Four Labour Codes 2020
Labour Laws · चार श्रम संहिताएं 2020
📋Quick Overview
India's 44 central labour laws were consolidated into 4 Labour Codes as recommended by the Second National Labour Commission (2002). This massive simplification was done to improve ease of doing business, extend social security to unorganised and gig workers, and create uniform definitions across labour law. All 4 codes were passed by Parliament but have not yet been fully implemented as states are yet to frame rules.
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Mnemonic to remember 4 codes: W-I-S-O → Wages, Industrial Relations, Social Security, Occupational Safety. The Code on Wages was passed in 2019; the other three in 2020.
📖Four Labour Codes — Details
| Code | Year | Laws Merged | Key Change |
|---|---|---|---|
| Code on Wages | 2019 | 4 laws: Min. Wages Act 1948 + Payment of Wages Act 1936 + Equal Remuneration Act 1976 + Bonus Act 1965 | Universal floor wage for ALL workers; wage definition standardised |
| Code on Industrial Relations | 2020 | 3 laws: Industrial Disputes Act 1947 + Trade Unions Act 1926 + Industrial Employment (Standing Orders) Act 1946 | Retrenchment/layoff/closure without govt permission for ≤300 workers (was ≤100) |
| Code on Social Security | 2020 | 9 laws: EPF + EPS + EDLI + Gratuity + Maternity Benefit + ESIC + BOCW + Unorganised Workers etc. | Extended to gig workers and platform workers for the first time |
| Code on Occupational Safety, Health & Working Conditions | 2020 | 13 laws: Factories Act + Mines Act + Dock Workers Act + Contract Labour Act + Inter-State Migrant Workers Act etc. | Single license for contractors; covers all establishments with 10+ workers |
📝Important Changes Introduced
- •Floor Wage: Minimum wage below which no state/employer can pay — ensures minimum standard of living nationally
- •IR Code key change: Threshold for govt permission raised from 100 to 300 workers for retrenchment/closure
- •Gig workers: For first time, defined in law and entitled to social security — includes Ola/Uber drivers, Zomato delivery workers
- •Fixed-Term Employment: Introduced formally — workers get same rights as permanent workers but contract for fixed period
- •Uniform definitions: 'Worker', 'wages', 'employer' now uniformly defined across all 4 codes
- •Status: All 4 codes passed by Parliament; states must frame rules; not yet fully implemented (as of 2024)