Labour Codes 2020: Consolidation, Provisions, and Implementation
Introduction
India's labour law framework, prior to 2020, comprised over 40 Central laws and 200+ State laws - a complex, overlapping, and often contradictory regulatory maze that hindered ease of doing business and failed to provide adequate social security to workers. To address this, the government consolidated 29 major Central labour laws into 4 comprehensive Labour Codes in 2019-2020. These Codes were passed by Parliament in the 2020 Monsoon Session and received Presidential assent in September 2020. However, implementation (rules and enforcement) has been delayed at the state level.
The Four Labour Codes
| Code | Consolidates | Key Focus |
|---|---|---|
| Code on Wages, 2019 | Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act, Equal Remuneration Act | Universal minimum wage, timely payment |
| Industrial Relations Code, 2020 | Trade Unions Act, Industrial Employment Act, Industrial Disputes Act | Standing orders, layoffs, retrenchment |
| Social Security Code, 2020 | ESI Act, EPF Act, Gratuity Act, Maternity Benefit Act, Unorganised Workers Act, Building Workers Act | Universal social security for organised & unorganised |
| Occupational Safety, Health and Working Conditions Code, 2020 | Factories Act, Mines Act, Contract Labour Act, Inter-State... |
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