Earlier this week, the Centre notified the draft rules for the Labour Codes, namely The Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Social Security, 2020; and the Occupational Safety, Health and Working Conditions Code, 2020.
The public and all stakeholders are free to give their feedback and suggestions or objections, if any, within a month and a half.
An announcement was made in November regarding the implementation of the Labour Codes with the aim of ensuring better compensation, more safety and stronger social security for the Indian workforce.
The government plans to enforce the four codes with effect from 1 April, 2026. A time period of 30 days has been allowed to the stakeholders to give their suggestions for the Industrial Relations Code. For the other three Codes, a time period of 45 days has been allowed for feedback.
The government is endeavouring to protect 100 crore workers with social security by March of 2026. Currently, it is reported that only about 94 crore workers are enjoying social security in the country.
Among other things, the new Labour Codes and reforms offer every single worker a legal right to a minimum wage and timely payment of wages (by 7th of the following month). Companies can no longer hide most of the salary in allowances. At least 50 per cent of an employee’s total compensation must be classified as “wages.”