delay creates a mixed system of old and new laws, reflecting India’s federal structure. Aimed at the "Viksit Bharat 2047" vision, these reforms balance employer flexibility with worker rights, particularly for informal and platform-based workers. Clarity and inclusion are emphasized centrally in reforms. State-level reforms vary. Promoting gender equity, Haryana's March 2024 regulations included safety measures for women working night shifts. Meghalaya’s January 2025 rules mandated consent and safety for similar shifts. The IT/ITES sector's rules were eased by Karnataka's exemptions in June 2024, and its proposed bill extended health benefits to gig workers. Manipur’s 2024 Act simplified renewals via self-certification. For women working night shifts, Madhya Pradesh's new regulations under the Shops and Establishments Act of 1958 and the Factories Act of 1948 require written consent, increased security, and essential amenities to ensure their safety and dignity. These rules, which go into effect right away, make sure that laws about maternity leave and sexual harassment are followed while also providing safe places to get around and rest. These variations highlight state autonomy but complicate multi-state compliance. Through improved POSH Act compliance, privacy protections under the Digital Personal Data Protection Act, 2023 (Rules, 2025), and youth hiring programs, the reforms improve workplace rights. Stricter rules against worker misclassification benefit informal workers. However, implementation delays lead to uncertainty, state variations raise costs, and high fines—up to INR 500,000—may be burdensome to small businesses and limit employment opportunities. With 90% of workers informal, uneven enforcement risks persistent vulnerabilities.
Keywords Labour Codes, Workplace Rights, Gig Economy, Implementation Challenges, Federal Reforms.
Published In Volume 16, Issue 2, July-December 2025
Published On 2025-12-08
Cite This Legislative Commentary on India’s Labour Codes: A Transformative Shift in Labour and Employment Laws - Preyas Haldar, Versha Dhakad - IJAIDR Volume 16, Issue 2, July-December 2025.
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