Overview of India’s Four New Labour Codes

(UPSC EPFO 2025)

Why New Labour Codes? Purpose & Evolution

• Need for Reform: India had a complex web of 29 labour laws (some decades old),
causing overlaps and compliance burdens . The new labour codes were introduced to
simplify, modernize, and consolidate these laws for ease of compliance and improved
worker welfare.
• Ease of Doing Business: The codes aim to streamline regulations to promote business
while ensuring worker protections. They replace 29 laws with 4 codes, reducing red tape
and “Inspector Raj” .
• Broad Coverage: The reforms seek to bring over 500 million workers (organized &
unorganized) under legal protection – about 90% of India’s workforce that was often
outside formal labour laws . This includes unorganized, gig, and platform workers for the
first time.
• Historical Evolution: the Second National Commission on Labour (2002) recommended
grouping laws into four codes. The Wage Code was enacted in 2019, and the other three
codes in 2020, hailed as “historic” reforms after 73 years .
• Status: Note that though passed by Parliament and assented (2019/2020), the codes are
not yet in force (awaiting notification) . However, EPFO exam expects knowledge of
their provisions.

Overview of the Four Labour Codes

• Code on Wages, 2019: Covers wage and bonus payments and equal remuneration.
Subsumes four laws – Payment of Wages Act, Minimum Wages Act, Payment of Bonus
Act, Equal Remuneration Act . Objective is to ensure timely payment of wages and a
minimum wage for all employees.
• Industrial Relations (IR) Code, 2020: Regulates trade unions, conditions of
employment, and industrial disputes. Merges Trade Unions Act, Industrial Employment
(Standing Orders) Act, and Industrial Disputes Act . Aims to foster harmonious industrial
relations with simpler dispute resolution.
• Social Security (SS) Code, 2020: Merges nine laws (EPF Act, ESI Act, Gratuity,
Maternity Benefit, etc. ) to extend social security (PF, pension, insurance, gratuity) to
all workers, including unorganized and gig workers.
• Occupational Safety, Health & Working Conditions (OSH) Code, 2020: Consolidates
13 laws (Factories Act, Mines Act, CLRA, etc. ) to ensure safe and healthy working
conditions, uniform safety standards, and welfare provisions across industries.
 • Key Idea: Each code simplifies its domain (wages, industrial relations, social security,
OSH) by unifying definitions and standards.

Code on Wages, 2019 – Coverage & Key Definitions (15

minutes)
• Applicability: The Code on Wages applies to all employees in all establishments
(organized or unorganized) for matters of wages, minimum wages, and bonus . Unlike
old laws, there is no wage ceiling or restriction by industry for coverage .
• What Did the Old Laws Say?
•
• Before the Code on Wages, wage-related issues were governed by 4 different laws:

Old Law What It Covered Limitations

Minimum Wages Act, Only applied to certain “scheduled”
Fixed minimum wages
1948 industries
Payment of Wages Act, Applied only to workers earning below
Timely wage payment
1936 ₹24,000/month
Payment of Bonus Act, Only for employees earning <
Annual bonus
1965 ₹21,000/month
Equal Remuneration No gender discrimination
Limited industry enforcement
Act, 1976 in pay

Changed Under the Code on

Wages, 2019?
Under the Code
Explanation
Whether in private or government, organized or
Applies to ALL Employees
unorganized sector
Applies to all types of jobs, not just “scheduled
No industry restriction
employments”
No wage ceiling for coverage Everyone is covered, even if earning ₹50,000 or more
Same definition of wages for all Uniform rule for minimum wages, bonus, overtime,
purposes etc.
Still subject to a wage threshold (₹21,000) for
Bonus
eligibility, but the law itself applies to all
A private tuition center with 6 employees might not have to pay minimum wages because it
wasn’t in the “scheduled list.”

Under the Code:

That tuition center must pay minimum wages and follow wage payment rules—no exceptions.

• Acts Subsumed: It consolidates 4 Acts – Payment of Wages Act 1936, Minimum

Wages Act 1948, Payment of Bonus Act 1965, and Equal Remuneration Act 1976 . This
unification means one set of rules for wage and bonus matters.
• Definition – Wages: The code introduces a uniform definition of “wages” for the first
time. Wages include all remuneration by way of salary, allowances, etc., expressed in
monetary terms (basic pay, dearness allowance, retaining allowance) . Certain specific
items are excluded (e.g., house rent allowance, bonus, pension contributions, overtime
pay, gratuity, etc.) .

Dearness Allowance (DA) is a wage component paid by employers to offset the impact of
inflation on workers’ real income. It helps employees maintain their purchasing power even as
prices rise.

Retaining Allowance means the amount paid to a worker to retain them in service during a
period when the worker is not actually working, such as during off-seasons.

A sugar mill runs only 8 months in a year. For the remaining 4 months, it pays ₹3,000/month as
retaining allowance to its regular workers to ensure they return when the season starts.

• 50% Rule: Important: Exclusions from wages are capped at 50% of total
remuneration. If the excluded components (like HRA, bonuses, etc.) exceed 50% of the
employee’s total pay, the excess amount is counted as part of “wages” . This prevents
employers from minimizing social security contributions by inflating allowances.
•
 • Other Key Definitions: Employee vs Worker: The Wage Code defines both –
“employee” broadly (anyone employed, including managerial roles) and “worker” as a
subset mainly doing manual/skilled work and earning below a certain cutoff (e.g.
supervisor earning ≤ ₹18,000) .

• “Worker” means any person employed to do manual, unskilled, skilled, technical,

operational, clerical or supervisory work, but does not include a person employed in a
supervisory capacity drawing wages exceeding ₹18,000/month, or such amount as may be
notified by the Central Government.
• “Worker” means any person employed to do: manual, unskilled, skilled, technical, operational,
clerical or supervisory work, but does not include a person in supervisory capacity
drawing wages exceeding ₹18,000/month.
• A manual worker earning ₹40,000/month is still a “worker”.
• But a supervisor earning ₹40,000/month is not a “worker” under this Code.
•
Concept Threshold
Supervisor = Worker? Only if earning ≤ ₹18,000
Bonus eligibility ₹21,000/month
EPF coverage ₹15,000/month
ESI ₹21,000/month

Code on Wages, 2019 – Important Provisions

• Minimum Wages for All: The Code guarantees minimum wages for all employees in
all industries (earlier, minimum wages applied only to scheduled employments) . The
“appropriate government” (Central or State) will fix minimum wage rates for all
sectors.
• National Floor Wage: Introduces the concept of a “floor wage” set by the Central
Government to establish a baseline across regions . States cannot set their minimum
wages lower than this floor . This ensures a basic uniform living wage nationally, while
states can set higher rates based on local conditions.

(its not same for the whole nation. It can be different for different regions)
 • Timely and Full Payment: The code mandates timely payment of wages to all
employees. Wage periods can be fixed (e.g., monthly, weekly) and wages must be paid
by the 7th or 10th day of the next month (depending on employee count)

Wage Period Payment Deadline

Daily End of the shift/day
Within 2 working days after the end of the
Weekly
week
Fortnightly Within 2 days of the end of the fortnight
Monthly
- If < 1000 workers → Before 7th of the next
month
- If ≥ 1000 workers → Before 10th of the next
month

• No Gender Discrimination: Carries forward Equal Remuneration Act provisions –

equal pay for equal work for every gender . Employers cannot discriminate on gender
in wages or recruitment for the same work or work of similar nature.
• Payment of Bonus: The statutory bonus (from Payment of Bonus Act) continues –
eligible employees (previously those earning up to ₹21,000/month) are entitled to an
annual bonus of 8.33% to 20% of wages, subject to profit allocable surplus. (The code
empowers govt to notify the wage threshold for bonus eligibility , likely remaining
around ₹21,000). Important sections: Min. bonus 8.33%, Eligibility ~₹21,000 salary,
applicability: establishments with 20+ workers.
• Overtime Pay: If an employee works beyond normal working hours, overtime must be
paid at least 2 times the normal rate (same as old law – a fact that can be asked).

Industrial Relations Code, 2020 – Coverage & Definitions

• Acts Subsumed: Merges 3 laws – Trade Unions Act 1926, Industrial Employment
(Standing Orders) Act 1946, and Industrial Disputes Act 1947 – into a single IR Code.
The goal is to streamline how trade unions form, how employment conditions are
regulated, and how disputes are resolved.
• Definition – Worker: The IR Code broadens the definition of “worker.” It includes
anyone employed in skilled or unskilled, manual, technical, operational or clerical
work . Importantly, it includes supervisors drawing wages < ₹18,000/month in the
definition (earlier many supervisors were excluded). Those in managerial roles or earning
above that are not “workers.”
• Definition – Industry: The code clarifies what constitutes an “industry” (any systematic
activity producing goods/services) and excludes purely charitable organizations, domestic
 work etc. This definition frames what establishments fall under industrial dispute
provisions.
• Trade Unions: The code recognizes trade unions and introduces the concept of a
“Negotiating Union/Council”. In an establishment with multiple unions, the one with
51% or more workers as members is recognized as the sole negotiating union; otherwise
a negotiating council is formed .
•
• Standing Orders Threshold: Important: Establishments with ≥300 workers must
have Standing Orders (i.e., formal employment service rules) . The threshold was raised
from 100 to 300 employees, giving smaller firms flexibility. This means companies under
300 workers need not formally codify service rules, easing compliance .
• Objective: Overall, the definitions and thresholds in the IR Code aim to balance worker
rights with flexibility for employers (e.g., larger threshold for standing orders, expanded
“worker” definition to include more employees).

Industrial Relations Code, 2020 – Key Provisions

• Fixed-Term Employment: The IR Code legalizes fixed-term employment (FTE).
Employers can hire workers on a fixed-term contract with the same benefits as
permanent employees (wages, pro-rata gratuity, etc.) . This allows flexibility in hiring
while ensuring fixed-term workers aren’t denied statutory benefits.
• FTE employees are now eligible for gratuity (no minimum service) like regular
employees .
•
• Hire & Fire Threshold (Layoffs): Establishments up to 300 workers can lay-off,
retrench, or close without prior government approval . Earlier, the limit was 100
workers (under ID Act) for requiring permission. Raising it to 300 is aimed at ease of
business, though it’s controversial. For exam: remember “300” as the new threshold for
government approval for layoffs.
•
• Dispute Resolution: Faster resolution of industrial disputes: multiple measures – e.g.,
dual members in Industrial Tribunals for quicker hearings (if one member is absent,
work continues) ; disputes can go straight to tribunal if not resolved in conciliation ;
tribunal awards to be implemented within 30 days . This is to ensure “justice delayed is
justice denied” is addressed .
•
• Strikes & Lockouts: The code makes strikes more difficult across all sectors. 14-day
prior notice is now mandatory for any strike (and lockout) in all establishments . The
notice is valid for 60 days; if no strike in that window, a fresh notice is needed . (Before,
under the old law, this notice was required only in public utility services .) Also, if >50%
workers take mass casual leave on a given day, it is treated as a strike . These provisions
ensure time for negotiation before work stoppages.
 • Trade Union Recognition: For the first time, statutory recognition of trade unions at
central and state level is provided , meaning a union can be officially acknowledged to
represent workers.
• Re-Skilling Fund: A new worker re-skilling fund is set up to help retrenched workers.
Employers must contribute 15 days’ wages for every worker they retrench, into a fund
for that worker’s skill upgradation .
• 15 days wages within 45 days of retrenchment to a reskilling fund – know this number.
• Women in Night Shifts: Although covered more in OSH, note IR Code/OSH Code
mandate women can work night shifts in all sectors with their consent and safety
arrangements . This promotes gender equality in employment opportunities.
•
• Exam Focus: Remember key numbers: 300 (layoff/standing orders threshold), 14 days
(strike notice), 15 days (reskilling fund contribution), 51% (negotiating union criteria).
Also FTE equal benefits, trade union recognition, etc.

Social Security Code, 2020 – Coverage & Key Definitions

• Acts Subsumed: Integrates 9 social security laws – EPF Act 1952, ESI Act 1948,
Payment of Gratuity Act 1972, Maternity Benefit Act 1961, Employee Compensation Act
1923, Unorganised Workers’ Social Security Act 2008, etc. . This creates a unified
framework for social security (provident fund, insurance, gratuity, maternity, etc.) for
workers.
•
• **Wider **Definition of Employee: The SS Code expands who is considered an
“employee” to ensure more workers get covered. It explicitly includes inter-state
migrant workers, casual and gig workers, platform workers, film/TV workers, etc.,
in addition to traditional employees .
o Gig Worker / Platform Worker: New categories defined – individuals outside
traditional employer-employee arrangement (like ride-share drivers, food delivery
personnel) are now recognized for social security . This is a first – a potential
question: “Which Labour Code includes Gig and Platform workers for social
security benefits?” (Answer: Social Security Code) .
o
• Applicability Thresholds: Generally, the social security schemes apply as before or
wider:
o EPF: Applicable to all establishments with ≥20 employees (now universal,
earlier only certain scheduled industries) . Establishments <20 can opt in
voluntarily .
Old System (EPF Act, 1952) New System (Social Security Code, 2020)
EPF applied only to certain scheduled Now applies to all types of establishments —
industries (like factories, construction, etc.) universal coverage
Employers had to check if their industry was No need to check schedule — any workplace
“notified” with ≥ 20 workers is covered
Voluntary registration allowed even with < 20
Below 20 employees – no coverage
workers

o ESI: To cover all establishments with ≥10 employees (as earlier) but extended to
all 740 districts (earlier 566 districts) . Hazardous industries are covered even if
only 1 worker . Establishments <10 can opt in to ESI .
• The Employees’ State Insurance (ESI) scheme provides medical, sickness, maternity,
disablement, and dependent benefits to employees and their families. It’s a social
security and health insurance scheme administered by the ESIC (Employees’ State
Insurance Corporation).

Criteria Applicability
Establishment with ≥10
Mandatory ESI coverage (same as before)
employees
Hazardous industries Even if there is only 1 employee, ESI is mandatory
Establishments with <10
Can opt in voluntarily (if they wish to provide ESI)
employees
Now extended to all 740 districts in India (previously covered
Geographic coverage
only 566 districts)

o Other schemes (Maternity, Gratuity, etc.) generally have no threshold for

eligibility (any covered employee gets benefits).

• Key Definitions: Wages definition here is the same uniform definition as in Wage Code
(for contribution calculations). Inter-State Migrant: defined as a worker who comes on
their own from one state to another for work and earns up to ₹18,000/month – now
included in coverage (previously only contractor-arranged migrants were defined).
•
• Boards & Funds: The code provides for a National Social Security Board for
unorganized workers, gig workers, etc., to recommend and monitor schemes . It also
mandates creation of a Social Security Fund for unorganized sector workers . These
could fund gig worker benefits, etc., and will draw from various levies and contributions .
 • Gratuity Changes: A major change: Gratuity (the lump-sum paid on leaving after long
service) is now available to Fixed-Term Employees with no minimum service period .
(Earlier, one needed 5 years of continuous service; now even a fixed-term contract
worker who might work less can get gratuity). Also, for working journalists, the
qualifying service for gratuity is reduced to 3 years .

Gratuity Rule Change (For Working Journalists):

• Earlier: All employees (including journalists) needed 5 years of continuous service for
gratuity. - Now: Working journalists can claim gratuity after just 3 years of
continuous service.

This is a special relaxation in the Code to protect the often irregular and project-based careers of
journalists.

• Maternity Benefits: Remains essentially the same as the Maternity Benefit Act (26
weeks leave for women, crèche facility requirements, etc. – no major change in the code
except being consolidated).
•
• Other Provisions: Mandatory reporting of job vacancies online for establishments with
≥20 workers (to strengthen employment exchanges). Expansion of ESI to gig/platform
and plantations (on voluntary or scheme basis) .
•
• Exam Pointers: Focus on new inclusions (gig/platform workers, all unorganized
workers), the thresholds for EPF (20) and ESI (10, and 1 for hazardous), gratuity
eligibility for fixed-term. Also know the list of subsumed acts to match with the right
code (e.g., “Which Code subsumed the Maternity Benefit Act?” – Social Security Code ).

Social Security Code, 2020 – Important Provisions

Provident Fund (EPF): No change in contribution rate (still generally 12% of wages each by
employer and employee for EPF). The wage ceiling for mandatory EPF membership remains
(currently ₹15,000/month, beyond which it’s optional) – the code allows changes by notification.
The Employee Pension Scheme (EPS) and EDLI continue under the code as social security
schemes for employees.

• Employees’ State Insurance (ESI): All establishments with 10+ workers in notified
industries must register for ESI, providing medical insurance to workers. Under the code,
 the government can extend ESI to new sectors or smaller units or even self-employed by
notification . Notably, gig and platform workers can be linked to ESIC via schemes .
•
• Unorganised Workers: The code outlines schemes for unorganised sector workers
(who are self-employed or in informal sector). Registration on a national portal via self-
declaration will be done for gig, platform, and unorganized workers . This will enable
targeted delivery of benefits (like insurance, welfare schemes) .

• Maternity Benefit: Female employees continue to get 26 weeks paid maternity leave
(for first two children) as per the Maternity Benefit Act provisions, now under this code.
Also, a medical bonus (at least ₹3,500) if no prenatal care is provided by employer (as
per existing rules) .
• Compensation for Injury: The Employee Compensation Act provisions (for disability
or death at workplace) are included. No major change: employers must compensate for
workplace injury or occupational disease as before. One change: if a worker dies or is
injured in an accident, the code ensures 50% of the penalty (fined on employer) is given
to the worker or dependents in addition to other dues .
• Gig/Platform Worker Welfare: The government may notify separate schemes for gig
and platform workers’ provident fund, injury cover, etc. A portion of funding could come
from aggregator/platform companies (for instance, a ride-sharing company contributing
1-2% of its revenue to a welfare fund )
• Social Security for All: the vision is universal social security – extending PF and ESI
beyond the organized sector . This is why even self-employed or those in new forms of
work are considered in the code .

Remember the names of schemes and which code covers them. E.g., EPF, ESI, Gratuity,
Maternity – all under Social Security Code. Key numbers: 20 employees (EPF threshold),
10 employees (ESI threshold), 5 years vs 0 years (gratuity eligibility for permanent vs
fixed-term), 26 weeks (maternity leave).

OSH Code, 2020 – Coverage & Key Definitions

• Acts Subsumed: Combines 13 Acts related to occupational safety, health and working
conditions (like Factories Act 1948, Mines Act 1952, Contract Labour Act 1970,
Building & Other Constructions Workers Act, etc. ). Intention: one uniform law for work
conditions, health and safety standards across industries.
•
• Applicability – Factories: The definition of “factory” has changed: establishments with
≥20 workers (if using power) or ≥40 workers (without power) in manufacturing come
under this code . (Old threshold was 10/20 under the Factories Act; the code raises it,
exempting smaller units from onerous factory regulations.) This is a key number to note:
Factory = 20 with power or 40 without power .
 • Contract Labour: The code applies to contractors employing 50 or more workers
(earlier threshold was 20 under CLRA) . So, if a contractor has ≥50 contract workers,
they must follow licensing and welfare provisions. This higher threshold reduces small
contractors’ compliance burden.
•
• Inter-State Migrant Workers: Definition expanded – any worker who moves by
themselves to another state for employment (earning ≤ ₹18,000/month) is treated as
an inter-state migrant worker . Previously, only workers recruited through an
agent/contractor were counted. Now all migrant workers are covered , significantly
increasing coverage (likely to be tested, given the pandemic highlighted migrant issues).
•
• Key Terms: Occupational Hazard, Employer’s Duty, etc. – Employer must ensure
workplace free of hazards causing injury or disease . The code also defines overtime,
leave, etc., but we will discuss those in provisions.
• Appropriate Government: Depending on the industry (central vs state list), either state
or central government will enforce OSH provisions (detail not too crucial for exam,
except knowing central gov. for mines, ports, etc., state for factories, etc.).

OSH Code, 2020 – Important Provisions

• Work Hours & Leave: The OSH Code caps the daily work hours at 8 hours and
normal weekly hours at 48 (as per international standards) . It reiterates overtime beyond
8 hours/day must be paid at twice the normal rate. Leave: Workers earn 1 day of paid
leave for every 20 days worked, provided they work at least 180 days in a year . (This is
a relaxation from the old 240 days requirement under Factories Act.)

• Safety Provisions: Employers must provide a safe working environment: annual free
health check-ups for workers above a certain age , compliance with safety standards,
risk mitigation, and welfare facilities (canteens, crèches, first aid, as applicable by
establishment size).

•
• Migrant Worker Protections: New benefits for inter-state migrants: portability of
ration and building/construction welfare benefits to destination state . Also, a
provision for a “Journey Allowance” – employers must pay a lump-sum fare for a
migrant worker’s trip back home (for visits or end of job) . These are novel provisions
likely to be of interest (migrant journey allowance is a new concept).
 • Women Employment: The code ensures women’s right to work in all establishments
and at night (7 PM to 6 AM), conditional on their consent and the employer providing
safety measures . This is a progressive step – potential question: True/False – “Women
are now permitted to work night shifts in factories, provided safety arrangements are in
place” (True, as per OSH Code).

•
• Working Journalists & IT: The code broadens coverage to new sectors. For example,
“audio-visual workers” now includes those in digital media (not just traditional
cinema), bringing OTT platform workers under safety/welfare laws . It explicitly covers
IT/ITES and service sector workers under its ambit of safety and working conditions
(so labour laws are not just for factories).
•
• License & Inspectorate Reforms: Introduces single license for contractors and staffing
firms (instead of multiple state licenses). An “Inspector-cum-Facilitator” system is
brought in – inspectors will guide compliance rather than only penalize . Also, a web-
based random inspection system to curb inspector harassment .
• Penalties: Stricter penalties for violations (fines and imprisonment tiers have been raised
to ensure deterrence ). For serious accidents, penalties are higher, and as noted, half of
such penalty goes to affected workers’ families .
• Exam Focus: Key numbers – 20/40 workers (factory definition), 50 (contract labour),
8 hours work day, 1 day leave per 20 days after 180 days. Also, migrant worker
definition and benefits (journey allowance), women night work provision. These are all
ripe for statement-based questions.

Sample MCQs

1. Which of the following Acts is NOT subsumed under the Code on Wages, 2019?

A. Payment of Wages Act, 1936

B. Minimum Wages Act, 1948

C. Trade Unions Act, 1926

D. Payment of Bonus Act, 1965

Answer: C. Trade Unions Act is merged into the IR Code, not the Wage Code .
2. As per the new Wage Code, if the excluded components of a salary (like HRA,
overtime, etc.) exceed 50% of total remuneration, the excess amount will:

A. Be ignored for all calculations.

B. Be treated as “wages” for contributions and benefits.

C. Be taxable as per Income Tax rules only.

D. Be given to a worker welfare fund.

Answer: B. Any amount beyond the 50% cap on exclusions is counted as wages
(ensuring social security contributions are not undercut).

3. The Industrial Relations Code, 2020 increases the threshold for requiring
government permission for layoffs and closures to establishments with at least:

A. 100 workers

B. 300 workers

C. 500 workers

D. No such permission needed anymore for any size

Answer: B. 300 workers. Firms up to 299 can lay off/retrench without prior approval
(raised from the old limit of 100) .

4. Which category of workers have been newly included for social security coverage
under the Social Security Code, 2020?

A. Agricultural labourers in the informal sector

B. Gig and Platform workers (e.g., app-based drivers)

C. Child workers aged 14–18

D. Foreign workers employed in India

Answer: B. Gig and platform workers are explicitly included for social security for the
first time .

5. Under the OSH Code, 2020, an establishment is defined as a “factory” (requiring

registration under the code) if it has:

A. 10 workers with power or 20 without power

 B. 20 workers with power or 40 without power

C. 50 workers (irrespective of power)

D. Any manufacturing unit, regardless of number of workers

Answer: B. The threshold is 20 workers (if power is used) or 40 workers (if no power) .

6. True or False: The new labour codes allow women to work night shifts in all
establishments.

Answer: True. Women are permitted to work at night across sectors under conditions of
safety and with their consent .

Summary
• Unified Labour Law Regime: The four labour codes represent a shift to a simplified,
consolidated framework replacing 29 laws. This reform is aimed at universalizing labour
welfare (covering ~50 crore workers) while making compliance easier .
• Exam Must-Knows per Code:
o Wage Code: Uniform definition of wages (remember the 50% rule), floor wage
concept , no gender pay gap , and broad coverage of minimum wages & bonus to
all employees.
o IR Code: New thresholds (300 workers for layoffs/standing orders) , mandatory
strike notice (14 days) , fixed-term employment with equal benefits , and
recognized negotiating unions.
o SS Code: Inclusion of gig/platform workers , extension of EPF/ESI coverage (20
& 10 worker thresholds, respectively) , gratuity for fixed-term workers , and
creation of social security funds/boards.
o OSH Code: Higher threshold for factories (20/40) , emphasis on safety (annual
health check, hazard-free workplace) , improved conditions for migrants (journey
allowance, portability) , women allowed in night shifts , standard 8-hour work day
, and mandatory appointment letters for all workers .

Summary Notes

• Labour Codes Overview: 4 codes consolidating 29 laws; aim to expand coverage to

~90% workers , simplify compliance, and update old laws after decades .
• Code on Wages, 2019: Applies to all employees nationwide . Key points: Uniform
“wages” definition (with 50% cap on exclusions) ; National Floor Wage by Center
 (states’ minimum ≥ floor) ; no gender pay discrimination ; covers minimum wage,
payment of wages, bonus (eligibility ~₹21,000, min. 8.33% bonus) and equal
remuneration.
• Industrial Relations Code, 2020: Merges trade unions and industrial disputes laws.
Trade Union recognition introduced (51% membership rule); Fixed-Term
Employment formalized (FTEs get same benefits as regular) ; Standing Orders
required if ≥300 workers ; Layoff permission threshold 300 (raised from 100) ; 14-day
strike notice mandatory for all strikes ; Re-skilling fund (15 days wages) for retrenched
workers .
• Social Security Code, 2020: Unifies PF, ESI, gratuity, maternity, etc. EPF: 20+
employees (others can opt in) ; ESI: 10+ employees (now all districts) ; Gratuity: now
also for FTE (no 5-year requirement) ; Gig & Platform workers covered via specialized
schemes ; Social Security Fund/Board for unorganized sector . Mandatory reporting of
vacancies (20+ firms) . Maternity Benefit (26 weeks) and Employee Compensation
unchanged in essence.
• OSH Code, 2020: Consolidates workplace safety laws. Factory = ≥20 workers (with
power) or ≥40 (without) ; Contract labour applicable if ≥50 workers ; Work hours:
max 8/day, overtime 2x pay ; Annual leave: 1 per 20 days worked (after 180 days work)
; Women allowed night shift with safety measures ; Inter-state migrants – expanded
definition & benefits (travel allowance, portable welfare) ; Mandatory annual health
check-ups and safety standards for employers .
• Important Figures to Remember: 50% (wage exclusion limit) , 300 workers (IR Code
thresholds) , 14 days (strike notice) , 15 days wages (reskilling fund) , 20/40 (factory
definition) , 10 (ESI threshold), 20 (EPF threshold) , 5 years vs 0 (gratuity for permanent
vs FTE) , 26 weeks (maternity leave)..
• These four codes are expected to transform labour law – keep updated with any
notifications of their enforcement.